Human

Resource
Management
Eleventh Edition

John M. Ivancevich
Cullen Professor of Organizational
Behavior and Management
C. T. Bauer College of Business -
University of Houston

McGraw-Hill
Irwin
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
Contents
Preface vi Appendix 1A
Careers in HRM 25
Acknowledgments ix Notes 25

PART ONE Chapter 2

INTRODUCTION TO HUMAN A Strategic Management Approach to
RESOURCE MANAGEMENT AND THE Human Resource Management 28
ENVIRONMENT 1 A Model to Organize HRM 31
How to Take a Diagnostic Approach to HRM 32
Chapter 1 External Environmental Influences 33
Human Resource Management 2 Government Law and Regulations 33
The Union 34
A Brief History of Human Resource Management 5
Economic Conditions 34
Strategic Importance of HRM 7
Competitiveness 36
HRM and Organizational Effectiveness 9
Composition and Diversity of the Labor Force 36
Objectives of the HRM Function 10
Geographic Location of the Organization 39
Helping the Organization Reach Its Goals 11
Internal Environmental Influences 41
Efficiently Employing the Skills and Abilities of the
Strategy 41
Workforce 11
Goals 41
Providing Well-Trained and Well-Motivated
Organization Culture 43
Employees 12
Nature of the Task 43
Increasing Employees'Job Satisfaction and
Work Group 44
Self-Actualization 12
Leader's Style and Experience 45
Achieving Quality of Work Life 12
Strategies HRM: An Important Key to Success 45
Communicating HRM Policies to All Employees 12
Strategic Challenges Facing HRM 47
Maintaining Ethical Policies and Socially
Technology 47
Responsible Behavior 13
Diversity: Building a Competitive Workforce 48
Managing Change 13
Caliber of the Workforce 51
Managing Increased Urgency and Faster Cycle Time 13
Organizational Restructuring and Downsizing 51
Who Performs HRM Activities 14
Contingent Workers 52
Outsourcing 14
People and the HRM Diagnostic Framework 53
The Interaction of Operating and HR Managers 15
Abilities of Employees 53
HRM's Place in Management 15
Employees'Attitudes and Preferences 53
HR Department Operations 16
Motivation of Employees 53
HRM Strategy 16
Personality of Employees 54
Clarifying Meaningful HRM Objectives 17
Desirable End Results 54
HRM Policy 17
Summary 55
HRM Procedures 18
Key Terms 57
Organization of an HR Department 19
Questions for Review and Discussion 57
Summary 20
Exercise 2-1
Key Terms 20
Dissecting the ARDM Model and Its Application 5 7
Questions for Review and Discussion 21
Application Case 2-1
Application Case 1-1
Culture Clash 58
The Human Resource Manager and Managing
Notes 60
Multiple Responsibilities 21

xii

Chapter 3
Equal Employment Opportunity:
Legal Aspects of Human Resource
Management 63
How Did EEO Emerge? 66
Societal Values and EEO 66
Economic Status of Minorities: Before 1964 67
The Government 67
Equal Employment Opportunity Laws: Content and
Court Interpretations 67
Title VII of the 1964 Civil Rights Act 67
Title VII and Sexual Harassment 71
Title VII and Pregnancy Discrimination 72
Title VII and Religious Minorities 72
Title VII and "English-Only " Rules 73
Civil Rights Act of 1991 74
Executive Order 11246 (1965) 74
Equal Pay Act of 1963 74
Age Discrimination in Employment Act (ADEA)
of 1967 75
Americans with Disabilities Act (ADA) of 1990 76
State Laws 77
Enforcing the Law 77
Equal Employment Opportunity Commission
(EEOC) 77
The Courts 79
Affirmative Action in Organizations 80
What Is Affirmative Action ? 5Cj
Voluntary Affirmative Action Plans 81
Involuntary Affirmative Action Plans 82
Affirmative Action Issues 83
Summary 84
Key Terms 85
Questions for Review and Discussion 85
Exercise 3-1
Dissecting the Diagnostic Model and Its
Application 86
HRM Legal Advisor 88
Application Case 3-1
Sexual Harassment Cases Are Becoming More
Complex 89
Notes 91
Chapter 4
Global Human Resource Management 93
A Global Perspective 95
The Cultural Nature of Global HRM 96
The Concept of "Fit" in Global HRM 97
Multinational and Global Corporations 98
Contents xiii
The Expatriate Manager in the Multinational
Corporation 100
Selecting the Expatriate Manager 100
Culture Shock and the Expatriate Manager 102
Training the Expatriate Manager 103
Compensating the Expatriate Manager 106
Host Country Nationals and the Global
Corporation 107
A Note on Global Corporate Boards of Directors 108
The Legal and Ethical Climate of Global HRM 108
Labor Relations and the International Corporation 109
Summary 112
Key Terms 113
Questions for Review and Discussion 113
Exercise 4-1
Development of Global Managers 113
Exercise 4-2
Avoiding Costly International HRM Mistakes 114
HRM Legal Advisor 115
Application Case 4-1
'Solving the Labor Dilemma in a Joint Venture in
Japan 115
Application Case 4-2
Reverse Offshoring: A New Source of Jobs for College
Graduates? 117
Notes 118
PART TWO
ACQUIRING HUMAN RESOURCES 123
Chapter 5
Human Resource Planning and
Alignment 124
Human Resource Planning 125
Strategic and Human Resource Planning 126
The HR Planning Process 127
Situation Analysis and Environmental Scanning 127
Forecasting Demandfor Employees 127
Analyzing the Current Supply of Employees 131
Action Decisions in Human Resource Planning 133
Human Resource Information Systems 135
Employees'Privacy, Identity Theft, and HRIS 137
Summary 138
Key Terms 139
Questions for Review and Discussion 139
HRM Legal Advisor 140
Application Case 5-1
Human Resource Planning and Virtual Human
Resource Management 141
Notes 142
xiv Contents

