Contents
Preface xxix
acknowledgments xxxv
Part one introduCtion 1
1 introduction to Human resource Management 1
wHat is HuMan resourCe ManageMent? 3
Why is Human resource Management important to All Managers?
...
Contents
Preface xxix
acknowledgments xxxv
Part one introduCtion 1
1 introduction to Human resource Management 1
wHat is HuMan resourCe ManageMent? 3
Why is Human resource Management important to All Managers? 3
Line and staff Aspects of Human resource Management 5
Line Managers’ Human resource Management responsibilities 5
the Human resource Department 6
tHe trends sHaPing HuMan resourCe ManageMent 7
Workforce Demographics and Diversity trends 7
trends in How People Work 8
■ iMProving PerForManCe: Hr as a ProFit Center: Boosting Customer service 9
Globalization trends 10
economic trends 10
technology trends 12
today’s new HuMan resourCe ManageMent 13
A Brief History of Personnel/Human resource Management 13
Distributed Hr and the new Human resource Management 13
■ trends sHaPing Hr: Digital and social Media 14
A Quick summary 14
Hr and strategy 15
■ iMProving PerForManCe: tHe strategiC Context: Building L.L.Bean 15
Hr and Performance 16
Hr and Performance and sustainability 17
Hr and employee engagement 17
tHe new HuMan resourCe Manager 18
Hr and the Manager’s skills 19
Hr and ethics 19
Hr Manager Certification 19
Hr and the Manager’s Human resource Philosophy 20
tHe Plan oF tHis BooK 21
the Basic themes and features 21
Practical tools for every Manager 21
CHaPter Contents overview 22
Part 1: introduction 22
Part 2: recruitment, Placement, and talent Management 22
Part 3: training and Development 22
Part 4: Compensation 22
Part 5: enrichment topics in Human resource Management 22
tHe toPiCs are interrelated 23
CHaPter seCtion suMMaries 23
disCussion Questions 24
individual and grouP aCtivities 24
exPeriential exerCise 25
aPPliCation Case: JaCK nelson’s ProBleM 25
Continuing Case: Carter Cleaning CoMPany 25
Key terMs 27
endnotes 27
xii Contents
2 equal opportunity and the law 30
eQual oPPortunity laws enaCted FroM 1964 to 1991 32
title Vii of the 1964 Civil rights Act 32
executive orders 32
equal Pay Act of 1963 33
Age Discrimination in employment Act of 1967 33
Vocational rehabilitation Act of 1973 33
Pregnancy Discrimination Act of 1978 33
federal Agency Guidelines 33
early Court Decisions regarding equal employment opportunity 34
tHe laws enaCted FroM 1991 to tHe Present 35
the Civil rights Act of 1991 35
the Americans with Disabilities Act 35
Uniformed services employment and reemployment rights Act 37
Genetic information nondiscrimination Act of 2008 (GinA) 37
state and Local equal employment opportunity Laws 37
in summary: religious and other types of Discrimination 37
recent trends in Discrimination Law 38
sexual Harassment 38
■ trends sHaPing Hr: Digital and social Media 42
deFenses against disCriMination allegations 42
the Central role of Adverse impact 42
Bona fide occupational Qualification 45
Business necessity 46
■ Know your eMPloyMent law: examples of What You Can and Cannot Do 47
tHe eeoC enForCeMent ProCess 49
Voluntary Mediation 51
Mandatory Arbitration of Discrimination Claims 52
■ iMProving PerForManCe: Hr tools For line Managers and sMall
Businesses 52
diversity ManageMent 53
Potential threats to Diversity 53
■ iMProving PerForManCe: Hr as a ProFit Center 54
Managing Diversity 54
■ iMProving PerForManCe: Hr as a ProFit Center 55
implementing the Affirmative Action Program 55
reverse Discrimination 57
CHaPter seCtion suMMaries 57
disCussion Questions 58
individual and grouP aCtivities 59
exPeriential exerCise 59
aPPliCation Case: an aCCusation oF sexual HarassMent in Pro sPorts 60
Continuing Case: Carter Cleaning CoMPany 60
Key terMs 61
endnotes 61
3 Human resource Management strategy and analysis 66
tHe strategiC ManageMent ProCess 68
the Management Planning Process 68
What is strategic Planning? 69
the strategic Management Process 69
tyPes oF strategies 71
Corporate strategy 71
Competitive strategy 72
functional strategy 73
Managers’ roles in strategic Planning 73
Contents xiii
strategiC HuMan resourCe ManageMent 73
What is strategic Human resource Management? 74
■ iMProving PerForManCe: tHe strategiC Context: the shanghai ritz-Carlton
Portman Hotel 74
■ iMProving PerForManCe: Hr as a ProFit Center: the Zappos “WoW” Way 75
sustainability and strategic Human resource Management 75
strategic Human resource Management tools 76
Hr MetriCs, BenCHMarKing, and data analytiCs 78
Improving Performance Through HRIS: tracking Applicant Metrics for improved
talent Management 78
Benchmarking 78
strategy and strategy-Based Metrics 79
What Are Hr Audits? 80
■ trends sHaPing Hr: Digital and social Media 81
■ trends sHaPing Hr: science in talent Management 82
HigH-PerForManCe worK systeMs 83
eMPloyee engageMent guide For Managers: eMPloyee engageMent
and PerForManCe 84
the employee engagement Problem 85
