HUMAN R E S O U R C E
MANAGEMENT ™
EDITION
ELFTH
Gary Dessler
Florida International University
.I r e i l t l C e J r l 3 . l l Boston Columbus Indianapolis New York San Francisco Upper Saddle River
Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo
Contents
Preface xxiii
Acknowledgments xxvii
Introduction to Human Resource Management 2
WHAT IS HUMAN RESOURCE MANAGEMENT AND WHY IS IT IMPORTANT? 4
What Is Human Resource Management? 4
Why Is Human Resource Management Important to All Managers? 5 Line and Staff Aspects of Human Resource Management 6
Line Managers' Human Resource Duties 6 Human Resource Manager's Duties 7 New Approaches to Organizing HR 9
Cooperative Line and Staff HR Management: An Example 9 Moving from Line Manager to HR Manager 10
THE TRENDS SHAPING HUMAN RESOURCE MANAGEMENT 10
Globalization and Competition Trends 11 Indebtedness ("Leverage") and Deregulation 12 Technological Trends 12
Trends in the Nature of Work 13 Workforce and Demographic Trends 14 Economic Challenges and Trends 15
IMPORTANT TRENDS IN HUMAN RESOURCE MANAGEMENT 16
The New Human Resource Managers 16 Strategic Human Resource Management 18 High-Performance Work Systems 19
Evidence-Based Human Resource Management 19
• EVIDENCE-BASED HR: Why Should You Be Evidence-Based? 1 9 Managing Ethics 20
HR Certification 20
THE PLAN OF THIS BOOK 21
The Basic Themes and Features 21
CHAPTER CONTENTS OVERVIEW 22
Part 1: Introduction 22
Part 2: Recruitment and Placement 22 Part 3: Training and Development 22 Part 4: Compensation 23
Part 5: Employee Relations 23 The Topics Are Interrelated 23
CHAPTER SECTION SUMMARIES 24 DISCUSSION QUESTIONS 24
INDIVIDUAL AND GROUP ACTIVITIES 25
EXPERIENTIAL EXERCISE: HELPING "THE DONALD" 25 APPLICATION CASE: JACK NELSON'S PROBLEM 26
CONTINUING CASE: CARTER CLEANING COMPANY 26 KEY TERMS 27
ENDNOTES 27
Equal Opportunity and the Law 30
EQUAL EMPLOYMENT OPPORTUNITY 1964-1991 32
Title VII of the 1964 Civil Rights Act 32 \ Executive Orders 32 i Equal Pay Act of 1963 33 i Age Discrimination in Employment Act of 1967 33 | Vocational Rehabilitation Act of 1973 33 j Pregnancy Discrimination Act of 1978 34 . j Federal Agency Guidelines 34 i Early Court Decisions Regarding Equal Employment Opportunity 34 ! E Q U A L E M P L O Y M E N T O P P O R T U N I T Y 1990-91-PRESENT 35 |
The Civil Rights Act of 1991 35 The Americans with Disabilities Act 36
Genetic Information Nondiscrimination Act of 2008 (GINA) 39
State and Local Equal Employment Opportunity Laws 39 I Sexual Harassment 39 j • MANAGING THE N E W WORKFORCE: Enforcing Equal Employment Laws with International ! Employees 45 '•
DEFENSES AGAINST DISCRIMINATION ALLEGATIONS 46
The Central Role of Adverse Impact 46 ;
Bona Fide Occupational Qualification 48 : Business Necessity 49
Other Considerations in Discriminatory Practice Defenses 50
ILLUSTRATIVE DISCRIMINATORY EMPLOYMENT PRACTICES 50
A Note on What You Can and Cannot Do 50Recruitment 50 Selection Standards 51
Sample Discriminatory Promotion, Transfer, and Layoff Practices 52 What the Supervisor Should Keep in Mind 52
THE EEOC ENFORCEMENT PROCESS 53
Voluntary Mediation 54Mandatory Arbitration of Discrimination Claims 55 ;
DIVERSITY MANAGEMENT AND AFFIRMATIVE ACTION PROGRAMS 56
• EVIDENCE-BASED HR: Will Workforce Diversity Cause Problems for Our Company? 57
Managing Diversity 57 \ Workforce Diversity in Practice 58 i Equal Employment Opportunity Versus Affirmative Action 60 ! Steps in an Affirmative Action Program 60
Improving Productivity Through HRIS: Measuring Diversity 61 < Reverse Discrimination 61
CHAPTER SECTION SUMMARIES 62 DISCUSSION QUESTIONS 63
INDIVIDUAL AND GROUP ACTIVITIES 63
EXPERIENTIAL EXERCISE: "SPACE CADET" OR VICTIM? 63 APPLICATION CASE: A CASE OF RACIAL DISCRIMINATION? 64 CONTINUING CASE: CARTER CLEANING COMPANY 65
KEY TERMS 65 i ENDNOTES 66
The Manager's Role in Strategic Human Resource Management 70
WHY STRATEGIC PLANNING IS IMPORTANT TO ALL MANAGERS 72
The Hierarchy of Goals 72
