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THIRTEENTH EDITIONH U MANRESOURCEMANAGEMENTGLOBAL EDITION
GARY DESSLERFLORIDA INTERNATIONAL UNIVERSITY
PEARSONBoston Columbus Indianapolis New York San Francisco Upper Saddle River
Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto
Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo
G O N T E N T S
Preface 23
Acknowledgments 27
PART ONE INTRODUCTION 28
1 Introduction to Human Resource Management 28WHAT IS HUMAN RESOURCE MANAGEMENT AND WHY IS IT IMPORTANT?
What Is Human Resource Management? 30
Why Is Human Resource Management Important to All Managers? 31
Line and Staff Aspects of Human Resource Management 32
Line Managers' Human Resource Duties 33
Human Resource Manager's Duties 33
New Approaches to Organizing HR 35
Cooperative Line and Staff HR Management: An Example 35
THE TRENDS SHAPING HUMAN RESOURCE MANAGEMENT 36Globalization and Competition Trends 37
Indebtedness ("Leverage") and Deregulation 38
Technological Trends 38
Trends in the Nature of Work 39
• HR AS A PROFIT CENTER: Boosting Customer Service 40
Workforce and Demographic Trends 40
Economic Challenges and Trends 42
THE NEW HUMAN RESOURCE MANAGERS 43Human Resource Management Yesterday and Today 43
They Focus More on Strategic, Big Picture Issues 43
• THE STRATEGIC CONTEXT: Building LL.Bean 43
They Use New Ways to Provide Transactional Services 44
They Take an Integrated, "Talent Management" Approach to Managing
Human Resources 45
They Manage Ethics 45
They Manage Employee Engagement 45
They Measure HR Performance and Results 45
They Use Evidence-Based Human Resource Management 46
They Add Value 46
They Have New Competencies 47
HR Certification 48
THE PLAN OF THIS BOOK 48The Basic Themes and Features 48
CHAPTER CONTENTS OVERVIEW 49Part 1: Introduction 49
Part 2: Recruitment, Placement, and Talent Management 49
Part 3: Training and Development 49
Part 4: Compensation 49
Part 5: Employee Relations 49
The Topics Are Interrelated 50
CHAPTER SECTION SUMMARIES 51
DISCUSSION QUESTIONS 51
INDIVIDUAL AND GROUP ACTIVITIES 52
EXPERIENTIAL EXERCISE: HELPING "THE DONALD" 52
APPLICATION CASE: JACK NELSON'S PROBLEM 53
CONTINUING CASE: CARTER CLEANING COMPANY 53
KEY TERMS 54
ENDNOTES 54
30
8 CONTENTS
2 Equal Opportunity and the Law 56EQUAL EMPLOYMENT OPPORTUNITY 1964-1991 58
Title VII of the 1964 Civil Rights Act 58
Executive Orders 58
Equal Pay Act of 1963 59
Age Discrimination in Employment Act of 1967 59
Vocational Rehabilitation Act of 1973 59
Pregnancy Discrimination Act of 1978 60
Federal Agency Guidelines 60
Early Court Decisions Regarding Equal Employment Opportunity 60
EQUAL EMPLOYMENT OPPORTUNITY 1990-91-PRESENT 61
The Civil Rights Act of 1991 61
The Americans with Disabilities Act 62
Genetic Information Nondiscrimination Act of 2008 (GINA) 65
State and Local Equal Employment Opportunity Laws 65
Sexual Harassment 65
DEFENSES AGAINST DISCRIMINATION ALLEGATIONS 69
The Central Role of Adverse Impact 70
Bona Fide Occupational Qualification 72
Business Necessity 73
Other Considerations in Discriminatory Practice Defenses 74
ILLUSTRATIVE DISCRIMINATORY EMPLOYMENT PRACTICES 74
A Note on What You Can and Cannot Do 74
Recruitment 75
Selection Standards 75
Sample Discriminatory Promotion, Transfer, and Layoff Practices 76
What the Supervisor Should Keep in Mind 77
THE EEOC ENFORCEMENT PROCESS 77
Voluntary Mediation 79
Mandatory Arbitration of Discrimination Claims 80
DIVERSITY MANAGEMENT AND AFFIRMATIVE ACTION PROGRAMS 81
Diversity's Potential Pros and Cons 81
• HR AS A PROFIT CENTER 82
Managing Diversity 82
Encouraging Inclusiveness 83
Developing a Multicultural Consciousness 84
Equal Employment Opportunity Versus Affirmative Action 85
Implementing the Affirmative Action Program 85
Reverse Discrimination 86
CHAPTER SECTION SUMMARIES 87
DISCUSSION QUESTIONS 88
INDIVIDUAL AND GROUP ACTIVITIES 88
EXPERIENTIAL EXERCISE: "SPACE CADET" OR VICTIM? 89
APPLICATION CASE: THE EMIRATISATION HRM PRACTICES OF A PETROLEUM COMPANY 89
CONTINUING CASE: CARTER CLEANING COMPANY 90
KEY TERMS 91
ENDNOTES 91
Human Resource Management Strategy and Analysis 96THE STRATEGIC MANAGEMENT PROCESS 98
• THE STRATEGIC CONTEXT: The Shanghai Portman Hotel 98
