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4. Fundamentals of Human Resource Management Tenth Edition
David A. DeCenzo Coastal Carolina University Conway, SC Stephen P.
Robbins San Diego State University San Diego, CA Tenth Edition
Contributor Susan L. Verhulst Des Moines Area Community College
Ankeny, IA John Wiley & Sons, Inc. JWCL192_fm_i-xxiii.qxd
9/11/09 5:46 PM Page iii
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Human Resource Management10th ed. ISBN-13 978-0470-16968-1 Printed
in the United States of America 10 9 8 7 6 5 4 3 2 1
JWCL192_fm_i-xxiii.qxd 9/11/09 5:46 PM Page iv
6. PART 1 UNDERSTANDING HRM Chapter 1 The Dynamic Environment
of HRM 2 Chapter 2 Fundamentals of Strategic HRM 28 PART 2 THE
LEGAL AND ETHICAL CONTEXT OF HRM Chapter 3 Equal Employment
Opportunity 56 Chapter 4 Employee Rights and Discipline 84 PART 3
STAFFING THE ORGANIZATION Chapter 5 Human Resource Planning and Job
Analysis 110 Chapter 6 Recruiting 132 Chapter 7 Foundations of
Selection 154 PART 4 TRAINING AND DEVELOPMENT Chapter 8
Socializing, Orienting, and Developing Employees 182 Chapter 9
Managing Careers 208 PART 5 MAINTAINING HIGH PERFORMANCE Chapter 10
Establishing the Performance Management System 230 Chapter 11
Establishing Rewards and Pay Plans 260 Chapter 12 Employee Benefits
286 Chapter 13 Ensuring a Safe and Healthy Work Environment 312
PART 6 LABORMANAGEMENT ENVIRONMENTS Chapter 14 Understanding Labor
Relations and Collective Bargaining 340 Endnotes 367 Glossary 389
Company Index 395 Subject Index 398 Brief Contents v
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7. PART 1 UNDERSTANDING HRM Chapter 1 The Dynamic Environment
of HRM 2 Learning Outcomes 2 Introduction 4 Understanding Cultural
Environments 4 The Changing World of Technology 5 What Is a
Knowledge Worker? 6 How Technology Affects HRM Practices 6
Recruiting 7 Employee Selection 7 Training and Development 7 Ethics
and Employee Rights 7 Motivating Knowledge Workers 7 Paying
Employees Market Value 8 Communications 8 Decentralized Work Sites
8 Skill Levels 8 A Legal Concern 8 ETHICAL ISSUES IN HRM: Invasion
of Privacy? 9 WORKPLACE ISSUES: We Are Now Entering the Blogosphere
10 Workforce Diversity 10 The Workforce Today 10 DID YOU KNOW?:
Chief Diversity Officer 11 How Diversity Affects HRM 11 WORKPLACE
ISSUES: Diversity Awareness 12 What Is a Work/Life Balance? 12 DID
YOU KNOW?: Looking at the Future of HRM 13 DID YOU KNOW?:
International Diversity 14 The Labor Supply 14 Do We Have a
Shortage of Skilled Labor? 14 Why Do Organizations Lay Off
Employees during Shortages? 15 How Do Organizations Balance Labor
Supply? 15 Issues Contingent Workers Create for HRM 16 Continuous
Improvement Programs 18 Work Process Engineering 19 How HRM Can
Support Improvement Programs 19 How HRM Assists in Work Process
Engineering 19 Employee Involvement 20 How Organizations Involve
Employees 20 Employee Involvement Implications for HRM 20 Other HRM
Challenges 21 Recession 21 Off Shoring 21 Mergers 22 A Look at
Ethics 22 Summary 23 Demonstrating Comprehension: Questions for
Review 24 Key Terms 24 HRM Workshop 25 Linking Concepts to
Practice: Discussion Questions 25 Developing Diagnostic and
Analytical Skills 25 Case 1: Work/Life Balance at Baxter 25 Working
with a Team: Understanding Diversity Issues 25 Learning an HRM
Skill: Guidelines for Acting Ethically 26 Enhancing Your
Communication Skills 26 Chapter 2 Fundamentals of Strategic HRM 28
Learning Outcomes 28 Introduction 30 Why Is HRM Important to an
Organization? 30 DID YOU KNOW?: A Management Recap 31 The Strategic
Nature 32 The HRM Functions 33 Staffing Function 34 Training and
Development Function 35 Motivation Function 36 Maintenance Function
37 How External Influences Affect HRM 38 The Dynamic Environment of
HRM 38 Laws and Regulation 38 Labor Unions 38 Management Thought 39
Structure of the HRM Department 40 Employment 40 Training and
Development 41 Compensation and Benefits 42 Employee Relations 42
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8. Top Management Commitment 43 Effective Upward Communication
43 Determining What to Communicate 44 Allowing for Feedback 44
Information Sources 44 WORKPLACE ISSUES: HRM Certification 44 Is a
Career in HRM for Me? 45 ETHICAL ISSUES IN HRM: Purposely
Distorting Information 46 Does HRM Really Matter? 46 HR Trends and
Opportunities 47 Outsourcing 47 Professional Employer Organization
(PEO) 47 Shared Services 47 HRM in an Entrepreneurial Enterprise 48
HRM in a Global Environment 48 HR and Corporate Ethics 49 Summary
50 Demonstrating Comprehension: Questions for Review 51 Key Terms
51 HRM Workshop 52 Linking Concepts to Practice: Discussion
Questions 52 Developing Diagnostic and Analytical Skills 52 Case 2:
Nine-to-Five No More 52 Working with a Team: Making a Layoff
Decision 52 Learning an HRM Skill: HR Certification 53 Enhancing
Your Communication Skills 54 PART 2 THE LEGAL AND ETHICAL CONTEXT
OF HRM Chapter 3 Equal Employment Opportunity 56 Learning Outcomes
56 Introduction 58 Laws Affecting Discriminatory Practices 58 The
Importance of the Civil Rights Act of 1964 59 Affirmative Action
Plans 59 DID YOU KNOW?: Suggestions for Recruiting Minorities and
Women 60 Adverse Impact 61 What Other Laws Affect Discrimination
Practices? 61 Age Discrimination in Employment Act of 1967 62 The
Pregnancy Discrimination Act of 1978 62 The Americans with
Disabilities Act of 1990 62 The Civil Rights Act of 1991 63 The
Family and Medical Leave Act of 1993 63 Uniformed Services
Employment and Reemployment Rights Act of 1994 64 Relevant
Executive Orders 64 Guarding Against Discrimination Practices 65
DID YOU KNOW?: Is a Problem Brewing? 66 Determining Potential
Discriminatory Practices 66 The 4/5ths Rule 66 Restricted Policy 66
Geographical Comparisons 67 McDonnell-Douglas Test 67 Responding to
an EEO Charge 67 Business Necessity 68 Bona Fide Occupational
Qualifications 68 Seniority Systems 68 Selected Relevant Supreme
Court Cases 69 Cases Concerning Discrimination 69 Cases Concerning
Reverse Discrimination 71 ETHICAL ISSUES IN HRM: English-Only Rules
72 Enforcing Equal Opportunity Employment 72 The Role of the EEOC
72 Office of Federal Contract Compliance Program (OFCCP) 73 Current
Issues in Employment Law 74 What Is Sexual Harassment? 74 Are Women
Reaching the Top of Organizations? 75 DID YOU KNOW?: EEOC Reaches
Out to Young Workers 76 HRM in a Global Environment 78 Summary 79
Demonstrating Comprehension: Questions for Review 80 Key Terms 80
HRM Workshop 81 Linking Concepts to Practice: Discussion Questions
81 Developing Diagnostic and Analytical Skills 81 Case Application
3-A: Diversity Is the New Color This Year 81 Case Application 3-B:
When Oversight Fails 81 Working with a Team: Whats Your Perception?
82 Learning an HRM Skill: Investigating a Harassment Complaint 82
Enhancing Your Communication Skills 83 Chapter 4 Employee Rights
and Discipline 84 Learning Outcomes 84 Introduction 86 Contents vii
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9. viii Contents Employee Rights Legislation and the HRM
Implications 86 The Privacy Act of 1974 86 The Fair Credit
Reporting Act of 1974 87 The Drug-Free Workplace Act of 1988 87 The
Polygraph Protection Act of 1988 88 The Worker Adjustment and
Retraining Notification Act of 1988 88 Current Issues Regarding
Employee Rights 90 Drug Testing 90 DID YOU KNOW?: Why Organizations
Conduct Drug Tests 91 Honesty Tests 92 Whistle-Blowing 92 Employee
Monitoring and Workplace Security 93 DID YOU KNOW?: By the Numbers
93 Workplace Romance 94 The Employment-at-Will Doctrine 95
Exceptions to the Doctrine 96 Contractual Relationship 96 Statutory
Considerations 96 Public Policy Violation 96 Implied Employment
Contract 96 Breech of Good Faith 97 Discipline and Employee Rights
97 What Is Discipline? 97 WORKPLACE ISSUES: Managers Should Be
Prepared before Disciplining Employees 98 Factors to Consider When
Disciplining 98 Disciplinary Guidelines 99 Disciplinary Actions 101
Written Verbal Warning 101 Written Warning 102 Suspension 102
Dismissal 103 Summary 104 Demonstrating Comprehension: Questions
for Review 105 Key Terms 106 HRM Workshop 107 Linking Concepts to
Practice: Discussion Questions 107 Developing Diagnostic and
Analytical Skills 107 Case Application 4-A: Casino Has No Sense of
Humor Regarding Dilbert Comic 107 Case Application 4-B: Off-the-Job
Behaviors 107 Working with a Team: Dealing in Gray Areas 108
Learning an HRM Skill: Guidelines for Counseling Employees 108
Enhancing Your Communication Skills 109 PART 3 STAFFING THE
ORGANIZATION Chapter 5 Human Resource Planning and Job Analysis 110
Learning Outcomes 110 Introduction 112 An Organizational Framework
112 ETHICAL ISSUES IN HRM: Competitive Intelligence 114 Linking
Organizational Strategy to Human Resource Planning 115 Assessing
Current Human Resources 115 Human Resource Information Systems 115
Succession Planning 116 Determining the Demand for Labor 117
Predicting the Future Labor Supply 117 Where Will We Find Workers?
