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Contents 1
Managing Human Resources 1
Introduction 1 Human Resources and Company Performance 2 Responsibilities of Human Resource Departments 4 DID YOU KNOW? Engaged, Enabled Employees Deliver Bottom-Line Benefits 5
Analyzing and Designing Jobs 6 Recruiting and Hiring Employees 7 Training and Developing Employees 7 Managing Performance 8 Planning and Administering Pay and Benefits 8 HR HOW TO Putting Compensation in Perspective 9
Maintaining Positive Employee Relations 9 Establishing and Administering Personnel Policies 10 Ensuring Compliance with Labor Laws 10 Supporting the Organization’s Strategy 11 BEST PRACTICES For Lifespan, Data-Driven Approach Helps HR Get Better 12
Skills of HRM Professionals 13 HR Responsibilities of Supervisors 14 Ethics in Human Resource Management 15 Employee Rights 15 HR OOPS! Ethics of a Financial Crisis 16
Standards for Ethical Behavior 17 Careers in Human Resource Management 18 Organization of This Book 19 THINKING ETHICALLY Who’s Responsible for Your Company’s Reputation? 21
Summary 21
Key Terms 22 Review and Discussion Questions 22 BusinessWeek Case Rebuilding Competitive Advantage 23 Case: Can the TSA Secure Top-Flight Performance? 24 IT’S A WRAP! 25 Notes 25
PART 1 The Human Resource Environment 27 2
Trends in Human Resource Management 28
Introduction 28 Change in the Labor Force 29 An Aging Workforce 29 A Diverse Workforce 31 Skill Deficiencies of the Workforce 33 High-Performance Work Systems 34 Knowledge Workers 34 DID YOU KNOW? Top 10 Occupations for Job Growth 35
Employee Empowerment 36 Teamwork 37 Focus on Strategy 38 High Quality Standards 38 BEST PRACTICES HR a Component of Quality at Mesa Products 40
Mergers and Acquisitions 40 Downsizing 41 Reengineering 42 Outsourcing 42 HR HOW TO Leading after Layoffs 43
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Expanding into Global Markets 43 Technological Change in HRM 45 The Internet Economy 46 Electronic Human Resource Management (e-HRM) 46 Sharing of Human Resource Information 47
eHRM Video Résumés—Perilous Policy? 73
eHRM High-Tech Scheduling at Bank of the West 48
Valuing Diversity 79 Occupational Safety and Health Act (OSH Act) 80 General and Specific Duties 80 Enforcement of the OSH Act 82 Employee Rights and Responsibilities 83 Impact of the OSH Act 84 Employer-Sponsored Safety and Health Programs 85 Identifying and Communicating Job Hazards 85
Change in the Employment Relationship 48 A New Psychological Contract 48 Flexibility 49 HR OOPS! When a Contractor Isn’t a Contractor 50 THINKING ETHICALLY The Ethics of Offshoring 52
Summary 52 Key Terms 54 Review and Discussion Questions 54 BusinessWeek Case Raises or Rebuilding? A Business Owner’s Dilemma 54 Case: Hershey’s Sweet Mission 55 IT’S A WRAP! 56 Notes 56
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Providing Equal Employment Opportunity and a Safe Workplace 59
Introduction 59 Regulation of Human Resource Management 60 Equal Employment Opportunity 61 Constitutional Amendments 61 Legislation 63 BEST PRACTICES Verizon Connects with Disabled Workers 67
Executive Orders 70 The Government’s Role in Providing for Equal Employment Opportunity 70 Equal Employment Opportunity Commission (EEOC) 70 Office of Federal Contract Compliance Procedures (OFCCP) 72 Businesses’ Role in Providing for Equal Employment Opportunity 72
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Avoiding Discrimination 73 Providing Reasonable Accommodation 77 Preventing Sexual Harassment 78 HR HOW TO Responding to Complaints of Harassment 79
DID YOU KNOW? Top 10 Causes of Workplace Injuries 86 HR OOPS! Construction Firm Falls Down on the Training Job 87
Reinforcing Safe Practices 87 Promoting Safety Internationally 88 THINKING ETHICALLY Do Family-Friendly Policies Hurt Men? 88
Summary 89 Key Terms 90 Review and Discussion Questions 90 BusinessWeek Case Attacked by a Whale 91 Case: Walmart’s Discrimination Difficulties 92 IT’S A WRAP! 93 Notes 93
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Analyzing Work and Designing Jobs 95
Introduction 95 Work Flow in Organizations 96 Work Flow Analysis 96 Work Flow Design and an Organization’s Structure 98 Job Analysis 98 HR OOPS! An Undefined Job 99
Job Descriptions 99 Job Specifications 100