Goal-Setting and the Planning Process 98
Strategic Planning 99
Improving Productivity Through HRIS: Using Computerized Business Planning Software 102
Types of Strategies 102
Top Managers' Role in Strategic Planning 104
CONTENTS 9
Departmental Managers' Strategic Planning Roles 104
Departmental Managers' Strategic Planning Roles in Action: Improving Mergers and
Acquisitions 105
STRATEGIC HUMAN RESOURCE MANAGEMENT 106
Defining Strategic Human Resource Management 106
Human Resource Strategies and Policies 108
• HR AS A PROFIT CENTER: Albertsons Example 108
Strategic Human Resource Management Tools 108
HR METRICS AND BENCHMARKING 110Types of Metrics 111
Improving Productivity Through HRIS: Tracking Applicant Metrics for Improved Talent
Management 111
Benchmarking in Action 112
Strategy and Strategy-Based Metrics 113
Workforce/Talent Analytics and Data Mining 113
• HR AS A PROFIT CENTER: Using Workforce/Talent Analytics 114
What Are HR Audits? 115
Evidence-Based HR and the Scientific Way of Doing Things 116
WHAT ARE HIGH-PERFORMANCE WORK SYSTEMS? 117
High-Performance Human Resource Policies and Practices 118
CHAPTER SECTION SUMMARIES 119DISCUSSION QUESTIONS 120INDIVIDUAL AND GROUP ACTIVITIES 120
EXPERIENTIAL EXERCISE: DEVELOPING AN HR STRATEGY FOR STARBUCKS 121APPLICATION CASE: SIEMENS BUILDS A STRATEGY-ORIENTED HR SYSTEM 121CONTINUING CASE: CARTER CLEANING COMPANY 122
TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE 122KEY TERMS 124ENDNOTES 125PART 1 VIDEO CASES APPENDIX 126
PART TWO RECRUITMENT, PLACEMENT, AND TALENTMANAGEMENT 128
4 Job Analysis and the Talent Management Process 128THE TALENT MANAGEMENT PROCESS 130
What Is Talent Management? 130
THE BASICS OF JOB ANALYSIS 131
Uses of Job Analysis Information 132
• THE STRATEGIC CONTEXT: Daimler Alabama Example 133
Conducting a Job Analysis 133
• HR AS A PROFIT CENTER: Boosting Productivity through Work Redesign 134
Job Analysis Guidelines 136
METHODS FOR COLLECTING JOB ANALYSIS INFORMATION 136
The Interview 136
Questionnaires 139
Observation 140
Participant Diary/Logs 140
Quantitative Job Analysis Techniques 140
Internet-Based Job Analysis 142
WRITING JOB DESCRIPTIONS 144Job Identification 144
Job Summary 145
Relationships 147
Responsibilities and Duties 147
10 CONTENTS
D MANAGING THE NEW WORKFORCE: Writing Job Descriptions That Comply
with the ADA 148
Standards of Performance and Working Conditions 148
Duty: Accurately Posting Accounts Payable 148
Using the Internet for Writing Job Descriptions 148
WRITING JOB SPECIFICATIONS 152
Specifications for Trained Versus Untrained Personnel 152
Specifications Based on Judgment 152
Job Specifications Based on Statistical Analysis 153
Using Task Statements 153
PROFILES IN TALENT MANAGEMENT 154
Competencies and Competency-Based Job Analysis 154
How to Write Job Competencies-Based Job Descriptions 156
CHAPTER SECTION SUMMARIES 157DISCUSSION QUESTIONS 158INDIVIDUAL AND GROUP ACTIVITIES 158
EXPERIENTIAL EXERCISE: THE INSTRUCTOR'S JOB DESCRIPTION 158APPLICATION CASE: RECRUITING IN EUROPE 159CONTINUING CASE: CARTER CLEANING COMPANY 159TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTELPARIS CASE 160KEY TERMS 160ENDNOTES 160
Personnel Planning and Recruiting 162INTRODUCTION 164
WORKFORCE PLANNING AND FORECASTING 164
Strategy and Workforce Planning 164
• THE STRATEGIC CONTEXT: KPMG 165
Forecasting Personnel Needs (Labor Demand) 165
Improving Productivity Through HRIS: Computerized Personnel Forecasting 168
Forecasting the Supply of Inside Candidates 168
Forecasting the Supply of Outside Candidates 170
Talent Management and Predictive Workforce Monitoring 170
Developing an Action Plan to Match Projected Labor Supply and Labor Demand 171
The Recruiting Yield Pyramid 171
THE NEED FOR EFFECTIVE RECRUITING 172
Why Recruiting Is Important 172
What Makes Recruiting a Challenge? 172
Organizing How You Recruit 172
INTERNAL SOURCES OF CANDIDATES 173
Using Internal Sources: Pros and Cons 173
Finding Internal Candidates 173
Rehiring 173
Succession Planning 174
Improving Productivity Through HRIS: Succession and Talent Planning Systems 174
OUTSIDE SOURCES OF CANDIDATES 175
Recruiting via the Internet 175
Advertising 178
Employment Agencies 180