118 Matching Labor Demand and Supply 118 Job Analysis 120 Job
Analysis Methods 120 Observation Methods 120 Individual Interview
Method 120 Group Interview Method 120 Structured Questionnaire
Method 120 Technical Conference Method 120 Diary Method 121
Structured Job Analysis Techniques 121 O*NET and the Department of
Labor 121 Position Analysis Questionnaire 122 Purpose of Job
Analysis 123 Job Descriptions 123 Job Specifications 123 Job
Evaluations 124 The Multifaceted Nature of Job Analysis 124 Job
Design 125 Job Enrichment 125 Flexible Work Schedules 126 Job
Design and Teams 127 Summary 127 Demonstrating Comprehension:
Questions for Review 128 Key Terms 129 HRM Workshop 130 Linking
Concepts to Practice: Discussion Questions 130 Developing
Diagnostic and Analytical Skills 130 Case Application 5: Turnover
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10. Contents ix Working with a Team: Job Analysis Information
130 Learning an HRM Skill: Conducting the Job Analysis 131
Enhancing Your Communication Skills 131 Chapter 6 Recruiting 132
Learning Outcomes 132 Introduction 134 Recruiting Goals 134 Factors
That Affect Recruiting Efforts 134 DID YOU KNOW?: Something for
Everyone 135 Constraints on Recruiting Efforts 135 Organizational
Image 135 Job Attractiveness 136 Internal Organizational Policies
136 Government Influence 136 Recruiting Costs 136 DID YOU KNOW?:
Employment Branding 136 DIVERSITY ISSUES IN HRM: Job Advertisements
and EEO 137 Recruiting Sources 137 The Internal Search 137 Employee
Referrals and Recommendations 138 External Searches 139
Advertisements 139 Employment Agencies 140 Schools, Colleges, and
Universities 142 Job Fairs 143 Professional Organizations 143
Unsolicited Applicants 143 Online Recruiting 143 Effective
Recruiting 144 Recruitment Alternatives 145 Temporary Help Services
145 Employee Leasing 145 Independent Contractors 145 Workplace
Issues: Best Practice Ideas Applicable to Recruitment and Hiring
146 Recruiting: A Global Perspective 146 DID YOU KNOW?: Posting
Online Rsums 147 Your Own Job Search 147 Preparing Your Rsum 148
Some Final Remarks 149 Summary 149 Demonstrating Comprehension:
Questions for Review 150 Key Terms 150 HRM Workshop 151 Linking
Concepts to Practice: Discussion Questions 151 Developing
Diagnostic and Analytical Skills 151 Case Application 6-A: Policing
Paradise: How the Honolulu Police Department Developed Its Brand
151 Case Application 6-B Priority Staffing 151 Working with a Team:
A Question of Effective Recruiting 152 Learning an HRM Skill:
Writing a Job Advertisement 152 Enhancing Your Communication Skills
152 Chapter 7 Foundations of Selection 154 Learning Outcomes 154
Introduction 156 The Selection Process 156 Initial Screening 156
Completing the Application Form 157 DIVERSITY ISSUES IN HRM:
Interview Questions 158 Key Issues 159 Weighted Application Forms
159 Successful Applications 159 Preemployment Testing 160
Performance Simulation Tests 160 Work Sampling 160 Assessment
Centers 160 Testing in a Global Arena 160 DID YOU KNOW?: Too Much
Information 161 Comprehensive Interviews 161 Interview
Effectiveness 162 Interview Issues 162 Interview Bias 162 DID YOU
KNOW?: Steps for Effective Interviewing 162 ETHICAL ISSUES IN HRM:
The Stress Interview 163 The Behavioral Interview 164 Realistic Job
Previews 164 Conditional Job Offers 165 Background Investigation
165 Medical/Physical Examination 167 Job Offers 168 The
Comprehensive Approach 168 WORKPLACE ISSUES: Avoiding Hiring
Mistakes 169 Now Its Up to the Candidate 169 Selection for
Self-Managed Teams 170 Key Elements for Successful Predictors 170
Reliability 171 Validity 171 Content Validity 171 Construct
Validity 172 Criterion-Related Validity 172 Validity Analysis 173
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11. x Contents Cut Scores and Their Impact on Hiring 173
Validity Generalization 175 Selection from a Global Perspective 175
Final Thoughts: Excelling at the Interview 175 Summary 177
Demonstrating Comprehension: Questions for Review 177 Key Terms 178
HRM Workshop 179 Linking Concepts to Practice: Discussion Questions
179 Developing Diagnostic and Analytical Skills 179 Case
Application 7: Timing of the Job Offer 179 Working with a Team:
Preparing for the Interview 179 Learning an HRM Skill: Creating
Effective Interview Questions 180 Enhancing Your Communication
Skills 180 PART 4 TRAINING AND DEVELOPMENT Chapter 8 Socializing,
Orienting, and Developing Employees 182 Learning Outcomes 182
Introduction 184 The Insider-Outsider Passage 184 Socialization 184
Assumptions of Employee Socialization 184 Socialization Strongly
Influences Employee Performance and Organizational Stability 184
Organizational Stability Also Increases through Socialization 185
New Members Suffer from Anxiety 185 Socialization Does Not Occur in
a Vacuum 185 Individuals Adjust to New Situations in Remarkably
Similar Ways 185 The Socialization Process 185 The Purpose of
New-Employee Orientation 186 Learning the Organizations Culture 187
The CEOs Role in Orientation 187 HRMs Role in Orientation 188 Its
All in Here: The Employee Handbook 188 Why Use an Employee
Handbook? 188 Employee Training 189 DIVERSITY ISSUES IN HRM:
Training and EEO 190 Determining Training Needs 190 Training
Methods 191 Employee Development 191 Employee Development Methods
192 Job Rotation 193 Assistant-To Positions 193 Committee
Assignment 193 Lecture Courses and Seminars 193 Simulations 193
Adventure Training 194 DID YOU KNOW?: Training Expenditures 194
Organization Development 195 Change Is a Popular Topic 195 The Calm
Waters Metaphor 195 The White-Water Rapids Metaphor 196 ETHICAL
ISSUES IN HRM: OD Intervention 197 OD Methods 197 Organization
Development 197 OD Techniques 197 WORKPLACE ISSUES: Playing Coach
198 A Special OD Case: The Learning Organization 199 Evaluating
Training and Development Effectiveness 199 Evaluating Training 199
Performance-Based Evaluation Measures 200 Post-Training Performance
Method 200 Pre-Post-Training Performance Method 201
Pre-Post-Training Performance with Control Group Method 201
International Training and Development Issues 201 Cross-Cultural
Training 201 Development 202 Summary 203 Demonstrating
Comprehension: Questions for Review 203 Key Terms 204 HRM Workshop
205 Linking Concepts to Practice: Discussion Questions 205
Developing Diagnostic and Analytical Skills 205 Case Application
8-A: The Underrated Checklist: Five Steps to Save Lives 205 Case
Application 8-B: Delivering at UPS 205 Working with a Team:
Orienting Employees 206 Learning an HRM Skill: Coaching Employees
206 Enhancing Your Communication Skills 207 Chapter 9 Managing
Careers 208 Learning Outcomes 208 Introduction 210 What Is a
Career? 210 Individual versus Organizational Perspective 211 Career
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12. Contents xi Career Development: Value for the Organization
211 Needed Talent Will Be Available 211 The Organizations Ability
to Attract and Retain Talented Employees Improves 212 Minorities
and Women Have Comparable Opportunities for Growth and Development
212 Reduced Employee Frustration 212 Enhanced Cultural Diversity
212 Organizational Goodwill 212 Career Development: Value for the
Individual 212 Mentoring and Coaching 213 ETHICAL ISSUES IN HRM:
Special Mentoring Programs for Women and Minorities 215 Traditional
Career Stages 216 Exploration 216 Establishment 217 Mid-Career 218
Late Career 218 Decline (Late Stage) 218 DID YOU KNOW?: Where Are
the Jobs? 219 Career Choices and Preferences 219 Holland Vocational
Preferences 220 The Schein Anchors 221 The Myers-Briggs Typologies
221 WORKPLACE ISSUES: A Special Case of a Career: Entrepreneurship
222 Enhancing Your Career 223 Summary 224 Demonstrating
Comprehension: Questions for Review 224 Key Terms 225 HRM Workshop
226 Linking Concepts to Practice: Discussion Questions 226
Developing Diagnostic and Analytical Skills 226 Case Application
9-A: A Fudge Career 226 Case Application 9-B: Funeral for My Career
226 Working with a Team: Career Insights 227 Learning an HRM Skill:
Making a Career Choice 227 Enhancing Your Communication Skills 228
PART 5 MAINTAINING HIGH PERFORMANCE Chapter 10 Establishing the
Performance Management System 230 Learning Outcomes 230
Introduction 232 Performance Management Systems 232 Purposes of a
Performance Management System 232 ETHICAL ISSUES IN HRM: The
Inaccurate Performance Appraisal 233 DID YOU KNOW?: Facts on
Performance Evaluations 234 Difficulties in Performance Management
Systems 234 Focus on the Individual 234 Focus on the Process 235
Performance Management and EEO 235 The Appraisal Process 236
Establish Performance Standards 236 Communicate Expectations 236
Measure Actual Performance 236 Compare Actual Performance with
Standards 237 Discuss the Appraisal with the Employee 237 Initiate
Corrective Action if Necessary 237 Appraisal Methods 237 Evaluating
Absolute Standards 237 Critical Incident Appraisal 238 Checklist
Appraisal 238 Graphic Rating Scale Appraisal 238 Forced-Choice
Appraisal 239 Behaviorally Anchored Rating Scales 240 Relative