FUNDAMENTALS OF MANAGEMENT PLANNING 73
The Planning Process 73
Putting Together the Business Plan 73 How Managers Set Objectives 75
THE STRATEGIC MANAGEMENT PROCESS 77
Introduction 78
Improving Productivity Through HRIS: Using Computerized Business Planning Software 81 Types of Strategies 81
The Top Manager's Role in Strategic Planning 83 Departmental Managers' Strategic Planning Roles 84
• MANAGING THE NEW WORKFORCE: Dealing with Offshoring 85 STRATEGIC HUMAN RESOURCE MANAGEMENT 86
Human Resource Strategies and Policies 87
• MANAGING HR IN CHALLENGING TIMES: Adjusting HR Policies to Challenging Times 88
Strategic HR in Action: Improving Mergers and Acquisitions 89 Strategic Human Resource Management Tools 90
HR APPs 4 U: Mobile Access to Strategy Maps 91
Translating Strategy into Human Resource Policies and Practices: Einstein Medical •
Example 92
BUILDING YOUR OWN HIGH-PERFORMANCE WORK SYSTEM 93
What Are High-Performance Work Systems? 93
High-Performance Human Resource Policies and Practices 94
The Line Manager's Role in Building a High-Performance Work System 95
CHAPTER SECTION SUMMARIES 96 DISCUSSION QUESTIONS 96
INDIVIDUAL AND GROUP ACTIVITIES 97
EXPERIENTIAL EXERCISE: DEVELOPING AN HR STRATEGY FOR STARBUCKS 97 APPLICATION CASE: SIEMENS BUILDS A STRATEGY-ORIENTED HR SYSTEM 98 CONTINUING CASE: THE CARTER CLEANING COMPANY: THE HIGH-PERFORMANCE
WORK SYSTEM 98 KEY TERMS 99
TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE 99
APPENDIX FOR CHAPTER 3: Tools for Evidence-Based Human Resource Management 103 PART I VIDEO CASES APPENDIX 110
ENDNOTES 111
4
Job Analysis 114
THE BASICS OF JOB ANALYSIS 116
Uses of Job Analysis Information 116 Steps in Job Analysis 117
Job Analysis Guidelines 119
METHODS FOR COLLECTING JOB ANALYSIS INFORMATION 119
The Interview 119 . Questionnaires 123
Observation 123
;: Participant Diary/Logs 126
fj. Quantitative Job Analysis Techniques 126 |v, Internet-Based Job Analysis 128
WRITING JOB DESCRIPTIONS 130
Job Identification 130 Job Summary 132 Relationships 133
Responsibilities and Duties 133
Standards of Performance and Working Conditions 134 Duty: Accurately Posting Accounts Payable 135
• MANAGING THE N E W WORKFORCE: Writing J o b Descriptions That Comply with t h e ADA 135 Duty: Meeting Daily Production Schedule 136
Using the Internet for Writing J o b Descriptions 136
WRITING JOB SPECIFICATIONS 139
Specifications for Trained Versus Untrained Personnel 140 Specifications Based on Judgment 140
Job Specifications Based on Statistical Analysis 141
J O B ANALYSIS I N A WORKER-EMPOWERED WORLD 141
From Specialized to Enriched Jobs 142 Competency-Based Job Analysis 143
How to Write Job Competencies-Based Job Descriptions 144 In Summary: Why Competency Analysis? 144
CHAPTER SECTION SUMMARIES 145 DISCUSSION QUESTIONS 145
INDIVIDUAL AND GROUP ACTIVITIES 146
EXPERIENTIAL EXERCISE: THE INSTRUCTOR'S JOB DESCRIPTION 146 APPLICATION CASE: TROPICAL STORM WILMA 146
CONTINUING CASE: CARTER CLEANING COMPANY 147
TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE 147
KEY TERMS 148 ENDNOTES 148
Personnel Planning and Recruiting 150
THE RECRUITMENT AND SELECTION PROCESS 152
PLANNING AND FORECASTING 152
Forecasting Personnel Needs 153
Forecasting the Supply of Inside Candidates 155
Forecasting the Supply of Outside Candidates 156
THE NEED FOR EFFECTIVE RECRUITING 157
Why Recruiting Is Important 157
What Makes Effective Recruiting a Challenge? 157 Organizing How You Recruit 158
The Recruiting Yield Pyramid 158
INTERNAL SOURCES OF CANDIDATES 159
Using Internal Sources: Pros and Cons 159 Finding Internal Candidates 159
Rehiring 159
Succession Planning 160
Improving Productivity Through HRIS: Succession Planning Systems 160
OUTSIDE SOURCES OF CANDIDATES 160
Recruiting via the Internet 161
HR APPs 4 U: Posting and Accessing Job Openings 162
• MANAGING H R IN CHALLENGING TIMES: Reducing Recruitment Costs 164
Advertising 165
Employment Agencies 166