Temp Agencies and Alternative Staffing 181
Offshoring and Outsourcing Jobs 183
Executive Recruiters 183
On-Demand Recruiting Services 184
College Recruiting 184
Referrals and Walk-Ins 185
Telecommuters 186
Military Personnel 186
CONTENTS 11
Recruiting Source Use and Effectiveness 186
Evidence-Based HR: Measuring Recruiting Effectiveness 187
• HR AS A PROFIT CENTER: Personnel Planning and Recruiting 188
Improving Productivity Through HRIS: An Integrated Approach to Recruiting 188
RECRUITING A MORE DIVERSE WORKFORCE 188Single Parents 188
Older Workers 189
Recruiting Minorities 189
Welfare-to-Work 190
The Disabled 190
DEVELOPING AND USING APPLICATION FORMS 190Purpose of Application Forms 190
Application Guidelines 192
Application Forms and EEO Law 192
Using Application Forms to Predict Job Performance 193
Mandatory Arbitration 193
CHAPTER SECTION SUMMARIES 193DISCUSSION QUESTIONS 194INDIVIDUAL AND GROUP ACTIVITIES 194EXPERIENTIAL EXERCISE: THE NURSING SHORTAGE 195APPLICATION CASE: YA KUN KAYA TOAST 195CONTINUING CASE: CARTER CLEANING COMPANY 196TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTELPARIS CASE 196KEY TERMS 197ENDNOTES 197
6 Employee Testing and Selection 200WHY CAREFUL SELECTION IS IMPORTANT 202
Person and Job/Organization Fit 202
• THE STRATEGIC CONTEXT: Crowd Sourcing at Google 202
BASIC TESTING CONCEPTS 203Reliability 203
Validity 204
Evidence-Based HR: How to Validate a Test 206
Bias 208
Utility Analysis 208
• HR AS A PROFIT CENTER: Reducing Turnover at Key Bank 209
Validity Generalization 209
Test Takers' Individual Rights and Test Security 209
How Do Employers Use Tests at Work? 210
Computerized and Online Testing 211
TYPES OF TESTS 212Tests of Cognitive Abilities 212
Tests of Motor and Physical Abilities 213
Measuring Personality and Interests 213
Achievement Tests 216
WORK SAMPLES AND SIMULATIONS 216Using Work Sampling for Employee Selection 216
Situational Judgment Tests 217
Management Assessment Centers 217
Situational Testing and Video-Based Situational Testing 218
Computerized Multimedia Candidate Assessment Tools 218
The Miniature Job Training and Evaluation Approach 219
Realistic Job Previews 219
HR in Practice: Testing Techniques for Managers 219
Summary 220
12 CONTENTS
BACKGROUND INVESTIGATIONS AND OTHER SELECTION METHODS 220Why Perform Background Investigations and Reference Checks? 220
The Legal Dangers and How to Avoid Them 221
How to Check a Candidate's Background 222
The Social Network: Checking Applicants' Social Postings 224
Using Preemployment Information Services 225
The Polygraph and Honesty Testing 225
Graphology 227
"Human Lie Detectors" 227
Physical Exams 227
Substance Abuse Screening 228
Complying with Immigration Law 229
Improving Productivity Through HRIS: Using Automated Applicant Tracking and Screening
Systems 230
CHAPTER SECTION SUMMARIES 230DISCUSSION QUESTIONS 231INDIVIDUAL AND GROUP ACTIVITIES 231
EXPERIENTIAL EXERCISE: A TEST FOR A RESERVATION CLERK 232APPLICATION CASE: KPMG 232
CONTINUING CASE: HONESTY TESTING AT CARTER CLEANING COMPANY 233TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE 233KEY TERMS 234ENDNOTES 234
7 Interviewing Candidates 238BASIC TYPES OF INTERVIEWS 240• THE STRATEGIC CONTEXT: Whirlpool Corp. 240
Structured Versus Unstructured Interviews 240
Interview Content (What Types of Questions to Ask) 241
How Should We Administer the Interview? 244
• HR AS A PROFIT CENTER: Great Western Bank 246
Three Ways to Make the Interview Usefulness 247
THE ERRORS THAT UNDERMINE AN INTERVIEW'S USEFULNESS 247First Impressions (Snap Judgments) 248
Not Clarifying What the Job Requires 248
Candidate-Order (Contrast) Error and Pressure to Hire 248
Nonverbal Behavior and Impression Management 249
Effect of Personal Characteristics: Attractiveness, Gender, Race 249
• MANAGING THE NEW WORKFORCE: Applicant Disability and the EmploymentInterview 250
Interviewer Behavior 250HOW TO DESIGN AND CONDUCT AN EFFECTIVE INTERVIEW 251
Designing a Structured Situational Interview 251
How to Conduct an Effective Interview 252
Talent Management: Profiles and Employee Interviews 255
CHAPTER SECTION SUMMARIES 255
DISCUSSION QUESTIONS 256
INDIVIDUAL AND GROUP ACTIVITIES 256