Standards Methods 241 Group Order Ranking 241 Individual Ranking
241 Paired Comparison 241 WORKPLACE ISSUES: Forced RankingsAre They
Working? 242 Using Achieved Outcomes to Evaluate Employees 243
Common Elements in MBO Programs 243 Does MBO Work? 243 Factors That
Can Distort Appraisals 244 Leniency Error 244 Halo Error 245
Similarity Error 245 Low Appraiser Motivation 245 Central Tendency
245 Inflationary Pressures 246 Inappropriate Substitutes for
Performance 246 Attribution Theory 246 Creating More Effective
Performance Management Systems 247 Use Behavior-Based Measures 248
Combine Absolute and Relative Standards 248 DID YOU KNOW?: The
Anywhere Performance Appraisal 248 Provide Ongoing Feedback 249 Use
Multiple Raters 249 Use Peer Evaluations 249 360-Degree Appraisals
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13. xii Contents Compensation Surveys 270 Wage Curves 270 The
Wage Structure 271 External Factors 272 Geographic Differences 272
Labor Supply 272 Competition 272 Cost of Living 272 Collective
Bargaining 273 Communicating with Employees 273 Special Cases of
Compensation 273 Incentive Compensation Plans 273 Individual
Incentives 273 Group Incentives 274 Organization-Wide Incentives
274 Paying for Performance 275 Team-Based Compensation 276
Executive Compensation Programs 277 Salaries of Top Managers 277
Supplemental Financial Compensation 277 ETHICAL ISSUES IN HRM: Are
U.S. Executives Overpaid? 278 Supplemental Nonfinancial
Compensation: Perquisites 279 International Compensation 279 Base
Pay 279 DID YOU KNOW?: Compensation in a Global Environment 280
Differentials 280 Incentives 280 Assistance Programs 280 Summary
281 Demonstrating Comprehension: Questions for Review 281 Key Terms
282 HRM Workshop 283 Linking Concepts to Practice: Discussion
Questions 283 Developing Diagnostic and Analytical Skills 283 Case
Application 11: Re-Thinking Compensation at First Merit Bank 283
Working with a Team: Understanding Incentive Plans 283 Learning an
HRM Skill: Pay-for-Performance Goal Setting 284 Enhancing Your
Communication Skills 284 Chapter 12 Employee Benefits 286 Learning
Outcomes 286 Introduction 288 Costs of Providing Employee Benefits
288 Contemporary Benefits Offerings 288 WORKPLACE ISSUES: Team
Performance Appraisals 250 Rate Selectively 251 Train Appraisers
251 The Performance Appraisal Meeting 251 International Performance
Appraisal 253 Who Performs the Evaluation? 253 Evaluation Formats
253 DID YOU KNOW?: Performance Metrics in China 254 Summary 254
Demonstrating Comprehension: Questions for Review 255 Key Terms 255
HRM Workshop 256 Linking Concepts to Practice: Discussion Questions
256 Developing Diagnostic and Analytical Skills 256 Case
Application 10: Rank Em and Yank Em 256 Working with a Team:
Behaviorally Anchored Rating Scales 256 Working with a Team: The
360-Degree Performance Appraisal 257 Learning an HRM Skill: Writing
Appraisal Comments 257 Enhancing Your Communication Skills 258
Chapter 11 Establishing Rewards and Pay Plans 260 Learning Outcomes
260 Introduction 262 Intrinsic versus Extrinsic Rewards 262 ETHICAL
ISSUES IN HRM: Salary Negotiation and Discrimination 262 Financial
versus Nonfinancial Rewards 263 Performance-Based versus
Membership-Based Rewards 263 Compensation Administration 264
Government Influence on Compensation Administration 265 Fair Labor
Standards Act 265 The Civil Rights and Equal Pay Acts 265 DID YOU
KNOW?: The Minimum Wage Debate 267 Job Evaluation and the Pay
Structure 267 Job Evaluation 267 Isolating Job Evaluation Criteria
268 Job Evaluation Methods 268 Ordering Method 268 Classification
Method 268 Point Method 269 Establishing the Pay Structure 270
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14. Contents xiii ETHICAL ISSUES IN HRM: Domestic Partner
Benefits 290 Legally Required Benefits 290 Social Security 290
Unemployment Compensation 291 DID YOU KNOW?: Look out for the
Silver Tsunami 291 Workers Compensation 292 Family and Medical
Leave Act 293 Voluntary Benefits 293 Health Insurance 293
Traditional Health Insurance 295 Health Maintenance Organizations
295 Preferred Provider Organizations 295 Point-of Service Plan 295
Consumer-Driven Health Plans 296 Employer-Operated Coverage 296
Health Insurance Continuation 296 The HIPAA Requirement 297
Retirement Benefits 297 WORKPLACE ISSUES: Flying High No More:
Airline Pensions Crash and Burn 298 Defined Benefit Plans 299
Defined Contribution Plans 299 Money Purchase Pension Plans 299
Profit-Sharing Plans 299 Individual Retirement Accounts 299 401(k)s
300 Paid Time Off 300 Vacation and Holiday Leave 301 DID YOU KNOW?:
Benefits Around the Globe 301 Disability Insurance Programs 302
ETHICAL ISSUES IN HRM: Making Sick Leave a Required Benefit? 302
Sick Leave 302 Short-Term Disability Plans 303 Long-Term Disability
Plans 303 WORKPLACE ISSUES: Leaving It Up to You: Paid Time Off
Leave (PTO) 303 Survivor Benefits 304 Group Term Life Insurance 304
Travel Insurance 304 Employee Services and Family-Friendly Benefits
304 An Integrative Perspective on Employee Benefits 305 Flexible
Spending Accounts 305 Modular Plans 306 Core-Plus Options Plans 306
Summary 307 Demonstrating Comprehension: Questions for Review 308
Key Terms 308 HRM Workshop 309 Linking Concepts to Practice:
Discussion Questions 309 Developing Diagnostic and Analytical
Skills 309 Case Application 12: A Perky Way to Productivity 309
Working with a Team: Benefit Selections 309 Learning an HRM Skill:
Calculating a Long-Term Disability Payment 310 Enhancing Your
Communication Skills 311 Chapter 13 Ensuring a Safe and Healthy
Work Environment 312 Learning Outcomes 312 Introduction 314 The
Occupational Safety and Health Act 314 OSHA Inspection Priorities
314 OSHA Record-Keeping Requirements 316 OSHA Punitive Actions 317
OSHA: A Resource for Employers 320 Areas of Emphasis 320 Education
and Training 320 Assisting Employers in Developing a Safer
Workplace 323 Management Commitment and Employee Involvement 323
Worksite Analysis 323 Hazard Prevention and Control 324 WORKPLACE
ISSUES: OSHAs Top Ten Violations 324 Training for Employees,
Supervisors and Managers 325 Contemporary Health and Safety Issues
325 Workplace Violence 325 Indoor Air Quality 326 The Smoke-Free
Environment 327 WORKPLACE ISSUES: Faith in the Slaughterhouse 327
Repetitive Stress Injuries 328 Stress 328 Common Causes of Stress
329 DID YOU KNOW?: Employees Wasting Time at Work 330 Symptoms of
Stress 331 Reducing Stress 331 A Special Case of Stress: Burnout
331 Causes and Symptoms of Burnout 331 Reducing Burnout 332
Employee Assistance Programs 332 A Brief History of EAPs 332 EAPs
Today 333 Wellness Programs/Disease Management 333 ETHICAL ISSUES:
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15. International Safety and Health 334 International Health
Issues 335 International Safety Issues 336 Summary 336
Demonstrating Comprehension: Questions for Review 337 Key Terms 337
HRM Workshop 338 Linking Concepts to Practice: Discussion Questions
338 Developing Diagnostic and Analytical Skills 338 Case
Application 13: Protection OSHA Style 338 Working with a Team:
Health and Safety 338 Learning an HRM Skill: Developing Safety
Skills 339 Enhancing Your Communication Skills 339 PART 6
LABORMANAGEMENT ENVIRONMENTS Chapter 14 Understanding Labor
Relations and Collective Bargaining 340 Learning Outcomes 340
Introduction 342 Why Employees Join Unions 343 Higher Wages and
Benefits 343 Greater Job Security 343 Influence Over Work Rules 343
Compulsory Membership 343 Dissatisfaction with Management 345 Labor
Legislation 346 The Wagner Act 346 The Taft-Hartley Act 346 Other
Laws Affecting Labor-Management Relations 347 DIVERSITY ISSUES IN
HRM: Unions and EEO 348 The Railway Labor Act of 1926 348
Landrum-Griffin Act of 1959 348 Executive Orders 10988 and 11491
348 Racketeer Influenced and Corrupt Organizations Act (RICO) of
1970 349 Civil Service Reform Act of 1978 349 Unionizing Employees
349 Collective Bargaining 350 xiv Contents WORKPLACE ISSUES: The
Union Drive 351 Objective and Scope of Collective Bargaining 351
Collective-Bargaining Participants 352 The Collective-Bargaining
Process 352 Preparing to Negotiate 352 Negotiating at the
Bargaining Table 353 Contract Administration 353 Failure to Reach
Agreement 354 Strikes versus Lockouts 355 Impasse-Resolution
Techniques 355 ETHICAL ISSUES IN HRM: The Striker Replacement
Dilemma 356 Critical Issues for Unions Today 356 Union Membership:
Where Have the Members Gone? 357 WORKPLACE ISSUES: The Union Summer
358 Labor-Management Cooperation 358 Public Sector Unionization 359
Unionizing the Nontraditional Employee 359 DID YOU KNOW?: Is There
Addition by Subtraction? 360 International Labor Relations 360
Differing Perspectives Toward Labor Relations 361 The European
Community 362 Summary 362 Demonstrating Comprehension: Questions
for Review 363 Key Terms 363 HRM Workshop 364 Linking Concepts to
Practice: Discussion Questions 364 Developing Diagnostic and
Analytical Skills 364 Case Application 14: Save Money. Live Better.
