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H U MAN RESOURCE
GLOBAL EDITION

THIRTEENTH EDITION

MANAGEMENT

GARY DESSLER
FLORIDA INTERNATIONAL UNIVERSITY

PEARSON
Boston Columbus Indianapolis Dubai New York London Sydney San Francisco Madrid Hong Kong Milan Seoul Upper Saddle River Munich Paris Montreal Taipei Toronto Amsterdam Delhi Cape Town

Mexico City

Sao Paulo

Singapore

Tokyo

G O N T E N TS
Preface 23 Acknowledgments PART ONE 1 INTRODUCTION 27 28 28
30

Introduction to Human Resource Management


What Is Human Resource Management? 30 Why Is Human Resource Management Important to All Managers? 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 Globalization and Competition Trends 37 Indebtedness ("Leverage") and Deregulation Technological Trends 38 Trends in the Nature of Work 39 35

WHAT IS HUMAN RESOURCE MANAGEMENT AND WHY IS IT IMPORTANT?


31

THE TRENDS SHAPING HUMAN RESOURCE MANAGEMENT


38

36

HR AS A PROFIT CENTER: Boosting Customer Service Workforce and Demographic Trends 40 Economic Challenges and Trends 42

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THE NEW HUMAN RESOURCE MANAGERS

43

Human Resource Management Yesterday and Today 43 They Focus More on Strategic, Big Picture Issues 43

THE STRATEGIC CONTEXT: Building LL.Bean

43
44

They Use New Ways to Provide Transactional Services

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 They Add Value 46 They Have New Competencies 47 HR Certification 48

46

THE PLAN OF THIS BOOK

48
48

The Basic Themes and Features

CHAPTER CONTENTS OVERVIEW

49
49

Part 1: Introduction 49 Part 2: Recruitment, Placement, and Talent Management 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

CONTENTS

Equal Opportunity and the Law 56


EQUAL EMPLOYMENT OPPORTUNITY 1964-1991 Title VII of the 1964 Civil Rights Act 58 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 Diversity's Potential Pros and Cons 81 HR AS A PROFIT CENTER 82

81

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 CONTINUING CASE: CARTER CLEANING COMPANY 90 KEY TERMS 91 ENDNOTES 91

89

Human Resource Management Strategy and Analysis


THE STRATEGIC MANAGEMENT PROCESS 98 98 THE STRATEGIC CONTEXT: The Shanghai Portman Hotel Goal-Setting and the Planning Process 98

96

Strategic Planning 99 Improving Productivity Through HRIS: Using Computerized Business Planning Software Types of Strategies 102 Top Managers' Role in Strategic Planning 104

102

CONTENTS Departmental Managers' Strategic Planning Roles 104 Departmental Managers' Strategic Planning Roles in Action: Improving Mergers and Acquisitions 105 STRATEGIC H U M A N RESOURCE M A N A G E M E N T 106 Defining Strategic Human Resource Management 106 Human Resource Strategies and Policies 108 HR AS A PROFIT CENTER: Albertsons Example Strategic Human Resource Management Tools 108 108

HR METRICS AND BENCHMARKING

110

Types 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 119 DISCUSSION QUESTIONS 120 INDIVIDUAL AND GROUP ACTIVITIES 120 EXPERIENTIAL EXERCISE: DEVELOPING AN HR STRATEGY FOR STARBUCKS 121 APPLICATION CASE: SIEMENS BUILDS A STRATEGY-ORIENTED HR SYSTEM 121 CONTINUING CASE: CARTER CLEANING COMPANY 122 TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE KEY TERMS 124 ENDNOTES 125 PART 1 VIDEO CASES APPENDIX 126 122

PART TWO

RECRUITMENT, PLACEMENT, AND TALENT MANAGEMENT 128 Job Analysis and the Talent Management Process
THE TALENT M A N A G E M E N T PROCESS What Is Talent Management? 130 THE BASICS OF JOB ANALYSIS 131 Uses of Job Analysis Information 132 130

128

T H E STRATEGIC C O N T E X T : Daimler Alabama Example Conducting a Job Analysis 133

133

HR AS A PROFIT CENTER: Boosting Productivity through Work Redesign Job Analysis Guidelines 136 METHODS FOR COLLECTING JOB ANALYSIS INFORMATION The Interview 136 Questionnaires 139 Observation 140 Participant Diary/Logs 140 Quantitative Job Analysis Techniques 140 Internet-Based Job Analysis 142 136

134

WRITING JOB DESCRIPTIONS


Job Identification 144 Job Summary 145 Relationships 147 Responsibilities and Duties

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CONTENTS D MANAGING THE NEW WORKFORCE: Writing Job Descriptions That Comply with the ADA 148 Standards of Performance and Working Conditions Duty: Accurately Posting Accounts Payable 148 148