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xxvi Contents HR HOW TO Writing a Job Description 101
Sources of Job Information 102 Position Analysis Questionnaire 103 Fleishman Job Analysis System 104 Importance of Job Analysis 104 BEST PRACTICES Frito-Lay Takes a Fresh Look at Job Design 106
Trends in Job Analysis 107 Job Design 107 Designing Efficient Jobs 108 Designing Jobs That Motivate 108 DID YOU KNOW? Job Satisfaction Is Slipping 110
Designing Ergonomic Jobs 113 Designing Jobs That Meet Mental Capabilities and Limitations 114 eHRM “Office” Work on the Road 115 THINKING ETHICALLY Is Telecommuting Fair to Those at the Office? 116
Summary 117 Key Terms 118 Review and Discussion Questions 118 BusinessWeek Case Pfizer Outsources Tasks, Not Jobs 118 Case: Creative Jobs at W. L. Gore 119 IT’S A WRAP! 120 Notes 121
PART 2 Acquiring and Preparing Human Resources 123 5
Planning for and Recruiting Human Resources 124
Introduction 124 The Process of Human Resource Planning 125 Forecasting 125 Goal Setting and Strategic Planning 128 HR HOW TO Using Temporary Employees and Contractors 133
Implementing and Evaluating the HR Plan 135 Applying HR Planning to Affirmative Action 135 eHRM Talent Management at North Shore–Long Island Jewish Health System 136
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Recruiting Human Resources 136 Personnel Policies 137 BEST PRACTICES Room to Bloom and Grow at Four Seasons 138
Recruitment Sources 139 Internal Sources 139 DID YOU KNOW? Four in Ten Positions Are Filled with Insiders 140
External Sources 140 Advertisements in Newspapers and Magazines 142 Electronic Recruiting 143 HR OOPS! When Social Networking Gets Too “Social” 144
Evaluating the Quality of a Source 146 Recruiter Traits and Behaviors 147 Characteristics of the Recruiter 147 Behavior of the Recruiter 148 Enhancing the Recruiter’s Impact 148 THINKING ETHICALLY Citizens First? 150
Summary 150 Key Terms 151 Review and Discussion Questions 152 BusinessWeek Case Direct Employers Association: New Directions for Online Job Search 152 Case: Apple’s Make-vs.-Buy Decision 153 IT’S A WRAP! 154 Notes 154
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Selecting Employees and Placing Them in Jobs 157
Introduction 157 Selection Process 158 BEST PRACTICES Strategy-Driven Selection for Mike’s Carwash 159
Reliability 160 Validity 160 Ability to Generalize 162 Practical Value 162 Legal Standards for Selection 163 eHRM Confirming Eligibility with E-Verify 165
Job Applications and Résumés 166 Application Forms 166 Résumés 166
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References 168 Background Checks 169 Employment Tests and Work Samples 170 Physical Ability Tests 170 Cognitive Ability Tests 171 Job Performance Tests and Work Samples 171 Personality Inventories 172 Honesty Tests and Drug Tests 173 Medical Examinations 174 Interviews 174 Interviewing Techniques 174 DID YOU KNOW? What Turns Off an Interviewer 175
Advantages and Disadvantages of Interviewing 176 HR HOW TO Interviewing Effectively 177
Preparing to Interview 177 Selection Decisions 178 How Organizations Select Employees 178 HR OOPS! Style over Substance 179
Communicating the Decision 179 THINKING ETHICALLY Tainted by Association 180
Summary 180 Key Terms 182 Review and Discussion Questions 182 BusinessWeek Case Limits on Credit Checks 182 Case: When Recruiting on Campus Is Too Costly 183 IT’S A WRAP! 184 Notes 185
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Training Employees 188
Introduction 188 Training Linked to Organizational Needs 189 Needs Assessment 190 Organization Analysis 191 BEST PRACTICES Orkin Trains Experts 192
Person Analysis 193 Task Analysis 193 Readiness for Training 194 Employee Readiness Characteristics 194
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Work Environment 195 Planning the Training Program 196 Objectives of the Program 196 DID YOU KNOW? Many Companies Outsource Training Tasks 197
In-House or Contracted Out? 197 Choice of Training Methods 198 Training Methods 198 Classroom Instruction 199 Audiovisual Training 199 HR HOW TO Developing Effective Classroom Presentations 200
Computer-Based Training 201 eHRM Training Gets Mobile 202
On-the-Job Training 202 Simulations 203 Business Games and Case Studies 204 Behavior Modeling 205 Experiential Programs 205 Team Training 206 HR OOPS! When Training Crashes 207