Wal-Mart and Unions Interpret the Slogan Differently. 364 Working
with a Team: Handling a Grievance 364 Learning an HRM Skill:
Negotiation Skills 365 Enhancing Your Communication Skills 365
Endnotes 367 Glossary 389 Company Index 395 Subject Index 398
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16. Preface The sailing crew on the cover faces many of the
same goals and challenges as any orga- nization in our
unpredictable business environment. Success and possibly survival
depend on a well designed boat with a carefully selected and
thoroughly trained crew that understands the strategy of the race.
They must be able to quickly adjust the sails, rigging, and rudder
to keep moving forward and somehow gain a competitive advan- tage.
Some external factors such as the competition may be visible and
predictable, but invisible factors such as the wind and waves may
be unpredictable and require minor adjustments or a major change in
strategy. When organizations face challenges such as an economy in
recession, they depend on thoroughly trained professionals who
react quickly to the changes in the environment and create
strategies for success. Human Resource Manage- ment (HRM) is
responsible for carefully selecting and training people with the
necessary skills to pursue the strategy effectively. Some external
fac- tors can be predicted; others, such as the collapse of large
banks and insurance companies, can seemingly come out of nowhere.
The challenges have been coming fast and furious recently as
organizations struggle to adjust strategy in the face of a tumbling
stock market, widespread layoffs, bankruptcies of companies once
considered to be icons in their industries, an increasingly global
environment, changes brought by a new U.S. president, and technol-
ogy that has made social networking a mainstream tool for
businessjust to name a few! Welcome to the tenth edition of
Fundamentals of Human Resource Management. It is truly an exciting
time to be studying Human Resource Management. We appreciate that
you are taking time to read this preface to get a better
understanding of the text and the resources for learning it
includes. About the Book Students taking an HRM class are very
likely to be taking it as an elective class or a first class toward
an HRM major. Both of these groups need a strong foundation book
that provides the essential elements of HRM as well as a clear
understanding of how HRM links with business strategy. It is
becoming increasingly important for employees on every level of the
organization to understand HRM elements such as recruitment,
training, motivation, retention, safety, and the legal environment.
These fundamentals will not cre- ate experts in HRM, yet for those
who wish to become experts, this book will provide that strong
foundation upon which additional coursework in HRM can be built.
The objec- tives and content in this text have been created to be
compatible with the content areas and curriculum templates
developed and suggested by the Society of Human Resource Management
(SHRM). The minimum HR content areas as identified by SHRM include:
Compensation, benefits, and total rewards Employee and labor
relations Employment law History of HR and its role HR and
globalization HR and mergers and acquisitions HR and organizational
strategy Human resource information systems (HRIS) Measuring HR
outcomes and the bottom line Occupational health, safety, and
security Performance appraisal and feedback xv Like a crew sailing
an ocean race, success and possibly survival depends on a good crew
that understands the strategy and can adapt quickly to the
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17. Recruiting and selection Workforce planning and talent
management Content of the text has also been developed to provide a
background in the func- tional areas identified by the HR
Certification Institute (HRCI) for the exams for certi- fication
for Professional in Human Resources (PHR), Senior Professional in
Human Resources (SPHR) and Global Professional in Human Resources
(GPHR). Our goal has been to produce a text that addresses these
critical foundations of HRM, yet provide the most current reference
possible for the dynamic present and unpredictable future
environment of HRM. All research has been updated and exam- ples
have been kept as current as possible considering the timeline
necessary for pub- lishing a textbook. Some examples will
undoubtedly change quickly and unexpect- edly. Please consider this
an opportunity to research how and why these changes took place and
their implications for HRM. Many sources for research and updates
have been included in the chapter content and HRM Workshop learning
activities. Several Content Topics New in This Edition Ninety
percent of the chapters have completely new opening vignettes to
add interest and application of concepts as well as end-of-chapter
case applications that challenge a students understanding of the
chapters material. Updates and additions to research, current
example, and assignments are too numerous to mention. New topics
and other substantial additions to the text include: New to Chapter
1: International diversity; HRM challenges New to Chapter 2: In the
name of strategy; Increased emphasis on link between HR and
business strategy; HR careers; Outsourcing HR New to Chapter 3:
Small business and the USERRA and VIBA; Recruiting diversity;
English-only rules; EEOC and younger workers New to Chapter 4:
Chapter title changed to Employee Rights and Discipline;
Communication moved to Chapter Eight; Employee discipline; Employee
dismissal; Company monitoring of employees; Workplace romance and
fraternization policies New to Chapter 5: Department of Labor O*NET
database and content model; Turnover at transportation;
Communication skills activity New to Chapter 6: Employment branding
New to Chapter 7: Acceptable and unacceptable interview questions;
Facebook and LinkedIn; Effective interviewing; Creating effective
interview questions activity New to Chapter 8: Employee handbook
section moved from Chapter 4 New to Chapter 9: Career;
Growing/declining jobs New to Chapter 10: Technology in the
appraisal process; Creating a performance ap- praisal team
activity; How to write effective appraisal comments New to Chapter
11: Salary negotiation and discrimination; Violations of Fair Labor
Standards Act; Merit pay learning activity New to Chapter 12:
Social Security and the Silver Tsunami; Reducing health-care costs
for employers; Decline of defined benefit retirement plans; Paid
time off (PTO) New to Chapter 13: OSHA assistance to employers;
OSHAs top ten violations New to Chapter 14: Increased coverage and
illustration of right-to-work laws; Wal-Mart and unions Features to
Encourage Learning Our experience has shown us that students are
more likely to read a text when the read- ing is straightforward
and conversational, the topics flow logically, and the authors make
extensive use of examples to illustrate concepts. Students also
remember and understand the concepts and practices most clearly
when they are illustrated through xvi Preface
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18. examples, so weve used a wealth of examples to clarify
ideas and build interest. The last year has provided unusual
challenges to providing current examples. The financial cri- sis
and recession that descended on the United States in the fall of
2008 saw the failure or bankruptcy of companies that were formerly
considered to be well run and highly admired. Human Resource
professionals worried about attracting enough qualified talent were
suddenly faced with laying off thousands of workers, and possibly
eliminat- ing their own positions. The world has not stopped
changing as this text goes into print. As you discover that the
circumstances of a particular company have changed dramatically
since the text was published, please consider it an opportunity to
research and learn why the change occurred and the role HR has in
the change. We have also tried to write this edition in a clear,
concise, and conversational style. Students taking the class online
may appreciate a text that is more conversational since they
usually do not have regular face-to-face interaction with faculty
or classmates. These factors guided us in developing this text as a
highly effective learning tool. Lets take a look as some of the
features of the text that facilitate learning: Learning Outcomes
Learning outcomes identify specifically what the reader should gain
after reading the chapter. These outcomes are designed to focus
students attention on major topics within each chapter. Each
outcome is a key learning component for our readers. Learn- ing
outcomes were carefully examined and updated for this tenth
edition. Chapter Summaries Just as outcomes tell the readers where
they are going, chapter summaries remind read- ers where they have
been. Each chapter of the book concludes with a concise summary
directly linked to the learning outcomes identified at the
beginning of each chapter. Key Terms Throughout the chapter, key
terms are highlighted where they first appear in the text and are
defined in the margin as well as in the Glossary section in the
back of the book. Key terms are also listed at the end of each
chapter as a reminder of the major terms defined in the material
just read. Review and Discussion Questions Every chapter in this
book contains a set of review and discussion questions. If students
have read and understood the concepts of the chapter, they should
be able to answer the review questions. These
reading-for-comprehension questions are drawn directly from the
chapter material. The discussion questions go beyond comprehension.
Theyre designed to foster higher order thinking skills by requiring
readers to apply, integrate, synthesize, or evaluate an HRM
concept. The Linking Concepts to Practice discussion questions will
allow students to demonstrate that they not only know the facts in
the chapter, but they can also use those facts to deal with more
complex issues. They also make great lecture break discussion
questions for small or large groups. HRM Workshop Its not enough to
just know about Human Resource Management. Students entering HRM
today need a variety of skills for career success. The HRM Workshop
sections at the end of each chapter are designed to help students
build analytical, diagnostic, team- building, investigative,
presentation, communication, and writing skills. We address these
skill areas in several ways. A section called Developing Diagnostic
and Analytical Skills Preface xvii JWCL192_fm_i-xxiii.qxd 9/7/09
5:06 PM Page xvii
19. includes current case studies of real companies with
questions designed to build critical thinking and decision-making
skills along with diagnostic and analytical skills. Working with a
Team includes thought-provoking scenarios for team discussions in
class or team projects outside of class. A section called Learning
an HRM Skill includes skill-building activities that concentrate on
the personal competencies necessary for HRM career suc- cess as
identified by the Society of Human Resource Management (SHRM).
