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Human Resource Management

An Experiential Approach
Fifth Edition

Department of Management, International Business, and
Florida Atlantic University

Boston Burr Ridge, IL Dubuque, IA New York San Francisco St. Louis
Bangkok Bogota Caracas Kuala Lumpur Lisbon London Madrid Mexico City
Milan, Montreal New Delhi Santiago Seoul Singapore Sydney Taipei Toronto
Table of Contents

Preface IV Domestic versus International HRM 37

International HR Strategies 41
What Influences the Choice oflHRM Strategy? 42
Part 1 Human Resource Management International Business Assignments 43
Goals of International Business Assignments 43
Challenges of International Business
Chapter 1 Strategic Human Resource Management
Assignments 43
in a Changing Environment 3
Recent Trends in Overseas Assignments 45
Objectives 3 Global Leadership Challenges 47
Overview 3 Summary 50
What Is Human Resource Management? 5 Discussion Questions 51
HRM and Corporate Performance 6
Discrepancies between Academic Research and HRM Chapter 3 The Legal Environment of HRM: Equal
Practice 7 Employment Opportunity 53
The Domains of Human Resource Management 9
Trends Enhancing the Importance of HRM 11 Objectives 53
Trend 1: The Increased Globalization of the Overview 53
Economy 11 Equal Employment Opportunity Law 55
Trend 2: Technological Changes, Challenges, and What Is Employment Discrimination ? 55
Opportunities 13 What A re the Major Sources of EEO Redress ? 56
Trend 3: Increase in Litigation and Regulation Title VII of the Civil Rights Act of 1964 59
Related to HRM 14 What Is the EEOC? 59
Trend 4: Changing Characteristics of the What Is Not Prohibited by Title VII? 62
Workforce 15 How Do You File a Title VII Lawsuit? 62
The Importance of HRM Measurement in Strategy What Legal Steps Are Followed in a Title
Execution 18 VII Case? 62
Summary of Trend Effects 21 What Constitutes Sexual Harassment under Title
Competitive Advantage 22 VII? 67
Customer Value 22 What Is the Employer's Liability in
Customer Value and Corporate Social Harassment Cases? 68
Responsibility (CSR) 23 What Is Affirmative Action ? 70
Maintaining Uniqueness 25 What Is the Legal Status ofAffirmative Action ? 71
Sources of Uniqueness 26 What Is Required before a Company Embarks on a
Summary 28 Voluntary Affirmative Action/Diversity
Discussion Questions 28 Program? 72
Is Affirmative Action Still Necessary ? 72
The Age Discrimination in Employment Act of 1967,
Chapter 2 The Role of Globalization in HR Policy
Amended in 1978 and 1986 73
and Practice 29
What Is Required to Establish Prima Facie
Objectives 29 Evidence ofAge Discrimination ? 73
Overview 29 Can Employers Claim Age as a Bona Fide
How Do Companies Engage in International Occupational Qualification (BFOQ)? 74
Commerce? 32 The Americans with Disabilities Act of 1990 (ADA)
Exporting Work 35 Amended in 2008 74
Summary 35 What Is Legal and Illegal under ADA ? 77
What Influences the Decision to Invest in a Particular Genetic Information Nondiscrimination Act of 2008
International Market? 36 (GINA) 78
Pregnancy Discrimination Act of 1978 79 Chapter 5 Human Resource Planning and
Are Expatriates Covered by Federal EEO Laws When Recruitment 125
They Are Assigned to Countries Other than the United
Objectives 125
States? 80
Overview 125
What Are Employee Rights When Working for
Effective Human Resource Planning 127
Multinational Employers? 82
Step One: Environmental Scanning 128
Future Trends in EEO 83
Step Two: Labor Demand Forecast 133
Alternative Dispute Resolution: An Employer
Step Three: Labor Supply Forecast 136
Reaction to Increased Litigation 83
Step Four: Gap Analysis 139
Summary 84
Step Five: Action Programming 143
One Implication of Increased Litigation: Better
Step Six: Control and Evaluation 144
HRM Practices 84
The Recruitment Function: Putting HRP into
Discussion Questions 85
Action 144
Recruitment, Other HR Activities, and
Part 2 Acquiring Human Resource Organizational Attractiveness 145
The Three Essential Steps for Recruitment
C b i H [
Planning 147
The Two Sources of Recruiting: Internal and
Chapter 4 Work Analysis and Design 89 External 149
Advantages and Disadvantages of Internal and
Objectives 89
External Recruiting 149
Overview 89
External Recruitment Sources 151
What Is Work Analysis? 91
What Methods of Recruiting Are Most Effective ? 160
What Are the Major Goals for Work
Two Philosophies of Recruiting: Flypaper versus
Analysis ? 92
Matching 164
Do We Really Need All the Specificity in Formal Job
Understanding the Recruits 165
Analysis ? 93
Human Resource Planning and Recruitment for
What Is the Legal Significance of Work
Multinational Corporations 166
Analysis? 94
Summary 169
What Are the Major Work Analysis Products ? 94
Discussion Questions 169
What Are the Major Methods of Work
Analysis? 97
What Are the Dimensions on Which Work Analysis
Chapter 6 Personnel Selection 171
May Vary? 99
What Are the Most Useful Formal Approaches to Work Objectives 171
Analysis? 101 Overview 171
Position Analysis Questionnaire (PAQ) 101 Selection Methods: Are They Effective? 173
Management Position Description Questionnaire What Is Reliability? 173
1 (MPDQ) 105
Competency Modeling 105
What Is Validity? 174
What Is Utility? 174
O*NET 109 Application Blanks and Biographical Data 176
I Critical Incident Technique (CIT) 111 A Discrepancy between Research and Practice: The
Use of Application and Biographical Data 176
Job Compatibility Questionnaire (JCQ) 115
Work Analysis for Job Design 117 How Do You Derive WAB or BIB or
1 What Is Strategic Job Analysis ? 117 Accomplishment Record Weights ? 177
D. Autonomous Work Groups (AWG) or Self-Managing Reference Checks and Background Checks 778
O Teams 120 What Is the Validity of Reference Checks ? 178
U Suggestions for Using AWGs or Self-Managing What Are the Legal Implications of Doing
Work Teams 120 Background Checks on Job Candidates? 179
i The Effectiveness ofAWGs or Self-Managing Work Personnel Testing 180
1 Teams 120
Are There Bias and Inaccuracy in Work Analysis
What Is a Cognitive (or General Mental) Ability
Test? 180
Data? 121 What Are Tests of Specific Abilities ? 181
How Do You Choose the Best Work Analysis Are There Racial Differences in Test
Method? 122 Performance? 182
Summary 122 Why Do Minorities Score Lower Than Whites on
Discussion Questions 124 Cognitive Ability Tests? 183
Table of Contents