Temp Agencies and Alternative Staffing 167 Offshoring and Outsourcing Jobs 169 Executive Recruiters 170
On-Demand Recruiting Services 171 College Recruiting 172
Referrals and Walk-Ins 173 Telecommuters 174 Military Personnel 174
Recruiting Source Use and Effectiveness 174
• EVIDENCE-BASED H R : Measuring Recruiting Effectiveness 174
Improving Productivity Through HRIS: An Integrated Approach to Recruiting 176 RECRUITING A MORE DIVERSE WORKFORCE 176
Single Parents 176 Older Workers 176
H MANAGING THE NEW WORKFORCE: Supervising Older Workers 177 Recruiting Minorities 178
Welfare-to-Work 178 The Disabled 178
DEVELOPING AND USING APPLICATION FORMS 179
Purpose of Application Forms 179 Application Guidelines 179
Application Forms and EEO Law 179
Using Application Forms to Predict Job Performance 181 Mandatory Arbitration 181
CHAPTER SECTION SUMMARIES 182 DISCUSSION QUESTIONS 183
INDIVIDUAL AND GROUP ACTIVITIES 183
EXPERIENTIAL EXERCISE: THE NURSING SHORTAGE 183
APPLICATION CASE: FINDING PEOPLE WHO ARE PASSIONATE ABOUT WHAT THEY DO 184 CONTINUING CASE: CARTER CLEANING COMPANY 184
TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE 185
KEY TERMS' 185 ENDNOTES 186
O Employee Testing and Selection 190
WHY CAREFUL SELECTION IS IMPORTANT 192 BASIC TESTING CONCEPTS 192
Reliability 192 Validity 193
Evidence-Based HR: How to Validate a Test 194 Test Takers' Individual Rights and Test Security 198
m MANAGING THE N E W WORKFORCE: Bias Against Working Mothers 198
How Do Employers Use Tests at Work? 199 Computerized and Online Testing 200 TYPES OF TESTS 201
Tests of Cognitive Abilities 201 HR APPs 4 U: Testing via the iPhone 201
Tests of Motor and Physical Abilities 202 Measuring Personality and Interests 202 Achievement Tests 205
WORK SAMPLES AND SIMULATIONS 206
Using Work Sampling for Employee Selection 206 Management Assessment Centers 206
Situational Testing and Video-Based Situational Testing 207 The Miniature Job Training and Evaluation Approach 208 Realistic Job Previews 208
HR in Practice: Testing Techniques for Managers 209 Summary 209
BACKGROUND INVESTIGATIONS AND OTHER SELECTION METHODS 210
Why Perform Background Investigations and Reference Checks? 210 The Legal Dangers and How to Avoid Them 211
How to Check a Candidate's Background 212 Using Preemployment Information Services 214 The Polygraph and Honesty Testing 215 Graphology 216
Physical Exams 217
Substance Abuse Screening 217 Complying with Immigration Law 218
Improving Productivity Through HRIS: Using Automated Applicant Tracking and Screening Systems 219
CHAPTER SECTION SUMMARIES 220 DISCUSSION QUESTIONS 221
INDIVIDUAL AND GROUP ACTIVITIES 221
EXPERIENTIAL EXERCISE: A TEST FOR A RESERVATION CLERK 221 APPLICATION CASE: WHERE'S MY CZAR? 222
CONTINUING CASE: HONESTY TESTING AT CARTER CLEANING COMPANY 222 TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL
PARIS CASE 223 KEY TERMS 223 ENDNOTES 224
Interviewing Candidates 228
BASIC TYPES OF INTERVIEWS 230
Types of Employment Interviews 230
Structured Versus Unstructured Interviews 230
Interview Content (What Types of Questions to Ask) 232 How Should We Administer the Interview? 234
HR APPs 4 U: iPhone Job Interviews 235
• MANAGING HR IN CHALLENGING TIMES: Acing the Skype Interview 235
Three Ways to Make the Interview Useful 237
WHAT ERRORS CAN UNDERMINE AN INTERVIEWS USEFULNESS? 237
First Impressions (Snap Judgments) 237Not Clarifying What the Job Requires 238
Candidate-Order (Contrast) Error and Pressure to Hire 238 Nonverbal Behavior and Impression Management 239
Effect of Personal Characteristics: Attractiveness, Gender, Race 239
• MANAGING THE N E W WORKFORCE: Applicant Disability and the Employment Interview 240
Interviewer Behavior 241
HOW T O DESIGN AND CONDUCT AN EFFECTIVE INTERVIEW 241
The Structured Situational Interview 241 How to Conduct an Effective Interview 243 Using a Streamlined Interview Process 245
Guidelines for Interviewees 247 CHAPTER SECTION SUMMARIES 249 DISCUSSION QUESTIONS 250