Finally, Enhancing Your Communication Skills includes activities
that develop important research, writing, and presentation skills.
Many of these activities include short research papers or class
presentations using presentation software or short videos found
online. PowerPoint One piece of feedback we received from students
was that many of their professors were using PowerPoint slides and
students were spending considerable time copying the slides. They
requested that we help them take better notes by including on our
Web site copies of the slides a professor may use. Accordingly,
weve provided these PowerPoint slides that accompany each chapter
on the student companion site. Supplemental Material This book is
supported by a comprehensive learning package that helps
instructors cre- ate a motivating environment and provides students
with additional instruments for understanding and reviewing major
concepts. The following resources can be found on the instructor
and student companion sites at www.wiley.com/college/decenzo.
Instructors Resource Guide This includes, for each chapter, a
chapter overview, a description of additional features within the
chapter, a chapter outline, additional lecture and activity
suggestions, answers to class exercises, answers to case
applications, and additional review and dis- cussion questions.
PowerPoint A robust set of PowerPoint slides developed to help
enhance your lectures are provided for each chapter. An image bank,
containing all of the illustrations from the text, is also provided
for inclusion in PowerPoint presentations. The slides have also
been provided in handout form on the student companion site. Test
Bank This resource contains approximately eighty questions per
chapter, including multiple choice, true/false, matching, and
completion questions. Computerized Test Bank This test bank,
powered by Diploma, allows instructors to customize quizzes and
exams for each chapter. Video Package Students rarely follow
current events in newspapers or from traditional evening news shows
on television. Many depend upon online sources that may only
include headlines or cable shows such as Comedy Centrals The Daily
Show. A DVD has been developed for this xviii Preface
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20. course that contains a selection of film clips that relate
to various topics throughout the text. These can be used to
introduce topics, provide group activities during class, or provide
background for class discussion. A learning guide for the videos is
available on the instructor companion Web site. Student Web Quizzes
Online quizzes, varying in level of difficulty, are designed to
help students evaluate their individual chapter progress. Here,
students will have the ability to test themselves with fifteen
questions per chapter. WileyPLUS This online course management
system provides an integrated suite of teaching and learning
resources, along with a complete online version of the text, in one
easy-to-use Web site. WileyPLUS will help you create class
presentations, create assignments, auto- mate the assigning and
grading of homework or quizzes, track student progress, and
administer your course. It also includes pre- and post-lecture
quizzes, flashcards of key terms, and more. For more information,
go to www.wiley.com/college/wileyplus. Acknowledgments Getting a
finished book into a readers hands requires the work of many
people. The authors do their part by efficiently developing an
outline, thoroughly researching top- ics, writing about the topics,
and developing learning activities. We would like to recog- nize
just a few of the people who contributed to this text. First are
our reviewers. Authors cannot survive without good feedback from
review- ers. Ours were outstanding, and we appreciate the feedback
they gave us. We do recog- nize that the book before you is better
because of the insight they provided. Wed like to recognize
reviewers of this edition: Norman Foy, Mercy College; Cathy Daly,
Cal State Sacramento; Barbara Blissert, Mills College; Teresa
Palmer, Illinois State University; Eugene Garaventa, College of
Staten Island; Carolyn Waits, Cincinnati State University; Joyce
Guillory, Austin Community College; Diane Regal, Sullivan County
Community College; Robert Perkins, Mercer University; Carol A.
Spector, University of North Florida; and Kim Lukaszewski, SUNY,
New Paltz. A book doesnt simply appear automatically on bookstore
shelves. It gets there through the combined efforts of many people.
For us, this is the outstanding publish- ing team at John Wiley
& Sons, consisting of George Hoffman, Publisher; Lise Johnson,
Acquisitions Editor; Susan McLaughlin, our very gifted and patient
editor; Carissa Doshi Marker, Assistant Editor; Sarah Vernon,
Senior Editorial Assistant; and Sandra Dumas, Senior Production
Editor. Others deserving special mention for their contribu- tions
are Brenda Moorehead and RaeAnn Guns. Last, we want to acknowledge
a few people individually. From Dave: To my wife, Terri, for all
her support and love. And to my children Mark, Meredith, Gabriella,
and Nataliethank you for all you do. You continue to be the light
of my life. From Steve: To Laura for all that she brings to my
life. From Susan: To my husband John, my daughter Katie, and my
Mom. Thanks for your love and endless support. Preface xix
JWCL192_fm_i-xxiii.qxd 9/7/09 5:06 PM Page xix
21. Practice the Concepts http://www.wiley.com/college/decenzo
COMPREHENSIVE COMPANION WEBSITE INCLUDING: PowerPoint slides
Crossword Puzzles Self Scoring quizzes Team Fun! Case applications
Essential Website links for research and study Videos Test Bank
Instructors Guide Computerized Test Bank Video Teaching Notes Web
Quizzes More Cases and Articles BUSINESS EXTRA SELECT Do you use
readings or cases in your Human Resource Management class? Business
Extra Select (www.wiley.com/college/bxs) enables you to add
copyright-cleared articles, cases, and readings from such leading
business resources as INSEAD, Ivey, Harvard Busi- ness School
Cases, Fortune, The Economist, The Wall Street Journal, and more.
You can create your own custom CoursePack, combining these
resources with content from DeCenzo and Robbins Fundamentals of
Human Resource Management, Tenth Edition, your own content (such as
lecture notes), and any other third-party content. Or you can use
or edit the ready-made CoursePack. 7-Eleven Abercrombie & Fitch
American Express Apple Computer AT&T Baxter International Best
Buy Boeing CitiGroup Coca Cola Dominos Dow Chemical DuPont Ebay
Federal Express Ferrari Ford Motor Company Four Seasons Resorts
General Electric General Motors Hewlett-Packard Honolulu Police
Department IBM John Deere Johnson & Johnson K-mart Levi-Strauss
Mars Company McDonalds Motorola Nabisco Nike Oracle Otis Elevator
Principal Financial Group Priority Staffing Proctor & Gamble
Remington San Diego Zoological Society Sears Siemens Southwest
Airlines Starbucks Sun Microsystems Target The Home Depot
Transportation Safety Administration Tropicana Unilever UPS Volvo
Wal-Mart Whirlpool Corp. Winn-Dixie Stores, Inc. Xerox And much
more! Uses Real Companies JWCL192_IBC.qxd 9/4/09 4:07 PM Page
1
22. About the Authors xxi DAVID A. DECENZO received his Ph.D.
from West Virginia University. He is the presi- dent at Coastal
Carolina University. His major teaching and research interests
focused on the general areas of human resource management,
management, and organizational behavior. He has published articles
in such journals as Harvard Business Review, Business Horizons,
Risk Management, Hospital Topics, and Performance and Instruction.
Dr. DeCenzo has spent the past two-plus decades writing textbooks.
His books include Supervision Today and Fundamentals of Management
with Stephen Robbins; Human Relations with Beth Silhanek;
Essentials of Labor Relations (1992) with Molly Bowers; and
Employee Benefits (1990) with Stephen Holoviak. These books are
used widely at colleges and universities in the United States, as
well as schools throughout the world. Dr. DeCenzo also has industry
experience as a corporate trainer, and has served as a consultant
to a number of companies. He also serves on the Board of Directors
of the AVX Corporation. STEPHEN P. ROBBINS received his Ph.D. from
the University of Arizona. He previously worked for the Shell Oil
Company and Reynolds Metals Company and has taught at the
University of Nebraska at Omaha, Concordia University in Montreal,
the University of Baltimore, Southern Illinois University at
Edwardsville, and San Diego State Univer- sity. Dr. Robbinss
research interests have focused on conflict, power, and politics in
organizations, behavioral decision making, and the development of
effective interper- sonal skills. His articles on these and other
topics have appeared in such journals as Business Horizons,
California Management Review, Business and Economic Perspectives,
Interna- tional Management, Management Review, Canadian Personnel
and Industrial Relations, and Journal of Management Education. Dr.
Robbins is a best-selling textbook author in the areas of
management and orga- nizational behavior. His books have sold in
excess of three million copies and are cur- rently used by students
in more than a thousand U.S. colleges and universities, and have
been translated into sixteen languages. Dr. Robbins also actively
participates in masters track competition. Since turning fifty in
1993, he has set numerous indoor and outdoor age-group world sprint
records. He has won more than a dozen indoor and outdoor U.S.
championships at 60 m, 100 m, 200 m, and 400 m, and won seven gold
medals at World Masters Championships. In 2005, he was inducted
into the Masters Track & Field Hall of Fame. Tenth Edition
Contributor SUSAN L. VERHULST received her M.B.A. from Drake
University. She is a Professor of Management at Des Moines Area
Community College where she has received the Distinguished Teaching
Award. Susan teaches human resource management and management
classes and has researched, developed, and taught online courses in
management and human resource management. Her previous work with
John Wiley & Sons includes developing Lecture Launcher DVDs and
instructors guides in the areas of management and organizational
behavior. She is a member of the Society of Human Resource
Management. JWCL192_fm_i-xxiii.qxd 9/7/09 5:06 PM Page xxi
23. To: Our Readers From: Dave DeCenzo, Steve Robbins, and
Susan Verhulst Subject: How to Get the Most Out of This Text All
authors of a textbook generally include a preface that describes
why they wrote the book and whats unique about it, and then thank a
lot of people for the role they played in getting the book
completed. Well, were no different. We just did that, too. But it
has become crystal clear to us that two things are common about a
books pref- ace. First, its usually written for the professor,
especially one whos considering select- ing the book. Second,
students usually dont read the preface. Thats unfortunate because
it often includes information that students would find useful. As
authors, we do listen to our customers. And many of ours have told
us that theyd enjoy some input from us. So weve written this memo.
