Human Resource Management
An Experiential Approach
Sixth Edition
H. JOHN BERNARDIN
Stewart Distinguished Professor,
Florida Atlantic University
JOYCE E. A. RUSSELL
Ralph J. Tyser Distinguished Teaching Fellow,
The University of Maryland
Me
Graw
Hill
McGraw-Hill
Irwin
Contents
Preface xii
Part 1 Human Resource Management [ and the; Environment 1
>>
Chapter 1 Strategic Human Resource Management in a Changing Environment 3
Objectives 3 Overview 3
What Is Human Resource Management? 6
HRM and Corporate Performance 6
Discrepancies Between Academic Research and HRM Practice 8
The Domains of Human Resource Management 10 Trends Enhancing the Importance of HRM 12
Trend 1: The Increased Globalization of the Economy 13
Trend 2: Technological_Changes, Challenges, and Opportunities 15
Trend 3: Increase in Litigation and Regulation Related to HRM 16
Trend 4: Changing Characteristics of the Workforce 18
Summary of Trend Effects 19
The Importance of HRM Measurement in Strategy Execution 21
The Workforce Scorecard 21
Competitive Advantage 25
Customer Value 25
Customer Value and Corporate Social Responsibility (CSR) 25
The Worker's Rights Consortium 26 Maintaining Uniqueness 28
Sources of Uniqueness 28
Summary 30
Discussion Questions 30
Chapter 2 The Role of Globalization in HR Policy and Practice 33
Objectives 33 Overview 33
Foreign Direct Investment 34
How Do Companies Engage in International Commerce? 36
Exporting Work 39
Summary 40
What Influences the Decision to Invest in a Particular International Market? 40
Domestic versus International HRM 41 International HRM Strategies 46
What Influences the Choice of IHRM Strategy ? 47
International Business Assignments 48
Goals of International Business Assignments 48 Challenges of International Business Assignments 49 Recent Trends in Overseas Assignments 52
Global Leadership Challenges 53 Summary 56
Discussion Questions 57
Chapter 3 The Legal Environment of HRM: Equal Employment Opportunity 59
Objectives 59 Overview 59
Equal Employment Opportunity Law 61
What Is Employment Discrimination ? 62
What Are the Major Sources ofEEO Redress ? 62 How Do You File a Discrimination Lawsuit? 66
Title VII of the Civil Rights Act of 1964 68
What Is Not Prohibited by Title VII? 69
What Legal Steps Are Followed in a Title VII Case ? 69 What Constitutes Sexual Harassment
under Title VII? 76
What Is the Employer's Liability in '"' Harassment Cases? 77
What Is Affirmative Action ? 80
What Is the Legal Status of Affirmative Action ? 81 What Is Required before a Company Embarks
on a Voluntary Affirmative Action/Diversity Program ? 82
Is Affirmative Action Still Necessary? 82
The Age Discrimination in Employment Act of 1967, Amended in 1978 and 1986 83
What Is Required to Establish Prima Facie Evidence of Age Discrimination? 83
Contents •c < a. o O 2 O
Can Employers Claim Age as a Bona Fide Occupational Qualification (BFOQ)? 84
The Americans with Disabilities Act of 1990 (ADA) Amended in 2008 84
What Is Legal And Illegal under ADA ? 87
Genetic Information Nondiscrimination Act (GINA) 8 Pregnancy Discrimination Act of 1978 89
Are Expatriates Covered by Federal EEO Laws When They Are Assigned to Countries Other Than the United States? 90
What Are Employee Rights When Working for Multinational Employers ? 92
Future Trends in EEO 93
Alternative Dispute Resolution: An Employer Reaction to Increased Litigation 93
Summary 94
One Implication of Increased Litigation: Better HRM Practices 94
Discussion Questions 96
Part 2
Acquiring Human Resource
Capability 97
o U
Chapter 4 Work Analysis and Design 99
Objectives 99 Overview 99
What Is Wqjk-Analysis? 101
What Are the Major Goals for Work Analysis? 103 Do We Really Need All the Specificity in Formal
Job Analysis ? 103
What Is the Legal Significance of Work Analysis? 104
What Are the Major Work Analysis Products? 105 WfratAre the Major Methods of Work Analysis ? 108 What Are the Dimensions on Which Work Analysis
May Vary? 110
What Are the Most Useful Formal Approaches-to Work Analysis? 112 4
Position Analysis Questionnaire (PAQ) 112 Management Position Description Questionnaire
(MPDQ) 11§
Competency Modeling 116 O*NET 121
Critical Incident Technique (C1T) 123 Personality-Based Job Analysis 127