INDIVIDUAL AND GROUP ACTIVITIES 250
EXPERIENTIAL EXERCISE: THE MOST IMPORTANT PERSON YOU'LL EVER HIRE 251 APPLICATION CASE: THE OUT-OF-CONTROL INTERVIEW 251
CONTINUING CASE: CARTER CLEANING COMPANY 252
TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE 252
KEY TERMS 253
APPENDIX FOR CHAPTER 7 254 PART II VIDEO CASES APPENDIX 257 ENDNOTES 258
262
O Training and Developing Employees 262
INTRODUCTION TO ORIENTING AND TRAINING EMPLOYEES 264
The Purposes of Employee Orientation/Onboarding 264 The Orientation Process 264
HR APPs 4 U: Mobile Company Directory 266
The Training Process 266
Training, Learning, and Motivation 267
• EVIDENCED-BASED H R : Sounds and Shortcuts: How to Design the Training Format to Improve
Training Results 268
ANALYZING TRAINING NEEDS AND DESIGNING THE PROGRAM 269
Task Analysis: Assessing New Employees' Training Needs 269
Performance Analysis: Assessing Current Employees' Training Needs 270 Designing the Training Program 272
• MANAGING HR IN CHALLENGING TIMES: Free Training Alternatives 273 IMPLEMENTING TRAINING PROGRAMS 273
On-the-Job Training 273 Apprenticeship Training 275
Informal Learning 275 Job Instruction Training 275
Lectures 276
Programmed Learning 277 Audiovisual-Based Training 278 Vestibule Training 278
Teletraining and Videoconferencing 278
Electronic Performance Support Systems (EPSS) 278 Computer-Based Training 279
Simulated Learning 279 Internet-Based Training 281
Improving Productivity Through HRIS: Learning Management Systems 281 The Virtual Classroom 281
Using Internet-Based Learning 282
HR APPs 4 U: Mobile Learning 283
Lifelong and Literacy Training Techniques 283
• MANAGING THE NEW WORKFORCE: Diversity Training 284
HR in Practice: Creating Your Own Training Program 284
IMPLEMENTING MANAGEMENT DEVELOPMENT PROGRAMS 285
Managerial On-the-Job Training 286
Off-the-Job Management Training and Development Techniques 286
MANAGING ORGANIZATIONAL CHANGE PROGRAMS 289
What to Change 290 Lewin's Change Process 290 Leading Organizational Change 291
Using Organizational Development 292
EVALUATING THE TRAINING EFFORT 294
Designing the Study 294
Training Effects to Measure 295 CHAPTER SECTION SUMMARIES 297 DISCUSSION QUESTIONS 297
INDIVIDUAL AND GROUP ACTIVITIES 298
EXPERIENTIAL EXERCISE: FLYING THE FRIENDLIER SKIES 238 APPLICATION CASE: REINVENTING THE WHEEL AT APEX
DOOR COMPANY 298
TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE 300
KEY TERMS 300 ENDNOTES 300
Performance Management and Appraisal 304
BASIC CONCEPTS IN PERFORMANCE MANAGEMENT
AND APPRAISAL 306
Defining the Employee's Goals and Work Standards 307
TECHNIQUES FOR APPRAISING PERFORMANCE 308
Why Appraise Performance? 308 Realistic Appraisals 308
The Supervisor's Role 308
Steps in Appraising Performance 309 Graphic Rating Scale Method 309 Alternation Ranking Method 312 Paired Comparison Method 312 Forced Distribution Method 314 Critical Incident Method 314 Narrative Forms 315
Behaviorally Anchored Rating Scales 315 Management by Objectives 318
Computerized and Web-Based Performance Appraisal 318 Electronic Performance Monitoring 318
Appraisal in Practice 320
DEALING WITH PERFORMANCE APPRAISAL PROBLEMS 321
Potential Appraisal Problems 321
• MANAGING THE N E W WORKFORCE: The Gender Gap in Appraisals 322 Five Guidelines for How to Hold Effective Appraisals 323
Appraisals and the Law 324 Who Should Do the Appraising? 325
• EVIDENCE-BASED H R : Should We Encourage Upward Feedback? 327
THE APPRAISAL INTERVIEW 328
Types of Appraisal Interviews 328
How to Conduct the Appraisal Interview 328 Appraisals in Practice 331
PERFORMANCE MANAGEMENT 331
What is Performance Management? 331
Performance Appraisal Versus Performance Management 331 Basic Building Blocks of Performance Management 332 Why Performance Management? 331
HR APPs 4 U: Mobile Performance Management 333
Using Information Technology to Support Performance Management 333 Improving Productivity Through HRIS: TRW's New Performance Appraisal/
