Human Resource Management

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Human Resource

Management

Tenth Edition

Lloyd L. Byars, Ph.D.

Professor Emeritus of Management College of Management

Georgia Institute of Technology

Leslie W. Rue, Ph.D.

Professor Emeritus of Management Robinson College of Business Georgia State University

Me

Graw

Hill

McGraw-Hill

Irwin

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Table of Contents

PART ONE

INTRODUCTION AND BACKGROUND

OF HUMAN RESOURCES 1

Chapter 1

Human Resource Management: A Strategic

Function 3

Human Resource Functions 4

Who Performs the Human Resource Functions? 5 The Human Resource Department 5

Challenges for Today's Human Resource Managers 6

Diversity in the Workforce 6 Regulatory Changes 8

Structural Changes to Organizations 8 Technological and Managerial Changes within Organizations 9

Human Resource Management in the Future 10 Organizational Performance and the Human Resource Manager 12

Metrics and the HR Scorecard 12 Communicating Human Resource Programs 13

Guidelines for Communicating Human Resource Programs 13

Summary of Learning Objectives 14 Key Terms 15

Review Questions 16 Discussion Questions 16

Incident 1.1: Human Resource Management and Professionals 16

Incident 1.2: Choosing a Major 17 Exercise 1.1: Changes in Terminology 17 Exercise 1.2: Justifying the Human Resource Department 17

Exercise 1.3: Test Your Knowledge of HR History 17

Exercise 1.4: Are You Poised for Success? 18 Notes and Additional Readings 20

Chapter 2

Equal Employment Opportunity: The Legal

Environment 23

24

Equal Employment Opportunity Laws Equal Pay Act (1963) 24

Title VII, Civil Rights Act (1964) 25 Age Discrimination in Employment Act (1967) Rehabilitation Act (1973) 27

viii

26

Vietnam-Era Veterans Readjustment Assistance Act (1974) 27

Pregnancy Discrimination Act (1978) 28 Immigration Reform and Control Act (1986) 28 Americans with Disabilities Act (1990) 28

Older Workers Benefit Protection Act (1990) 29 Civil Rights Act (1991) 30

Family and Medical Leave Act (1993) 31 Executive Orders 11246, 11375, and 11478 31 State and Local Government Equal

Employment Laws 32 Landmark Court Cases 32

Griggs v. Duke Power Company 34 McDonnell Douglas v. Green 34 Albemarle Paper v. Moody 35

University of California Regents v. Bakke 35 United Steelworkers of America v. Weber 35 Connecticut v. Teal 36

Memphis Firefighters, Local 1784 v. Stotts 36 City of Richmond v. J. A. Crosan Company 37 Wards Cove v. Atonio 3 7

Martin v. Wilks 37

Adarand Contractors v. Pena 38 State of Texas v. Hopwood 38

University of Michigan's Admission Procedures 38 Enforcement Agencies 38

Equal Employment Opportunity Commission 38 Office of Federal Contract Compliance

Programs 39

Summary of Learning Objectives 39 Key Terms 41

Review Questions 41 Discussion Questions 42

Incident 2.1: Debate over Retirement Age 42 Incident 2.2: Accept Things as They Are 43 Exercise 2.1: Discrimination because of Sex, Religion, or National Origin 43

Notes and Additional Readings 44

Chapter 3

Implementing Equal Employment

Opportunity 45

EEOC Compliance 46 Legal Powers of the EEOC 46 EEOC Posting Requirements 46 Records and Reports 46 Compliance Process 49

Preemployment Inquiry Guide 51 Affirmative Action Plans 52

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Table of Contents ix

Bona Fide Occupational Qualification (BFOQ) 52

Business Necessity 53

Sexual Harassment 54

Comparable Worth and Equal Pay Issues 55

Other Areas of Employment Discrimination 56

Religion 56 Native Americans 57 HIV-Positive Status 57 Sexual Orientation 57

Summary of Learning Objectives 58

Key Terms 58

Review Questions 59

Discussion Questions 59

Incident3.l.TheLayoff 59

Incident 3.2: Religion and Real Estate* 60

Exercise 3.1: Affirmative Action Debate 60

Exercise 3.2: How Much Do You Know about Sexual

Harassment? 60

On the Job: Preemployment Inquiry Guide 61

Chapter 4

Job Analysis and Job Design

65

66

Basic Terminology

Job Analysis 66

Products of Job Analysis 68 Job Analysis Methods 69

The ADA and Job Analysis 72

Potential Problems with Job Analysis 73 ,'

Job Design 74

Job Scope and Job Depth 75

Sociotechnical Approach to Job Design 75 The Physical Work Environment 76 Flexible Work Arrangements (FWAs) 76