EXPERIENTIAL EXERCISE: THE MOST IMPORTANT PERSON YOU'LL EVER HIRE 257
APPLICATION CASE: NURSE RECRUITMENT AT GULF HOSPITAL 257
CONTINUING CASE: CARTER CLEANING COMPANY 258
TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE 258
KEY TERMS 259
ENDNOTES 259
APPENDIX 1 FOR CHAPTER 7 APPLICANT INTERVIEW GUIDE 262
APPENDIX 2 FOR CHAPTER 7 INTERVIEW GUIDE FOR INTERVIEWEES 264
PART 2 VIDEO CASES APPENDIX 266
CONTENTS 13
PART THREE TRAINING AND DEVELOPMENT 268
8 Training and Developing Employees 268ORIENTING AND ONBOARDING NEW EMPLOYEES 270
The Purposes of Employee Orientation/Onboarding 270
The Orientation Process 270
OVERVIEW OF THE TRAINING PROCESS 272
Aligning Strategy and Training 272
• THE STRATEGIC CONTEXT: CapitaLand 272
Training and Performance 273
The ADDIE Five-Step Training Process 273
Conducting the Training Needs Analysis 273
Designing the Training Program 276
Developing the Program 279
IMPLEMENTING TRAINING PROGRAMS 279
On-the-Job Training 279
Apprenticeship Training 281
Informal Learning 281
Job Instruction Training 281
Lectures 282
Programmed Learning 282
Audiovisual-Based Training 283
Vestibule Training 283
Electronic Performance Support Systems (EPSS) 283
Videoconferencing 284
Computer-Based Training (CBT) 284
Simulated Learning 284
Interactive Learning 285
Internet-Based Training 285
Improving Productivity Through HRIS: Learning Management Systems 286
Mobile Learning 286
The Virtual Classroom 287
Lifelong and Literacy Training Techniques 287
• MANAGING THE NEW WORKFORCE: Diversity Training 288
Team Training 288
IMPLEMENTING MANAGEMENT DEVELOPMENT PROGRAMS 289
Strategy and Development 289
Managerial On-the-Job Training 289
Off-the-Job Management Training and Development Techniques 290
Leadership Development at GE 292
Talent Management and Mission-Critical Employees: Differential Development
Assignments 293
MANAGING ORGANIZATIONAL CHANGE PROGRAMS 294
What to Change 294
Lewin's Change Process 295
Leading Organizational Change 295
Using Organizational Development 296
EVALUATING THE TRAINING EFFORT 298
Designing the Study 298
Training Effects to Measure 299
• HR AS A PROFIT CENTER: Judging Training's Impact 300
CHAPTER SECTION SUMMARIES 301
DISCUSSION QUESTIONS 301
INDIVIDUAL AND GROUP ACTIVITIES 302
EXPERIENTIAL EXERCISE: FLYING THE FRIENDLIER SKIES 302
APPLICATION CASE: THE MENTORSHIP PROGRAM AT TVH 303
CONTINUING CASE: CARTER CLEANING COMPANY 303
14 CONTENTS
TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE 304KEY TERMS 304ENDNOTES 304
9 Performance Management and Appraisal 308BASIC CONCEPTS IN PERFORMANCE MANAGEMENT AND APPRAISAL 310
The Performance Appraisal Process 310
Why Appraise Performance? 311
• HR AS A PROFIT CENTER: Setting Performance Goals at Ball Corporation 312
The Importance of Continual Feedback 312
Performance Management 312
• THE STRATEGIC CONTEXT: TRW 313
Defining the Employee's Goals and Performance Standards 313
Who Should Do the Appraising? 314
TECHNIQUES FOR APPRAISING PERFORMANCE 316
Graphic Rating Scale Method 316
Alternation Ranking Method 320
Paired Comparison Method 320
Forced Distribution Method 320
Critical Incident Method 321
Narrative Forms 322
Behaviorally Anchored Rating Scales 322
Mixed Standard Scales 325
Management by Objectives 326
Computerized and Web-Based Performance Appraisal 326
Electronic Performance Monitoring 327
Appraisal in Practice 327
DEALING WITH APPRAISAL PROBLEMS AND INTERVIEWS 328
Potential Appraisal Problems 329
Guidelines for Effective Appraisals 330
Appraisals and the Law 332
Managing the Appraisal Interview 332
PERFORMANCE MANAGEMENT 335
Performance Management vs. Performance Appraisal 335
Using Information Technology to Support Performance Management 336
TALENT MANAGEMENT PRACTICES AND EMPLOYEE APPRAISAL 337
Appraising and Actively Managing Employees 337 '
Segmenting and Actively Managing Employees in Practice 337
CHAPTER SECTION SUMMARIES 338
DISCUSSION QUESTIONS 339
INDIVIDUAL AND GROUP ACTIVITIES 339
EXPERIENTIAL EXERCISE: GRADING THE PROFESSOR 340
APPLICATION CASE: APPRAISING THE SECRETARIES AT SWEETWATER U 340
CONTINUING CASE: CARTER CLEANING COMPANY 341
TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE 342
KEY TERMS 342
ENDNOTES 342