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 CHAPTER SECTION SUMMARIES 157 DISCUSSION QUESTIONS 158 INDIVIDUAL AND GROUP ACTIVITIES 158 156

EXPERIENTIAL EXERCISE: THE INSTRUCTOR'S JOB DESCRIPTION 158 APPLICATION CASE: RECRUITING IN EUROPE 159 CONTINUING CASE: CARTER CLEANING COMPANY 159 TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE 160 KEY TERMS 160 ENDNOTES 160

Personnel Planning and Recruiting


INTRODUCTION 164 WORKFORCE PLANNING AND FORECASTING Strategy and Workforce Planning 164 THE STRATEGIC CONTEXT: KPMG 165

162
164

Forecasting Personnel Needs (Labor Demand) 165 Improving Productivity Through HRIS: Computerized Personnel Forecasting 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 The Recruiting Yield Pyramid 171 THE NEED FOR EFFECTIVE RECRUITING 172 Why Recruiting Is Important 172 What Makes Recruiting a Challenge? 172

168

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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 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

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CONTENTS Recruiting Source Use and Effectiveness 186 Evidence-Based HR: Measuring Recruiting Effectiveness

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187 188 188

HR AS A PROFIT CENTER: Personnel Planning and Recruiting

Improving Productivity Through HRIS: An Integrated Approach to Recruiting

RECRUITING A MORE DIVERSE WORKFORCE


Single Parents 188 Older Workers 189 Recruiting Minorities 189 Welfare-to-Work 190 The Disabled 190

188

DEVELOPING AND USING APPLICATION FORMS


Purpose of Application Forms 190 Application Guidelines 192 Application Forms and EEO Law 192

190

Using Application Forms to Predict Job Performance 193 Mandatory Arbitration 193 CHAPTER SECTION SUMMARIES 193 DISCUSSION QUESTIONS 194 INDIVIDUAL AND GROUP ACTIVITIES 194 EXPERIENTIAL EXERCISE: THE NURSING SHORTAGE 195 APPLICATION CASE: YA KUN KAYA TOAST 195 CONTINUING CASE: CARTER CLEANING COMPANY 196 TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE 196 KEY TERMS 197 ENDNOTES 197

Employee Testing and Selection


WHY CAREFUL SELECTION IS IMPORTANT
Person and Job/Organization Fit 202

200
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THE STRATEGIC CONTEXT: Crowd Sourcing at Google

BASIC TESTING CONCEPTS

203

Reliability 203 Validity 204 Evidence-Based HR: How to Validate a Test Bias 208 Utility Analysis 208

206

HR AS A PROFIT CENTER: Reducing Turnover at Key Bank Validity Generalization 209 Test Takers' Individual Rights and Test Security How Do Employers Use Tests at Work? 210 Computerized and Online Testing 211 209

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TYPES OF TESTS

212
213 213

Tests of Cognitive Abilities 212 Tests of Motor and Physical Abilities Measuring Personality and Interests Achievement Tests 216

WORK SAMPLES AND SIMULATIONS

216

Using 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

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CONTENTS

BACKGROUND INVESTIGATIONS AND OTHER SELECTION METHODS


Why Perform Background Investigations and Reference Checks? The Legal Dangers and How to Avoid Them 221 220

220

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 230 DISCUSSION QUESTIONS 231 INDIVIDUAL AND GROUP ACTIVITIES 231 EXPERIENTIAL EXERCISE: A TEST FOR A RESERVATION CLERK 232 APPLICATION CASE: KPMG 232 CONTINUING CASE: HONESTY TESTING AT CARTER CLEANING COMPANY 233 TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE KEY TERMS 234 ENDNOTES 234

233

Interviewing Candidates

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240
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BASIC TYPES OF INTERVIEWS 240 THE STRATEGIC CONTEXT: Whirlpool Corp.

Structured Versus Unstructured Interviews 240 Interview Content (What Types of Questions to Ask) How Should We Administer the Interview? 244 HR AS A PROFIT CENTER: Great Western Bank Three Ways to Make the Interview Usefulness

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247

THE ERRORS THAT UNDERMINE AN INTERVIEW'S USEFULNESS


First 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

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249

MANAGING THE NEW WORKFORCE: Applicant Disability and the Employment Interview 250 Interviewer Behavior 250 HOW TO DESIGN AND CONDUCT AN EFFECTIVE INTERVIEW
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 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

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CONTENTS

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PART THREE 8

TRAINING AND DEVELOPMENT

268 268

Training and Developing Employees

ORIENTING 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 Training and Performance 273 272

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 Mobile Learning 286 The Virtual Classroom 287 Lifelong and Literacy Training Techniques 287 MANAGING THE NEW WORKFORCE: Diversity Training 288

