HUMAN RESOURCE MANAGEMENT ™ELFTH

HUMAN RESOURCEMANAGEMENT ™ELFTH

EDITION

Gary DesslerFlorida International University

.I r e i l t l C e J r l 3 . l l Boston 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

Contents

Preface xxiiiAcknowledgments xxvii

Introduction to Human Resource Management 2WHAT IS HUMAN RESOURCE MANAGEMENT AND WHY IS IT IMPORTANT? 4

What Is Human Resource Management? 4

Why Is Human Resource Management Important to All Managers? 5

Line and Staff Aspects of Human Resource Management 6

Line Managers' Human Resource Duties 6

Human Resource Manager's Duties 7

New Approaches to Organizing HR 9

Cooperative Line and Staff HR Management: An Example 9

Moving from Line Manager to HR Manager 10

THE TRENDS SHAPING HUMAN RESOURCE MANAGEMENT 10

Globalization and Competition Trends 11

Indebtedness ("Leverage") and Deregulation 12

Technological Trends 12

Trends in the Nature of Work 13

Workforce and Demographic Trends 14

Economic Challenges and Trends 15

IMPORTANT TRENDS IN HUMAN RESOURCE MANAGEMENT 16

The New Human Resource Managers 16

Strategic Human Resource Management 18

High-Performance Work Systems 19

Evidence-Based Human Resource Management 19

• EVIDENCE-BASED HR: Why Should You Be Evidence-Based? 19

Managing Ethics 20

HR Certification 20

THE PLAN OF THIS BOOK 21

The Basic Themes and Features 21

CHAPTER CONTENTS OVERVIEW 22

Part 1: Introduction 22

Part 2: Recruitment and Placement 22

Part 3: Training and Development 22

Part 4: Compensation 23

Part 5: Employee Relations 23

The Topics Are Interrelated 23

VII

viii CONTENTS

CHAPTER SECTION SUMMARIES 24

DISCUSSION QUESTIONS 24

INDIVIDUAL AND GROUP ACTIVITIES 25

EXPERIENTIAL EXERCISE: HELPING "THE DONALD" 25

APPLICATION CASE: JACK NELSON'S PROBLEM 26

CONTINUING CASE: CARTER CLEANING COMPANY 26

KEY TERMS 27

ENDNOTES 27

Equal Opportunity and the Law 30EQUAL EMPLOYMENT OPPORTUNITY 1964-1991 32

Title VII of the 1964 Civil Rights Act 32 \

Executive Orders 32 i

Equal Pay Act of 1963 33 i

Age Discrimination in Employment Act of 1967 33 |

Vocational Rehabilitation Act of 1973 33 j

Pregnancy Discrimination Act of 1978 34 . j

Federal Agency Guidelines 34 i

Early Court Decisions Regarding Equal Employment Opportunity 34 !

EQUAL EMPLOYMENT OPPORTUNITY 1990-91-PRESENT 35 |

The Civil Rights Act of 1991 35

The Americans with Disabilities Act 36

Genetic Information Nondiscrimination Act of 2008 (GINA) 39

State and Local Equal Employment Opportunity Laws 39 I

Sexual Harassment 39 j

• MANAGING THE N E W WORKFORCE: Enforcing Equal Employment Laws with International !

Employees 45 '•

DEFENSES AGAINST DISCRIMINATION ALLEGATIONS 46The Central Role of Adverse Impact 46 ;

Bona Fide Occupational Qualification 48 :

Business Necessity 49

Other Considerations in Discriminatory Practice Defenses 50

ILLUSTRATIVE DISCRIMINATORY EMPLOYMENT PRACTICES 50A Note on What You Can and Cannot Do 50

Recruitment 50

Selection Standards 51

Sample Discriminatory Promotion, Transfer, and Layoff Practices 52

What the Supervisor Should Keep in Mind 52

THE EEOC ENFORCEMENT PROCESS 53Voluntary Mediation 54

Mandatory Arbitration of Discrimination Claims 55 ;

DIVERSITY MANAGEMENT AND AFFIRMATIVE ACTION PROGRAMS 56

• EVIDENCE-BASED HR: Will Workforce Diversity Cause Problems for Our Company? 57

Managing Diversity 57 \

Workforce Diversity in Practice 58 i

Equal Employment Opportunity Versus Affirmative Action 60 !