1 0 Employee Retention, Engagement, and Careers 346MANAGING EMPLOYEE TURNOVER AND RETENTION 348
Costs of Turnover 348
• HR AS A PROFIT CENTER 348
Managing Voluntary Turnover 348
Retention Strategies for Reducing Voluntary Turnover 349
A Comprehensive Approach to Retaining Employees 350
• THE STRATEGIC CONTEXT: IBM Aims for Flexibility 350
Managing Involuntary Turnover 351
CONTENTS 15
Talent Management and Employee Retention 351
Job Withdrawal 351
EMPLOYEE ENGAGEMENT 352Why Engagement Is Important 352
Actions That Foster Engagement 352
Monitoring Employee Engagement 352
CAREER MANAGEMENT 353Careers Terminology 353
Careers Today 354
Psychological Contract 354
The Employee's Role in Career Management 354
The Employer's Role in Career Management 356
Career Management Systems 356
Gender Issues in Career Development 358
The Manager's Role 359
IMPROVING COACHING SKILLS 359Building Your Coaching Skills 359
Building Your Mentoring Skills 360
Improving Productivity Through HRIS: Integrating Talent Management and Career
and Succession Planning 362
MAKING PROMOTION DECISIONS 363Decision 1: Is Seniority or Competence the Rule? 363
Decision 2: How Should We Measure Competence? 363
Decision 3: Is the Process Formal or Informal? 364
Decision 4: Vertical, Horizontal, or Other? 364
Practical Considerations 364
Sources of Bias in Promotion Decisions 364
Promotions and the Law 365
Managing Transfers 365
^Managing Retirements 366
CHAPTER SECTION SUMMARIES 367
DISCUSSION QUESTIONS 367
INDIVIDUAL AND GROUP ACTIVITIES 368
EXPERIENTIAL EXERCISE: WHERE AM I GOING . . . AND WHY? 368
APPLICATION CASE: GOELECTRIX 369
CONTINUING CASE: CARTER CLEANING COMPANY 369
TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE 369
KEY TERMS 370
ENDNOTES 370
PART 3 VIDEO CASES APPENDIX 373
PART FOUR COMPENSATION 376
1 1 Establishing Strategic Pay Plans 376BASIC FACTORS IN DETERMINING PAY RATES 378
Aligning Total Rewards with Strategy 378
• THE STRATEGIC CONTEXT: Wegmans Foods 378
Equity and Its Impact on Pay Rates 379
Legal Considerations in Compensation 380
D M A N A G I N G THE N E W WORKFORCE: The Independent Contractor 381
Union Influences on Compensation Decisions 384
Pay Policies 384
• HR AS A PROFIT CENTER: Wegmans Foods 385
JOB EVALUATION METHODS 385
Compensable Factors 386
Preparing for the Job Evaluation 386
16 CONTENTS
Job Evaluation Methods: Ranking 387
Job Evaluation Methods: Job Classification 388
Job Evaluation Methods: Point Method 389
Computerized Job Evaluations 389
HOW TO CREATE A MARKET-COMPETITIVE PAY PLAN 3901. Choose Benchmark Jobs 390
2. Select Compensable Factors 390
3. Assign Weights to Compensable Factors 391
4. Convert Percentages to Points for Each Factor 391
5. Define Each Factor's Degrees 392
6. Determine for Each Job Its Factors' Degrees and Assign Points 392
7. Review Job Descriptions and Job Specifications 392
8. Evaluate the Jobs 393
9. Draw the Current (Internal) Wage Curve 393
10. Conduct a Market Analysis: Salary Surveys 394
11. Draw the Market (External) Wage Curve 396
12. Compare and Adjust Current and Market Wage Rates for Jobs 396
13. Develop Pay Grades 397
14. Establish Rate Ranges 397
15. Address Remaining Jobs 399
16. Correct Out-of-Line Rates 399
PRICING MANAGERIAL AND PROFESSIONAL JOBS 400Compensating Executives and Managers 400
What Determines Executive Pay? 400
Compensating Professional Employees 401
CONTEMPORARY TOPICS IN COMPENSATION 402Competency-Based Pay 402
Broadbanding 404
Actively Managing Compensation Allocations and Talent Management 406
Comparable Worth 406
Board Oversight of Executive Pay 407
Total Rewards and Tomorrow's Pay Programs 407
Improving Productivity Through HRIS: Automating Strategic
Compensation Administration 408
CHAPTER SECTION SUMMARIES 408
DISCUSSION QUESTIONS 409
INDIVIDUAL AND GROUP ACTIVITIES 409
EXPERIENTIAL EXERCISE: RANKING THE COLLEGE'S ADMINISTRATORS 410
APPLICATION CASE: GATES SOLUTIONS 410
CONTINUING CASE: CARTER CLEANING COMPANY 411
TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE 411
KEY TERMS 412
ENDNOTES 412
1 2 Pay for Performance and Financial Incentives 416MONEY AND MOTIVATION 418
Linking Strategy, Performance, and Incentive Pay 418
• THE STRATEGIC CONTEXT: The Car Sales Commission 418