How Do Organizations Deal with Race Differences Chapter 8 Training and Development 245
on Cognitive Ability Tests? 183
Objectives 245
What Is Personality/Motivation/Dispositional
Overview 245
Testing? 184
Defining Training and Development 247
What Is the Validity of Personality Tests? 189
Extent of Training and Development 248
Approaches to the Prediction of Particular
A Systems View of Training 249
Criteria 190
Discrepancies between Research and
How Do You Establish a Testing Program ? 194
Practice 251
Drug Testing 194
Needs Assessment 251
Is Some Testing an Invasion of Privacy? 195
Organizational Analysis 252
Performance Testing/Work Samples 195
Job Analysis 253
What Is an Assessment Center? 197
Person Analysis 253
How Are Assessments Done? 199
Techniques for Collecting Needs Assessment
What Is the Validity and Adverse Impact of
Data 254
Assessment Centers and Other Performance
Deriving Instructional Objectives 254
Tests? 199
Development of the Training Program 255
Performance Appraisals/Competency
Designing a Learning Environment for Training 255
Assessment 200
Preconditions of Learning 255
Interviews 200
Conditions of the Learning Environment 256
What Factors Affect the Employment Interview? 201
Using Learning Principles to Develop Training
What Is the Validity of Employment Interviews ? 202
Materials 258
How Can We Improve the Validity of Interviews? 204
Transfer of Training 259
What Are Major Types of Interviews ? 205
Choosing Methods for the Training Program 260
The "Bottom Line " on Interview Validity 207
Informational Methods 263
Combining Data from Various Selection Methods 207
Experiential Methods 265
What Is Individual Assessment? 209
Evaluation 271
Personnel Selection for Overseas Assignments 209
Types of Criteria 271
Weights for Expatriate Selection 212
The Effectiveness of Organizational Training 275
Selection in Other Countries 213
Assessing the Costs and Benefits of Training 276
The Bottom Line on Staffing 213
Designs for Evaluating Training 277
Summary 214
Benchmarking Training Efforts 279
Discussion Questions 216
Planning for Training Effectiveness in
Organizations 279
Part 3 Developing Human Resource | Special Training Programs 280
Capability^ 217 1 Training for Generational Transitions 280
Employee Orientation Programs and
Chapter 7 Performance Management and Onboarding 281
Appraisal 219 Training for Teams 282
Diversity Awareness Training 283
Objectives 219
Sexual Harassment Training 284
Overview 219
Cross-Cultural Training and Training for
How Do We Define Performance and Why Do We
International Assignments 285
Measure It? 222
Summary 288
What Are the Uses of Performance Data? 222
Discussion Questions 289
Legal Issues Associated with Performance
Appraisals 223
Chapter 9 Career Development 293
Designing an Appraisal System 225
Measurement Content 225 Objectives 293
The Measurement Process 226 Overview 293
Control of Rating Errors 233 Definitions 294
Rater Training 237 Implications of Workplace Changes for Individuals
Defining the Rater 239 and Organizations 296
Defining the "Ratee " 239 What Should Individuals Do? 296 .
Administrative Characteristics 241 What Should Organizations Do ? 296
Methods of Delivering Performance Feedback 242 Importance of Understanding Career Development 297
Summary 243 Designing Career Development Systems 299
Discussion Questions 243 Benefits of Career Development Systems 299
Table of Contents

