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FundamentalsofHumanResource Management

FifthEdition

GaryDessler

FloridaInternational University

NewYork,NY

ThisbookisdedicatedtoTaylor

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ISBN10: 0-13-474021-1

ISBN13: 978-0-13-474021-8

BriefContents

1.Part 1Introduction 1

1.Chapter 1ManagingHumanResourcesToday 1

2.Chapter 2ManagingEqual OpportunityandDiversity 27

3.Chapter 3HumanResourceStrategyandPerformance 58

2.Part 2Staffing: WorkforcePlanningandEmployment 86

1.Chapter 4JobAnalysisandTalent Management 87

2.Chapter 5Personnel PlanningandRecruiting 119

3.Chapter 6SelectingEmployees 154

3.Part 3TrainingandHumanResourceDevelopment 195

1.Chapter 7TrainingandDevelopingEmployees 196

2.Chapter 8PerformanceManagement andAppraisal Today 231

3.Chapter 9ManagingCareers 260

4.Part 4CompensationandTotal Rewards 297

1.Chapter 10DevelopingCompensationPlans 298

2.Chapter 11Payfor PerformanceandEmployeeBenefits 335

5.Part 5EmployeeandLabor Relations 372

1.Chapter 12MaintainingPositiveEmployeeRelations 373

2.Chapter 13Labor RelationsandCollectiveBargaining 402

3.Chapter 14ImprovingOccupational Safety,Health,andRisk Management 433

6.Part 6Special TopicsinHumanResourceManagement 468

1.ModuleAManagingHRGlobally 468

2.ModuleBManagingHumanResourcesinSmall and Entrepreneurial Firms 485

1.Appendix 502

2.Glossary 514

3.References 523

4.NameIndex 564

5.Subject Index 567

1.Preface xiv

2.Acknowledgments xx

3.About theAuthor xxi

1.Part 1Introduction 1

1.Chapter1ManagingHumanResourcesToday 1

1.What IsHumanResourceManagement? 2

1.WhyisHumanResourceManagement Important to All Managers? 3

2.LineandStaff Aspectsof HRM 5

3.LineversusStaff Authority 5

4.LineManagers’ HumanResourceManagement Responsibilities 5

5.TheHumanResourceDepartment 5

2.TheTrendsShapingHumanResourceManagement 7 1.WorkforceDemographicsandDiversityTrends 7 2.TrendsinHowPeopleWork 8 3.HRandtheGigEconomy: On-DemandWorkers 8