Motivation and Incentives 419
Incentive Pay Terminology 421
Employee Incentives and the Law 421
INDIVIDUAL EMPLOYEE INCENTIVE AND RECOGNITION PROGRAMS 422Piecework Plans 422
Merit Pay as an Incentive 422
Incentives for Professional Employees 424
Nonfinancial and Recognition-Based Awards 424
Online and IT-Supported Awards 426
Job Design 426
CONTENTS 17
INCENTIVES FOR SALESPEOPLE 426
Salary Plan 427
Commission Plan 427
Combination Plan 427
Maximizing Sales Force Results 428
Evidence-Based HR: How Effective Are Your Incentives? 428
INCENTIVES FOR MANAGERS AND EXECUTIVES 429
Strategy and the Executive's Long-Term and Total Rewards Package 429
Sarbanes-Oxley 430
Short-Term Incentives and the Annual Bonus 430
Strategic Long-Term Incentives 432
Other Executive Incentives 433
TEAM AND ORGANIZATION WIDE INCENTIVE PLANS 433
How to Design Team Incentives 433
Evidence-Based HR: How Effective Are Your Incentives? 434
Profit-Sharing Plans 435
Scanlon Plans 435
Other Gainsharing Plans 436
At-Risk Pay Plans 436
Employee Stock Ownership Plans 437
DESIGNING EFFECTIVE INCENTIVE PROGRAMS 437
• HR AS A PROFIT CENTER: The Impact of Financial and Nonfinancial Incentives 438
The Five Building Blocks of Effective Incentive Plans 438
Incentive Plans in Practice: Nucor 439
CHAPTER SECTION SUMMARIES 439
DISCUSSION QUESTIONS 440
INDIVIDUAL AND GROUP ACTIVITIES 440
EXPERIENTIAL EXERCISE: MOTIVATING THE SALES FORCE AT EXPRESS AUTO 441
APPLICATION CASE: GYC FINANCIAL ADVISORY PTE. LTD. 441
CONTINUING CASE: CARTER CLEANING COMPANY 442
TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE 443
KEY TERMS 443
ENDNOTES 444
1 3 Benefits and Services 448THE BENEFITS PICTURE TODAY 450
Policy Issues 450
• THE STRATEGIC CONTEXT: NES Rentals 451
PAY FOR TIME NOT WORKED 451
Unemployment Insurance 451
Vacations and Holidays 453
Sick Leave 453
Evidence-Based HR: Tracking Sick Leave 454
• HR AS A PROFIT CENTER: Cutting Absences at the Driver and Vehicle Licensing Agency 454
Parental Leave and the Family and Medical Leave Act 455
Severance Pay 457
Supplemental Unemployment Benefits 458
INSURANCE BENEFITS 458
Workers' Compensation 458
Hospitalization, Health, and Disability Insurance 459
The Legal Side of Health Benefits 460
Trends in Employer Health Care Cost Control 461
Long-Term Care 463
Life Insurance 464
Benefits for Part-Time and Contingent Workers 464
RETIREMENT BENEFITS 464
Social Security 464
HNfi^fc^Bia*k
18 CONTENTS
Pension Plans 464
Pension Planning and the Law 467
Pensions and Early Retirement 468
Improving Productivity Through HRIS: Online Benefits Management Systems 468
PERSONAL SERVICES AND FAMILY-FRIENDLY BENEFITS 469
Personal Services 469
Family-Friendly (Work-Life) Benefits 469
Other Job-Related Benefits 471
Executive Perquisites 471
FLEXIBLE BENEFITS PROGRAMS 472
The Cafeteria Approach 472
Benefits and Employee Leasing 473
Flexible Work Schedules 474
CHAPTER SECTION SUMMARIES 475DISCUSSION QUESTIONS 476INDIVIDUAL AND GROUP ACTIVITIES 476
EXPERIENTIAL EXERCISE: REVISING THE BENEFITS PACKAGE 476APPLICATION CASE: STRIKING FOR BENEFITS 477CONTINUING CASE: CARTER CLEANING COMPANY 477
TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASEKEY TERMS 478ENDNOTES 479PART 4 VIDEO CASES APPENDIX 482
478
PART FIVE EMPLOYEE RELATIONS 484
1 4 Ethics and Employee Rights and Discipline 484ETHICS AND FAIR TREATMENT AT WORK 486
• THE STRATEGIC CONTEXT: Berkshire Hathaway 486
What Is Ethics? 487
Ethics and the Law 487
Ethics, Justice, and Fair Treatment 487
Ethics, Public Policy, and Employee Rights 488
WHAT SHAPES ETHICAL BEHAVIOR AT WORK? 489
There's No One Smoking Gun 489
The Person (What Makes Bad Apples?) 490
Outside Forces That Shape Ethical Decisions (Bad Barrels) 490
In Summary: Some Things to Keep in Mind About Ethical Behavior at Work 492
USING HUMAN RESOURCE MANAGEMENT METHODS TO PROMOTE ETHICS
AND FAIR TREATMENT 493
Selection 493
Ethics Training 494
Performance Appraisal 494
Reward and Disciplinary Systems 494
Managing Ethics Compliance 494
MANAGING EMPLOYEE DISCIPLINE AND PRIVACY 494
Fairness in Disciplining 495
Bullying and Victimization 495
What Causes Unfair Behavior 496
Basics of a Fair and Just Disciplinary Process 497
