Preface xix
Acknowledgments xxv
About the Authors xxvii
PART I Introduction 1
Chapter 1 Meeting Present and Emerging Strategic Human Resource Challenges 1
Human Resource Management: The Challenges 2
Environmental Challenges 3
Organizational Challenges 10
Competitive Position: Cost, Quality, or Distinctive Capabilities 10
Individual Challenges 17
Planning and Implementing Strategic HR Policies 20
The Benefits of Strategic HR Planning 21
The Challenges of Strategic HR Planning 22
Strategic HR Choices 24
Selecting HR Strategies to Increase Firm Performance 27
Fit with Organizational Strategies 28
Fit with the Environment 30
Fit with Organizational Characteristics 31
Fit with Organizational Capabilities 32
Choosing Consistent and Appropriate HR Tactics to Implement HR Strategies 33
HR Best Practices 33
The HR Department and Managers: An Important Partnership 34
Specialization in Human Resource Management 35
Summary and Conclusions 35
Key Terms 36
Discussion Questions 37
You Manage It! 1: Emerging TrendsElectronic Monitoring to Make Sure That No One Steps Out of Line 38
You Manage It! 2: Ethics/Social ResponsibilityEmbedding Sustainability into HR Strategy 40
You Manage It! 3: DiscussionManagers and HR Professional at Sands Corporation: Friends or Foes? 41
You Manage It! 4: DiscussionThe Enduring Wage Gap by Gender 42
PART II The Contexts of Human Resource Management 44
Chapter 2 Managing Work Flows and Conducting Job Analysis 44
Work: The Organizational Perspective 45
Strategy and Organizational Structure 45
Designing the Organization 46
Work-Flow Analysis 49
Business Process Reengineering 49
Work: The Group Perspective 50
Self-Managed Teams 50
Other Types of Teams 51
Work: The Individual Perspective 53
Motivating Employees 53
Designing Jobs and Conducting Job Analysis 55
Job Design 55
Job Analysis 57
Job Descriptions 63
The Flexible Workforce 67
Contingent Workers 67
Flexible Work Schedules 72
The Mobile Workplace 73
Human Resource Information Systems 74
HRIS Applications 74
HRIS Security and Privacy 75
Summary and Conclusions 75
Key Terms 76
Discussion Questions 77
You Manage It! 1: Ethics/Social ResponsibilityAre Companies Exploiting College Students Who Have Unpaid Internships? 78
You Manage It! 2: Emerging TrendsWork–Life Balance Is the New Perk Employees Are Seeking 79
You Manage It! 3: Technology/Social MediaYahoo CEO Issues a Ban on Telecommuting for Employees 80
You Manage It! 4: Customer-Driven HRWriting a Job Description 81
Chapter 3 Understanding Equal Opportunity and the Legal Environment 82
Why Understanding the Legal Environment Is Important 84
Doing the Right Thing 84
Realizing the Limitations of the HR and Legal Departments 84
Limiting Potential Liability 84
Challenges to Legal Compliance 85
A Dynamic Legal Landscape 85
The Complexity of Laws 85
Conflicting Strategies for Fair Employment 85
Unintended Consequences 86
Equal Employment Opportunity Laws 86
The Equal Pay Act of 1963 87
Title VII of the Civil Rights Act of 1964 87
Defense of Discrimination Charges 89
Title VII and Pregnancy 90
Sexual Harassment 90
The Civil Rights Act of 1991 94
Executive Order 11246 95
The Age Discrimination in Employment Act of 1967 95
The Americans with Disabilities Act of 1990 96
EEO Enforcement and Compliance 99
Regulatory Agencies 99
Office of Federal Contract Compliance Programs (OFCCP) 100
Affirmative Action Plans 101
Other Important Laws 103
Avoiding Pitfalls in EEO 105
Provide Training 105
Establish a Complaint Resolution Process 105
Document Decisions 105
Be Honest 105
Ask Only for Information You Need to Know 106
Summary and Conclusions 109
Key Terms 110
Discussion Questions 110
You Manage It! 1: Emerging TrendsWalgreens Leads the Way in Utilizing Workers with Disabilities 111
You Manage It! 2: Customer-Driven HRCan an Employer Refuse to Hire or Retain Employees Who Wear Tattoos? 112
You Manage It! 3: DiscussionAre Women Breaking Through the Glass Ceiling? 113
You Manage It! 4: Ethics/Social ResponsibilityAre Employee Noncompete Agreements Legally Enforceable? It Depends 114
Appendix to Chapter 3 116
Human Resource Legislation Discussed in This Text 116
Chapter 4 Managing Diversity 118
What Is Diversity? 119
Why Manage Employee Diversity? 120