Steps in an Affirmative Action Program 60

Improving Productivity Through HRIS: Measuring Diversity 61 <

Reverse Discrimination 61




EXPERIENTIAL EXERCISE: "SPACE CADET" OR VICTIM? 63

APPLICATION CASE: A CASE OF RACIAL DISCRIMINATION? 64


KEY TERMS 65 i

ENDNOTES 66

CONTENTS ix

The Manager's Role in Strategic Human Resource Management 70WHY STRATEGIC PLANNING IS IMPORTANT TO ALL MANAGERS 72

The Hierarchy of Goals 72

FUNDAMENTALS OF MANAGEMENT PLANNING 73

The Planning Process 73

Putting Together the Business Plan 73

How Managers Set Objectives 75

THE STRATEGIC MANAGEMENT PROCESS 77

Introduction 78

Improving Productivity Through HRIS: Using Computerized Business Planning Software 81

Types of Strategies 81

The Top Manager's Role in Strategic Planning 83

Departmental Managers' Strategic Planning Roles 84

• MANAGING THE NEW WORKFORCE: Dealing with Offshoring 85

STRATEGIC HUMAN RESOURCE MANAGEMENT 86

Human Resource Strategies and Policies 87

• MANAGING HR IN CHALLENGING TIMES: Adjusting HR Policies to Challenging Times 88

Strategic HR in Action: Improving Mergers and Acquisitions 89

Strategic Human Resource Management Tools 90

HR APPs 4 U: Mobile Access to Strategy Maps 91

Translating Strategy into Human Resource Policies and Practices: Einstein Medical •

Example 92

BUILDING YOUR OWN HIGH-PERFORMANCE WORK SYSTEM 93

What Are High-Performance Work Systems? 93

High-Performance Human Resource Policies and Practices 94

The Line Manager's Role in Building a High-Performance Work System 95




EXPERIENTIAL EXERCISE: DEVELOPING AN HR STRATEGY FOR STARBUCKS 97

APPLICATION CASE: SIEMENS BUILDS A STRATEGY-ORIENTED HR SYSTEM 98

CONTINUING CASE: THE CARTER CLEANING COMPANY: THE HIGH-PERFORMANCE

WORK SYSTEM 98

KEY TERMS 99

TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL

PARIS CASE 99

APPENDIX FOR CHAPTER 3: Tools for Evidence-Based Human Resource Management 103

PART I VIDEO CASES APPENDIX 110

ENDNOTES 111

4 Job Analysis 114THE BASICS OF JOB ANALYSIS 116

Uses of Job Analysis Information 116

Steps in Job Analysis 117

Job Analysis Guidelines 119

METHODS FOR COLLECTING JOB ANALYSIS INFORMATION 119

The Interview 119 .

Questionnaires 123

Observation 123

;: Participant Diary/Logs 126

fj. Quantitative Job Analysis Techniques 126

|v, Internet-Based Job Analysis 128

X CONTENTS

WRITING JOB DESCRIPTIONS 130Job Identification 130

Job Summary 132

Relationships 133

Responsibilities and Duties 133

Standards of Performance and Working Conditions 134

Duty: Accurately Posting Accounts Payable 135

• MANAGING THE N E W WORKFORCE: Writing Job Descriptions That Comply with the ADA 135

Duty: Meeting Daily Production Schedule 136

Using the Internet for Writing Job Descriptions 136

WRITING JOB SPECIFICATIONS 139Specifications for Trained Versus Untrained Personnel 140

Specifications Based on Judgment 140

Job Specifications Based on Statistical Analysis 141

JOB ANALYSIS IN A WORKER-EMPOWERED WORLD 141

From Specialized to Enriched Jobs 142

Competency-Based Job Analysis 143

How to Write Job Competencies-Based Job Descriptions 144

In Summary: Why Competency Analysis? 144




EXPERIENTIAL EXERCISE: THE INSTRUCTOR'S JOB DESCRIPTION 146

APPLICATION CASE: TROPICAL STORM WILMA 146



PARIS CASE 147

KEY TERMS 148

ENDNOTES 148

Personnel Planning and Recruiting 150THE RECRUITMENT AND SELECTION PROCESS 152PLANNING AND FORECASTING 152

Forecasting Personnel Needs 153

Forecasting the Supply of Inside Candidates 155

Forecasting the Supply of Outside Candidates 156THE NEED FOR EFFECTIVE RECRUITING 157