Employee Privacy 500
Employee Monitoring 500
MANAGING DISMISSALS 502
Termination at Will and Wrongful Discharge 502
Grounds for Dismissal 503
Avoiding Wrongful Discharge Suits 504
CONTENTS 19
• HR AS A PROFIT CENTER: Wrongful Terminations 505
Personal Supervisory Liability 506
The Termination Interview 507
Layoffs, Downsizing, and the Plant Closing Law 509
Adjusting to Downsizings and Mergers 511
CHAPTER SECTION SUMMARIES 512
DISCUSSION QUESTIONS 513
INDIVIDUAL AND GROUP ACTIVITIES 513
EXPERIENTIAL EXERCISE: DISCIPLINE OR NOT? 513
APPLICATION CASE: ENRON, ETHICS, AND ORGANIZATIONAL CULTURE 514
CONTINUING CASE: CARTER CLEANING COMPANY 515
TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE 515
KEY TERMS 516
ETHICS QUIZ ANSWERS 516
ENDNOTES 516
1 5 Labor Relations and Collective Bargaining 520THE LABOR MOVEMENT 522
• THE STRATEGIC CONTEXT: The "Anti-Walmart" 522
Why Do Workers Organize? 522
What Do Unions Want? 523
TheAFL-CIOandtheSEIU 524
UNIONS AND THE LAW 524Period of Strong Encouragement: The Norris-LaGuardia (1932) and National Labor Relations
(or Wagner) Acts (1935) 525
Period of Modified Encouragement Coupled with Regulation: The Taft-Hartley Act (1947) 527
Unfair Union Labor Practices 527
THE UNION DRIVE AND ELECTION 528Step 1. Initial Contact 528
Step 2. Obtaining Authorization Cards 530
Step 3. Hold a Hearing 531
Step 4. The Campaign 531 '
Step 5. The Election 532
How to Lose an NLRB Election 533
Evidence-Based HR: What to Expect the Union to Do to Win the Election 534
The Supervisor's Role 534
Rules Regarding Literature and Solicitation 535 '
Decertification Elections: Ousting the Union 535
THE COLLECTIVE BARGAINING PROCESS 535What Is Collective Bargaining? 535
What Is Good Faith? 536
The Negotiating Team 536 -
• HR AS A PROFIT CENTER: Costing the Contract 537
Bargaining Items 537
Bargaining Hints 537
Impasses, Mediation, and Strikes 538
Improving Productivity Through HRIS: Unions Go High-Tech 542
The Contract Agreement 542
DEALING WITH DISPUTES AND GRIEVANCES 543Sources of Grievances 543
The Grievance Procedure 544
Guidelines for Handling Grievances 545
THE UNION MOVEMENT TODAY AND TOMORROW 546Why Union Membership Is Down 546
An Upswing for Unions? 546
Card Check and Other New Union Tactics 547
High-Performance Work Systems, Employee Participation, and Unions 547
2 0 CONTENTS
CHAPTER SECTION SUMMARIES 549
DISCUSSION QUESTIONS 550
INDIVIDUAL AND GROUP ACTIVITIES 550
EXPERIENTIAL EXERCISE: THE UNION-ORGANIZING CAMPAIGN AT PIERCE U. 550
APPLICATION CASE: NEGOTIATING WITH THE WRITERS GUILD OF AMERICA 551
CONTINUING CASE: CARTER CLEANING COMPANY 551
TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE 552
KEY TERMS 552
ENDNOTES 553
1 6 Employee Safety and Health 556SAFETY AND THE MANAGER 558
Why Safety Is Important 558
Management's Role in Safety 558
What Top Management Can Do 558
• THE STRATEGIC CONTEXT: Deepwater Horizon 558
The Supervisor's Role in Safety 559
OCCUPATIONAL SAFETY LAW 559OSHA Standards and Record Keeping 559
Inspections and Citations 561
Responsibilities and Rights of Employers and Employees 564
WHAT CAUSES ACCIDENTS? 565What Causes Unsafe Conditions and Other Work-Related Safety Problems? 565
What Causes Unsafe Acts? (A Second Basic Cause of Accidents) 566
HOW TO PREVENT ACCIDENTS 566
Reducing Unsafe Conditions 566
• MANAGING THE NEW WORKFORCE: Protecting Vulnerable Workers 571
Reducing Unsafe Acts 572Reducing Unsafe Acts through Selection and Placement 572
Reducing Unsafe Acts through Training 572
Q M A N A G I N G THE NEW WORKFORCE: Safety Training for Hispanic Workers 573
Reducing Unsafe Acts through Motivation: Posters, Incentives, and Positive Reinforcement 573
Reducing Unsafe Acts through Behavior-Based Safety 574
Reducing Unsafe Acts through Employee Participation 574
Reducing Unsafe Acts by Conducting Safety and Health Audits and Inspections 575
Controlling Workers' Compensation Costs 576
• HR AS A PROFIT CENTER: Reducing Workers Compensation Claims 577
WORKPLACE HEALTH HAZARDS: PROBLEMS AND REMEDIES 577The Basic Industrial Hygiene Program 578
Asbestos Exposure at Work 578
Infectious Diseases 579
Air Quality 579
Alcoholism and Substance Abuse 579
Stress, Burnout, and Depression 581