Affirmative Action Versus Managing Employee Diversity 120
Demographic Trends 120
Diversity as Part of Corporate Strategy 124
Challenges in Managing Employee Diversity 124
Diversity Versus Inclusiveness 125
Individual Versus Group Fairness 125
Resistance to Change 125
Group Cohesiveness and Interpersonal Conflict 125
Segmented Communication Networks 125
Resentment 125
Retention 126
Competition for Opportunities 126
Diversity in Organizations 126
African Americans 126
Asian Americans 127
People with Disabilities 128
The Foreign Born 129
Homosexuals 130
Latinos (Hispanic Americans) 131
Older Workers 132
Religious Minorities 133
Women 135
Improving the Management of Diversity 137
Creating an Inclusive Organizational Culture 137
Top-Management Commitment to Valuing Diversity 138
Appraising and Rewarding Managers for Good Diversity Practices 138
Diversity Training Programs 138
Support Groups 139
Accommodation of Family Needs 139
Senior Mentoring Programs 141
Apprenticeships 141
Communication Standards 141
Diversity Audits 141
Management Responsibility and Accountability 141
Some Warnings 142
Avoiding the Appearance of “White Male Bashing” 142
Avoiding the Promotion of Stereotypes 142
Summary and Conclusions 142
Key Terms 143
Discussion Questions 143
You Manage It! 1: Technology/Social MediaHiring Who You Know as a Threat to Diversity 145
You Manage It! 2: Emerging Trends Why Women Lag Behind in MBA Programs 145
You Manage It! 3: Ethics/Social Responsibility Interpreting the Americans with Disabilities Act: The Hot Frontier of Diversity Management 146
You Manage It! 4: DiscussionConflict at Northern Sigma 147
PART III Staffing 149
Chapter 5 Recruiting and Selecting Employees 149
Human Resource Supply and Demand 150
A Simplified Example of Forecasting Labor Demand and Supply 152
Forecasting Techniques 154
The Hiring Process 155
Challenges in the Hiring Process 155
Determining Characteristics Important to Performance 156
Measuring Characteristics That Determine Performance 156
The Motivation Factor 156
Who Should Make the Decision? 157
Meeting the Challenge of Effective Staffing 157
Recruitment 157
Sources of Recruiting 158
Selection 163
Reliability and Validity 163
Selection Tools as Predictors of Job Performance 164
Combining Predictors 171
Selection and Person/Organization Fit 171
Reactions to Selection Devices 172
Legal Issues in Staffing 173
Discrimination Laws 173
Affirmative Action 173
Negligent Hiring 174
Summary and Conclusions 174
Key Terms 175
Discussion Questions 175
You Manage It! 1: Customer-Driven HRWomen: Keeping the Supply Lines Open 176
You Manage It! 2: Ethics/Social ResponsibilityWhat a Fraud! 177
You Manage It! 3: Technology/Social MediaSocial Media in the Hiring Process 178
You Manage It! 4: Ethics/Social ResponsibilityFitting in Social Responsibility 179
You Manage It! 5: Emerging TrendsOne Job, Many Roles 180
Chapter 6 Managing Employee Separations, Downsizing, and Outplacement 181
What Are Employee Separations? 182
The Costs of Employee Separations 182
The Benefits of Employee Separations 186
Types of Employee Separations 186
Voluntary Separations 186
Involuntary Separations 187
Managing Early Retirements 190
The Features of Early Retirement Policies 190
Avoiding Problems with Early Retirements 190
Managing Layoffs 191
Alternatives to Layoffs 191
Implementing a Layoff 192
Outplacement 195
The Goals of Outplacement 196
Outplacement Services 196
Summary and Conclusions 196
Key Terms 197
Discussion Questions 197
You Manage It! 1: GlobalTurnover: A Global Management Issue 198
You Manage It! 2: Ethics/Social ResponsibilityEmployment-at-Will: Fair Policy? 199
You Manage It! 3: Customer-Driven HRFrom Turnover to Retention: Managing to Keep Your Workers 200
You Manage It! 4: Technology/Social MediaYou’re Fired! 201
PART IV Employee Development 203
Chapter 7 Appraising and Managing Performance 203
What Is Performance Appraisal? 205
The Uses of Performance Appraisal 206
Identifying Performance Dimensions 206
Measuring Performance 207
Measurement Tools 208
Measurement Tools: Summary and Conclusions 214
Challenges to Effective Performance Measurement 215
Rater Errors and Bias 216
The Influence of Liking 217
Organizational Politics 217