286

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 CHAPTER SECTION SUMMARIES 301 300

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

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CONTENTS TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE 304 KEY TERMS 304 ENDNOTES 304

Performance Management and Appraisal 308


BASIC CONCEPTS IN PERFORMANCE MANAGEMENT AND APPRAISAL The Performance Appraisal Process 310 Why Appraise Performance? 311 HR AS A PROFIT CENTER: Setting Performance Goals at Ball Corporation The Importance of Continual Feedback Performance Management 312 THE STRATEGIC CONTEXT: TRW 312 312 310

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 KEY TERMS 342 ENDNOTES 342

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10

Employee Retention, Engagement, and Careers 346


MANAGING EMPLOYEE TURNOVER AND RETENTION Costs of Turnover 348 348 HR AS A PROFIT CENTER 348

Managing Voluntary Turnover 348 Retention Strategies for Reducing Voluntary Turnover 349 A Comprehensive Approach to Retaining Employees THE STRATEGIC CONTEXT: IBM Aims for Flexibility Managing Involuntary Turnover 351 350 350

CONTENTS Talent Management and Employee Retention Job Withdrawal 351 351

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EMPLOYEE ENGAGEMENT

352

Why Engagement Is Important 352 Actions That Foster Engagement 352 Monitoring Employee Engagement 352

CAREER MANAGEMENT

353

Careers 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

359

Building 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

363

Decision 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 KEY TERMS 370 ENDNOTES 370 PART 3 VIDEO CASES APPENDIX 373

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PART FOUR 11

COMPENSATION

376 376
378 378

Establishing Strategic Pay Plans

BASIC FACTORS IN DETERMINING PAY RATES Aligning Total Rewards with Strategy 378 THE STRATEGIC CONTEXT: Wegmans Foods Equity and Its Impact on Pay Rates 379 Legal Considerations in Compensation 380

D M A N A G I N G T H E N E W W O R K F O R C E : The Independent Contractor Union Influences on Compensation Decisions Pay Policies 384 385 HR AS A PROFIT CENTER: Wegmans Foods JOB EVALUATION METHODS 385 386 Compensable Factors 386 Preparing for the Job Evaluation 384

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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

390

1. 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


Compensating Executives and Managers 400 What Determines Executive Pay? 400 Compensating Professional Employees 401

400

CONTEMPORARY TOPICS IN COMPENSATION

402

Competency-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 KEY TERMS 412 ENDNOTES 412

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Pay for Performance and Financial Incentives


MONEY AND MOTIVATION 418
418 Linking Strategy, Performance, and Incentive Pay

416

THE STRATEGIC CONTEXT: The Car Sales Commission


Motivation and Incentives 419 421 Incentive Pay Terminology 421 Employee Incentives and the Law

418

INDIVIDUAL EMPLOYEE INCENTIVE AND RECOGNITION PROGRAMS


Piecework Plans 422 Merit Pay as an Incentive 422 Incentives for Professional Employees 424 Nonfinancial and Recognition-Based Awards Online and IT-Supported Awards 426 Job Design 426

422

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CONTENTS INCENTIVES FOR SALESPEOPLE Salary Plan 427 Commission Plan 427 Combination Plan 427 426

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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 KEY TERMS 443 ENDNOTES 444

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Benefits and Services


Policy Issues 450

448
450 451

THE BENEFITS PICTURE TODAY

THE STRATEGIC CONTEXT: NES Rentals 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 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 464 454

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 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 475 DISCUSSION QUESTIONS 476 INDIVIDUAL AND GROUP ACTIVITIES 476 EXPERIENTIAL EXERCISE: REVISING THE BENEFITS PACKAGE APPLICATION CASE: STRIKING FOR BENEFITS 477 CONTINUING CASE: CARTER CLEANING COMPANY 477 476

468

TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE KEY TERMS 478 ENDNOTES 479 PART 4 VIDEO CASES APPENDIX 482

478

PART FIVE 14

EMPLOYEE RELATIONS

484 484

Ethics and Employee Rights and Discipline


ETHICS AND FAIR TREATMENT AT WORK 486 486 THE STRATEGIC CONTEXT: Berkshire Hathaway 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 HR AS A PROFIT CENTER: Wrongful Terminations 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 KEY TERMS 516 ETHICS QUIZ ANSWERS 516 ENDNOTES 516 505

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515

15

Labor Relations and Collective Bargaining


THE LABOR MOVEMENT 522 522 THE STRATEGIC CONTEXT: The "Anti-Walmart"
Why Do Workers Organize? 522 What Do Unions Want? 523 TheAFL-CIOandtheSEIU 524

520

UNIONS AND THE LAW

524

Period 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

528

Step 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 The Supervisor's Role 534 Rules Regarding Literature and Solicitation 535 ' Decertification Elections: Ousting the Union 535