Why Recruiting Is Important 157

What Makes Effective Recruiting a Challenge? 157

Organizing How You Recruit 158

The Recruiting Yield Pyramid 158

INTERNAL SOURCES OF CANDIDATES 159Using Internal Sources: Pros and Cons 159

Finding Internal Candidates 159

Rehiring 159

Succession Planning 160

Improving Productivity Through HRIS: Succession Planning Systems 160

OUTSIDE SOURCES OF CANDIDATES 160

Recruiting via the Internet 161

HR APPs 4 U: Posting and Accessing Job Openings 162

• MANAGING HR IN CHALLENGING TIMES: Reducing Recruitment Costs 164

Advertising 165

Employment Agencies 166

Temp Agencies and Alternative Staffing 167

Offshoring and Outsourcing Jobs 169

Executive Recruiters 170

CONTENTS xi

On-Demand Recruiting Services 171

College Recruiting 172

Referrals and Walk-Ins 173

Telecommuters 174

Military Personnel 174

Recruiting Source Use and Effectiveness 174

• EVIDENCE-BASED HR: Measuring Recruiting Effectiveness 174

Improving Productivity Through HRIS: An Integrated Approach to Recruiting 176

RECRUITING A MORE DIVERSE WORKFORCE 176

Single Parents 176

Older Workers 176

H MANAGING THE NEW WORKFORCE: Supervising Older Workers 177

Recruiting Minorities 178

Welfare-to-Work 178

The Disabled 178

DEVELOPING AND USING APPLICATION FORMS 179

Purpose of Application Forms 179

Application Guidelines 179

Application Forms and EEO Law 179

Using Application Forms to Predict Job Performance 181

Mandatory Arbitration 181




EXPERIENTIAL EXERCISE: THE NURSING SHORTAGE 183

APPLICATION CASE: FINDING PEOPLE WHO ARE PASSIONATE ABOUT WHAT THEY DO 184



PARIS CASE 185

KEY TERMS' 185

ENDNOTES 186

O Employee Testing and Selection 190WHY CAREFUL SELECTION IS IMPORTANT 192

BASIC TESTING CONCEPTS 192

Reliability 192

Validity 193

Evidence-Based HR: How to Validate a Test 194

Test Takers' Individual Rights and Test Security 198

m MANAGING THE N E W WORKFORCE: Bias Against Working Mothers 198

How Do Employers Use Tests at Work? 199

Computerized and Online Testing 200

TYPES OF TESTS 201

Tests of Cognitive Abilities 201

HR APPs 4 U: Testing via the iPhone 201

Tests of Motor and Physical Abilities 202

Measuring Personality and Interests 202

Achievement Tests 205

WORK SAMPLES AND SIMULATIONS 206

Using Work Sampling for Employee Selection 206

Management Assessment Centers 206

Situational Testing and Video-Based Situational Testing 207

The Miniature Job Training and Evaluation Approach 208

Realistic Job Previews 208

HR in Practice: Testing Techniques for Managers 209

Summary 209

xii CONTENTS

BACKGROUND INVESTIGATIONS AND OTHER SELECTION METHODS 210Why Perform Background Investigations and Reference Checks? 210

The Legal Dangers and How to Avoid Them 211

How to Check a Candidate's Background 212

Using Preemployment Information Services 214

The Polygraph and Honesty Testing 215

Graphology 216

Physical Exams 217

Substance Abuse Screening 217

Complying with Immigration Law 218

Improving Productivity Through HRIS: Using Automated Applicant Tracking and Screening

Systems 219




EXPERIENTIAL EXERCISE: A TEST FOR A RESERVATION CLERK 221

APPLICATION CASE: WHERE'S MY CZAR? 222

CONTINUING CASE: HONESTY TESTING AT CARTER CLEANING COMPANY 222


PARIS CASE 223

KEY TERMS 223

ENDNOTES 224

Interviewing Candidates 228BASIC TYPES OF INTERVIEWS 230

Types of Employment Interviews 230

Structured Versus Unstructured Interviews 230

Interview Content (What Types of Questions to Ask) 232

How Should We Administer the Interview? 234

HR APPs 4 U: iPhone Job Interviews 235

• MANAGING HR IN CHALLENGING TIMES: Acing the Skype Interview 235

Three Ways to Make the Interview Useful 237

WHAT ERRORS CAN UNDERMINE AN INTERVIEWS USEFULNESS? 237First Impressions (Snap Judgments) 237

Not Clarifying What the Job Requires 238

Candidate-Order (Contrast) Error and Pressure to Hire 238

Nonverbal Behavior and Impression Management 239

Effect of Personal Characteristics: Attractiveness, Gender, Race 239

• MANAGING THE N E W WORKFORCE: Applicant Disability and the Employment Interview 240