Fleishman Job-Analysis Survey (F-JAS) 127 Job Compatibility Questionnaire (JCQ) 128 Work Analysis for Job Design 129
What Is Strategic Job Analysis ? 132
Autonomous Work Groups (AWG) or Self-Managing Teams 133
Suggestions for Using A WGS or Self-Managing Work Teams 134
The Effectiveness ofAWGS or Self-Managing Work Teams 134
Rating Source Matters: Potential Biases in Work Analysis Data 134
How Do You Choose the Best Work Analysis Method? 135
Summary 136
Discussion Questions 137
Chapter 5 Human Resource Planning and Recruitment 139
Objectives 139 Overview 139
Effective Human Resource Planning 141
Step One: Environmental Scanning 142
The Worker Adjustment and Retraining Notification Act (WARN) 143
Step Two: Labor Demand Forecast 149 Step Three: Labor Supply Forecast 151 Step Four: Gap Analysis 154
Step Five: Action Programming 159 Step Six: Control and Evaluation 159
The Recruitment Function: Putting HRP into Action 160
Recruitment, Other HR Activities, and Organizational Attractiveness 160 The Three Essential Steps for Recruitment
Planning 162
The Two Sources of Recruiting: Internal and External 164
Advantages and Disadvantages of Internal and External Recruiting 164
External Recruitment Sources 166
What Methods of Recruiting Are Most Effective ? 175 Two Philosophies of Recruiting: Flypaper
versus Matching 179 Understanding the Recruits 180
Human Resource Planning and Recruitment for Multinational Corporations 181
Summary 183
Discussion Questions 184
Chapter 6 Personnel Selection 185
Objectives 185 Overview 185
Selection Methods: Are They Effective?
What Is Reliability? 187 What Is Validity? 188 What Is Utility? 191
Application Blanks and Biographical Data 191
A Discrepancy between Research and Practice: The Use of Application Blanks and Biographical Data 192
How Do You Derive WAB or BIB
or Accomplishment Record Weights ? 193
Reference Checks and Background Checks 194
What Is the Validity of Reference Checks? 195 What Are the Legal Implications of Doing
Background Checks and Reference Checks on Job Candidates? 195
Personnel Testing 196
What Is a Cognitive (or General Mental) Ability Test? 196 , What Are Tests of Specific Mental Abilities ? 198 Are There Racial Differences in Test Performance ? 199
Why Do Minorities Score Lower than Whites on GMA Tests? 200
How Do Organizations Deal with Race Differences on Cognitive Ability Tests ? 200
What Are Physical or Psychomotor Tests ? 201 What Is Personality/Motivational/Dispositional
Testing? 202
What Is the Validity of Personality Tests ? 206 Approaches to the Prediction of Particular
Criteria 208 \
How Do You Establish a Testing Program? 212
Drug Testing 212
Is Some Testing an Invasion of Privacy? 213
Performance Testing/Work Samples 214
What Is an Assessment Center? 215 How Are Assessments Done ? 217
What Is the Validity and Adverse Impact of Assessment Centers and Other Performance Tests ? 218 Performance Appraisals/Competency
Assessment 218
Interviews 219
What Factors Affect the Employment Interview ? 220 What Is the Validity of Employment Interviews ? 221 How Can We Improve the Validity of Interviews? 223 What Are Major Types of Interviews ? 224
The "Bottom Line " on Interview Validity 226
Combining Data from Various Selection Methods 226
What Is Individual Assessment? 228
Personnel Selection for Overseas Assignments 228
Weights for Expatriate Selection 231
Selection in Other Countries 232 The Bottom Line on Staffing 232 Summary 233
Discussion Questions 235
Part 3 Developing Human Resource
Chapter 7 Performance Management and Appraisal 239
Objectives 239 Overview 239
How Do We Define Performance and Why Do We Measure It? 241
What Are the Uses of Performance Data ? 243
Legal Issues Associated with Performance Appraisals 245
Designing an Appraisal System 246
Measurement Content 246
Categories of Performance Outcomes 247 The Measurement Process 248
Control of Rating Errors and Biases 255 Rater Training 260
Defining the Rater 262 Defining the "Ratee " 263
Rating the Unit on Performance 263
The Productivity Measurement and Enhancement System (ProMES) 264
Benchmarking—Gauging internal practices to external standards 268
Administrative Characteristics 269