Action Learning 207 Implementing the Training Program: Principles of Learning 208 Measuring Results of Training 210 Evaluation Methods 210 Applying the Evaluation 211 Applications of Training 212 Orientation of New Employees 212 Diversity Training 213 THINKING ETHICALLY Training Employees to Respect Privacy 215
Summary 215 Key Terms 217 Review and Discussion Questions 217 BusinessWeek Case The World Is IBM’s Classroom 218 Case: Jack B. Kelley Drives Home Safety Lessons 219 IT’S A WRAP! 220 Notes 220
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Contents
PART 3 Assessing Performance and Developing Employees 223 8
Managing Employees’ Performance 224
Introduction 224 The Process of Performance Management 225 DID YOU KNOW? Employees Want More Feedback 226
Purposes of Performance Management 226 Criteria for Effective Performance Management 227 eHRM Mining for Gold: Rating Employees with Data Mining 228
Methods for Measuring Performance 229 Making Comparisons 229 Rating Individuals 231 Measuring Results 237 Total Quality Management 238 Sources of Performance Information 239 Managers 239 Peers 240 Subordinates 240 Self 241 Customers 241
Legal Requirements for Performance Management 248 Electronic Monitoring and Employee Privacy 249 THINKING ETHICALLY Did We Get Burned by Short-Term Goals? 250
Summary 250 Key Terms 252 Review and Discussion Questions 253 BusinessWeek Case Performance Review Takes a Page from Facebook 253 Case: When Good Reviews Go Bad 254 IT’S A WRAP! 255 Notes 256
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Developing Employees for Future Success 258
Introduction 258 Training, Development, and Career Management 259 Development and Training 259 Development for Careers 259 Approaches to Employee Development 260 Formal Education 260 Assessment 261
BEST PRACTICES Customer Feedback Fuels Customer Satisfaction at United Community Bank 242
DID YOU KNOW? Developmental Assessment Often an Unmet Need 263
Errors in Performance Measurement 242 Types of Rating Errors 243 Ways to Reduce Errors 243 Political Behavior in Performance Appraisals 243 Giving Performance Feedback 244 Scheduling Performance Feedback 244 Preparing for a Feedback Session 245 Conducting the Feedback Session 245
BEST PRACTICES Challenges Nourish Employees’ Growth at Rainforest Alliance 267
HR HOW TO Discussing Employee Performance 246
Finding Solutions to Performance Problems 246 HR OOPS! Were All Above Average 247
Legal and Ethical Issues in Performance Management 248
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Job Experiences 267 Interpersonal Relationships 271 eHRM Finding a Mentor Online HR HOW TO Coaching Employees
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Systems for Career Management 274 Data Gathering 275 Feedback 276 Goal Setting 277 Action Planning and Follow-Up 277 Development-Related Challenges 279 The Glass Ceiling 279 Succession Planning 279
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Monitoring Job Satisfaction 313
HR OOPS! Succession Planning for Top Execs 280
BEST PRACTICES How Campbell Soup Stirred Up Employee Satisfaction 314
Dysfunctional Managers 282 THINKING ETHICALLY Developing Ethical Employees 282
THINKING ETHICALLY Keeping Employees When You Can’t Keep Promises 316
Summary 283 Key Terms 284 Review and Discussion Questions 285 BusinessWeek Case How GE and Zappos Develop Great Leaders 285 Case: How Leaders Flourish at Gunderson Lutheran Health System 286 IT’S A WRAP! 288 Notes 288
10 Separating and Retaining Employees 292
Compensating Human Resources 325 11 Establishing a Pay Structure 326
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Employee Separation 295 Principles of Justice 295 Legal Requirements 296 Progressive Discipline 298 eHRM Electronic Monitoring of Employee Activity
BusinessWeek Case How the MGM Grand Maintains Employee Engagement 318 Case: Texas Roadhouse Won’t Skimp on Making Employees Happy 319 IT’S A WRAP! 320 Notes 321
PART 4
Introduction 292 Managing Voluntary and Involuntary Turnover 293 HR OOPS! Most Valued, Least Loyal
Summary 316 Key Terms 317 Review and Discussion Questions 318
Introduction 326 Decisions about Pay 327 eHRM Paying Employees Electronically 328 300