Key Terms 81

Review Questions 81

Incident 4.1: The Tax Assessor's Office 81 Incident 4.2: Turnover Problems 82

Exercise 4.1: Introduction to O*NET 82

Exercise 4.2: Writing a Job Description 82

Exercise 4.3: Performing a Job Analysis 83

On the Job: Sample Job Analysis

Questionnaire 84

PART TWO

ACQUIRING HUMAN RESOURCES 87

Chapter 5

Human Resource Planning

89

How HRP Relates to Organizational Planning

Strategy-Linked HRP 91

90

Time Frame of HRP 91

HRP: An Evolving Process 92

s

Steps in the HRP Process 92

Determining Organizational Objectives 92

Determining the Skills and Expertise Required (Demand) 94 Determining Additional (Net) Human Resource

Requirements 95

Developing Action Plans 96 Synthesizing the HRP Process 98

Succession Planning 100

Human Resource Information Systems (HRIS) 101

HR and the Internet 102 HR Intranets and Portals 102 HR and Web 2.0 104 Software as a Service 104

Summary of Learning Objectives 105

Key Terms 106

Review Questions 106

Incident 5.1: Human Resource Planning— What Is That? 107

Incident 5.2: New Boss 107

Exercise 5.1: Avoiding Layoffs? 108

Exercise 5.2: Locating HR Software 108

Chapter 6

Recruiting Employees 111

Job Analysis, Human Resource Planning, and

Recruitment 112

Personnel Requisition Form 112

Sources of Qualified Personnel 113

Internal Sources 113 External Sources 115

Effectiveness of Recruitment Methods 117

Realistic Job Previews 118

Who Does the Recruiting, and How? 119

Organizational Inducements in Recruitment 120

Equal Employment Opportunity and Recruitment 120

Key Terms 122

Incident 6.1: Inside or Outside Recruiting? 123 Incident 6.2: A Malpractice Suit against a Hospital 123

Exercise 6.1: Writing a Resume 124

Chapter 7

Selecting Employees 125

The Selection Process 125

Employment Application Form 126 Preliminary Interview 127 Formal Testing 128

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Second or Follow- Up Interview 131 Reference Checking -132

Physical Examination 132

Making the Final Selection Decision 133

Validation of Selection Procedures 133

Criterion-Related Validity 134 Content and Construct Validity 137

Reliability 137

Uniform Guidelines on Employee Selection

Procedures 137

Adverse (or Disparate) Impact 138

Where Adverse Impact Exists: The Basic Options 139

Key Terms 140

Incident 7.1: Promotions at OMG 141 Incident 7.2: The Pole Climbers 142

Exercise 7.1: Developing a Frequency Distribution 143

On the Job: Sample Online Application

for Employment 144

PART THREE

TRAINING AND

DEVELOPING EMPLOYEES

147

Chapter 8

Orientation and Employee Training 149

Orientation 151

Shared Responsibility 151 Organizational Orientation 151 Departmental and Job Orientation 151 Orientation Kit 151

Orientation Length and Timing 153 Follow-Up and Evaluation 154

Training Employees 154

Needs Assessment 155

Establishing Training Objectives 156

Methods of Training 157

On-the-Job Training and Job Rotation 157 Apprenticeship Training 159 Classroom Training 160 Virtual Classroom 160

Evaluating Training 160

Reaction 160 Learning 160 Behavior 161 Results 161

Principles of Learning 162

Motivation to Achieve Personal Goals 162 Knowledge of Results 162

Reinforcement 162

Flow of the Training Program 163

Practice and Repetition 163 Spacing of Sessions 163

Whole or Part Training 163

Summary of Learning Objectives 163 ^

Key Terms 164

Incident 8.1: Starting a New Job 164

Incident 8.2: Implementing On-the-Job Training 165

Exercise 8.1: McDonald's Training Program 166

Exercise 8.2: Virtual Classroom 166

Chapter 9

Management and Organizational

Development 167

The Management Development Process 168

Determining the Net Management Requirements 168

Organizational Objectives 168

Management Inventory and Succession Plan 168 Changes in the Management Team 169

Needs Assessment 169

Establishing Management Development Objectives 172

Methods Used in Management Development 174

Understudy Assignments 174 Coaching 174

Experience 175 Job Rotation 175

Special Projects and Committee Assignments 175 Classroom Training 175

In-Basket Technique 176 Web-Based Training 177 Business Simulations 177 Adventure Learning 177

University and Professional Association Seminars 178

Evaluation of Management Development Activities 178

Assessment Centers 179

Organizational Development 179

Diagnosis 180 Strategy Planning 180 Education 181 Evaluation 181

Key Terms 182

Incident 9.1: The 40- Year Employee 183

Incident 9.2: Consolidating Three Organizations 184

Exercise 9.1: Training Methods 184

On the Job: Comparison of Training Methods 185

Chapter 10

Career Development 189

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Table of Contents xi

Who Is Responsible for Career Development? 191

Organization's Responsibilities 191 Employee's Responsibilities 191 Manager's Responsibilities 192