Individual or Group Focus 219
Legal Issues 219
Managing Performance 220
The Appraisal Interview 221
Performance Improvement 223
Identifying the Causes of Performance Problems 223
Developing an Action Plan and Empowering Workers to Reach a Solution 225
Directing Communication at Performance 225
Summary and Conclusions 226
Key Terms 226
Discussion Questions 227
You Manage It! 1: Ethics/Social ResponsibilityRank and Yank: Legitimate Performance Improvement Tool or Ruthless and Unethical Management? 228
You Manage It! 2: GlobalCompetencies in a Global Environment 229
You Manage It! 3: Technology/Social MediaGoing Digital with Appraisal 230
You Manage It! 4: Ethics/Social ResponsibilityLet’s Do It Right 231
You Manage It! 5: Customer-Driven HRBuild on Their Strengths 232
Appendix to Chapter 7 233
The Critical-Incident Technique: A Method for Developing a Behaviorally Based Appraisal Instrument 233
Chapter 8 Training the Workforce 235
Key Training Issues 236
Training Versus Development 237
Challenges in Training 239
Is Training the Solution? 239
Are the Goals Clear and Realistic? 239
Is Training a Good Investment? 239
Will Training Work? 240
Managing the Training Process 241
The Needs Assessment Phase 241
Clarifying the Objectives of Training 243
The Training and Conduct Phase 244
The Evaluation Phase 253
Legal Issues and Training 254
A Special Case: Orientation and Socialization 254
Summary and Conclusions 255
Key Terms 256
Discussion Questions 256
You Manage It! 1: Technology/Social MediaSocial Media and Workplace Training 257
You Manage It! 2: Customer-Driven HRCosts and Benefits: Assessing the Business Case for Training 258
You Manage It! 3: Ethics/Social ResponsibilityThe Ethics Challenge 259
You Manage It! 4: GlobalTraining for Expatriates 260
Chapter 9 Developing Careers 261
What Is Career Development? 262
Challenges in Career Development 263
Who Will Be Responsible? 263
How Much Emphasis Is Appropriate? 265
How Will the Needs of a Diverse Workforce Be Met? 265
Meeting the Challenges of Effective Development 266
The Assessment Phase 266
The Direction Phase 270
The Development Phase 276
Self-Development 277
Development Suggestions 279
Advancement Suggestions 279
Summary and Conclusions 280
Key Terms 281
Discussion Questions 281
You Manage It! 1: Customer-Driven HRBe Strategic About Your Career 282
You Manage It! 2: Technology/Social MediaCareer Building with Social Media 283
You Manage It! 3: Ethics/Social ResponsibilityAnchors II 283
You Manage It! 4: GlobalMentoring as Global Development 285
PART V Compensation 286
Chapter 10 Managing Compensation 286
What Is Compensation? 287
Designing a Compensation System 288
Internal Versus External Equity 289
Fixed Versus Variable Pay 291
Performance Versus Membership 293
Job Versus Individual Pay 294
Elitism Versus Egalitarianism 296
Below-Market Versus Above-Market Compensation 296
Monetary Versus Nonmonetary Rewards 297
Open Versus Secret Pay 299
Centralization Versus Decentralization of Pay Decisions 299
Summary 300
Compensation Tools 300
Job-Based Compensation Plans 300
Skill-Based Compensation Plans 311
Special Compensation Issues in Small Firms 311
The Legal Environment and Pay System Governance 312
The Fair Labor Standards Act 312
The Equal Pay Act 314
The Internal Revenue Code 315
Summary and Conclusions 315
Key Terms 316
Discussion Questions 316
You Manage It! 1: GlobalMoney Doesn’t Buy Happiness. Well, on Second Thought . . . 317
You Manage It! 2: Ethics/Social ResponsibilityHelping Employees Take Care of Home Tasks 319
You Manage It! 3: DiscussionAn Academic Question 319
You Manage It! 4: Emerging TrendsMore Suits for Overtime Pay 320
You Manage It! 5: Customer-Driven HRA Challenge at Antle Corporation 322
Chapter 11 Rewarding Performance 324
Pay for Performance: The Challenges 325
The “Do Only What You Get Paid For” Syndrome 326
Unethical Behaviors 326
Negative Effects on the Spirit of Cooperation 326
Lack of Control 327
Difficulties in Measuring Performance 329
Psychological Contracts 329
The Credibility Gap 329
Job Dissatisfaction and Stress 329
Potential Reduction of Intrinsic Drives 329
Meeting the Challenges of Pay-for-Performance Systems 330