Methods of Delivering Performance Feedback 270
Summary 271
Discussion Questions 271
Chapter 8 Training and Development 273
Objectives 273 Overview 273
Defining Training and Development 275 Extent of Training and Development 276 A Systems View of Training 277
Discrepancies between Research and Practice 278
Needs Assessment 279
Organizational Analysis 280 Job Analysis 281
Person Analysis 281
Techniques for Collecting Needs Assessment Data 282
Deriving Instructional Objectives 282
Development of the Training Program 283
Designing a Learning Environment for Training 283 Preconditions of Learning 283
Conditions of the Learning Environment 285 Using Learning Principles to Develop Training
Materials 287 Transfer of Training 287
Contents
£
I
5
Choosing Methods for the Training Program 288 Informational Methods 291
Social Media Technologies for Learning 293 Experiential Methods 293
Evaluation 300
Barriers to Training Evaluation 300 Types of Criteria 301
Assessing the Costs and Benefits of Training 305 Designs for Evaluating Training 307
Benchmarking Training Efforts 308
Planning for Training Effectiveness in Organizations 309
Special Training Programs 310
Training For Generational Trdnsitions 310
Employee Orientation Programs and Onboarding 310 Training for Teams 312
Diversity Awareness Training 313 Sexual Harassment Training 314 Cross-Cultural Training and Training for
International Assignments 315
Summary 317
Discussion Questions 319
Chapter 9 Career Development 321
Objectives 321
Overview 321 .' Definitions 322
Implications of Workplace Changes for Individuals and Organizations 324
What Should Individuals Do ? 324 What Should Organizations Do ? 324
Importance of Understanding Career Development 325 Designing Career Development Systems 327
Benefits of Career Development Systems 328
Components of Career Development Systems 329
Self-Assessment Tools 330 Individual Counseling 331 *• Information Services 332
Organizational Assessment Programs 334 Developmental Programs 337
Career Programs for Special Target Groups 339
Fast-Track Employees 339 Outplacement Programs 339 Entrenched Employees 341
Supervisors and Career Counseling 342 Executive Coaching 342
Programs for Women, Minorities, and Employees with Disabilities 343
Programs for New Employees (Early-Career Issues) 344
Programs for Late Career and Retirement 344 Programs to Improve Work-Family Balance 345 Repatriates 349
Summary 351
Discussion Questions 351
; Part 4 Compensating and Managing
1
^
^
5
; vj
Chapter 10 Compensation: Base Pay and Fringe Benefits 355
Objectives 355 Overview 355
Five Objectives for Effective Compensation 359
Cash Compensation: Base Pay 360
The Traditional Approach to Compensation 362
What Is Internal Equity ? 362 Job Evaluation Methods 362 What Is External Equity ? 365
Current Trends in Salary Administration 368 Government Influence on Compensation
Issues 369
The Lilly Ledbetter Fair Pay Act 374 Pay Equity or Comparable Worth
Policy 374
Paycheck Fairness Act 375 Other Compliance Issues 376
Fringe Compensation: Employee Benefits 377
Categories of Employee Benefits 378 Communicating the Benefits Program 388
International Compensation 389
Compensation in Offshore Operations 389 Compensation for Offshore Managers and Key
Professionals 390 Base Salary 391
Foreign Service Premiums 391 Allowances 392
Expatriate Benefits 392
Summary 393
Discussion Questions 394
Chapter 11 Rewarding Performance 397
Objectives 397 Overview 397 Does PFP Work? 400
What Are the Determinants of Effective Reward Systems? 401
What Are the Main Problems with PFP Programs? 404
What Are the Legal Implications of PFP? 406
Contents
How Do You Select a PFP System? 406
Who Should Be Included in a PFP System ? 407 How Will Performance Be Measured? 407 What Are the Rewards in an Incentive System? 407 A Discrepancy between Research and Practice 408 Should You Use Individual, Group, or
Company-Level PFP? 408
When Should Team-Based PFP Be Used? 409
Individual PFP Plans: Merit Pay and Incentive Systems 410
What Are Merit Pay Plans? 410 What Is Incentive pay ? 412
What Are Sales Incentive Plans ? 414 What Are Bonuses? 415 '
What Are Group Incentive Plans? 415