Our purpose is to provide you with our ideas about the book, how it
was put together, and more impor- tant how you can use it to better
understand the field of HRM and do better in this class! This book
was written to provide you with the foundations of HRM. Whether you
intend to work in HRM or not, most of these elements will affect
you at some point in your career. How? Take, for example, the
performance appraisal. Although you might not currently be in a
position to evaluate another individuals work performance, if you
are working, youre more than likely to have your performance
appraised. For that matter, each time you take an exam in a class,
your performance is being evaluated. Consequently, its important
for you to have an understanding of how it should work, and the
potential problems that may exist. We begin Part 1 of this book
with an emphasis on providing you with an overview of the
ever-changing world of work and the effect it is having on HRM.
With that as a foundation, we then proceed to introduce you to HRM,
its approach, the link to orga- nizational strategy, and the
different roles HR plays. In Part 2, we turn our attention to the
laws that affect HRM activities. Much of how HRM operates is guided
by legis- lation and court decisions that prohibit practices that
adversely affect certain groups of people. Without a good
understanding of these laws, an organizations performance can
suffer, and the organization can be vulnerable to costly lawsuits.
Part 2 ends with a discussion of several areas focusing on employee
rights. Parts 3 through 5 provide coverage of the fundamental
activities that exist in HRM. Part 3 explores the staffing
function, with discussions on employment recruit- ing and
selection. Part 4 addresses means for socializing, training, and
developing employees. Part 5 looks at how organizations encourage
high performance by evalu- ating, paying, and rewarding its
employees. Much of the discussion in Parts 2 through 5 reflects
typical activities in an organization that is not unionized. When a
union is present, however, many of these practices might need
modification to comply with another set of laws. As such, we
reserved the final chapter for dealing with labor-management
relations. While we are confident that completing the 14 chapters
contained in this book will provide the fundamentals of HRM, a text
has to offer more. It should not only cover topics (we hope, in an
interesting and lively way), it should also assist in the learning
process. It should be written in such a way that you can understand
it, it keeps your attention, and it provides you an opportunity for
feedback. We think weve met each of these goals. Of course, only
you can be the judge of our claim. But lets look at how we arrived
at our conclusion. To be understandable and lively means that we
need to communicate with you. We make every attempt in this text to
have it sound as if we were in front of your class speaking with
you. Writing style is important to us. We use examples whenever
possible real companies, so you can see that what we talk about is
happening in the real world. xxii JWCL192_fm_i-xxiii.qxd 9/7/09
5:06 PM Page xxii
24. In the past, people using our books have indicated that our
writing style does help hold their attention. But although good
communication is critical, is only half of the equation. The
ultimate tests for you are: Does the book help you do well on
exams? Does it help prepare you for a job? We start every chapter
with learning outcomes. We view these as the critical learn- ing
points. They present a logic flow from which the material will be
presented. If you can explain what is proposed in each learning
objective, youll be on the right track to understanding the
material. But memory sometimes fools us. We read the material,
think we understand it, see how the summaries directly tie the
learning outcomes together, then take the exam and receive a grade
that is not reflective of what we knew we knew. We have given a lot
of thought to that issue, and think weve come up with something
that will helpputting a feedback test on
www.wiley.com/college/decenzo, the Web site that supports our book!
The typical textbook ends each chapter with a set of review
questions. Sometimes, your tests look much like these types of
questions. But exams also have a tendency to emphasize
multiple-choice questions. So weve included sample test questions
on our Web site (www.wiley.com/college/decenzo) to help you prepare
for exams in this class. These questions are actual questions that
weve used to test our students understand- ing of the material. If
you can correctly answer these questions, then youre one step
closer to enhancing your understanding of HRM. Recognize, of
course, that these are only a learning aid. They help you to learn
but dont replace careful reading or inten- sive studying. And dont
assume that getting a question right means you fully under- stand
the concept covered. Why? Because any set of multiple-choice
questions can only test a limited range of information. So dont let
correct answers lull you into a sense of false security. If you
miss a question or dont fully understand why you got the correct
response, go back to the material in the chapter and reread the
material. Learning, however, goes beyond just passing a test. It
also means preparing your- self to perform successfully in
tomorrows organizations. Youll find that organizations today
require their employees to work more closely together than at any
time in the past. Call it teams, horizontal organizational
structures, matrix management, or something similar, the fact
remains that your success will depend on how well you work closely
with others. To help model this group concept for you, we have
included class exercises in this text. Each of these team
experiential learning efforts is designed to highlight a particular
topic in the text and give you an opportu- nity to work in groups
to solve the issue at hand. One last thing before we close: What
can you take out of this course and use in the future? Many
business leaders have complained about how business schools train
their graduates. Although business schools have made many positive
accomplishments, one critical component appears lackingpractical
skills. The skills you need to succeed in todays business
environment are increasing. You must be able to communicate (both
verbally and in a written format), think creatively, make good and
timely decisions, plan effectively, and deal with people. In HRM,
we have an opportunity to build our skills bank. As you go through
this text, youll find a dozen or more practical skills that you can
use on your job. We hope you give them special attention, practice
them often, and add them to your repertoire. Weve also included
suggestions for writing and presentation assignments that cover an
important aspect of the chapters material. Look at these as a
learning tool, not as an assignment that you have to do. We think
youll find working on these will help prepare you for dealing with
the kinds of writing requests you get on the job. Finally, if youd
like to tell us how we might improve the next edition of this book,
we encourage you to write Dave DeCenzo at Coastal Carolina
University, P.O. Box 261954, Conway, SC 29528; or email him at
[email protected]. To those of you who have done so in the
previous editions, we appreciate you taking the time to write us.
Thanks for helping us out. TO OUR READERS xxiii
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25. Thoroughly Covers HRM Concepts BRIEF TABLE OF CONTENTS PART
1 UNDERSTANDING HRM Chapter 1 The Dynamic Environment of HRM
Chapter 2 Fundamentals of Strategic HRM PART 2 THE LEGAL AND
ETHICAL CONTEXT OF HRM Chapter 3 Equal Employment Opportunity
Chapter 4 Employee Rights and Discipline PART 3 STAFFING THE
ORGANIZATION Chapter 5 Human Resource Planning and Job Analysis
Chapter 6 Recruiting Chapter 7 Foundations of Selection PART 4
TRAINING AND DEVELOPMENT Chapter 8 Socializing, Orienting, and
Developing Employees Chapter 9 Managing Careers PART 5 MAINTAINING
HIGH PERFORMANCE Chapter 10 Establishing the Performance Management
System Chapter 11 Establishing Rewards and Pay Plans Chapter 12
Employee Benefits Chapter 13 Ensuring a Safe and Healthy Work
Environment PART 6 LABORMANAGEMENT ENVIRONMENTS Chapter 14
Understanding Labor Relations and Col- lective Bargaining Endnotes
Glossary Company Index Subject Index Comprehensive Learning Package
with current examples and a fresh perspective: CHAPTER LEARNING
OUTCOMES give insight into the important learning goals. BOXED
FEATURES: DIVERSITY ISSUES IN HRM highlighting ways to promote
diversity in organizations. WORKPLACE ISSUES giving insight into
opportunities and challenges of implementing HRM in the
organization. ETHICAL ISSUES with actual and theoretical ethical
dilem- mas for discussion. DID YOU KNOW? Current examples and
topics to help students apply HRM learning. Apply the Concepts HRM
WORKSHOP Its not enough to just know about Human Resource
Management. Todays students want the skills to succeed in their
organizations. The HRM Workshop at the end of each chapter is
designed to help students build analytical, diagnostic, team-
building, investigative, and writing skills. Each Workshop
includes: Chapter Summaries linked to the Learning Outcomes to
reinforce learning. Demonstrating Comprehension questions to apply
HRM concepts. Key Terms list to review important HRM terminology.
Linking Concepts to Practice Discussion Questions include thought
provoking questions for more thorough application of HRM
principles. Developing Diagnostic and Analytical Skills Cases with
new and updated company examples for students to research. Working
With a Team activities to develop important teamwork skills using
interesting research topics. Learning an HRM Skill in-depth study
of an HRM Skill from each chapter, developing essential skills
identified by Society of Human Resource Management. Enhancing
Communication Skills activities to develop writing and presentation
skills using current HRM topics of high interest to students.