Interviewer Behavior 241HOW TO DESIGN AND CONDUCT AN EFFECTIVE INTERVIEW 241

The Structured Situational Interview 241

How to Conduct an Effective Interview 243

Using a Streamlined Interview Process 245

Guidelines for Interviewees 247




EXPERIENTIAL EXERCISE: THE MOST IMPORTANT PERSON YOU'LL EVER HIRE 251

APPLICATION CASE: THE OUT-OF-CONTROL INTERVIEW 251



PARIS CASE 252

KEY TERMS 253

APPENDIX FOR CHAPTER 7 254

PART II VIDEO CASES APPENDIX 257

ENDNOTES 258

CONTENTS xiii

262

O Training and Developing Employees 262INTRODUCTION TO ORIENTING AND TRAINING EMPLOYEES 264

The Purposes of Employee Orientation/Onboarding 264

The Orientation Process 264

HR APPs 4 U: Mobile Company Directory 266

The Training Process 266

Training, Learning, and Motivation 267

• EVIDENCED-BASED HR: Sounds and Shortcuts: How to Design the Training Format to Improve

Training Results 268

ANALYZING TRAINING NEEDS AND DESIGNING THE PROGRAM 269Task Analysis: Assessing New Employees' Training Needs 269Performance Analysis: Assessing Current Employees' Training Needs 270

Designing the Training Program 272

• MANAGING HR IN CHALLENGING TIMES: Free Training Alternatives 273

IMPLEMENTING TRAINING PROGRAMS 273

On-the-Job Training 273

Apprenticeship Training 275

Informal Learning 275

Job Instruction Training 275

Lectures 276

Programmed Learning 277

Audiovisual-Based Training 278

Vestibule Training 278

Teletraining and Videoconferencing 278

Electronic Performance Support Systems (EPSS) 278

Computer-Based Training 279

Simulated Learning 279

Internet-Based Training 281

Improving Productivity Through HRIS: Learning Management Systems 281

The Virtual Classroom 281

Using Internet-Based Learning 282

HR APPs 4 U: Mobile Learning 283

Lifelong and Literacy Training Techniques 283

• MANAGING THE NEW WORKFORCE: Diversity Training 284

HR in Practice: Creating Your Own Training Program 284

IMPLEMENTING MANAGEMENT DEVELOPMENT PROGRAMS 285

Managerial On-the-Job Training 286

Off-the-Job Management Training and Development Techniques 286

MANAGING ORGANIZATIONAL CHANGE PROGRAMS 289

What to Change 290

Lewin's Change Process 290

Leading Organizational Change 291

Using Organizational Development 292

EVALUATING THE TRAINING EFFORT 294

Designing the Study 294

Training Effects to Measure 295




EXPERIENTIAL EXERCISE: FLYING THE FRIENDLIER SKIES 238

APPLICATION CASE: REINVENTING THE WHEEL AT APEX

DOOR COMPANY 298


xiv CONTENTS


PARIS CASE 300

KEY TERMS 300

ENDNOTES 300

Performance Management and Appraisal 304BASIC CONCEPTS IN PERFORMANCE MANAGEMENT

AND APPRAISAL 306Defining the Employee's Goals and Work Standards 307

TECHNIQUES FOR APPRAISING PERFORMANCE 308Why Appraise Performance? 308

Realistic Appraisals 308

The Supervisor's Role 308

Steps in Appraising Performance 309

Graphic Rating Scale Method 309

Alternation Ranking Method 312

Paired Comparison Method 312

Forced Distribution Method 314

Critical Incident Method 314

Narrative Forms 315

Behaviorally Anchored Rating Scales 315

Management by Objectives 318

Computerized and Web-Based Performance Appraisal 318

Electronic Performance Monitoring 318

Appraisal in Practice 320

DEALING WITH PERFORMANCE APPRAISAL PROBLEMS 321

Potential Appraisal Problems 321

• MANAGING THE N E W WORKFORCE: The Gender Gap in Appraisals 322

Five Guidelines for How to Hold Effective Appraisals 323Appraisals and the Law 324

Who Should Do the Appraising? 325

• EVIDENCE-BASED HR: Should We Encourage Upward Feedback? 327

THE APPRAISAL INTERVIEW 328Types of Appraisal Interviews 328

How to Conduct the Appraisal Interview 328

Appraisals in Practice 331

PERFORMANCE MANAGEMENT 331

What is Performance Management? 331

Performance Appraisal Versus Performance Management 331

Basic Building Blocks of Performance Management 332

Why Performance Management? 331

HR APPs 4 U: Mobile Performance Management 333

Using Information Technology to Support Performance Management 333

Improving Productivity Through HRIS: TRW's New Performance Appraisal/

Management System 333




EXPERIENTIAL EXERCISE: GRADING THE PROFESSOR 336

APPLICATION CASE: APPRAISING THE SECRETARIES AT

SWEETWATER U 336


TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE

HOTEL PARIS CASE 337

KEY TERMS 338

ENDNOTES 338

CONTENTS xv

1U Coaching, Careers, and Talent Management 342IMPROVING YOUR COACHING SKILLS 344