Management System 333 CHAPTER SECTION SUMMARIES 334 DISCUSSION QUESTIONS 335
INDIVIDUAL AND GROUP ACTIVITIES 335
EXPERIENTIAL EXERCISE: GRADING THE PROFESSOR 336 APPLICATION CASE: APPRAISING THE SECRETARIES AT
SWEETWATER U 336
CONTINUING CASE: CARTER CLEANING COMPANY 337
TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE 337
KEY TERMS 338 ENDNOTES 338
1U Coaching, Careers, and Talent Management 342
IMPROVING YOUR COACHING SKILLS 344
Coaching's Importance 344 Preparing to Coach 344 Planning 345
Active Coaching 345
Follow-Up 346
CAREER MANAGEMENT BASICS 3 4 7
Career Terminology 347 Careers Today 347
Employer Career Efforts Today 348
The Employee's Role 349
CAREER MANAGEMENT METHODS 350
The Employer's Role 350
Some Innovative Employer Career Initiatives 351 Commitment-Oriented Career Development Efforts 353
B MANAGING THE N E W WORKFORCE: Different Career Development Needs 354
The Manager's Role 355
Building Your Mentoring Skills 356
Improving Productivity Through HRIS: Career Planning and Development 357
EMPLOYER LIFE-CYCLE CAREER MANAGEMENT 357
Making Promotion Decisions 358
Sources of Bias in Promotion Decisions 359 Promotions and the Law 360
Managing Transfers 360 '
Managing Retirements 360
• MANAGING HR IN CHALLENGING TIMES 362
TALENT MANAGEMENT 362
What Is Talent Management? 362
Talent Management Systems 363 CHAPTER SECTION SUMMARIES 363 DISCUSSION QUESTIONS 364
INDIVIDUAL AND GROUP ACTIVITIES 364
EXPERIENTIAL EXERCISE: WHERE AM I GOING . . . AND WHY? 365
APPLICATION CASE: THE MENTOR RELATIONSHIP TURNS UPSIDE DOWN 365 CONTINUING CASE: CARTER CLEANING COMPANY 365
TRANSLATING STRATEGY INTO HR POUCIES & PRACTICES CASE: THE HOTEL PARIS CASE 366 KEY TERMS 366
APPENDrX FOR CHAPTER 10 367 PART III VIDEO CASES APPENDIX 381 ENDNOTES 382
^WfF@y^ II (g©»iM!iM©M 384
1 1 Establishing Strategic Pay Plans 384
BASIC FACTORS IN DETERMINING PAY RATES 386
Legal Considerations in Compensation 386
HR APPs 4 U: Mobile PDA Handheld Timesheet Solutions 387
m MANAGING THE N E W WORKFORCE: The Independent Contractor 387
Union Influences on Compensation Decisions 391
Competitive Strategy, Corporate Policies, and Compensation l 391
• MANAGING H R I N CHALLENGING TIMES: Salary and Incentives in Tough Times 392
12
ESTABLISHING PAY RATES 394
Step 1. The Salary Survey 395 Step 2. Job Evaluation 397
Step 3. Group Similar Jobs into Pay Grades 401 Step 4. Price Each Pay Grade—Wage Curves 402 - Step 5. Fine-Tune Pay Rates 402
HR in Practice: Developing a Workable Pay Plan 404
PRICING MANAGERIAL AND PROFESSIONAL JOBS 406
Compensating Executives and Managers 407 What Determines Executive Pay? 407
Compensating Professional Employees 408
COMPETENCY-BASED PAY 408
Introduction 408
What Is Competency-Based Pay? 408 Why Use Competency-Based Pay? 409 Competency-Based Pay in Practice 410
The Bottom Line on Competency-Based Pay 410
SPECIAL TOPICS IN COMPENSATION 411
Broadbanding 411 Comparable Worth 413
Board Oversight of Executive Pay 414 Tomorrow's Pay Programs 414
Improving Productivity Through HRIS: Automating Compensation
Administration 415
CHAPTER SECTION SUMMARIES 416
DISCUSSION QUESTIONS 416
INDIVIDUAL AND GROUP ACTIVITIES 417
EXPERIENTIAL EXERCISE: RANKING THE COLLEGE'S ADMINISTRATORS 417
APPLICATION CASE: SALARY INEQUITIES AT ACME MANUFACTURING 417
CONTINUING CASE: CARTER CLEANING COMPANY 418
TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL
PARIS CASE 419
KEY TERMS 419
APPENDIX FOR CHAPTER 11 420
ENDNOTES 428
Pay for Performance and Financial Incentives 432
MONEY AND MOTIVATION 434
Linking Performance and Pay 434 Motivation and Incentives 434 Incentive Pay Terminology 436
Employee Incentives and the Law 436
INDIVIDUAL EMPLOYEE INCENTIVE AND RECOGNITION PROGRAMS 437
Piecework Plans 437 Merit Pay as an Incentive 438
Incentives for Professional Employees 439 Nonfinancial and Recognition-Based Awards 440
Online and IT-Supported Awards 441
INCENTIVES FOR SALESPEOPLE 441
Salary Plan 441 Commission Plan 442 Combination Plan 442