Implementing Career Development 192

Individual Assessment 192

Assessment by the Organization 194 Communicating Career Options 194 Career Pathing 194

Career Self-Management 194 Career Counseling 195

Reviewing Career Progress 196

Career-Related Myths 197

Myths Held by Employees 197 Myths Held by Managers 198

Dealing with Career Plateaus 198

Rehabilitating Ineffective Plateauees 200

Career Lattices 200

The Impact of Dual-Employed Couples and

Single-Parent Employees 201

Outplacement 202

Breaking the Glass Ceiling 202

Career Development Online 203

Key Terms 205

Incident 10.1: The Unhappy Power Line Installer 206 Incident 10.2: Hire Me, Hire My Husband! 207

Exercise 10.1: How Do You Rate as a Career

Counselor? 208

Exercise 10.2: Becoming an Effective Career

Planner 209

Exercise 10.3: Online Self-Assessment 209

On the Job: Online Self-Assessment Tools 210

Chapter 11

Performance Management Systems 213

Understanding Performance 214

Determinants of Performance 214

Environmental Factors as Performance Obstacles 214 Responsibilities of the Human Resource Department in Performance Management 214

Performance Appraisal: Definition and Uses 215

Performance Appraisal Methods 216

Management by Objectives (MBO) 216

Multi-Rater Assessment (or 360-Degree Feedback) 217 Graphic Rating Scale 217

Behaviorally Anchored Rating Scale (BARS) 217 Critical-Incident Appraisal 219 Essay Appraisal 220 Checklist 220 Forced-Choice Rating 220 Ranking Methods 221 Work Standards 222

Potential Errors in Performance Appraisals 222

Overcoming Errors in Performance Appraisals 223

Providing Feedback through the Appraisal Interview 223

Developing Performance Improvement Plans 224

Performance Appraisal and the Law 225

Key Terms 226

Incident 11.1: The College Admissions Office 227 Incident 11.2: The Lackadaisical Plant Manager 228

Exercise 11.1: Developing a Performance Appraisal

System 228

PART FOUR

COMPENSATING

HUMAN RESOURCES

231

Chapter 12

The Organizational Reward System 233

Defining the System 234

Selection of Rewards 234

Relating Rewards to Performance 235

Job Satisfaction and Rewards 236

The Satisfaction-Performance Controversy 237 Other Factors Affecting Job Satisfaction 238

Employee Compensation 238

Compensation Policies 239 Pay Secrecy 239

Government and Union Influence 240 Impact of Comparable Worth 241 The Importance of Fair Pay 241 Pay Equity 242

Pay Satisfaction Model 243

The Role of the Human Resource Manager in the Reward

System 244

Summary of Learning Obj ectives _ 245

Key Terms 246

Review Questions 246

Incident 12.1: An Informative Coffee Break 247 Incident 12.2: Does Money Motivate? 248

Exercise 12.1: Relating Rewards to Performance 249

Chapter 13

Base Wage and Salary Systems

251

Objective of the Base Wage and Salary System 252

Conventional Job Evaluation 252

Job Ranking Method 253 Job Classification Method 254 Point Method 254

Factor Comparison Method 257

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Pricing the Job 259

Wage and Salary Surveys 259 Wage and Salary Curves 261

Base Wage/Salary Structure 263

New Approaches to the Base Wage/Salary

Structure 263

Broadbanding 264 Skill-Based Pay 264 Competency-Based Pay 265 Market-Based Pay 266 Total Rewards 266

Key Terms 268

Incident 13.1: Fair Pay for Pecan Workers 269 Incident 13.2: A Dead-End Street? 269

Exercise 13.1: Ranking Jobs 270

Exercise 13.2: Wage/Salary Survey 270

Chapter 14

Incentive Pay Systems

273

Requirements of Incentive Plans 274

Individual Incentives 275

Piece Rate Plans 2 75

Plans Based on Time Saved 275 Plans Based on Commissions 275 Individual Bonuses 276

Suggestion Systems 276

Incentives for Managerial Personnel 2 76 Stock Options for Nonmanagerial Personnel 281

Group Incentives 281

Gain-Sharing or Profit-Sharing Plans 282 Scanlon-Type Plans 283

Employee Stock Ownership Plans (ESOPs) 283

Making Incentive Plans Work 285

Key Terms 287

Incident 14.1: Rewarding Good Performance at a Bank 287 Incident 14.2: Part-Time Pool Personnel 288