Coaching's Importance 344

Preparing to Coach 344

Planning 345

Active Coaching 345

Follow-Up 346

CAREER MANAGEMENT BASICS 347

Career Terminology 347

Careers Today 347

Employer Career Efforts Today 348

The Employee's Role 349

CAREER MANAGEMENT METHODS 350The Employer's Role 350

Some Innovative Employer Career Initiatives 351

Commitment-Oriented Career Development Efforts 353

B MANAGING THE N E W WORKFORCE: Different Career Development Needs 354

The Manager's Role 355

Building Your Mentoring Skills 356

Improving Productivity Through HRIS: Career Planning and Development 357

EMPLOYER LIFE-CYCLE CAREER MANAGEMENT 357Making Promotion Decisions 358

Sources of Bias in Promotion Decisions 359

Promotions and the Law 360

Managing Transfers 360 '

Managing Retirements 360

• MANAGING HR IN CHALLENGING TIMES 362

TALENT MANAGEMENT 362What Is Talent Management? 362

Talent Management Systems 363




EXPERIENTIAL EXERCISE: WHERE AM I GOING . . . AND WHY? 365

APPLICATION CASE: THE MENTOR RELATIONSHIP TURNS UPSIDE DOWN 365


TRANSLATING STRATEGY INTO HR POUCIES & PRACTICES CASE: THE HOTEL PARIS CASE 366

KEY TERMS 366

APPENDrX FOR CHAPTER 10 367

PART III VIDEO CASES APPENDIX 381

ENDNOTES 382

^WfF@y^ II (g©»iM!iM©M 384

1 1 Establishing Strategic Pay Plans 384BASIC FACTORS IN DETERMINING PAY RATES 386

Legal Considerations in Compensation 386

HR APPs 4 U: Mobile PDA Handheld Timesheet Solutions 387

m MANAGING THE N E W WORKFORCE: The Independent Contractor 387

Union Influences on Compensation Decisions 391

Competitive Strategy, Corporate Policies, and Compensation l 391

• MANAGING HR I N CHALLENGING TIMES: Salary and Incentives in Tough Times 392

Equity and Its Impact on Pay Rates 393

XVi CONTENTS

12

ESTABLISHING PAY RATES 394Step 1. The Salary Survey 395

Step 2. Job Evaluation 397

Step 3. Group Similar Jobs into Pay Grades 401

Step 4. Price Each Pay Grade—Wage Curves 402

- Step 5. Fine-Tune Pay Rates 402

HR in Practice: Developing a Workable Pay Plan 404PRICING MANAGERIAL AND PROFESSIONAL JOBS 406

Compensating Executives and Managers 407

What Determines Executive Pay? 407

Compensating Professional Employees 408COMPETENCY-BASED PAY 408

Introduction 408

What Is Competency-Based Pay? 408

Why Use Competency-Based Pay? 409

Competency-Based Pay in Practice 410

The Bottom Line on Competency-Based Pay 410SPECIAL TOPICS IN COMPENSATION 411

Broadbanding 411

Comparable Worth 413

Board Oversight of Executive Pay 414

Tomorrow's Pay Programs 414

Improving Productivity Through HRIS: Automating Compensation

Administration 415CHAPTER SECTION SUMMARIES 416DISCUSSION QUESTIONS 416INDIVIDUAL AND GROUP ACTIVITIES 417EXPERIENTIAL EXERCISE: RANKING THE COLLEGE'S ADMINISTRATORS 417APPLICATION CASE: SALARY INEQUITIES AT ACME MANUFACTURING 417CONTINUING CASE: CARTER CLEANING COMPANY 418TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL

PARIS CASE 419KEY TERMS 419APPENDIX FOR CHAPTER 11 420ENDNOTES 428

Pay for Performance and Financial Incentives 432MONEY AND MOTIVATION 434

Linking Performance and Pay 434

Motivation and Incentives 434

Incentive Pay Terminology 436

Employee Incentives and the Law 436INDIVIDUAL EMPLOYEE INCENTIVE AND RECOGNITION PROGRAMS 437

Piecework Plans 437

Merit Pay as an Incentive 438

Incentives for Professional Employees 439

Nonfinancial and Recognition-Based Awards 440

Online and IT-Supported Awards 441INCENTIVES FOR SALESPEOPLE 441

Salary Plan 441

Commission Plan 442

Combination Plan 442

Maximizing Sales Force Results 442

• EVIDENCE-BASED HR: How Effective are Your Incentives? 443

INCENTIVES FOR MANAGERS AND EXECUTIVES 444Sarbanes-Oxley 445

Short-Term Incentives: The Annual Bonus 445

CONTENTS xvii

• MANAGING HR IN CHALLENGING TIMES: Incentives for Top Performers 447

Long-Term Incentives 447

Other Executive Incentives 448

Strategy and the Executive's Total Rewards Package 448TEAM AND ORGANIZATIONWIDE INCENTIVE PLANS 449