Components of Career Development Systems 301 What Are the Determinants of Effective Reward
Self-Assessment Tools 301 Systems? 367
Individual Counseling 303 What Are the Main Problems with PFP Programs? 370
Information Services 304 . What Are the Legal Implications of PFP? 371
Organizational Assessment Programs 305 How Do You Select a PFP System? 372
Developmental Programs 308 Who Should Be Included in a PFP System? 372
Career Programs for Special Target Groups 310 How Will Performance Be Measured? 372
Fast-Track Employees 310 What Are the Rewards in an Incentive System? 373
Outplacement Programs 311 A Discrepancy between Research and Practice 373
Entrenched Employees 312 Should You Use Individual, Group, or Company-
Supervisors and Career Counseling 313 Level PFP? 374
Executive Coaching 313 When Should Team-Based PFP Be Used? 374
Programs for Women, Minorities, and Employees Individual PFP Plans: Merit Pay and Incentive
with Disabilities 314 Systems 375
Programs for New Employees (Early-Career What A re Merit Pay Plans ? 3 75
Issues) 315 What Is Incentive Pay? 377
Programs for Late Career and Retirement 316 What Are Sales Incentive Plans? 379
Programs to Improve Work—Family Balance 316 What Are Bonuses ? 380
Repatriates 320 What Are Group Incentive Plans? 381
Summary 322 What Is Profit Sharing ? 381
Discussion Questions 322 What Is Gain Sharing ? 382
What Are Employee Stock Option Plans ? 385
Managerial and Executive Incentive Pay 386
Part 4 Compensating and Managing Are There Documented Negative Consequences to
Human Resources 325 Widening Pay Dispersion? 387
Should You Use Short- or Long-Term Measures of
Chapter 10 Compensation: Base Pay and Fringe Performance? 387
Benefits 327 What about the Corporate Board Room? 388
How Do Companies Keep Entrepreneurs and Promote
Objectives 327 / Intrapreneurs? 389
Overview 327 What Are the Managerial Implications for PFP
Five Objectives for Effective Compensation 330 Programs? 389
Cash Compensation: Base Pay 331 Summary 390
The Traditional Approach to Compensation 331 Discussion Questions 392
What Is Internal Equity ? 331
Job Evaluation Methods 333 Chapter 12 Managing the Employment
What Is External Equity? 336 Relationship 393
Current Trends in Salary Administration 339 Objectives 393
Government Influence on Compensation Issues 341 Overview 393
The Equal Pay Act (EPA) 342 Introduction 394
2 Pay Equity or Comparable Worth Policy 344 Organizational Justice 394
Other Compliance Issues 346 Ethics Programs 396
Fringe Compensation: Employee Benefits 346 Organizational Entry 397
Categories of Employee Benefits 348 Employment Status 397
Communicating the Benefits Program 355 Flexible Work Arrangements 398
International Compensation 355 Realistic Job Previews 400
I Base Salary 357 Socialization and Orientation 400
Foreign Service Premiums 357 The Ongoing Relationship 402
Allowances 358 External Forces: Law 402-
I Expatriate Benefits 359
Summary 359
Internal Forces: Employee Surveys 407
Internal Forces: Employee Handbooks 410
Discussion Questions 361 Violations of Policy/Discipline 413
Grievances 415
° Chapter 11 Rewarding Performance 363
Organizational Exit 418
§> Objectives 363 Termination 418
£ Overview 363 ^ Resignation/Voluntary Turnover 419
6 Does PFP Work? 366 . Downsizing and Layoffs 422
Table of Contents