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26. JWCL192_fm_i-xxiii.qxd 9/7/09 5:06 PM Page xx
27. 22 Chapter 1 The Dynamic Environment of HRM Learning
Outcomes After reading this chapter, you will be able to 1 Discuss
how cultural environments affect human resource management (HRM)
practices. 2 Describe how technology is changing HRM. 3 Identify
significant changes that have occurred in workforce composition. 4
Describe the HRM implications of a labor shortage. 5 Describe how
changing skill requirements affect HRM. 6 Explain why
organizational members focus on quality and continuous
improvements. 7 Describe work process engineering and its
implications for HRM. 8 Identify who makes up the contingent
workforce and the HRM implications. 9 Define employee involvement
and list its critical components. 10 Explain the importance of
ethics in an organization. JWCL192_c01_002-027.qxd 9/4/09 2:51 PM
Page 2
28. H ow would you describe the perfect vacation spot? Would it
include a posh, luxurious resort? Now imagine an exotic location
and a hotel that offers every amenity you can imagine, including
seaside massages, world-class golf, gourmet dining, and a staff
trained to cater to your every need and then some. How about a
place where you will rub shoulders with supermodels, royalty, heads
of state, and billionaires? What if you could experience all this
as an employee of the Four Seasons Resorts and Hotels where guests
and employees in thirty-two countries get to live the dream every
day? Travelers come to Four Seasons resorts to be pampered, and
apparently the employees like the treatment too. The award-winning
chain has been in Fortune magazines Best Companies to Work For
every year since the list started in 1998. Fortune also ranked Four
Seasons second on their 2008 scorecard for workforce diversity,
estimating that 66 percent of their employees belong to ethnic
minorities.1 Whats the secret to employee loyalty that results in
an annual turnover of full-time employees that is half the industry
average? Several reasons come into play including careful hiring, a
culture that embraces diversity, promotion from within, and
thorough training. One of the most unique secrets is the creative
benefits tailored to employee development and satisfaction. Human
resource professionals at the Four Seasons hire employees of all
nationalities and value the applicants attitude more than
experience. Energy, enthusiasm, and aptitude are highly valued. The
Four Seasons philosophy is that skills can be taught, but poor
attitudes cant be changed. Growth at Four Seasons is truly a global
oppor- tunity with a thirty-one hotel worldwide expansion in
progress, so mobility is seen as a big plus for any candidate who
is interested in a managerial position. All new hires complete a
three- month training program that involves improvisation exercises
to help anticipate guest behavior that can be a little quirky (some
S.O.B.sSons of Billionaires have requested baths in Evian). The
ethical credo at Four Seasons is the Golden Ruleand the culture is
to treat the employees as you expect them to treat the customer.
Since 2006, the Four Seasons hotels have offered a free on-site ESL
program to employees seeking to improve their English. The human
resource department is researching interactive online language
teaching programs to make the opportunity more widely available to
employees. Supervisory development programs are also offered for
employees who have shown management potential. Although the special
employee treatment doesnt extend to lunch in the hotel dining room,
its pretty close. All employees, from the seamstresses, valets, and
ski concierges to the general managers, eat together, free of
charge, in the hotel cafeteria. While it may not have white linen
tablecloths or a wine list, the food is outstanding and camaraderie
develops strong bonds and loyalty. By offering a spacious dining
room, staff showers, and locker rooms, Four Seasons incurs an
increase in operating costs, but creates a comfortable and elegant
environment for employees and guests alike.2 3 (Source: Superstock)
JWCL192_c01_002-027.qxd 8/28/09 9:24 AM Page 3
29. Introduction Companies like the Four Seasons have
recognized that forces in our business environ- ment require them
to recognize changes in the expectations of their employees as well
as their customers. Human resource management (HRM) is a subset of
the study of man- agement that focuses on how to attract, hire,
train, motivate, and maintain employees. Strong employees become a
source of competitive advantage in a global environment facing
change in complex ways at a rapid pace. As part of an organization,
HRM must be prepared to deal with the effects of these changes.
This means understanding the implications of globalization,
technology changes, workforce diversity, labor shortages, changing
skill requirements, continuous improvement initiatives, the
contingent workforce, decentralized work sites, company mergers,
offshore sourcing of goods and services, and employee involvement.
Lets look at how these changes are affecting HRM goals and
practices in organizations function- ing in a global environment.
Understanding Cultural Environments As part of the rapidly changing
environment, organizational members face the global- ization of
business. Organizations are no longer constrained by national
borders in producing goods and services. BMW, a German-owned firm,
builds cars in South Carolina. Similarly, McDonalds sells
hamburgers in China, and General Electric expects to receive 60
percent of its revenue growth from developing countries in the next
ten years.3 Toyota makes cars in Kentucky. Mercedes sport utility
vehicles are made in Alabama.4 Quintessentially American company
John Deere makes farm equipment in Illinois to ship to Russia,
makes equipment in China to ship to the Middle East, and its
tractors made in Germany and India go to the United States.
Tractors made in the United States are assembled with parts
received from twelve countries and are shipped to over 110
countries.5 These examples illustrate the extent of globalization
on manu- facturing and labor. To be effective in this boundless
world, organizational members and HRM professionals need to adapt
to cultures, systems, and techniques different from their own.
International businesses have been with us for a long time. For
instance, Siemens, Remington, and Singer were selling their
products in many countries in the nine- teenth century. By the
1920s, some companies, including Fiat, Ford, Unilever, and Royal
Dutch/Shell, had gone multinational. Not until the mid-1960s,
however, did multinational corporations (MNCs) become commonplace.
These corporations, which maintain significant operations in two or
more countries simultaneously but are based in one home country,
initiated the rapid growth in international trade. Today, companies
such as Gillette, Wal-Mart, Coca-Cola, and AFLAC are among a
growing number of U.S.-based firms that derive significant portions
of their annual revenues from foreign operations.6 The rise of
multinational and transnational cor- porations7 places new
requirements on human resource managers. For example, human
resource departments must ensure that employees with the
appropriate mix of knowledge, skills, and cultural adaptability are
available and ready to handle global assignments. All countries
have different values, morals, customs, political and economic sys-
tems, and legal systems. Traditional approaches to studying
international business have sought to advance each of these topic
areas. However, a strong case can be made that traditional business
approaches need to be understood within their social context. That
is, organizational success can come from a variety of practiceseach
of which is derived from a different business environment. For
example, status is perceived differently in different countries. In
France, status is often the result of factors important to the
organization, such as seniority and education. This emphasis is
called ascribed status. In 4 Chapter 1 The Dynamic Environment of
HRM globalization A process of interaction and integra- tion among
the people, companies, and governments of different nations, driven
by international trade and invest- ment, accelerated by information
technology. multinational corporations (MNCs) Corporations with
significant opera- tions in more than one country.
JWCL192_c01_002-027.qxd 8/28/09 9:24 AM Page 4
30. the United States, status is more a function of what
individuals have personally accom- plished, also known as achieved
status. Human resource managers need to understand societal issues,
such as status, that might affect operations in another country.
Countries also have different laws. For instance, in the United
States laws guard against an employer taking action against an
employee solely on the basis of an employees age. Not all countries
have similar laws. Organizations that view the global environment
from any single perspective may be too narrow and potentially
problematic. A more appropriate approach is to recognize the
cultural dimensions of a countrys environment. Although it is not
our intent here to provide the scope of cultural issues needed for
an employee to go to any country, we do want to recognize that some
similarities do exist (see Exhibit 1-1). Research findings allow us
to group countries according to such cultural variables as status
differentiation, societal uncertainty, and assertiveness.8 These
variables indi- cate a countrys means of dealing with its people
and how the people see themselves. For example, in an
individualistic society such as the United States, people are
primarily concerned with their own family. In a collective society
(the opposite of an individualistic one) such as that in Japan,
people care for all individuals who are part of their group. Thus,
a strongly individualistic U.S. employee may not work well if sent
to a Pacific Rim country where collectivism dominates. Accordingly,
flexibility and adaptability are key components for employees going
abroad. To make this a reality, human resource man- agers must have
a thorough understanding of the culture of the areas around the
globe to which they send employees. HRM must also develop
mechanisms that will help multicultural individuals work together.
As background, language, custom, or age differences become more
prevalent, employee conflict is likely to increase. HRM must make
every effort to acclimate differ- ent groups to each other, finding
ways to build teams and thus reduce conflict. Its important to note
that not all HRM theories and practices are universally applic-
able to managing human resources around the world. This is
especially true in countries where work values differ considerably
from those in the United States. Human resource managers must take
cultural values into account when trying to understand the behavior
of people from different countries as well as those in different
countries. Where possible in this text, well look at how
globalization affects HRM practices. The Changing World of
Technology Think about the technology youve used today. Did you use
a cell phone or smart phone to check voicemail? Check driving
directions on a GPS? Check your e-mail? Use a fiber- optic network
for a fast Internet connection on a personal computer? Take a
digital picture on a camera or phone? Maybe youre even taking this
class online. Its hard to imagine daily life without these, but
they are all on CNNs list of the top twenty-five innovations of the
last twenty-five years.9 The Internet was the clear winner in CNNs
reader poll of the most influential innovations of the last quarter
century. The influence of the Internet on our lives, employers, the
way we work, and the economy was on the mind of Thomas Friedman, a
The Changing World of Technology 5 Exhibit 1-1 Cultural Values
Countries differ greatly on the emphasis they place on the
individual versus the collective. Organizations that plan to enter
the global environment need to do their homework to understand the
culture and workers. Countries That Value Individualism Countries
That Value Collectivism, and Acquiring Things Relationships, and
Concern for Others United States Japan Great Britain Colombia
Australia Pakistan Canada Singapore Netherlands Venezuela New
Zealand Philippines Many organizations have explored expansion to
other countries to find new markets and labor sources. McDonalds
started expanding internationally in 1967. They now have over
30,000 restaurants in 118 countries. (Source: Uriel Sinai/Getty
Images, Inc.) JWCL192_c01_002-027.qxd 9/4/09 2:51 PM Page 5
31. Pulitzer Prize-winning New York Times author, as he
explored the foundations of global- ization in his best-selling
book, The World Is Flat. Friedman contends that there are three
eras of globalization, the first driven by transportation, the
second by communication, and the third by technology. The first is
called Globalization 1.0 and extends from Columbuss 1492 discovery
of the new world to 1800. During this time, countries tried to
establish their place in the world by con- quering or collaborating
with other countries and territories. The emphasis was national
identification and economic domination. During this era, the world
shrank from a size large to a size medium. Globalization 2.0 began
in 1800 and ended in 2000. Multinational companies emerged, seeking
labor and markets for the goods of the industrial revolution.
Expan- sion was fueled by lower costs and increased speed of
transportation and communica- tion, shrinking the world from a size
medium to a size small. Globalization 3.0 arrived around 2000 as
countries, companies, and individuals were able to compete on an
almost level playing field, aided by cheap, instantaneous
communication via fiber optics and the Internet. Fast, inexpensive
transportation of people and goods aided this transition of power
that further shrunk the world from a size small to a size tiny.