Alternative Dispute Resolution 301 Employee Assistance Programs 302 Outplacement Counseling 303 Job Withdrawal 303 Job Dissatisfaction 304 DID YOU KNOW? Unpleasant Employees Are Bad for Business 306
Legal Requirements for Pay 329 Equal Employment Opportunity 329 Minimum Wage 330 Overtime Pay 330 HR OOPS! Booting Up Your Computer Is Work, Too 331
Child Labor 331 Prevailing Wages 332 Economic Influences on Pay 332 Product Markets 332 Labor Markets 333
Behavior Change 307 Physical Job Withdrawal 307 Psychological Withdrawal 308 Job Satisfaction 308
DID YOU KNOW? Tech Workers Out-Earn Managers 334
HR HOW TO Creating a Positive Work Environment 309
Pay Level: Deciding What to Pay 334 Gathering Information about Market Pay 335
Personal Dispositions 310 Tasks and Roles 310 Supervisors and Co-workers 312 Pay and Benefits 313
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HR HOW TO Gathering Wage Data at the BLS Web site 336
Employee Judgments about Pay Fairness 336
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xxx Contents Judging Fairness 336 Communicating Fairness 337 BEST PRACTICES Hobby Lobby Inspires with Good News about Pay 338
Job Structure: Relative Value of Jobs 339 Pay Structure: Putting It All Together 340 Pay Rates 340 Pay Grades 342 Pay Ranges 342 Pay Differentials 343 Alternatives to Job-Based Pay 343 Pay Structure and Actual Pay 345 Current Issues Involving Pay Structure 346 Pay during Military Duty 346 Pay for Executives 347 THINKING ETHICALLY Can the Burden of Cutbacks Be Shared Equitably? 348
Summary 348 Key Terms 350 Review and Discussion Questions 350 BusinessWeek Case Law Firms Slash First-Year Pay 351 Case: How Fog Creek Software Pays Developers 352 IT’S A WRAP! 353 Notes 353
12 Recognizing Employee Contributions with Pay 355 Introduction 355 Incentive Pay 356
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Pay for Organizational Performance 366 Profit Sharing 367 Stock Ownership 368 Balanced Scorecard 370 Processes That Make Incentives Work 372 Participation in Decisions 372 Communication 373 Incentive Pay for Executives 373 eHRM Financial Education Online 374
Performance Measures for Executives 374 Ethical Issues 375 THINKING ETHICALLY
Should Employees Give Back Bonuses after Bailouts? 376 Summary 376 Key Terms 377 Review and Discussion Questions 378 BusinessWeek Case BMW Aligns Executive Bonuses with Workers’ Bonuses 378 Case: Incentive Pay Part of the Strategy at Nucor 379 IT’S A WRAP! 380 Notes 380
Introduction 383 The Role of Employee Benefits 384 357
Pay for Individual Performance 358 Piecework Rates 358 DID YOU KNOW? Investing in Human Resources
Standard Hour Plans 360 Merit Pay 360 Performance Bonuses 362 363
Sales Commissions 363
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HR OOPS! Programs That Discourage Safety
13 Providing Employee Benefits 383
HR HOW TO Stretching Incentive-Pay Dollars
BEST PRACTICES Incentive for Innovation
Pay for Group Performance 364 Gainsharing 364 Group Bonuses and Team Awards 365
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BEST PRACTICES Benefits Help Make SAS Employees Happy 385
Benefits Required by Law 386 Social Security 386 Unemployment Insurance 387 Workers’ Compensation 388 Unpaid Family and Medical Leave 389 Health Care Benefits 390 Optional Benefits Programs 390 Paid Leave 391
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Contents xxxi DID YOU KNOW? U.S. and Japanese Workers Take Short Vacations 392
Group Insurance 393 eHRM Online Benefits Portal Pushes Wellness Effort at Leviton 397
Retirement Plans 397 “Family-Friendly” Benefits 401 Other Benefits 403 Selecting Employee Benefits 404 The Organization’s Objectives 404 Employees’ Expectations and Values 404 HR OOPS! Underestimating the Importance of Employee Discounts 406
Benefits’ Costs 407 Legal Requirements for Employee Benefits 407 Tax Treatment of Benefits 408 Antidiscrimination Laws 408 Accounting Requirements 409 Communicating Benefits to Employees 409 HR HOW TO Communicating about Benefits 410 THINKING ETHICALLY Is It Fair for Executives’ Retirements to Be More Secure? 411
Summary 411 Key Terms 413 Review and Discussion Questions 413 BusinessWeek Case GE Gets Radical with Health Benefits 414 Case: Employees Gobble Up the Benefits at General Mills 414 IT’S A WRAP! 415 Notes 415