Maximizing Sales Force Results 442
• EVIDENCE-BASED HR: How Effective are Your Incentives? 443
INCENTIVES FOR MANAGERS AND EXECUTIVES 444
Sarbanes-Oxley 445
• MANAGING HR IN CHALLENGING TIMES: Incentives for Top Performers 447
Long-Term Incentives 447 Other Executive Incentives 448
Strategy and the Executive's Total Rewards Package 448
TEAM AND ORGANIZATIONWIDE INCENTIVE PLANS 449
How to Design Team Incentives 449
• EVIDENCE-BASED HR: Inequities That Undercut Team Incentives 450
Profit-Sharing Plans 450 Scanlon Plans 451
Other Gainsharing Plans 452 At-Risk Pay Plans 452
Employee Stock Ownership Plans 453
DESIGNING EFFECTIVE INCENTIVE PROGRAMS 453
Research Insight: The Impact of Financial and Nonfinancial Incentives 454 The Five Building Blocks of Effective Incentive Plans 454
Incentive Plans in Practice: Nucor 455
CHAPTER SECTION SUMMARIES 455
DISCUSSION QUESTIONS 456
INDIVIDUAL AND GROUP ACTIVITIES 456
EXPERIENTIAL EXERCISE: MOTIVATING THE SALES FORCE AT EXPRESS AUTO 457
APPLICATION CASE: INSERTING THE TEAM CONCEPT INTO
COMPENSATION—OR NOT 457
CONTINUING CASE: CARTER CLEANING COMPANY 458
TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL
PARIS CASE 459
KEY TERMS 459
ENDNOTES 460
±3 Benefits and Services 464
THE BENEFITS PICTURE TODAY 466
PAY FOR TIME NOT WORKED 467
Unemployment Insurance 467 Vacations and Holidays 468
Sick Leave 469
D EVIDENCE-BASED HR: Tracking Sick Leave 470
Parental Leave and the Family and Medical Leave Act 470 Severance Pay 473
Supplemental Unemployment Benefits 473
INSURANCE BENEFITS 474
Workers' Compensation 474
Hospitalization, Health, and Disability Insurance 475 The Legal Side of Health Benefits 476
• MANAGING HR IN CHALLENGING TIMES: Providing Extended Health
Care Benefits 476
Trends in Health Care Cost Control 478 Long-Term Care 479
Life Insurance 479
Benefits for Part-Time and Contingent Workers 479
RETIREMENT BENEFITS 480
Social Security 480 Pension Plans 480
Pension Planning and the Law 482 Key Pension Policy Issues 482 Pensions and Early Retirement 483
Improving Productivity Through HRIS: Online Benefits Management Systems 484
PERSONAL SERVICES A N D FAMILY-FRIENDLY BENEFITS 4 8 4
Personal Services 484
Family-Friendly (Work-Life) Benefits 485 Other Job-Related Benefits 487 HR APPs 4 U: iPods at Work 487
B M A N A G I N G T H E N E W WORKFORCE: Domestic Partner Benefits 488 Executive Perquisites 488
FLEXIBLE BENEFITS PROGRAMS 488
The Cafeteria Approach 490 Benefits and Employee Leasing 490 Flexible Work Schedules 491 CHAPTER SECTION SUMMARIES 493 DISCUSSION QUESTIONS 494
INDIVIDUAL AND GROUP ACTIVITIES 494
EXPERIENTIAL EXERCISE: REVISING THE BENEFITS PACKAGE 494 APPLICATION CASE: STRIKING FOR BENEFITS 494
CONTINUING CASE: CARTER CLEANING COMPANY 495
TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE 495
KEY TERMS 496
PART IV VIDEO CASES APPENDIX 497 ENDNOTES 498
i mmmm, mjmmm 502
14
Ethics, Justice, and Fair Treatment in HR Management 502
ETHICS AND FAIR TREATMENT AT WORK 504
The Meaning of Ethics 506 Ethics and the Law 506
Ethics, Justice, and Fair Treatment 507 Employee Rights 507
WHAT DETERMINES ETHICAL BEHAVIOR AT WORK? 5 0 8
Research Findings: What Do We Know About Ethical Behavior At Work? 508
The Person 509 The Boss 509 The Company 511
HOW MANAGERS USE PERSONNEL METHODS TO PROMOTE ETHICS AND
FAIR TREATMENT 512
Selection 512 Ethics Training 512 Performance Appraisal 514
Reward and Disciplinary Systems 514 Managing Ethics Compliance 515
Personnel-Related Methods for Ensuring Fair Treatment 515
MANAGING EMPLOYEE DISCIPLINE AND PRIVACY 517
H MANAGING THE N E W WORKFORCE: Comparing Males and Females in a Discipline Situation 517 Basics of a Fair and Just Disciplinary Process 517
Employee Privacy 520 Employee Monitoring 521
HR APPs 4 U: iPods and Ethics at Work 524 M A N A G I N G DISMISSALS 524
Termination at Will and Wrongful Discharge 524 Grounds for Dismissal 525
Avoiding Wrongful Discharge Suits 527 Personal Supervisory Liability 527 The Termination Interview 528