Develop a Complementary Relationship Between Extrinsic and Intrinsic Rewards 330
Link Pay and Performance Appropriately 331
Use Pay for Performance as Part of a Broader HRM System 331
Build Employee Trust 331
Promote the Belief That Performance Makes a Difference 331
Use Multiple Layers of Rewards 332
Increase Employee Involvement 332
Stress the Importance of Acting Ethically 333
Use Motivation and Nonfinancial Incentives 333
Types of Pay-for-Performance Plans 334
Individual-Based Plans 334
Team-Based Plans 337
Plantwide Plans 339
Corporatewide Plans 341
Designing Pay-for-Performance Plans for Executives and Salespeople 344
Executives 344
Rewarding Excellence in Customer Service 350
Pay-For-Performance Programs in Small Firms 351
Summary and Conclusions 353
Key Terms 354
Discussion Questions 354
You Manage It! 1: GlobalIs There a Downside to Meritocracy? 355
You Manage It! 2: DiscussionLoafers at Lakeside Utility Company 356
You Manage It! 3: DiscussionHow Should Incentive Money Be Distributed? 357
You Manage It! 4: Ethics/Social ResponsibilityThe Pitfalls of Merit Pay and Pay for Performance 358
Chapter 12 Designing and Administering Benefits 360
An Overview of Benefits 361
Basic Terminology 363
The Cost of Benefits in the United States 363
Types of Benefits 364
The Benefits Strategy 366
The Benefits Mix 366
Benefits Amount 367
Flexibility of Benefits 367
Legally Required Benefits 367
Social Security 367
Workers’ Compensation 369
Unemployment Insurance 370
Unpaid Leave 372
Voluntary Benefits 373
Health Insurance 373
Retirement Benefits 380
Insurance Plans 384
Paid Time Off 385
Employee Services 387
Administering Benefits 389
Flexible Benefits 389
Benefits Communication 390
Summary and Conclusions 391
Key Terms 392
Discussion Questions 392
You Manage It! 1: GlobalAustralia’s ‘Super’ Retirement Program is a Source of National Pride 393
You Manage It! 2: Ethics/Social ResponsibilityShould Employers Penalize Employees Who Do Not Adopt Healthy Habits? 394
You Manage It! 3: Ethics/Social ResponsibilityGoogle’s On-Site Child-Care Policy Stirs up a Controversy 396
You Manage It! 4: Customer-Driven HRIBM’s 401(k) Plan Sets the Standard 397
PART VI Governance 399
Chapter 13 Developing Employee Relations 399
The Roles of the Manager and the Employee Relations Specialist 400
Developing Employee Communications 401
Types of Information 401
How Communication Works 401
Encouraging Effective Communications 403
Information Dissemination Programs 403
The Employee Handbook 404
Electronic Communications 406
Employee Feedback Programs 413
Employee Assistance Programs 415
Employee Recognition Programs 418
Suggestion Systems 418
Recognition Awards 419
Summary and Conclusions 421
Key Terms 421
Discussion Questions 422
You Manage It! 1: Ethics/Social ResponsibilityEmployees Don’t Always Speak Up When There Is Bad News to Communicate 423
You Manage It! 2: Customer-Driven HRShould Having Fun Be a Job Requirement? 424
You Manage It! 3: Ethics/Social ResponsibilityGoing Green Keeps New Belgium Brewing Company in the Black 425
You Manage It! 4: GlobalIn Praise of Nepotism? 426
Chapter 14 Respecting Employee Rights and Managing Discipline 428
Employee Rights 429
Statutory Rights 430
Contractual Rights 430
Other Rights 431
Management Rights 434
Employment at Will 434
Employee Rights Challenges: A Balancing Act 435
Random Drug Testing 435
Electronic Monitoring 437
Whistle-Blowing 440
Restrictions on Moonlighting 442
Restrictions on Office Romance 442
Disciplining Employees 444
Progressive Discipline 445
Positive Discipline 446
Administering and Managing Discipline 447
The Just Cause Standard of Discipline 448
The Right to Appeal Discipline 449
Managing Difficult Employees 450
Poor Attendance 450
Poor Performance 451
Insubordination 452
Workplace Bullying 452
Alcohol-Related Misconduct 454
Illegal Drug Use and Abuse 454
Preventing the Need for Discipline with Human Resource Management 455
Recruitment and Selection 455
Training and Development 455
Human Resource Planning 455
Performance Appraisal 456
Compensation 456
Summary and Conclusions 456
Key Terms 457
Discussion Questions 458
You Manage It! 1: Customer-Driven HRIncivility is a Growing Problem at the Workplace 458