Solving Computer-Related Ergonomic Problems 583
Repetitive Motion Disorders 583
Workplace Smoking 584• HR AS A PROFIT CENTER: Wellness Pays 584
Violence at Work 584
Workplace Violence Supervisory Training 586
OCCUPATIONAL SECURITY AND SAFETY 587Basic Prerequisites for a Crime Prevention Plan 588
Setting Up a Basic Security Program 588
Evacuation Plans 589
Company Security and Employee Privacy 589
CHAPTER SECTION SUMMARIES 590
DISCUSSION QUESTIONS 590
CONTENTS 21
INDIVIDUAL AND GROUP ACTIVITIES 591
EXPERIENTIAL EXERCISE: HOW SAFE IS MY UNIVERSITY? 591
APPLICATION CASE: HEALTH AND SAFETY AT EDMUND CAFE 595
CONTINUING CASE: CARTER CLEANING COMPANY 596
TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE 596
KEY TERMS 597
ENDNOTES 597
1 7 Managing Global Human Resources 602The Manager's Global Challenge 604
• THE STRATEGIC CONTEXT: Trident Support LLC: Tall, Lean, and Mean 604
ADAPTING HUMAN RESOURCE ACTIVITIES TO INTERCOUNTRYDIFFERENCES 604
Cultural Factors 605
Economic Systems 606
Legal, Political, and Labor Relations Factors 606
Ethics and Codes of Conduct 607
HR Abroad Example: The European Union 607
HR Abroad Example: China 607
STAFFING THE GLOBAL ORGANIZATION 608International Staffing: Home or Local? 608
• HR AS A PROFIT CENTER: Reducing Expatriate Costs 609
Offshoring 611
Management Values and International Staffing Policy 611
Selecting Expatriate Managers 612
Avoiding Early Expatriate Returns 615
TRAINING AND MAINTAINING EMPLOYEES ABROAD 616Orienting and Training Employees on International Assignment 616
^Appraising Managers Abroad 616
Compensating Managers Abroad 617
Labor Relations Abroad 619
Terrorism, Safety, and Global HR 619 '
Repatriation: Problems and Solutions 620
Improving Productivity Through HRIS: Taking the HRIS Global 621
MANAGING HR LOCALLY: HOW TO PUT INTO PRACTICE A GLOBAL HR SYSTEM 621
Developing a More Effective Global HR System 622
Making the Global HR System More Acceptable' 622
Implementing the Global HR System 623
CHAPTER SECTION SUMMARIES 623
DISCUSSION QUESTIONS 624
INDIVIDUAL AND GROUP ACTIVITIES 624
EXPERIENTIAL EXERCISE: A TAXING PROBLEM FOR EXPATRIATE EMPLOYEES—625
APPLICATION CASE: EUROPE—IT'S ALL ABOUT PERSPECTIVES 625
CONTINUING CASE: CARTER CLEANING COMPANY 626
TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE:
THE HOTEL PARIS CASE 626
KEY TERMS 627
ENDNOTES 627
1 8 Managing Human Resources in Small and EntrepreneurialFirms 630THE SMALL BUSINESS CHALLENGE 632
Why Small Business Is Important 632
How Small Business Human Resource Management Is Different 632
Why HRM Is Important to Small Businesses 633
• THE STRATEGIC CONTEXT: Le Charcutier Aoun 634
USING INTERNET AND GOVERNMENT TOOLS TO SUPPORT THE HR EFFORT 634
2 2 CONTENTS
Complying with Employment Laws 634
Employment Planning and Recruiting 637
Employment Selection 637
Employment Training 638
Employment Appraisal and Compensation 639
Employment Safety and Health 640
LEVERAGING SMALL SIZE: FAMILIARITY, FLEXIBILITY, FAIRNESS, INFORMALITY,AND HRM 640
Simple, Informal Employee Selection Procedures 640
A Streamlined Interviewing Process 640
Work-Sampling Tests 642
Flexibility in Training 642
Flexibility in Benefits and Rewards 643
Improved Communications 646
• HR AS A PROFIT CENTER: IHOP 646Fairness and the Family Business 646
USING PROFESSIONAL EMPLOYER ORGANIZATIONS 647How Do PEOs Work? 647
Why Use a PEO? 647
Caveats 648
MANAGING HR SYSTEMS, PROCEDURES, AND PAPERWORK 649Introduction 649
Basic Components of Manual HR Systems 649
Automating Individual HR Tasks 650
Human Resource Information Systems (HRIS) 650
Improved Transaction Processing 651
Online Self-Processing 651
Improved Reporting Capability 651
HR System Integration 651
HRIS Vendors 651
HR and Intranets 651
CHAPTER SECTION SUMMARIES 652
DISCUSSION QUESTIONS 652
INDIVIDUAL AND GROUP ACTIVITIES 653
EXPERIENTIAL EXERCISE: BUILDING AN HRIS 653
APPLICATION CASE: NETFLIX BREAKS THE RULES 653
CONTINUING CASE: CARTER CLEANING COMPANY 654
TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE 654
ENDNOTES 655
PART 5 VIDEO CASES APPENDIX 657
APPENDIX A
APPENDIX B
APPENDICES
PHR and SPHR Knowledge Base
Comprehensive Cases 667
659
Glossary 681
Name and Organization Index 689
Subject Index 704