Chapter 6 Methods of Recruiting 190

Job Analysis and Design 146 Internal Recruiting 190
External Recruiting 191
The Vocabulary of Job Analysis 148 Realistic Job Previews 197
The Steps in Job Analysis 148 Alternatives to Recruitment 198
The Uses of Job Analysis 149 Overtime 198
Who Should Conduct the Job Analysis? 150 Outsourcing 198
The Use of Charts 150 Temporary Employment 198
Methods of Data Collection 152 Cost-Benefit Analysis of Recruiting 199
Observation 152 Summary 200
Interviews 155 Key Terms 201
Questionnaires 155 Questions for Review and Discussion 201
Job Incumbent Diary or Log 155 Exercise 7-1
Which Method to Use? 156 Netiquette: Effectively Communicating with E-Mail 202
Specific Quantitative Techniques 156 HRM Legal Advisor 203
Functional Job Analysis 156 Application Case 7-1
Position Analysis Questionnaire 158 E-Recruiting: Too Much of a Good Thing? 203
Management Position Description Questionnaire 160 Application Case 7-2
Job Descriptions and Specifications 161 Are New Recruits Looking for Work-Life Balance? 206
Job Analysis and Strategic Human Resource Notes 207
Management 165
Job Analysis and Employee Competencies 165 Chapter 8
Job Design 166
Selection 212
Scientific Management and the Mechanistic
Approach 166 Influences on the Selection Process 213
Job Enrichment: A Motivational Approach 167 Environmental Circumstances Influencing
Work-Family Balance and Job Design 169 Selection 213
Job Design: The Next Challenge 171 Selection Criteria 214
Summary 171 Categories of Criteria 215
Key Terms 172 Reliability and Validity of Selection Criteria 217
Questions for Review and Discussion 172 The Selection Process 220
HRM Legal Advisor 173 Step 1: Preliminary Screening 220
Application Case 6-1 Step 2: Employment Interview 223
Job Analysis: Assistant Store Managers at Today's Step 3: Employment Tests 227
Fashion 174 Step 4: Reference Checks and Recommendations 232
Application Case 6-2 Step 5: Selection Decision 232
Job Analysis and Maternity Leave: Calming the Boss's Step 6: Physical Examinations 233
and Co-workers'Nerves 176 Selection of Managers 234
Notes 177 Cost-Benefit Analysis for the Selection
Decision 237
Chapter 7 Summary 237
Key Terms 238
Recruitment 182
Questions for Review and Discussion 238
External Influences 185 Exercise 8-1
Government and Union Restrictions 185 Posting Your Resume Online 239
Labor Market Conditions 186 HRM Legal Advisor 239
Composition of Labor Force and Location of Application Case 8-1
Organization 187 Internet-Based Reference Checks:A New Approach 241
Interactions of the Recruit and the Organization 187 Application Case 8-2
The Organization's View of Recruiting 187 Are Traditional Resumes Gone Forever? 242
The Potential Employee's View of Recruiting 188 Notes 243
 Contents xv