What Is Profit Sharing ? 416 What Is Gainsharing ? 417
What Are Employee Stock Option Plans? 420
Managerial and Executive Incentive Pay 421
Are There Documented Negative Consequences to Widening Pay Dispersion? 422
Should You Use Short- or Long-Term Measures of Performance? 422
What about the Corporate Board Room ? 423
How Do Companies Keep Entrepreneurs and Promote Intrapreneurs? 424 *
What Are the Managerial Implications for PFP Programs? 424
Summary 425
Discussion Questions 427
Chapter 12 Managing the Employment Relationship 429
Objectives 429 S Overview 429 Introduction 430 Organizational Justice 430 Ethics Programs 432 Organizational Entry 433 * Employment Status 433
Flexible Work Arrangements 434 Realistic Job Previews 436 Socialization and Orientation 437
The Ongoing Relationship 438
External Forces: Law 439
Internal Forces: Employee Surveys 445 Internal Forces: Employee Handbooks 448 Violations of Policy/Discipline 451 Grievances 453 Organizational Exit 456 Termination 456 Resignation/Voluntary Turnover 457 viii
Downsizing and Layoffs 460 Retirement 462
Summary 464
Discussion Questions 465
Chapter 13 Labor Relations and Collective Bargaining 467
Objectives 467 Overview 467
Why Do Workers Join Unions? 470
The Legal Environment of Labor Relations 471
National Labor Relations Act (NLRA) 4 72 The Taft-Hartley Act 473
Other Important Labor Laws 473
How Do Workers Form Unions? 475
Union Organizing Efforts 476
The Effects of Unions 477
Unions and High Performance Work Practices 479 Unions and Quality ofWorklife Issues 479 Union Effects on Worker Satisfaction 480 Unions and HRM 480
Collective Bargaining 480
The Labor Contract 481
Issues in Collective Bargaining 481 Types of Bargaining 482
Conducting Labor Contract Negotiations 483 The Union's Economic Power in Collective
Bargaining 485
The Employer's Power in Collective Bargaining 486 Administration of the Labor Contract 487
Current and Future U.S. Trends in Labor Relations 491
Union Membership 491
Public-Sector Union Membership 492 Mergers and Acquisitions 493 Retraining Provisions 493 Employee Benefits 493
A Proposal to Reinvent U.S. Trade Unionism 493
International Issues 494
U.S. Managers and Unions 495
Global Collective Bargaining and Productivity 497
Summary 498
Discussion Questions 499
Chapter 14 Employee Health and Safety 501
Objectives 501 Overview 501
Common Workplace Injuries and Diseases 505
Distracted Driving 505
Legal Issues Related to Health and Safety 506
Workers' Compensation 507 Fraudulent Claims 508
Contents
•c
i
I
The Occupational Safety and Health Administration Act 509
Programs to Reduce Accidents at Work 523
Selective Hiring -524 Safety Training 524
Teamwork, Supervision, and Decentralized Decision Making 526
Incentive Systems 526 Safety Rules 527
Contemporary Issues Related to Health and Safety 527
AIDS and the Workplace 527 Drugs in the Workplace 529 Smoking and the Workplace 532 Violence in the Workplace 533 Video Display Terminals 539 Repetitive Strain Injuries (RSI) 539 Occupational Stress 541
Employee Assistance Programs 546
Employee Wellness or Fitness Programs 548
Summary 549
Discussion Questions , 551 Recommended Internet Sites 551
/
Appendix A Critical Thinking Applications 553
1 -A What Do You Know about HRM?* 553 1-B Corporate Social Responsibility and Human
Resource Management* 553
1-C Resolution: Close Down the Human Resources Department 554
2-A What Is the Origin of Your University Apparel? 555
2-B International HR: How about a Cuppa? 557 3-A Are Dreadlocks Protected under Title VII? 558 3-B Allegations of Religious Discrimination 558 4-A Can PAS Defend Its Test in Court? 559 4-B What to Do with Job Diagnostic Survey ._
Results* 561
5-A Freeman et al. v. the New Oxford
Fire Department 561
5-B Hi, I'm in Bangalore (but I Can't Say So) 565 5-C Is Wal-Mart Guilty of Gender
Discrimination? 565
6-A What Privacy Do We Have in the Workplace? 567
6-B The Measurement of Personality Traits* 569 7-A Should We Measure Competencies
in Performance Appraisal? 570 7-B The Role of Mystery Shoppers
in Performance Appraisal 570
7-C Allegations of Age and Race Discrimination against Ford Motor Company 571
7-D Performance Appraisal Characteristics Questionnaire* 572