How to Design Team Incentives 449

• EVIDENCE-BASED HR: Inequities That Undercut Team Incentives 450

Profit-Sharing Plans 450

Scanlon Plans 451

Other Gainsharing Plans 452

At-Risk Pay Plans 452

Employee Stock Ownership Plans 453DESIGNING EFFECTIVE INCENTIVE PROGRAMS 453

Research Insight: The Impact of Financial and Nonfinancial Incentives 454

The Five Building Blocks of Effective Incentive Plans 454

Incentive Plans in Practice: Nucor 455CHAPTER SECTION SUMMARIES 455DISCUSSION QUESTIONS 456INDIVIDUAL AND GROUP ACTIVITIES 456EXPERIENTIAL EXERCISE: MOTIVATING THE SALES FORCE AT EXPRESS AUTO 457APPLICATION CASE: INSERTING THE TEAM CONCEPT INTO

COMPENSATION—OR NOT 457CONTINUING CASE: CARTER CLEANING COMPANY 458TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL

PARIS CASE 459KEY TERMS 459ENDNOTES 460

±3 Benefits and Services 464THE BENEFITS PICTURE TODAY 466PAY FOR TIME NOT WORKED 467

Unemployment Insurance 467

Vacations and Holidays 468

Sick Leave 469

D EVIDENCE-BASED HR: Tracking Sick Leave 470

Parental Leave and the Family and Medical Leave Act 470

Severance Pay 473

Supplemental Unemployment Benefits 473INSURANCE BENEFITS 474

Workers' Compensation 474

Hospitalization, Health, and Disability Insurance 475

The Legal Side of Health Benefits 476

• MANAGING HR IN CHALLENGING TIMES: Providing Extended Health

Care Benefits 476

Trends in Health Care Cost Control 478

Long-Term Care 479

Life Insurance 479

Benefits for Part-Time and Contingent Workers 479

RETIREMENT BENEFITS 480Social Security 480

Pension Plans 480

Pension Planning and the Law 482

Key Pension Policy Issues 482

Pensions and Early Retirement 483

Improving Productivity Through HRIS: Online Benefits Management

Systems 484

xviii CONTENTS

PERSONAL SERVICES AND FAMILY-FRIENDLY BENEFITS 484

Personal Services 484

Family-Friendly (Work-Life) Benefits 485

Other Job-Related Benefits 487

HR APPs 4 U: iPods at Work 487

B M A N A G I N G T H E N E W WORKFORCE: Domestic Partner Benefits 488

Executive Perquisites 488

FLEXIBLE BENEFITS PROGRAMS 488The Cafeteria Approach 490

Benefits and Employee Leasing 490

Flexible Work Schedules 491




EXPERIENTIAL EXERCISE: REVISING THE BENEFITS PACKAGE 494

APPLICATION CASE: STRIKING FOR BENEFITS 494



PARIS CASE 495

KEY TERMS 496

PART IV VIDEO CASES APPENDIX 497

ENDNOTES 498

i mmmm, mjmmm 502

14 Ethics, Justice, and Fair Treatment in HR Management 502ETHICS AND FAIR TREATMENT AT WORK 504

The Meaning of Ethics 506

Ethics and the Law 506

Ethics, Justice, and Fair Treatment 507

Employee Rights 507

WHAT DETERMINES ETHICAL BEHAVIOR AT WORK? 508

Research Findings: What Do We Know About Ethical Behavior

At Work? 508

The Person 509

The Boss 509

The Company 511

HOW MANAGERS USE PERSONNEL METHODS TO PROMOTE ETHICS ANDFAIR TREATMENT 512

Selection 512

Ethics Training 512

Performance Appraisal 514

Reward and Disciplinary Systems 514

Managing Ethics Compliance 515

Personnel-Related Methods for Ensuring Fair Treatment 515

MANAGING EMPLOYEE DISCIPLINE AND PRIVACY 517H MANAGING THE N E W WORKFORCE: Comparing Males and Females in a Discipline Situation 517