PART THREE Internal Influences on Compensation 303

REWARDING HUMAN The Labor Budget 305
Who Makes Compensation Decisions 305
RESOURCES 249
Pay and Employees' Satisfaction 305
Pay and Employees'Productivity 306
Chapter 9
Compensation Decisions 307
Performance Evaluation and The Pay-Level Decision 307
Management 250 Pay Surveys 308
The Case for Using Formal Evaluation 253 The Pay Structure Decision 310
Purposes of Evaluation 253 Delayering and Broadbanding 315
Performance Evaluation and the Law 254 The Individual Pay Decision 316
Format of Evaluation 256 Summary 317
Establish Criteria 256 Key Terms 317
Set Policies on Who Evaluates, When, and How Often 257 Questions for Review and Discussion 318
Who Should Evaluate the Employee? 25 7 HRM Legal Advisor 318
Selected Evaluation Techniques 260 Application Case 10-1
Individual Evaluation Methods 260 The Comparable Worth Debate 319
Multiple-Person Evaluation Methods 266 Notes 322
Management by Objectives 268
Which Technique to Use 270 Chapter 11
Potential Problems in Performance Evaluations 270 Compensation: Methods and Policies 325
Opposition to Evaluation 271 Determination of Individual Pay 327
System Design and Operating Problems 271 Methods of Payment 328
Rater Problems 272 Flat Rates 328
Eliminating Rater Errors 2 75 Payment for Time Worked 328
Avoiding Problems with Employees 275 Variable Pay: Incentive Compensation 329
The Feedback Interview 276 Ownership 339
Summary 278 People-Based Pay 340
Key Terms 279
Executive Pay 341
Questions for Review and Discussion 280 Issues in Compensation Administration 344
Exercise 9-1 Pay Secrecy or Openness 344
Selecting and Appraising Administrative Assistants at Pay Security 344
Row Engineering 280 Pay Compression 345
HRM Legal Advisor 283 Summary 346
Application Case 9-1 Key Terms 347
Evaluating Store Managers at Bridgestone/Firestone Questions for Review and Discussion 347
Tire & Rubber 284 HRM Legal Advisor 347
Application Case 9-2 Application Case 11-1
The Politics of Performance Appraisal 287 Customizing Bonus Pay Plans 348
Notes 290 Notes 352

Chapter 12
Chapter 10 Employee Benefits and Services 356
Compensation: An Overview 293 Background 358
Objective of Compensation 295 Why Do Employers Offer Benefits and Services? 358
External Influences on Compensation 295 Who Makes Decisions about Benefits? 358
The Labor Market and Compensation 295 Mandated Benefits Programs 360
Economic Conditions and Compensation 298 Unemployment Insurance 360
Government Influences and Compensation 298 Social Security 361 ,
Union Influences and Compensation 303 Workers' Compensation 363
xvi Contents

Voluntary Benefits 364 Who Orients New Employees? 393

Compensation for Time Off 364 Orientation Follow-Up 394
Paid Holidays 365 Introduction to Training 394
Paid Vacations 365 Goals of Training 395
International Vacation Benefits 366 Learning Theory and Training 396
Personal Time Off 366 Training Activities 397
Sick Leave 367 Managing the Training Program 398
Family Leave 367 Determining Needs and Objectives 398
Maternity and Parental Leave 368 Choosing Trainers and Trainees 402
Employer-Purchased Insurance 368 Training and Development Instructional
Health Insurance 368 Methods 402
Life Insurance 371 On-the-Job Training 403
Disability Income Replacement Insurance 3 71 Case Method 404
Income in Retirement 372 Role-Playing 405
Retirement Income from Savings and Work 3 72 In-Basket Technique 405
Individual Retirement Accounts (IRAs) 372 Management Games 405
SEP (Simplified Employee Pension) IRAs 3 72 Behavior Modeling 406
401 (k) Plans 373 Outdoor-Oriented Programs 407
Employee Services 375 Which Training and/or Development Approach Should
Stock Ownership Plans 375 Be Used? 407
Education Programs 375 Management Development: An Overview 414
Preretirement Programs 375 What Is Management Development? 414
Child Care 375 Development: Individual Techniques 415
Elder Care 376 Goal Setting 415
Financial Services 3 76 Behavior Modification 417
Social and Recreational Programs 3 76 Development: Team Building 421
Flexible Benefits Plans and Reimbursement Evaluation of Training and Development 422
Accounts 376 Criteria for Evaluation 422
Managing an Effective Benefits Program 378 A Matrix Guide for Evaluation 423
Step 1: Set Objectives and Strategy for Benefits 3 78 Summary 424
Step 2: Involve Participants and Unions 378 Key Terms 425
Step 3: Communicate Benefits 378 Questions for Review and Discussion 426
Step 4: Monitor Costs Closely 3 79 Exercise 13-1
Cost-Benefit Analysis of Benefits 379 Assessing Training Needs 426
Summary 379 , HRM Legal Advisor 426
Key Terms 380 Application Case 13-1
Questions for Review and Discussion 381 Dunkiri Donuts and Domino's Pizza: Training for
HRM Legal Advisor 381 Quality and Hustle 42 7
Application Case 12-1 Notes 429
Benefits Are Vanishing 382
Notes 385 Chapter 14
Career Planning and Development 433
PART FOUR The Concept of Career 435
DEVELOPING HUMAN Career Stages 437
RESOURCES 389 Career Choices 439
Career Development: A Commitment 444
Chapter 13
Career Development for Recent Hirees 446
Training and Development 390 Causes of Early Career Difficulties 446
Introduction to Orientation 392 How to Counteract Early Career Problems 447
Goals of Orientation 392 Career Development during Midcareer 448