GlobalizationTrends 9 5.EconomicTrends 10

6.TechnologyTrends 11

7.HRasaProfit Center: BoostingCustomer Service 13

3.TheNewHumanResourceManagement 13

1.DistributedHRandtheNewHumanResource Management 13

2.TrendsShapingHR: Digital andSocial Media 14

3.HRandPerformance 14

4.HRinPractice: DoesPerformanceTrumpEquity? 15

5.HRandEmployeeEngagement 16

6.HRandStrategy 16

7.HRandSustainability 17

8.HRandEthics 18

4.TheNewHumanResourceManager 18

1.HRandtheManager’sSkills 19

2.HRManager Certification 19

3.HRandtheManager’sHumanResourcePhilosophy 19

5.ThePlanof ThisBook 21

1.TheChapters 21

1.Review 22

1.Summary 22

2.KeyTerms 23

3.DiscussionQuestions 23

4.Individual andGroupActivities 23

5.ApplicationExercises 24

1.HRinActionCaseIncident 1: JackNelson’s Problem 24

2.HRinActionCaseIncident 2: Carter Cleaning Company 25

6.Experiential ExerciseHRand“TheProfit” 26

2.Chapter 2ManagingEqual OpportunityandDiversity 27

1.Equal Employment OpportunityLaws 28

1.Background 28

2.Equal PayAct of 1963 28

3.TitleVII of the1964Civil RightsAct 29

4.ExecutiveOrders 29

5.AgeDiscriminationinEmployment Act of 1967 29

6.Vocational RehabilitationAct of 1973 30

7.PregnancyDiscriminationAct of 1978 30

8.Federal AgencyUniform GuidelinesonEmployee SelectionProcedures 30

9.SelectedCourt DecisionsregardingEqual Employment Opportunity(EEO) 30

10.TheCivil RightsAct of 1991 31

11.TheAmericanswithDisabilitiesAct 32

12.UniformedServicesEmployment andReemployment RightsAct 33

13.GeneticInformationNondiscriminationAct of 2008 33

14.StateandLocal Equal Employment Opportunity Laws 34

15.ReligiousandOther Typesof Discrimination 34

16.TrendsinDiscriminationLaw 34

17.Sexual Harassment 36

18.HRToolsfor LineManagersandSmall Businesses 35

19.DiversityCounts 38

20.HRPracticesAroundtheGlobe: ApplyingEqual Employment LawAbroad 40

21.TrendsShapingHR: Digital andSocial Media 40

2.DefensesAgainst DiscriminationAllegations 41

1.TheCentral Roleof AdverseImpact 41

2.HRinPractice: HowtoUsetheStandardDeviation RuleinPractice 42

3.BonaFideOccupational Qualification 44

4.BusinessNecessity 45

3.BuildingYour Management Skills: Illustrative DiscriminatoryEmployment Practices 45

1.Recruitment 46

2.SelectionStandards 46

3.SampleDiscriminatoryPromotion,Transfer,and Layoff Procedures 47

4.TheEEOCEnforcement Process 48

1.ProcessingaDiscriminationCharge 48

2.VoluntaryMediation 48

3.MandatoryArbitrationof DiscriminationClaims 48

5.DiversityManagement andAffirmativeAction 50

1.Diversity’sBarriersandBenefits 50

2.ManagingDiversity 51

3.Equal Employment OpportunityversusAffirmative Action 52

4.ReverseDiscrimination 52

1.Review 53 2.Summary 53

3.KeyTerms 54

4.DiscussionQuestions 54

5.Individual andGroupActivities 54

6.ApplicationExercises 55

1.HRinActionCaseIncident 1: AnAccusationof Sexual Harassment inProSports 55

2.HRinActionCaseIncident 2: Carter Cleaning Company 56

7.Experiential ExerciseTheInterplayof EthicsandEqual Employment 56

3.Chapter 3HumanResourceStrategyandPerformance 58

1.TheStrategicManagement Process 59

1.HRPracticesAroundtheGlobe: TheShanghai Portman’sNewHumanResourceManagement Strategy 59

2.TheBasicManagement PlanningProcess 60

3.What IsStrategicPlanning? 61

4.TheStrategicManagement Process 62

5.Typesof Strategies 64

6.Managers’ RolesinStrategicPlanning 66

2.StrategicHumanResourceManagement 66

1.What IsStrategicHumanResourceManagement? 67

2.HRinPractice: TheZappos“WOW”Way 68

3.HRandtheGigEconomy: IntegratingHRintothe Employer’sGigWorker Strategy 68

4.SustainabilityandStrategicHumanResource Management 69

5.StrategicHumanResourceManagement Tools 69

3.HRMetricsandBenchmarking 71

1.Typesof Metrics 71

2.Benchmarking 71

3.StrategyandStrategy-BasedMetrics 72

4.Workforce/Talent AnalyticsandDataMining 73

5.HRasaProfit Center: UsingWorkforce/Talent Analytics 73

6.UsingHRAudits 75

7.Evidence-BasedHRandtheScientificWayof Doing Things 75

8.HRToolsfor LineManagersandSmall Businesses: 76

4.BuildingHigh-PerformanceWorkSystems 77

1.High-PerformanceHumanResourcePoliciesand Practices 77

5.EmployeeEngagement andPerformance 78

1.WhyIsEmployeeEngagement Important? 78

2.TheEmployeeEngagement Problem 79

3.What CanManagersDotoImproveEmployee Engagement? 79

4.HowtoMeasureEmployeeEngagement 79

6.EmployeeEngagement GuideFor Managers 80

1.HowKiaMotors(UK) ImprovedPerformancewithan HRStrategyAimedat BoostingEmployee Engagement 80