Layoffs, Downsizing, and the Plant Closing Law 530
• MANAGING HR IN CHALLENGING TIMES: Preparing for Layoffs 532
Adjusting to Downsizings and Mergers 533 CHAPTER SECTION SUMMARIES 534
DISCUSSION QUESTIONS 534
INDIVIDUAL AND GROUP ACTIVITIES 535
EXPERIENTIAL EXERCISE: DISCIPLINE OR NOT? 535
APPLICATION CASE: ENRON, ETHICS, AND ORGANIZATIONAL CULTURE 536 CONTINUING CASE: CARTER CLEANING COMPANY 537
TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE 537
KEY TERMS 538 ENDNOTES 538
Labor Relations and Collective Bargaining 542
THE LABOR MOVEMENT 544
A Brief History of the American Union Movement 544 Why Do Workers Organize? 545
What Do Unions Want? 546
The AFL-CIO 546
UNIONS AND THE LAW 547
Period of Strong Encouragement: The Norris-LaGuardia (1932) and National Labor Relations or Wagner Acts (1935) 548
Period of Modified Encouragement Coupled with Regulation: The Taft-Hartley Act (1947) 548 Unfair Union Labor Practices 550
THE UNION DRIVE AND ELECTION 551
Step 1. Initial Contact 551Step 2. Obtaining Authorization Cards 552 Step 3. Hold a Hearing 553
Step 4. The Campaign 555 Step 5. The Election 555
How to Lose an NLRB Election 556
• EVIDENCE-BASED HR: What Can I Expect the Union to Do to Win the Election? 557 The Supervisor's Role 557
Rules Regarding Literature and Solicitation 558 Decertification Elections: Ousting the Union 559
THE COLLECTIVE BARGAINING PROCESS 559
What Is Collective Bargaining? 559 What Is Good Faith? 559
The Negotiating Team 560 Bargaining Items 561 Bargaining Stages 562 Bargaining Hints 562
Impasses, Mediation, and Strikes 562 The Contract Agreement 566
GRIEVANCES 566
Sources of Grievances 567 The Grievance Procedure 567
Guidelines for Handling Grievances 568
THE UNION MOVEMENT TODAY AND TOMORROW 569
Why Union Membership Is Down 569An Upswing for Unions? 570 Public Employees and Unions 570
Organizing Professionals and White-Collar Employees 570 Card Check and Other New Union Tactics 570
Improving Productivity Through HRIS: Unions Go High-Tech 572
HR APPs 4 U: Union iPod Organizing 572
High-Performance Work Systems, Employee Participation, and Unions 572 CHAPTER SECTION SUMMARIES 573
DISCUSSION QUESTIONS 574
INDIVIDUAL AND GROUP ACTIVITIES 574
EXPERIENTIAL EXERCISE: THE UNION-ORGANIZING CAMPAIGN AT PIERCE U. 575 APPLICATION CASE: NEGOTIATING WITH THE WRITERS GUILD OF AMERICA 575 CONTINUING CASE: CARTER CLEANING COMPANY 576
TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE 576
KEY TERMS 577 ENDNOTES 577
1 6 Employee Safety and Health 580
WHY SAFETY IS IMPORTANT 582
Management's Role in Safety 582 What Top Management Can Do 582
The Supervisor's Role in Safety 583
OCCUPATIONAL SAFETY LAW 583
OSHA Standards and Record Keeping 583 Inspections and Citations 585
Responsibilities and Rights of Employers and Employees 589 WHAT CAUSES ACCIDENTS? 590
Unsafe Conditions and Other Work-Related Factors 590
What Causes Unsafe Acts? (A Second Basic Cause of Accidents) 591
HOW TO PREVENT ACCIDENTS 591
Reducing Unsafe Conditions 592
H MANAGING THE N E W W O R K F O R C E : Protecting Vulnerable Workers 596 Reducing Unsafe Acts 597
Reducing Unsafe Acts Through Selection and Placement 597 Reducing Unsafe Acts Through Training 597
1! MANAGING THE N E W WORKFORCE: Safety Training for Hispanic Workers 598 Reducing Unsafe Acts Through Motivation: Posters, Incentives, and Positive
Reinforcement 598
Use Behavior-Based Safety 600 Use Employee Participation 600
Conduct Safety and Health Audits and Inspections 601 Research Insight: High-Performance Systems and Safety 601
HR APPs 4 U: PDA Safety Audits 601
Controlling Workers' Compensation Costs 602
• MANAGING HR I N CHALLENGING TIMES: Cutting Safety Costs Without
Cutting Costs 603
WORKPLACE HEALTH HAZARDS: PROBLEMS AND REMEDIES 604
The Basic Industrial Hygiene Program 604 Asbestos Exposure at Work 605
Improving Productivity Through HRIS: Internet-Based Safety Improvement Solutions 605