Basics of a Fair and Just Disciplinary Process 517

Employee Privacy 520

Employee Monitoring 521

HR APPs 4 U: iPods and Ethics at Work 524

MANAGING DISMISSALS 524Termination at Will and Wrongful Discharge 524

Grounds for Dismissal 525

CONTENTS xix

Avoiding Wrongful Discharge Suits 527

Personal Supervisory Liability 527

The Termination Interview 528

Layoffs, Downsizing, and the Plant Closing Law 530

• MANAGING HR IN CHALLENGING TIMES: Preparing for Layoffs 532

Adjusting to Downsizings and Mergers 533




EXPERIENTIAL EXERCISE: DISCIPLINE OR NOT? 535

APPLICATION CASE: ENRON, ETHICS, AND ORGANIZATIONAL CULTURE 536



PARIS CASE 537

KEY TERMS 538

ENDNOTES 538

Labor Relations and Collective Bargaining 542THE LABOR MOVEMENT 544

A Brief History of the American Union Movement 544

Why Do Workers Organize? 545

What Do Unions Want? 546

The AFL-CIO 546

UNIONS AND THE LAW 547Period of Strong Encouragement: The Norris-LaGuardia (1932) and National Labor Relations

or Wagner Acts (1935) 548

Period of Modified Encouragement Coupled with Regulation: The Taft-Hartley Act (1947) 548