8-A Workplace Diversity Training 572 8-B Sexual Harassment Training* 573 9-A Careers and Corporate Social
Responsibility 574 9-B O*NET Skills Search 574
10-A Defending Corporate Executive Pay 576 10-B Illegal Pay Discrimination, Bad Pay Policy,
or Both? 578
10-C Legal or Illegal Compensation Plan? 579 10-D Is Cafe Espresso in Compliance with the Fair
Labor Standards Act (FLSA)? 579
11-A The Case for and against Pay-for-Performance Systems 580
11 -B The Prediction of Rating Error* 5 81 11-C Can We (and Should We) Apply the Lincoln
Electric Method? 581
11-D Should Teacher Pay Be Tied to Student Test Scores? 582
12-A Employment-at-Will 583 12-B Developing Organizational Policy
and a Code of Ethics 5 84 13-A Unionizing FedEx 584
13-B Do You Support the "Protecting Jobs from Government Interference Act"? 585 14-A Can Health and Safety Behavior Be
Predicted?* 586
14-B The Measurement of Stress at Work* 587
Appendix B Chapter Exercises 589
1.1 An Interview with an HRM Specialist* 589 1.2 An Assessment of Customer Satisfaction
and the Relationship to HRM Activities 589 1.3 Human Resource Issues at Valley National
Bank 603
2.1 International HR Strategies: The Derivation of Policy 613
2.2 Going Global with Marriott Corporation** 617 2.3 International Assignment Problems at XYZ
Corporation* 617
3.1 Zimpfer v. Palm Beach County 623 3.2 Goebel et al. v. Frank Clothiers 631 3.3 A Case of Illegal Sexual Harassment?* 635 3.4 Reverse Discrimination or Legal Affirmative
Action? 639
3.5 Joseph Garcia v. Hooters, Cameron v. LaVeille
Maison 647
3.6 Hiring a Bank Teller* 651
4.1 Writing a Position Description 655
•c
g< *The test or questionnaire component of these exercises is available 0 online at the book's website (www.mhhe.com/bernardin6e).
**This exercise is available online at the book's website (www.mhhe .com/bernardin6e).
4.2 The Use of the Critical Incident Technique to Analyze the Job of University
Professor* 669
4.3 Job Analysis at CompTech 669
5.1 A Turnover Problem at the Fort Lauderdale
Herald 675
5.2 Permalco's.Recruiting Challenge* 679 5.3 Recruiting at Julia Richter's "Dressed for
Success"** 679
5.4 HR Planning at CompTech 685
6.1 Should Tenneco Use the Wonderlic Test? 687 6.2 Hiring a Plant Manager at Dynamo
Industries 691
6.3 What Questions Can You (and Should You) Ask in an Interview?* 695
7.1 Performance-Appraisal Feedback: " A Role-Play Exercise 699
7.2 The Heartland Greeting Cards Consulting Problem* 703
7.3 ProMES Development at Sports "R" Us 703 7.4 Performance Appraisal at Darby Gas &
Light 709
7.5 The Development of a Performance Appraisal System for Instructors* 703 8.1 Conducting a Needs Assessment \ 7 1 7 8.2 Rainyday Insurance Adjusters Company 721 8.3 Backwoods Mail Order Company* 725 8.4 The Development and Evaluation of
a Training Program for Graduate Student Instructors 725
8.5 Self-Directed Learning Assessment* 729 9.1 Attitudes about Older People* 733 9.2 Career Development Self-Assessment
Exercise 733
*The test or questionnaire component of these exercises is available online at the book's website (www.mhhe.com/bernardin6e). **This exercise is available online at www.mhhe.com/bernardin6e.
9.3 Career Development at TechnoChip Computers* 733
10.1 Problems in the Pay System 741 10.2 Should the State Adopt a Pay Equity
Policy? 747
10.3 Developing an Employee Benefits Program* 753
11.1 The Design of a PFP System for Mega Manufacturing** 753
11.2 Pay for Performance at Dee's Personalized Baskets 753
12.1 An Approach to Downsizing 757
12.2 Compududes Considers Arbitration Options for Employee Disputes** 767
12.3 Handling an Employee's Termination 767 13.1 Organizing a Union 771
13.2 Unions, Labor Law, and Managerial Prerogatives* 775
13.3 The Baseball Strike: An Example of Collective Bargaining* 777
14.1 The Development of a Company Antismoking Policy 777
14.2 The Development of an Antidrug Policy** 779 14.3 The Development of a Health
and Safety Policy 779
14.4 The Development of a Threat Management Team for a Workplace Violence Incident* 783
Appendix C Assessment Guidelines for Self, Peer, and Designated Assessors** Available online at www.mhhe.com/bernardin6e
Endnotes 785
Name Index 837
Company Index 839