Retirement 423 Contemporary Issues Related to Health and

Summary 425 Safety 484
Discussion Questions 426 AIDS and the Workplace 484
Drugs in the Workplace 485
Chapter 13 Labor Relations and Collective Smoking and the Workplace 488
Bargaining 427 Violence in the Workplace 490
Video Display Terminals 495
Objectives 427
Repetitive Strain Injuries (RSI) 495
Overview 427
Occupational Stress 497
Why Do Workers Join Unions? 430
Employee Assistance Programs 501
The Legal Environment of Labor Relations 431
Employee Wellness or Fitness Programs 504
National Labor Relations Act (NLRA) 431
Summary 505
The Taft-Hartley Act 433
Discussion Questions 507
Other Important Labor Laws 433
How Do Workers Form Unions? 434 Appendix A Critical Thinking Applications 509
The Effects of Unions 437 1-A What Do You Know about HRM?* 509
Unions and Quality ofWorklife Issues 438 1-B Corporate Social Responsibility and Human
Union Effects on Worker Satisfaction 439 Resource Management* 509
Unions and HRM 439 1-C Resolution: Close Down the Human Resources
Collective Bargaining 440 Department 510
The Labor Contract 440 2-A What Is the Origin of Your University
Issues in Collective Bargaining 441 Apparel? 511
Types of Bargaining 441 2-B International HR: How about a Cuppa? 512
Conducting Labor Contract Negotiations 442 3-A Are Dreadlocks Protected under Title VII? 513
The Union's Economic Power in Collective 3-B Allegations of Religious Discrimination 513
Bargaining 444 4-A Can PAS Defend Its Test in Court? 514
The Employer's Power in Collective Bargaining 446 4-B What to Do with Job Diagnostic
Administration of the Labor Contract 446 Survey Results* 516
Current and Future U.S. Trends in Labor 5-A Recruiting on the Internet 516
Relations 450 5-B Hi, I'm in Bangalore (but I Can't Say So) 517
Union Membership 450 5-C Is Wal-Mart Guilty of Gender
Public-Sector Union Membership 452 Discrimination? 518
Mergers and Acquisition 452 6-A What Privacy Do We Have in the Workplace? 520
Retraining Provisions 452 6-B The Measurement of Personality Traits* 521
Employee Benefits 453 7-A Should We Measure Competencies in Performance
A Proposal to Reinvent U.S. Trade Unionism 453 Appraisal? 522
International Issues 454 7-B The Role of Mystery Shoppers in Performance
U.S. Managers and Unions 455 Appraisal 522
Global Collective Bargaining and Productivity 457 7-C Allegations of Age and Race Discrimination against
Summary 457 Ford Motor Company 523
Discussion Questions 458 7-D Performance Appraisal Characteristics
Questionnaire* 524
Chapter 14 Employee Health and Safety 459 8-A Workplace Diversity Training 524
Objectives 459 8-B Sexual Harassment Training* 525
Overview 459 9-A Careers and Corporate Social Responsibility 526
Common Workplace Injuries and Diseases 462 9-B O*NET Skills Search 527
Legal Issues Related to Health and Safety 463 10-A Defending Corporate Executive Pay 528
Workers' Compensation 464 10-B Illegal Pay Discrimination, Bad Pay Policy,
The Occupational Safety and Health or Both? 530
Administration Act 466 10-C Legal or Illegal Compensation Plan? 530
Programs to Reduce Accidents at Work 479 11-A The Case for and against Pay-for-Performance
Selective Hiring 480 Systems 531
Safety Training 481 11-B The Prediction of Rating Error* 532
Teamwork, Supervision, and Decentralized Decision 11-C Can We (and Should We) Apply the Lincoln Electric
Making 483 Method? 532
Incentive Systems 483
The test or questionnaire component of these exercises is available online at the
Safety Rules 483 book's Web site (