The Midcareer Plateau 448
How to Counteract Midcareer Problems 449
Preretirement Problems 450
How to Minimize Retirement Adjustment
Problems 450
Career Planning and Pathing 451
Career Planning 451
Career Pathing 453
Career Development Programs: Problems and
Issues 455
Integrating Career Development and Workforce
Planning 455
Managing Dual Careers 455
Career Planning and Equal Employment
Opportunity 456
Downsizing and Job Loss 457
Summary 462
Key Terms 462
Questions for Review and Discussion 463
Exercise 14-1
My Career Audit 463
HRM Legal Advisor 464
Application Case 14-1
The Dual-Career Couple 465
Notes 467
PART FIVE
LABOR-MANAGEMENT RELATIONS
AND PROMOTING SAFETY AND
HEALTH 471
Chapter 15
Labor Relations and Collective
Bargaining 472
Early Collective Action and Union Formation 474
Labor Legislation Overview 476
National Labor Relations Act (Wagner Act) 476
Labor Management Relations Act (Taft-Hartley
Act) 477 '
Labor-Management Reporting and Disclosure Act
(Landrum-Griffin Act) 477
Structure and Management of Unions 477
Federation of Unions 477
Intermediate Union Bodies 478
National Unions 479
Local Unions 479
The Union Organizing Campaign 479
Authorization Card Campaign and Union
Certification 480
Contents xvii
Union Security 481
Levels of Union Security 481
Right-to-Work Requirements 482
Public Employee Associations 483
Background 483
Public Sector Labor Legislation 483
Collective Bargaining 484
Prenegotiation 484
Selecting the Negotiators 485
Developing a Bargaining Strategy 486
Using the Best Tactics 486
Reaching a Formal Contractual Agreement 487
Contract Ratification 487
Failure to Reach Agreement 488
Strikes 488
Lockouts 489
Permanent Replacements 489
Third-Party Intervention 490
Administering the Contract 490
Discipline 490
Grievances 491
Arbitration 492
The Changing Climate of Unionization in the United
States 493
Union Membership Trends 493
Global Unionization 494
Union Organizing Trends 495
Summary 497
Key Terms 498
Questions for Review and Discussion 499
Exercise 15-1
Reporting on Labor Unions 499
Exercise 15-2
Union-Management Contract Negotiations 499
HRM Legal Advisor 502
Application Case 15-1
The Union's Demand for Recognition and Bargaining
Rights 503
Notes 505
Chapter 16
Managing Employee Discipline 508
Categories of Difficult Employees 510
Category 1: Ineffective Employees 511
Category 2: Alcoholic and Substance-Abusing
Employees 511
Category 3: Participants in Theft, Fraud, and Other
IllegalActs 513
Category 4: Rule Violators 518
The Discipline Process 520
xviii Contents

Approaches to Discipline 521 Preventive Health Programs: A Wellness

The Hot Stove Rule 522 Approach 551
Progressive Discipline 522 Safety and Health Issues 553
Positive Discipline 522 Stress Management 553
The Disciplinary Interview: A Constructive Violence in the Workplace 555
Approach 524 Indoor Environmental Quality (IEQ) 556
Legal Challenges to Discipline and Termination 525 HIV-AIDS in the Workplace 558
Employment at Will 525 Cumulative Trauma Disorders (CTDs) 559
Alternative Dispute Resolution 527 Evaluation of Safety and Health Programs 560
Summary 528 Summary 561
Key Terms 529 Key Terms 562
Questions for Review and Discussion 529 Questions for Review and Discussion 563
Exercise 16-1 Exercise 17-1
Making Difficult Decisions 530 Preparing for an OSHA Inspection 563
HRM Legal Advisor 531 Application Case 17-1
Application Case 16-1 Campus Food Systems 564
The Case for and against Drug Testing 532 Notes 565
Notes 534

Chapter 17 Appendix A
Promoting Safety and Health 537 Measuring Human Resource Activities 569
Background 538
Appendix B
Causes of Work-Related Accidents and Illnesses 541 Sources of Information about Human
Who Is Involved with Safety and Health? 543 Resource Management: Where to Find Facts
Governmental Responses to Safety and Health and Figures 575
Problems 544 Appendix C
OSHA Safety Standards 546
OSHA Inspections 546 Career Planning 583
OSHA Record Keeping and Reporting 54 7 Glossary 593
OSHA: A Report Card 549
Organizational Responses to Safety and Health Name Index 603
Issues 549 Company Index 612
Safety Design and Preventive Approaches 549
Inspection, Reporting, and Accident Research 550 Subject Index 615
Safety Training and Motivation Programs 550