2.TheChallenges 80

3.TheNewHumanResourceManagement Strategy 80

4.TheResults 81

7.Review 82

1.Summary 82

2.KeyTerms 83

3.DiscussionQuestions 83

4.Individual andGroupActivities 83

5.ApplicationExercises 84

1.HRinActionCaseIncident 1: SiemensBuildsa Strategy-OrientedHRSystem 84

2.HRinActionCaseIncident 2: Carter Cleaning Company 85

6.Experiential ExerciseDevelopinganHRStrategyfor Starbucks 85

2.Part 2Staffing: WorkforcePlanningandEmployment 86

1.Chapter 4JobAnalysisandTalent Management 87

1.TheTalent Management Process 88

1.ImprovingPerformancethroughHRIS 89

2.TheBasicsof JobAnalysis 89

1.What IsJobAnalysis? 89

2.Usesof JobAnalysisInformation 90

3.StepsinJobAnalysis 91

4.HRasaProfit Center: BoostingProductivitythrough WorkRedesign 92

3.Methodsfor CollectingJobAnalysisInformation 94

1.TheInterview 94

2.Questionnaires 95

3.Observation 98

4.Participant Diary/Logs 98

5.QuantitativeJobAnalysisTechniques: ThePosition AnalysisQuestionnaire(PAQ) 98

6.ElectronicJobAnalysisMethods 99

4.WritingJobDescriptions 99

1.JobIdentification 99

2.JobSummary 102

3.Relationships 102

4.ResponsibilitiesandDuties 102

5.TrendsShapingHR: Digital andSocial Media 103

6.Standardsof PerformanceandWorkingConditions 105

7.HRToolsfor LineManagersandSmall Businesses: UsingO*NET 106

5.WritingJobSpecifications 108

1.Specificationsfor TrainedversusUntrained Personnel 109

2.SpecificationsBasedonJudgment 109

3.HRandtheGigEconomy: DoGigWorkersNeedJob Specifications? 109

4.JobSpecificationsBasedonStatistical Analysis 110

5.TheJob-RequirementsMatrix 110

6.EmployeeEngagement Guidefor Managers 110

1.JobSpecificationsandEmployeeEngagement 110

2.TheEmployeeEngagement Manager’sJob Description 111

7.UsingCompetenciesModels 112

1.HRPracticesAroundtheGlobe: Daimler Alabama Example 114

2.HowtoWriteCompetenciesStatements 114

8.Review 115

1.Summary 115

2.KeyTerms 116

3.DiscussionQuestions 116

4.Individual andGroupActivities 117

5.ApplicationExercises 117

1.HRinActionCaseIncident 1: OptimaAir Filter Company: TheFlood 117

2.HRinActionCaseIncident 2: Carter Cleaning Company 117

6.Experiential ExerciseTheInstructor’sJobDescription 118

2.Chapter 5Personnel PlanningandRecruiting 119

1.WorkforcePlanningandForecasting 120

1.StrategyandWorkforcePlanning 121

2.TowersWatsonExample 121

3.ForecastingWorkforceNeeds(Labor Demand) 122

4.ImprovingPerformancethroughHRIS 124

5.ForecastingtheSupplyof InsideCandidates 124

6.ForecastingtheSupplyof OutsideCandidates 126

7.PredictiveWorkforceMonitoring 126

8.HRasaProfit Center: PredictingLabor Needs 127

2.WhyEffectiveRecruitingisImportant 128

1.TheRecruitingYieldPyramid 128

2.ImprovingRecruitment Effectiveness: Recruiters, Sources,andBranding 128

3.Internal Sourcesof Candidates 130

1.IdentifyingInternal Candidates 130

4.EmployeeEngagement Guidefor Managers 130

1.Internal Recruitment andPromotion-from-Within 130

5.OutsideSourcesof Candidates 131