Infectious Diseases 606
Alcoholism and Substance Abuse 606 Stress, Burnout, and Depression 608
Solving Computer-Related Ergonomic Problems 610 Workplace Smoking 611
OCCUPATIONAL SECURITY AND SAFETY 615
Basic Prerequisites for a Security Plan 615 Setting Up a Basic Security Program 616 Evacuation Plans 617
Company Security and Employee Privacy 617 CHAPTER SECTION SUMMARIES 617
DISCUSSION QUESTIONS 618
INDIVIDUAL AND GROUP ACTIVITIES 618
EXPERIENTIAL EXERCISE: HOW SAFE IS MY UNIVERSITY? 619 APPLICATION CASE: THE NEW SAFETY AND HEALTH PROGRAM 622 CONTINUING CASE: CARTER CLEANING COMPANY 623
TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE 624
KEY TERMS 624 ENDNOTES 624
1 / Managing Global Human Resources 630
HR AND THE INTERNATIONALIZATION OF BUSINESS 632
The Manager's Global Challenge 632 How Intercountry Differences Affect HRM 632 Cultural Factors 632
Economic Systems 633
Legal, Political, and Labor Relations Factors 633 Ethics and Codes of Conduct 634
HR Abroad: The European Union 634 HR Abroad: China 635
STAFFING THE GLOBAL ORGANIZATION 635
International Staffing: Home or Local? 635 Offshoring 637
/Management Values and International Staffing Policy 637 Selecting Expatriate Managers 638
• MANAGING THE N E W WORKFORCE: Sending Women Managers Abroad 640 Making Expatriate Assignments Successful 642
TRAINING A N D MAINTAINING EXPATRIATE EMPLOYEES 6 4 3
Orienting and Training Employees on International Assignment 643 Compensating Expatriates 644
• MANAGING H R IN CHALLENGING TIMES: Getting a Handle on Global Compensation 647
Appraising Expatriate Managers 647 International Labor Relations 647 Terrorism, Safety, and Global HR 648
HR APPs 4 U: Traveling Safely with Google Maps 649 Repatriation: Problems and Solutions 649
Improving Productivity Through HRIS: Taking the HRIS Global 649
HOW TO IMPLEMENT A GLOBAL HR SYSTEM 650
Developing a More Effective Global HR System 650 Making the Global HR System More Acceptable 651 Implementing the Global HR System 651
CHAPTER SECTION SUMMARIES 652 DISCUSSION QUESTIONS 653
INDIVIDUAL AND GROUP ACTIVITIES 653
EXPERIENTIAL EXERCISE: A TAXING PROBLEM FOR EXPATRIATE EMPLOYEES 654 APPLICATION CASE: "BOSS, I THINK WE HAVE A PROBLEM" 654
CONTINUING CASE: CARTER CLEANING COMPANY GOING ABROAD 655 TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL
PARIS CASE 655 KEY TERMS 656 ENDNOTES 656
Managing Human Resources in Entrepreneurial Firms 660
THE SMALL BUSINESS CHALLENGE 662
Why Entrepreneurship Is Important 662
How Small Business Human Resource Management Is Different 662 D EVIDENCE-BASED H R : Is Entrepreneurship for You? 663
The Entrepreneur's Risky Human Resource Management Situation 664 Why HRM Is Important to Small Businesses 664
USING INTERNET AND GOVERNMENT TOOLS TO SUPPORT THE HR
EFFORT 665
Complying with Employment Laws 665 Employment Planning and Recruiting 667 Employment Selection 667
Employment Training 668
Employment Appraisal and Compensation 669 Employment Safety and Health 669
LEVERAGING SMALL SIZE: FAMILIARITY, FLEXIBILITY, INFORMALITY, A N D HRM 671
Flexibility in Benefits and Rewards 671
Simple, Informal Employee Selection Procedures 673 Flexibility in Training 673
Fairness and the Family Business 674 Building Communications 675
USING PROFESSIONAL EMPLOYER ORGANIZATIONS 675
How Do PEOs Work? 675 Why Use a PEO? 676 Caveats 676
Guidelines for Finding and Working with PEOs 677
MANAGING HR SYSTEMS, PROCEDURES, AND PAPERWORK 677
Introduction 677
Basic Components of Manual HR Systems 678 Automating Individual HR Tasks 679
Human Resource Management Information Systems (HRIS) 680 CHAPTER SECTION SUMMARIES 681
DISCUSSION QUESTIONS 682
INDIVIDUAL AND GROUP PROJECTS 682
EXPERIENTIAL EXERCISE: BUILDING AN HRIS 683
APPLICATION CASE: THE LIQUIDITY CRISIS AND THE NEW HEDGE FUND 683 CONTINUING CASE: CARTER CLEANING COMPANY 684
TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE 684
APPENDIX FOR CHAPTER 18 685 PART V VIDEO CASES APPENDIX 694 ENDNOTES 696