'

534

THE COLLECTIVE BARGAINING PROCESS

535

What 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 The Contract Agreement 542

542

DEALING WITH DISPUTES AND GRIEVANCES


Sources of Grievances 543 The Grievance Procedure 544 Guidelines for Handling Grievances

543

545

THE UNION MOVEMENT TODAY AND TOMORROW

546

Why 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

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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 KEY TERMS 552 ENDNOTES 553

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Employee Safety and Health


SAFETY AND THE MANAGER 558
Why Safety Is Important 558 Management's Role in Safety 558 What Top Management Can Do 558

556

THE STRATEGIC CONTEXT: Deepwater Horizon


The Supervisor's Role in Safety 559

558

OCCUPATIONAL SAFETY LAW

559

OSHA Standards and Record Keeping 559 Inspections and Citations 561 Responsibilities and Rights of Employers and Employees

564 565

WHAT CAUSES ACCIDENTS?

565

What Causes Unsafe Conditions and Other Work-Related Safety Problems? What Causes Unsafe Acts? (A Second Basic Cause of Accidents) 566

HOW TO PREVENT ACCIDENTS


Reducing Unsafe Conditions

566 571

566

MANAGING THE NEW WORKFORCE: Protecting Vulnerable Workers


Reducing Unsafe Acts 572 Reducing Unsafe Acts through Selection and Placement Reducing Unsafe Acts through Training 572 572

Q M A N A G I N G T H E N E W W O R K F O R C E : Safety Training for Hispanic Workers 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 Controlling Workers' Compensation Costs 576 577 HR AS A PROFIT CENTER: Reducing Workers Compensation Claims

573 573

Reducing Unsafe Acts through Motivation: Posters, Incentives, and Positive Reinforcement

575

WORKPLACE HEALTH HAZARDS: PROBLEMS AND REMEDIES


The 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 584 586 Workplace Violence Supervisory Training

577

OCCUPATIONAL SECURITY AND SAFETY

587
588

Basic Prerequisites for a Crime Prevention Plan Setting Up a Basic Security Program 588 Evacuation Plans 589 Company Security and Employee Privacy 589 CHAPTER SECTION SUMMARIES 590 DISCUSSION QUESTIONS 590

CONTENTS 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 KEY TERMS 597 ENDNOTES 597

21

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Managing Global Human Resources


The Manager's Global Challenge 604

602
604

THE STRATEGIC CONTEXT: Trident Support LLC: Tall, Lean, and Mean

ADAPTING HUMAN RESOURCE ACTIVITIES TO INTERCOUNTRY DIFFERENCES 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


International Staffing: Home or Local? 608

608
609 611

HR AS A PROFIT CENTER: Reducing Expatriate Costs Offshoring 611 Management Values and International Staffing Policy Selecting Expatriate Managers 612 Avoiding Early Expatriate Returns 615

TRAINING AND MAINTAINING EMPLOYEES ABROAD

616

Orienting 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 M A N A G I N G HR LOCALLY: H O W TO PUT INTO PRACTICE A GLOBAL HR SYSTEM 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 EMPLOYEES625 APPLICATION CASE: EUROPEIT'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

'

621

18

Managing Human Resources in Small and Entrepreneurial Firms 630


THE SMALL BUSINESS CHALLENGE 632
632 Why Small Business Is Important 632 How Small Business Human Resource Management Is Different Why HRM Is Important to Small Businesses 633

THE STRATEGIC CONTEXT: Le Charcutier Aoun

634 634

USING INTERNET AND GOVERNMENT TOOLS TO SUPPORT THE HR EFFORT

22

CONTENTS Complying with Employment Laws 634 Employment Planning and Recruiting 637 Employment Selection 637 Employment Training 638 Employment Appraisal and Compensation Employment Safety and Health 640 639

LEVERAGING SMALL SIZE: FAMILIARITY, FLEXIBILITY, FAIRNESS, INFORMALITY, AND HRM 640
Simple, Informal Employee Selection Procedures A Streamlined Interviewing Process 640 Work-Sampling Tests 642 Flexibility in Training 642 Flexibility in Benefits and Rewards 643 Improved Communications 646 640

HR AS A PROFIT CENTER: IHOP


Fairness and the Family Business How Do PEOs Work? 647 Why Use a PEO? 647 Caveats 648

646
646

USING PROFESSIONAL EMPLOYER ORGANIZATIONS

647

MANAGING HR SYSTEMS, PROCEDURES, AND PAPERWORK


Introduction 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

649

TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE ENDNOTES 655 PART 5 VIDEO CASES APPENDIX 657

654

APPENDICES APPENDIX A APPENDIX B PHR and SPHR Knowledge Base Comprehensive Cases 667
659

Glossary 681 Name and Organization Index Subject Index 704

689

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