Individuals are now empowered to compete globally regardless of
country of origin. Friedman projects that world economies will be
dominated by empowered individuals, creating a business environment
that is more diverse and less dominated by organizations in Western
countries. Youve already experienced the impact of Globalization
3.0. A shift has taken place in geographic labor supply and demand.
Just as the industrial revolution changed national economies by
shifting jobs from craftsmen to mass manufacturing, Global- ization
3.0 has shifted demand for manufacturing and services such as
customer service to low-cost providers in Mexico, India, and China.
Friedman points out that these forces cant be turned back and will
only grow in their impact. Many organizations operating in this
global envi- ronment, such as Four Seasons, recognize that this
diverse world includes many different nationalities, languages, and
cultures. HR pro- fessionals at Four Seasons are prepared for the
challenge in welcoming diversity and adapting training.10 What Is a
Knowledge Worker? Technology has been a good news/bad news
proposition for workers. While technology has reduced the demand
for manufacturing jobs through automation and increased competition
with other countries, it has generated an increase in the demand
for service producing and technology positions. Employment in
information technology is expected to be among the fastest growing
job sectors in the next decade, along with Internet publishing and
wireless telecommunications.11 Peter Drucker, the late management
scholar and consultant, held that the key to the productivity of
knowledge workers depends on the ability to use computer technology
to locate and use information for decision making.12 Knowledge
workers include pro- fessionals such as registered nurses,
accountants, teachers, lawyers, and engineers. It also includes
technologistspeople who work with their hands and with theoretical
knowl- edgecommonly referred to as information technologists.13
Computer programmers, soft- ware designers, and systems analysts
are examples of jobs in this category. Knowledge workers as a group
currently make up about a third of the U.S. workforceindividuals in
jobs designed around the acquisition and application of
information. How Technology Affects HRM Practices Technology has
had a positive effect on internal operations for organizations, but
it also has changed the way human resource managers work. HRM
professionals have become the primary source of information in many
organizations. Information can 6 Chapter 1 The Dynamic Environment
of HRM knowledge workers Individuals whose jobs are designed around
the acquisition and applica- tion of information. Knowledge-work
jobs are designed around the acquisition and application of
information. JWCL192_c01_002-027.qxd 8/22/09 3:43 PM Page 6
32. quickly and easily be communicated via company Web sites
and intranets, e-mail, and messaging. Human Resource Information
Systems (HRIS) allow HRM professionals to better facilitate human
resource plans, make decisions faster, clearly define jobs,
evaluate performance, and provide cost effective benefits that
employees want. Technology helps to strengthen communications with
both the external community and employees. How? Lets look at some
specific examples. Recruiting Contacting a pool of qualified
applicants is one of the most critical aspects of recruiting. Word
of mouth, newspaper advertisements, and college visits are often
supplemented or replaced altogether by job postings on the
Internet. Posting jobs on company web sites, or through specific
job-search web sites such as careerbuilder.com and Monster.com,
help human resource managers reach a larger pool of potential job
applicants and assist in determining if an applicant possesses some
of the basic tech- nology skills. Additionally, rather than ask for
a paper copy of a rsum, many organi- zations are asking applicants
to submit an electronic rsumone that can be quickly scanned for
relevance to the job in question. Employee Selection Hiring good
people is particularly challenging in technology- based
organizations because they require a unique brand of technical and
professional skills. Employees must be smart and able to survive in
the demanding cultures of todays dynamic organizations. In
addition, many such qualified individuals are in short supply and
may be offered a number of opportunities for employment. Once
applicants have been identified, HRM must carefully screen final
candidates to ensure they fit well into the organizations culture.
Many Internet tools make background searches of applicants quick
and easy. The realities of organizational life today may focus on
an informal, team-spirited workplace, one in which intense pressure
to com- plete projects quickly and on time is critical, and a 24/7
(24 hours a day, 7 days a week) work mentality dominates. HRM
selection tools help to select out people who arent team players,
cant handle ambiguity and stress, or are a poor fit with company
culture. As discussed in the chapter opener, Four Seasons recruits
employees who convey a pos- itive attitude, which to them is a
better indicator of job success and fit with company culture than
experience. Training and Development Technology is also
dramatically changing how human resource managers orient, train,
and develop employees and help them manage their careers. The
Internet has provided HRM opportunities to deliver Web based
training and development to employees on demand, whenever the
employee has the time to con- centrate on the material. Four
Seasons has discovered the advantages of delivering language
training and management development classes online.
Teleconferencing tech- nology allows employees to train and
collaborate in groups regardless of their location. Organizations
that rely heavily on technology find an increased need for
training. Online training and teleconferencing also allow HR
departments to deliver cost effec- tive training that help stretch
the HR budget. Ethics and Employee Rights Electronic surveillance
of employees by employers is an issue that pits an organizations
desire for control against an employees right to pri- vacy. The
development of increasingly sophisticated surveillance software
only adds to the ethical dilemma of how far an organization should
go in monitoring the behavior of employees who work on computers
(see Ethical Issues in HRM). Today, most busi- nesses surveyed by
the American Management Association indicate that they monitor
employees.14 Motivating Knowledge Workers What are some of the
unique challenges in moti- vating knowledge workers in
organizations? Knowledge workers appear more suscepti- ble to
distractions that can undermine their work effort and reduce their
productivity. Employers often believe they must monitor what
employees are doing because employ- ees are hired to work, not to
surf the Web checking stock prices, placing bets at online casinos,
or shopping for presents for family or friends. Cyber Monday, or
the Monday The Changing World of Technology 7
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33. after Thanksgiving, as a day to do personal holiday
shopping while at work may not be supported by recent sales
figures, but recreational on-the-job Web surfing has been said to
cost a billion dollars in wasted computer resources and billions
more in lost work productivity annually. Thats a significant cost
to businesses in time and money. Paying Employees Market Value Its
becoming more difficult today for organiza- tions to find and
retain technical and professional employees. Many companies have
implemented an extensive list of attractive incentives and benefits
rarely seen by nonmanagerial employees in typical organizations:
for instance, signing bonuses, stock options, cars, free health
club memberships, full-time on-site concierges, and cell phone bill
subsidies. These incentives may benefit their recipients, but they
have downsides. One is the perception of inequity if they are not
offered to all employees. The other is the increasing problem
created by offering stock options as a benefit to employees. While
they look good when a firm is growing and the stock market is
performing favorably on the companys future, stock options can
reduce employee motivation when market conditions reduce the value
of the stock. Communications The rules of communication are being
rewritten as information technology creates more opportunities for
communication. Employees today can communicate with any individual
directly without going through channels. Instantly anytime, with
anyone, anywhere. These open communication systems break down
historical organizational com- munication pattern flows. They also
redefine how meetings, negotiations, supervision, and water-cooler
talk are conducted. For instance, virtual meetings allow people in
geo- graphically dispersed locations to meet regularly. Moreover,
its now easier for employ- ees in Baltimore and Singapore to
covertly share company gossip than for off-line employees who work
two cubicles apart. Decentralized Work Sites For human resource
managers, much of the challenge regarding decentralized work sites
revolves around training managers how to establish and ensure
appropriate work quality and on-time completion. Decentralized work
sites remove traditional face time, and managers need to control
the work must change. Instead, greater employee involvement will
allow workers the discretion to make decisions that affect them.
For instance, although a due date is established for the work
assigned to employees, managers must recognize that off-site
employees (or telecommuters) will work at their own pace. Instead
of focusing work efforts over an eight-hour period, the individual
may work two hours here, three hours at another time, and another
three late at night. The emphasis, then, will be on the final
product, not on the means by which it is accomplished. Working from
home may also require HRM to rethink its compensation policy. Will
it pay workers by the hour, on a salary basis, or by the job
performed? More than likely, jobs such as claims processing that
can be easily quantified and standardized will earn pay for actual
work done. Skill Levels What are the skill implications of this
vast spread of technology? For one, employees job skill
requirements will increase.15 Workers will need the ability to read
and comprehend software and hardware manuals, technical journals,
and detailed reports. Another implication is that technology tends
to level the competitive playing field.16 It provides
organizations, no matter their size or market power, with the
ability to innovate, bring products to market rapidly, and respond
to customer requests. Remember that Globalization 3.0 allows
individuals to compete worldwide in purchasing or providing
services. Many companies have found that services in technology,
program- ming, radiology, and financial analysis can be provided by
skilled employees in India as easily as an employee in the United
States. A Legal Concern Organizations that use technologyespecially
the Internet and e-mailmust address the potential for harassment,
bias, discrimination, and offensive sexual behavior abuses.17
Evidence is increasing that many employees fail to use the 8
Chapter 1 The Dynamic Environment of HRM Wireless Internet and
smart phones like the BlackBerry or i-Phone help companies maximize
productivity and effectiveness of workers regardless of their
location. Mobile workers need access to the same applications and
corporate data that they have in the office. (Source: NewsCom)
JWCL192_c01_002-027.qxd 8/22/09 3:43 PM Page 8
34. same constraints in electronic communications that they use
in traditional work set- tings. As one individual noted, human
resource managers all know that they cant hang up a Penthouse
calendar in the workplace. They all know that they cant make a
racist or sexist joke in the workplace.18 But those same people may
think its accept- able to send racist and sexist jokes via e-mail
or to download pornography at work. Consider what happened at
Chevron, which settled a sexual harassment lawsuit for $2.2 million
because offensive e-mailssuch as 25 reasons why beer is better than
womenwere readily circulated on the companys e-mail system.
Organizations such as Citigroup and Mor