Unfair Union Labor Practices 550

THE UNION DRIVE AND ELECTION 551Step 1. Initial Contact 551

Step 2. Obtaining Authorization Cards 552

Step 3. Hold a Hearing 553

Step 4. The Campaign 555

Step 5. The Election 555

How to Lose an NLRB Election 556

• EVIDENCE-BASED HR: What Can I Expect the Union to Do to Win the Election? 557

The Supervisor's Role 557

Rules Regarding Literature and Solicitation 558

Decertification Elections: Ousting the Union 559

THE COLLECTIVE BARGAINING PROCESS 559What Is Collective Bargaining? 559

What Is Good Faith? 559

The Negotiating Team 560

Bargaining Items 561

Bargaining Stages 562

Bargaining Hints 562

Impasses, Mediation, and Strikes 562

The Contract Agreement 566

GRIEVANCES 566Sources of Grievances 567

The Grievance Procedure 567

Guidelines for Handling Grievances 568

THE UNION MOVEMENT TODAY AND TOMORROW 569Why Union Membership Is Down 569

An Upswing for Unions? 570

Public Employees and Unions 570

XX CONTENTS

Organizing Professionals and White-Collar Employees 570

Card Check and Other New Union Tactics 570

Improving Productivity Through HRIS: Unions Go High-Tech 572

HR APPs 4 U: Union iPod Organizing 572

High-Performance Work Systems, Employee Participation, and Unions 572




EXPERIENTIAL EXERCISE: THE UNION-ORGANIZING CAMPAIGN AT PIERCE U. 575

APPLICATION CASE: NEGOTIATING WITH THE WRITERS GUILD OF AMERICA 575



PARIS CASE 576

KEY TERMS 577

ENDNOTES 577

1 6 Employee Safety and Health 580WHY SAFETY IS IMPORTANT 582

Management's Role in Safety 582

What Top Management Can Do 582

The Supervisor's Role in Safety 583

OCCUPATIONAL SAFETY LAW 583

OSHA Standards and Record Keeping 583

Inspections and Citations 585

Responsibilities and Rights of Employers and Employees 589

WHAT CAUSES ACCIDENTS? 590

Unsafe Conditions and Other Work-Related Factors 590

What Causes Unsafe Acts? (A Second Basic Cause of Accidents) 591

HOW TO PREVENT ACCIDENTS 591

Reducing Unsafe Conditions 592

H MANAGING THE N E W WORKFORCE: Protecting Vulnerable Workers 596

Reducing Unsafe Acts 597Reducing Unsafe Acts Through Selection and Placement 597

Reducing Unsafe Acts Through Training 597

1! MANAGING THE N E W WORKFORCE: Safety Training for Hispanic Workers 598

Reducing Unsafe Acts Through Motivation: Posters, Incentives, and Positive

Reinforcement 598

Use Behavior-Based Safety 600

Use Employee Participation 600

Conduct Safety and Health Audits and Inspections 601

Research Insight: High-Performance Systems and Safety 601

HR APPs 4 U: PDA Safety Audits 601

Controlling Workers' Compensation Costs 602

• MANAGING HR IN CHALLENGING TIMES: Cutting Safety Costs Without

Cutting Costs 603

WORKPLACE HEALTH HAZARDS: PROBLEMS AND REMEDIES 604

The Basic Industrial Hygiene Program 604

Asbestos Exposure at Work 605

Improving Productivity Through HRIS: Internet-Based Safety Improvement

Solutions 605

Infectious Diseases 606

Alcoholism and Substance Abuse 606

Stress, Burnout, and Depression 608

Solving Computer-Related Ergonomic Problems 610

Workplace Smoking 611

Violence at Work 611

CONTENTS xxi

OCCUPATIONAL SECURITY AND SAFETY 615Basic Prerequisites for a Security Plan 615

Setting Up a Basic Security Program 616

Evacuation Plans 617

Company Security and Employee Privacy 617




EXPERIENTIAL EXERCISE: HOW SAFE IS MY UNIVERSITY? 619

APPLICATION CASE: THE NEW SAFETY AND HEALTH PROGRAM 622



PARIS CASE 624

KEY TERMS 624

ENDNOTES 624

1 / Managing Global Human Resources 630HR AND THE INTERNATIONALIZATION OF BUSINESS 632

The Manager's Global Challenge 632

How Intercountry Differences Affect HRM 632

Cultural Factors 632

Economic Systems 633

Legal, Political, and Labor Relations Factors 633

Ethics and Codes of Conduct 634

HR Abroad: The European Union 634

HR Abroad: China 635

STAFFING THE GLOBAL ORGANIZATION 635International Staffing: Home or Local? 635

Offshoring 637

/Management Values and International Staffing Policy 637

Selecting Expatriate Managers 638

• MANAGING THE N E W WORKFORCE: Sending Women Managers Abroad 640

Making Expatriate Assignments Successful 642

TRAINING AND MAINTAINING EXPATRIATE EMPLOYEES 643

Orienting and Training Employees on International Assignment 643

Compensating Expatriates 644

• MANAGING H R IN CHALLENGING TIMES: Getting a Handle on Global Compensation 647

Appraising Expatriate Managers 647

International Labor Relations 647

Terrorism, Safety, and Global HR 648

HR APPs 4 U: Traveling Safely with Google Maps 649

Repatriation: Problems and Solutions 649

Improving Productivity Through HRIS: Taking the HRIS Global 649

HOW TO IMPLEMENT A GLOBAL HR SYSTEM 650Developing a More Effective Global HR System 650

Making the Global HR System More Acceptable 651

Implementing the Global HR System 651




EXPERIENTIAL EXERCISE: A TAXING PROBLEM FOR EXPATRIATE EMPLOYEES 654

APPLICATION CASE: "BOSS, I THINK WE HAVE A PROBLEM" 654

CONTINUING CASE: CARTER CLEANING COMPANY GOING ABROAD 655


PARIS CASE 655

KEY TERMS 656

ENDNOTES 656

xxii CONTENTS

Managing Human Resources in Entrepreneurial Firms 660THE SMALL BUSINESS CHALLENGE 662

Why Entrepreneurship Is Important 662

How Small Business Human Resource Management Is Different 662

D EVIDENCE-BASED HR: Is Entrepreneurship for You? 663

The Entrepreneur's Risky Human Resource Management Situation 664

Why HRM Is Important to Small Businesses 664

USING INTERNET AND GOVERNMENT TOOLS TO SUPPORT THE HREFFORT 665

Complying with Employment Laws 665

Employment Planning and Recruiting 667

Employment Selection 667

Employment Training 668

Employment Appraisal and Compensation 669

Employment Safety and Health 669

LEVERAGING SMALL SIZE: FAMILIARITY, FLEXIBILITY, INFORMALITY,

AND HRM 671

Flexibility in Benefits and Rewards 671

Simple, Informal Employee Selection Procedures 673

Flexibility in Training 673

Fairness and the Family Business 674

Building Communications 675

USING PROFESSIONAL EMPLOYER ORGANIZATIONS 675How Do PEOs Work? 675

Why Use a PEO? 676

Caveats 676

Guidelines for Finding and Working with PEOs 677

MANAGING HR SYSTEMS, PROCEDURES, AND PAPERWORK 677Introduction 677

Basic Components of Manual HR Systems 678

Automating Individual HR Tasks 679

Human Resource Management Information Systems (HRIS) 680



INDIVIDUAL AND GROUP PROJECTS 682

EXPERIENTIAL EXERCISE: BUILDING AN HRIS 683

APPLICATION CASE: THE LIQUIDITY CRISIS AND THE NEW HEDGE FUND 683



PARIS CASE 684

APPENDIX FOR CHAPTER 18 685

PART V VIDEO CASES APPENDIX 694

ENDNOTES 696

Appendix A Applying HR Content, Personal Competencies, and BusinessKnowledge 699

Appendix B Comprehensive Cases 707

Glossary 723Name and Organization Index 733Subject Index 747

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HUMAN RESOURCE MANAGEMENT ™ELFTH