You Manage It! 2: Ethics/Social ResponsibilityBackground Checks Can Misfire, Harming Employees’ Career Prospects 459
You Manage It! 3: Ethics/Social ResponsibilityEmployees Should Be Aware of the Risks Before They Attempt to Blow the Whistle 460
You Manage It! 4: GlobalIllegal Immigrants in the Workforce: Opportunity or Challenge? 462
Chapter 15 Working with Organized Labor 464
Why Do Employees Join Unions? 465
The Origins of U.S. Labor Unions 466
The Role of the Manager in Labor Relations 466
Labor Relations and the Legal Environment 467
The Wagner Act 467
The Taft-Hartley Act 468
The Landrum-Griffin Act 469
Labor Relations in the United States 469
Business Unionism 470
Unions Structured by Type of Job 470
Focus on Collective Bargaining 470
Labor Contracts 470
The Adversarial Nature of Labor–Management Relations and Shrinking Union Membership 471
The Growth of Unions in the Public Sector 472
Labor Relations in Other Countries 472
How Unions Differ Internationally 473
Labor Relations in Germany 474
Labor Relations in Japan 475
Labor Relations Strategy 476
Union Acceptance Strategy 476
Union Avoidance Strategy 478
Managing the Labor Relations Process 479
Union Organizing 479
Collective Bargaining 483
Contract Administration 489
The Impact of Unions on Human Resource Management 491
Staffing 491
Employee Development 491
Compensation 492
Employee Relations 493
Summary and Conclusions 493
Key Terms 494
Discussion Questions 495
You Manage It! 1: Emerging TrendsThe Freelancers Union: A New Approach to Unionism? 495
You Manage It! 2: Ethics/Social ResponsibilityPublic Sector Unions in Wisconsin Have been Dealt a Major Setback with a New Law that Weakens Union Bargaining Rights 496
You Manage It! 3: Customer-Driven HRWhen Is a Team a Union? 497
You Manage It! 4: Ethics/Social ResponsibilityUnion Members Protest a 50 Percent Wage Cut at a General Motors Plant 498
Chapter 16 Managing Workplace Safety and Health 500
Workplace Safety and the Law 502
Workers’ Compensation 502
The Occupational Safety and Health Act (OSHA) 504
OSHA’s Provisions 504
The Occupational Safety and Health Administration 506
Managing Contemporary Safety, Health, and Behavioral Issues 510
AIDS 510
Violence in the Workplace 513
Cumulative Trauma Disorders 515
Hearing Impairment 515
Fetal Protection, Hazardous Chemicals, and Genetic Testing 516
Safety and Health Programs 517
Safety Programs 517
Employee Assistance Programs (EAPs) 520
Wellness Programs 521
Summary and Conclusions 522
Key Terms 523
Discussion Questions 523
You Manage It! 1: Ethics/Social ResponsibilityStanding Up to Workplace Bullies 524
You Manage It! 2: Emerging TrendsOn the Tip of a Beryllium Iceberg? 525
You Manage It! 3: GlobalMental Health: A Global Concern 526
You Manage It! 4: Customer-Driven HRKeeping the Workplace Safe 527
Chapter 17 International HRM Challenge 529
The Stages of International Involvement 530
The Rise of Outsourcing 533
Falling Barriers 534
Small- and Medium-Size Enterprises Are Also Going Global 534
The Global Manager 535
Determining the Mix of Host-Country and Expatriate Employees 536
The Challenges of Expatriate Assignments 538
Why International Assignments End in Failure 538
Difficulties on Return 540
Effectively Managing Expatriate Assignments with HRM Policies and Practices 542
Selection 542
Training 544
Career Development 546
Compensation 548
Role of HR Department 549
Women and International Assignments 549
Developing HRM Policies in a Global Context 550
National Culture, Organizational Characteristics, and HRM Practices 550
EEO in the International Context 551
Important Caveats 553
Human Resources Management and Exporting Firms 556
Ethics and Social Responsibility 557
Dealing with Political Risks 558
Summary and Conclusions 559
Key Terms 560
Discussion Questions 560
You Manage It! 1: GlobalAmerican Universities Moving Overseas 561
You Manage It! 2: Emerging TrendsCoping with Terrorism 562
You Manage It! 3: GlobalTwo Sides to Every Story 563
You Manage It! 4: Ethics/Social ResponsibilityWhen in Rome Do as the Romans Do? The Case of Foreign Bribes 563
You Manage It! 5: GlobalAre Culture-Specific HR Policies a Good Idea? 564
Appendixs 566
Concise Dictionary of HR Terminology 569
Company, Name, and Product Index 577
Subject Index 586