1.Informal RecruitingandtheHiddenJobMarket 131

2.RecruitingviatheInternet 131

3.ImprovingPerformancethroughHRIS 132

4.TrendsShapingHR: Digital andSocial Media 133

5.TrendsShapingHR: ScienceinTalent Management 134

6.Advertising 134

7.Employment Agencies 135

8.HRandtheGigEconomy: 137

9.Poaching 138

10.OffshoringandOutsourcingJobsandtheH-1BVisa 138

11.ExecutiveRecruiters 139

12.HRToolsfor LineManagersandSmall Businesses: Recruiting101 140

13.ReferralsandWalk-Ins 141

14.Recruitment ProcessOutsourcersandOn-Demand RecruitingServices 141

15.CollegeRecruiting 142

16.Telecommuters 143

17.MilitaryPersonnel 143

6.RecruitingaMoreDiverseWorkforce 144

1.RecruitingWomen 144

2.RecruitingSingleParents 144

3.Older Workers 145

4.DiversityCounts 145

5.RecruitingMinorities 145

6.TheDisabled 146

7.DevelopingandUsingApplicationForms 146

1.Purposeof ApplicationForms 146 1.Review 150 2.Summary 150 3.KeyTerms 150

4.DiscussionQuestions 151

5.Individual andGroupActivities 151

6.ApplicationExercises 152

1.HRinActionCaseIncident 1: FindingPeopleWho ArePassionateabout What TheyDo 152

2.HRinActionCaseIncident 2: Carter Cleaning Company 153

7.Experiential ExerciseTheNursingShortage 153

3.Chapter 6SelectingEmployees 154

1.TheBasicsof TestingandSelectingEmployees 155

1.WhyCareful SelectionIsImportant 155

2.Reliability 156

3.Validity 157

4.HowtoValidateaTest 158

5.HRasaProfit Center: ReducingTurnover at KeyBank 159

2.Typesof Tests 160

1.Testsof CognitiveAbilities 160

2.Testsof Motor andPhysical Abilities 161

3.MeasuringPersonality 161

4.Achievement Tests 163

5.HRPracticesAroundtheGlobe: Testingfor AssignmentsAbroad 163

6.ComputerizedandOnlineTesting 163

7.ImprovingPerformanceThroughHRIS 164

8.TrendsShapingHR: Digital andSocial Media 164

9.WorkSamplesandSimulations 165

10.Situational Judgment Tests 165

11.HRandtheGigEconomy: SelectingFreelance Workers 165

12.Management Assessment Centers 165

13.Video-BasedSituational Testing 166

14.TheMiniatureJobTrainingandEvaluation Approach 166

15.HRinPractice: SelectingEmployeesat Honda’sNew Car Plant 166

16.ComputerizedMultimediaCandidateAssessment Tools 167

17.HRToolsfor LineManagersandSmall Businesses: EmployeeTestingandSelection 167

3.InterviewingCandidates 168

1.Typesof SelectionInterviews 168

2.DiversityCounts 169

3.HowUseful AreInterviews? 170

4.TrendsShapingHR: Digital andSocial Media 170

5.HowtoAvoidCommonInterviewingMistakes 171

6.UsingCompetenciesModelsandProfilesinEmployee Interviews 174

7.TrendsShapingHR: ScienceinTalent Management 175

4.UsingOther SelectionTechniques 176

1.BackgroundInvestigationsandReferenceChecks 176

2.TrendsShapingHR: Digital andSocial Media 177

3.HonestyTesting 180

4.Graphology 181

5.HRasaProfit Center: UsingIntegrityTests 181

6.Medical Exams 182

7.DrugScreening 182

8.RealisticJobPreviews 182

9.TappingFriendsandAcquaintances 182

10.MakingtheSelectionDecision 182

11.ComplyingwithImmigrationLaw 183

12.ImprovingPerformanceThroughHRIS 184