PART 5 Meeting Other HR Goals 419 14 Collective Bargaining and Labor Relations 420 Introduction 420 Role of Unions and Labor Relations 421 National and International Unions 422
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Local Unions 423 Trends in Union Membership 424 DID YOU KNOW? Many Union Workers Hold Government Jobs 426
Unions in Government 426 Impact of Unions on Company Performance 427 Goals of Management, Labor Unions, and Society 428 Management Goals 428 Labor Union Goals 428 Societal Goals 429 Laws and Regulations Affecting Labor Relations 430 National Labor Relations Act (NLRA) 430 Laws Amending the NLRA 431 HR HOW TO Avoiding Unfair Labor Practices 432
National Labor Relations Board (NLRB) 433 HR OOPS! Thou Shalt Not Threaten 434
Union Organizing 435 The Process of Organizing 435 Management Strategies 436 Union Strategies 437 Decertifying a Union 438 Collective Bargaining 438 Bargaining over New Contracts 440 When Bargaining Breaks Down 441 Contract Administration 444 Labor-Management Cooperation 446 BEST PRACTICES Union Members Valued at Midwest Mechanical 447 THINKING ETHICALLY Is Communicating Enough? 448
Summary 448 Key Terms 450 Review and Discussion Questions 450 BusinessWeek Case U.S. Labor Lobbies European Management 450 Case: Boeing’s Prickly Relationship with Its Unions 451 IT’S A WRAP! 452 Notes 452
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15 Managing Human Resources Globally 456 Introduction 456 HRM in a Global Environment 457 Employees in an International Workforce 458 BEST PRACTICES Innovation Is a Global Affair at Cisco 459
Employers in the Global Marketplace 459 eHRM The Internet Brings Together P&G Employees 461
Factors Affecting HRM in International Markets 462 Culture 462 Education and Skill Levels 464 HR OOPS! Sometimes No One Reads between the Lines 465
Economic System 465 Political-Legal System 466 Human Resource Planning in a Global Economy 467 Selecting Employees in a Global Labor Market 467 Training and Developing a Global Workforce 469 Training Programs for an International Workforce 469 Cross-Cultural Preparation 470 HR HOW TO Training Programs in Other Countries 471
Global Employee Development 471 Performance Management across National Boundaries 471 Compensating an International Workforce 472 Pay Structure 472 Incentive Pay 474 Employee Benefits 474 International Labor Relations 475 Managing Expatriates 476 Selecting Expatriate Managers 476 Preparing Expatriates 476 Managing Expatriates’ Performance 479 Compensating Expatriates 480
Summary 484 Key Terms 485 Review and Discussion Questions 486 BusinessWeek Case Will Hardship Pay Survive the Downturn? 486 Case: How Roche Diagnostics Develops Global Managers 487 IT’S A WRAP! 488 Notes 488
16 Creating and Maintaining HighPerformance Organizations 491 Introduction 491 High-Performance Work Systems 492 Elements of a High-Performance Work System 492 Outcomes of a High-Performance Work System 494 Conditions That Contribute to High Performance 495 Teamwork and Empowerment 495 Knowledge Sharing 496 Job Satisfaction 497 DID YOU KNOW? Satisfaction at Top Government Agencies Compares Favorably with Big Businesses 498
Ethics 499 HRM’s Contribution to High Performance 500 Job Design 500 Recruitment and Selection 500 Training and Development 501 Performance Management 501 HR HOW TO Setting Performance Measures in Not-for-Profit Organizations 503
Compensation 504 HRM Technology 504 HR OOPS! Inflexible without Technology 505 eHRM Web 2.0 for Human Resource Management 508
Helping Expatriates Return Home 482
Effectiveness of Human Resource Management 509 Human Resource Management Audits 509 Analyzing the Effect of HRM Programs 511
THINKING ETHICALLY Job Location: Is It All about the Money? 484
BEST PRACTICES PricewaterhouseCoopers Applies the Data 512
DID YOU KNOW? Tokyo Tops Priciest Cities 481
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Contents THINKING ETHICALLY Can HRM Make Organizations More Ethical? 513
Summary 513 Key Terms 514 Review and Discussion Questions 514 BusinessWeek Case How MasterCard and Others Are Keeping Employees Creative 515 Case: Preparing for an Uncertain Future 515
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IT’S A WRAP! 517 Notes 517 Glossary 519 Photo Credits 528 Name and Company Index 530 Subject Index 542
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