Table of Contents

11-D Should Teacher Pay Be Tied to Student 7.2 The Heartland Greeting Cards Consulting
Test Scores? 533 Problem*
12-A Employment-at-Will 533 7.3 Price Waterhouse v. Hopkins*
12-B Developing Organizational Policy and a 7.4 Performance Appraisal at Darby Gas & Light 661
Code of Ethics 534 7.5 The Development of a Performance Appraisal
13-A Unionizing FedEx 535 System for Instructors*
13-B Do You Support the Employee Free Choice Act 8.1 Conducting a Needs Assessment 669
(EFCA)? 536 8.2 Rainyday Insurance Adjusters Company 673
14-A Can Health and Safety Behavior Be 8.3 Backwoods Mail Order Company*
Predicted?* 538 8.4 The Development and Evaluation of a Training
14-B The Measurement of Stress at Work* 538 Program for Graduate Student Instructors 677
8.5 Self-Directed Learning Assessment" 681
Appendix B Chapter Exercises 539 9.1 Attitudes about Older People* 685
1.1 An Interview with an HRM Specialist* 9.2 Career Development Self-Assessment
1.2 An Assessment of Customer Satisfaction and the Exercise 685
Relationship to HRM Activities 539 9.3 Career Development at TechnoChip
1.3 Human Resource Issues at Valley National Computers* 685
Bank 553 10.1 Problems in the Pay System 693
2.1 International HR Strategies: The Derivation of 10.2 Should the State Adopt a Pay Equity Policy? 699
Policy 563 10.3 Developing an Employee Benefits Program*
2.2 Going Global with Marriott Corporation 567 11.1 The Design of a PFP System for Mega
2.3 International Assignment Problems at XYZ Manufacturing 705
Corporation 573 11.2 Pay for Performance at Dee's Personalized
3.1 Zimpfer v. Palm Beach County 579 Baskets 711
3.2 Goebel et al. v. Frank Clothiers 587 12.1 An Approach to Downsizing 715
3.3 A Case of Illegal Sexual Harassment? 591 12.2 Compududes Considers Arbitration Options for
3.4 Reverse Discrimination or Legal Affirmative Employee Disputes 725
Action? 595 12.3 Handling an Employee's Termination 729
3.5 Joseph Garcia v. Hooters, Cameron v. LaVeille 13.1 Organizing a Union 733
Maison 603 13.2 Unions, Labor Law, and Managerial
3.6 Hiring a Bank Teller 607 Prerogatives** 737
4.1 Writing a Position Description 611 13.3 The Baseball Strike: An Example of Collective
4.2 The Use of the Critical Incident Technique to Bargaining*
Analyze the Job of University Professor* 14.1 The Development of a CompanyAnti-Smoking
4.3 Job Analysis at CompTech 625 Policy 738
5.1 A Turnover Problem at the Fort Lauderdale 14.2 The Development of an Anti-drug Policy 739
Herald 631 14.3 The Development of a Health and Safety
5.2 Permalco's Recruiting Challenge* Policy 740
5.3 Recruiting at Julia Richter's "Dressed 14.4 The Development of a Threat Management Team
for Success" 635 for a Workplace Violence Incident*
S 5.4 HR Planning at COMPTECH 637
60 6.1 Should Tenneco Use the Wonderlic Test? 645 Appendix C Assessment Guidelines for Self, Peer,
6.2 Hiring a Plant Manager at Dynamo Industries 649 and Designated Assessors 743
6.3 What Questions Can You (and Should You) Ask in
an Interview?** 653 Endnotes 749
7.1 Performance-Appraisal Feedback: A Role-Play Indexes 791
Exercise 657


The test or questionnaire component of these exercises is available online at the

I book's Web site (

The questionnaire for this exercise is available online at