13.DevelopingandExtendingtheJobOffer 184

5.EmployeeEngagement Guidefor Managers 184

1.BuildingEngagement: ATotal SelectionProgram 185

2.TheToyotaWay 185

6.Review 187

1.Summary 187

2.KeyTerms 187

3.DiscussionQuestions 188

4.Individual andGroupActivities 188

5.ApplicationExercises 189

1.HRinActionCaseIncident 1: EthicsandtheOut-ofControl Interview 189

2.HRinActionCaseIncident 2: HonestyTestingat Carter CleaningCompany 190

6.Experiential ExerciseTheMost Important PersonYou’ll Ever Hire 190

1.Appendix: TheStructuredSituational Interview 191

3.Part 3TrainingandHumanResourceDevelopment 195

1.Chapter 7TrainingandDevelopingEmployees 196

1.Orienting/OnboardingNewEmployees 197

1.ThePurposesof EmployeeOrientation/Onboarding 198

2.TheOrientationProcess 198

2.EmployeeEngagement Guidefor Managers: Onboardingat Toyota 200

3.Overviewof theTrainingProcess 201

1.AligningStrategyandTraining 201

2.TheADDIEFive-StepTrainingProcess 201

3.ConductingtheTrainingNeedsAnalysis 202

4.DesigningtheTrainingProgram 204

5.DevelopingtheProgram 206

6.TrendsShapingHR: Digital andSocial Media: TrainingontheCloud 207

4.ImplementingtheTrainingProgram 207

1.On-the-JobTraining 207

2.ApprenticeshipTraining 208

3.Informal Learning 208

4.JobInstructionTraining 209

5.Lectures 209

6.ProgrammedLearning 209

7.Behavior Modeling 210

8.Audiovisual-BasedTrainingandVideoconferencing 210

9.VestibuleTraining 210

10.ElectronicPerformanceSupport Systems(EPSS) 210

11.Computer-BasedTraining(CBT) 211

12.SimulatedLearningandGaming 211

13.Online/Internet-BasedTraining 212

14.HRandtheGigEconomy: AnExample: On-Demand Microlearningat Uber 214

15.LifelongandLiteracyTrainingTechniques 214

16.DiversityTraining 215

17.HRinPractice: DiversityTrainingat ABCVirtual Communications,Inc. 215

18.Team Training 215

5.ImplementingManagement Development Programs 217

1.Strategy’sRoleinManagement Development 217

2.SuccessionPlanning 218

3.ImprovingPerformanceThroughHRIS 218

4.Managerial On-the-JobTraining 219

5.HRPracticesAroundtheGlobe: Global JobRotation 219

6.Off-the-JobManagement TrainingandDevelopment Techniques 220

7.LeadershipDevelopment at GE 222

6.ManagingOrganizational ChangePrograms 223

1.UsingOrganizational Development 223

7.EvaluatingtheTrainingEffort 224

1.DesigningtheStudy 224

2.TrainingEffectstoMeasure 225

8.Review 226

1.Summary 226

2.KeyTerms 227

3.DiscussionQuestions 227

4.Individual andGroupActivities 227

5.ApplicationExercises 228

1.HRinActionCaseIncident 1: ReinventingtheWheel at ApexDoor Company 228

2.HRinActionCaseIncident 2: Carter Cleaning Company: TheNewTrainingProgram 229

6.Experiential ExerciseFlyingtheFriendlier Skies 230

2.Chapter 8PerformanceManagement andAppraisal Today 231

1.BasicConceptsinPerformanceAppraisal 232

1.WhyAppraisePerformance? 233

2.StepsinPerformanceAppraisal 233

3.DefiningtheEmployee’sPerformanceStandards 233

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