Exercise 14.1: Implementing Incentives 289

Exercise 14.2: Proven Suggestion Systems 289

Exercise 14.3: The Status of the Corporate and Financial

Institutions Compensation Fairness Act (CFICF) 289

Chapter 15

Employee Benefits 291

What Are Employee Benefits? 292

Growth in Employee Benefits 293

Legally Required Benefits 294

Social Security 294

Unemployment Compensation 296 Workers' Compensation 29 7

Retirement-Related Benefits 298

Company-Sponsored Retirement Plans 298 ERISA and Related Acts 302

Employees Not Covered by Company Retirement Plans 303 Preretirement Planning 304

Insurance-Related Benefits 304

Health Insurance 305 Dental Insurance 306 Life Insurance 306

Accident and Disability Insurance 307

Payment for Time Not Worked 307

Paid Holidays and Paid Vacations 307

Other Benefits 307

Employee Preferences among Benefits 307

Flexible-Benefit Plans 308

The Benefit Package 309

Communicating the Benefit Package 309

Summary of Learning Objectives . 3 1 1

Key Terms 313

Incident 15.1: Who Is Eligible for Retirement Benefits? 314 Incident 15.2: Benefits for Professionals 314

Exercise 15.1: Taking a Raise 315

Notes and Additional Readings 315

PART FIVE

EMPLOYEE WELL-BEING AND LABOR

RELATIONS 317

Chapter 16

Employee Safety and Health

319

Occupational Safety and Health Act 320

OSHA Standards 321 Penalties 322

Reporting/Record-Keeping Requirements 322

The Causes of Accidents 323

Personal Acts 323 Physical Environment 324 Accident Proneness 324

How to Measure Safety 324

Organizational Safety Programs 325

Promoting Safety 325

Establishing a Safety Training Program 325

Employee Health 326

Occupational Health Hazards 326 Stress in the Workplace 327 Alcoholism and Drug Abuse 329 AIDS 331

Employee Assistance Programs (EAPs) 332 Work/Life Programs 333

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Table of Contents xiii

335

Violence in the Workplace 335

Summary of Learning Objectives

Key Terms 337

Incident 16.1: Safety Problems at Blakely 338 Incident 16.2: To Fire or Not to Fire? 338

Exercise 16.1: Filing OSHA Reports 339

Exercise 16.2: Preventing Violence in the Workplace

Chapter 17

Employee Relations

343

Employment at Will 343 •

..-Causes of Disciplinary Actions 344

Administering Discipline 344

Prediscipline Recommendations 345 Guidelines for Administering Discipline 346 Legal Restrictions 347

Grievance Procedures 348

Just Cause 348 Due Process^ 350

Duty of Fair Representation 350 Time Delays 351

Grievance Arbitration 351

Key Terms 353

Discussion Questions 353 /

Incident 17.1: Tardy Tom 354

Incident 17.2: Keys to the Drug Cabinet 354

Exercise 17.1: Mock Arbitration 355

Chapter 18

The Legal Environment and Structure

of Labor Unions 357

The Legal Environment of Labor-Management

Relations 358

Sherman Anti-Trust Act (1890) 359 Clayton Act (1914) 360

Railway Labor Act (1926) 360 Norris-La GuardiaAct (1932) 360

National Labor Relations (Wagner) Act (1935) 361 Labor-Management Relations (Taft-Hartley) Act (1947) 361

Labor-Management Reporting and Disclosure (Landrum-Griffm) Act (1959) 364

Civil Service Reform Act (1978) 364

Union Structures 365

AFL-CIO 365

National and International Unions 366

City and State Federations 366 Local Unions 366

Current and Future Developments in the Labor

Movement 367

Key Terms 369

339 Incident 18.1: Unions and Management 370

Incident 18.2: Voluntary Resignations during a Strike 370

Exercise 18.1: Need for Unions 370

Chapter 19

Union Organizing Campaigns and Collective

Bargaining 373

Union Membership Decision 374

Reasons for Joining 374 The Opposition View 374

Union Organizing Campaign 374

Determining the Bargaining Unit 375 Election Campaigns 375

Election, Certification, and Decertification 376

Good-Faith Bargaining 377

Participants in Negotiations 378

Employer's Role 378 Union's Role 379 Role of Third Parties 3 79

Collective Bargaining Agreements 381

Specific Issues in Collective Bargaining

Agreements 382

Management Rights 382 Union Security 382

Wages and Employee Benefits 383 Individual Security (Seniority) Rights 384 Dispute Resolution 384

Impasses in Collective Bargaining 384

Trends in Collective Bargaining 385

Key Terms 387

Discussion Questions 387

Incident 19.1: Florida National Guard and NAGE 387 Incident 19.2: Retiree Benefits 388

Exercise 19.1: Contract Negotiations 388

Glossary 391

Index 401