What Can Managers Do to improve employee engagement? 85
How to Measure employee engagement 85
How Kia Motors (UK) improved Performance with an Hr strategy Aimed at Boosting
employee engagement 85
CHaPter seCtion suMMaries 87
disCussion Questions 88
individual and grouP aCtivities 88
exPeriential exerCise 89
aPPliCation Case: sieMens Builds a strategy-oriented Hr systeM 89
Continuing Case: Carter Cleaning CoMPany 89
translating strategy into Hr PoliCies and PraCtiCes Case: iMProving
PerForManCe at tHe Hotel Paris 90
Key terMs 92
endnotes 92
Part two reCruitMent, PlaCeMent, and talent ManageMent 94
4 Job analysis and the talent Management Process 94
tHe talent ManageMent ProCess 96
Improving Performance Through HRIS: talent Management software 96
tHe BasiCs oF JoB analysis 97
What is Job Analysis? 97
Uses of Job Analysis information 98
Conducting a Job Analysis 98
■ iMProving PeForManCe: Hr as a ProFit Center: Boosting Productivity
through Work redesign 99
MetHods For ColleCting JoB analysis inForMation 100
the interview 101
Questionnaires 102
observation 105
Participant Diary/Logs 105
Quantitative Job Analysis techniques 105
electronic Job Analysis Methods 106
writing JoB desCriPtions 108
Diversity Counts 108
Job identification 109
Job summary 109
relationships 109
responsibilities and Duties 109
xiv Contents
■ trends sHaPing Hr: Digital and social Media 112
■ Know your eMPloyMent law: Writing Job Descriptions that Comply
with the ADA 112
standards of Performance and Working Conditions 113
■ iMProving PerForManCe: Hr tools For line Managers and sMall
Businesses: Using o*net 113
o*net 114
writing JoB sPeCiFiCations 116
specifications for trained versus Untrained Personnel 116
specifications Based on Judgment 117
Job specifications Based on statistical Analysis 117
the Job-requirements Matrix 117
eMPloyee engageMent guide For Managers 118
using CoMPetenCies Models 118
■ iMProving PerForManCe: tHe strategiC Context: Daimler Alabama
example 119
How to Write Competencies statements 119
CHaPter seCtion suMMaries 120
disCussion Questions 121
individual and grouP aCtivities 121
exPeriential exerCise 122
aPPliCation Case: tHe Flood 122
Continuing Case: Carter Cleaning CoMPany 123
translating strategy into Hr PoliCies and PraCtiCes Case: iMProving
PerForManCe at tHe Hotel Paris 123
Key terMs 124
endnotes 124
5 Personnel Planning and recruiting 126
introduCtion 128
worKForCe Planning and ForeCasting 128
strategy and Workforce Planning 129
■ iMProving PerForManCe: tHe strategiC Context: four seasons 129
forecasting Personnel needs (Labor Demand) 130
forecasting the supply of inside Candidates 132
forecasting the supply of outside Candidates 133
Predictive Workforce Monitoring 134
■ iMProving PerForManCe: Hr as a ProFit Center: Predicting Labor needs 134
Matching Projected Labor supply and Labor Demand 134
succession Planning 134
wHy eFFeCtive reCruiting is iMPortant 135
the recruiting Yield Pyramid 136
■ Know your eMPloyMent law: recruiting employees 136
internal sourCes oF Candidates 137
finding internal Candidates 137
eMPloyee engageMent guide For Managers 138
Promotion from Within 138
outside sourCes oF Candidates 138
informal recruiting and the Hidden Job Market 138
recruiting via the internet 139
Improving Performance Through HRIS: Using Applicant tracking 139
■ trends sHaPing Hr: science in talent Management 140
■ trends sHaPing Hr: Digital and social Media 141
Advertising 142
employment Agencies 142
recruitment Process outsourcers 144
Contents xv
temporary Workers and Alternative staffing 144
■ Know your eMPloyMent law: Contract employees 145
■ trends sHaPing Hr: the new extended Workforce 146
offshoring and outsourcing Jobs 146
executive recruiters 147
■ iMProving PerForManCe: Hr tools For line Managers and sMall
Businesses: recruiting 101 148
referrals and Walk-ins 149
on-Demand recruiting services 149
College recruiting 149
telecommuters 150
Military Personnel 150
■ iMProving PerForManCe: Hr as a ProFit Center:
Cutting recruitment Costs 151
reCruiting a More diverse worKForCe 151
recruiting Women 151
recruiting single Parents 152
older Workers 152
Diversity Counts 153
recruiting Minorities 153
the Disabled 153
develoPing and using aPPliCation ForMs 154
Purpose of Application forms 154
Application Guidelines 154
■ Know your eMPloyMent law: Application forms and eeo Law 155
Using Application forms to Predict Job Performance 156
Mandatory Arbitration 156
CHaPter seCtion suMMaries 157
disCussion Questions 157
individual and grouP aCtivities 158
exPeriential exerCise 158
aPPliCation Case: Finding PeoPle wHo are Passionate aBout wHat tHey do 159
Continuing Case: Carter Cleaning CoMPany 159
translating strategy into Hr PoliCies and PraCtiCes Case: iMProving
PerForManCe at tHe Hotel Paris 160
Key terMs 161
endnotes 161
6 employee testing and selection 165
wHy eMPloyee seleCtion is iMPortant 167
tHe BasiCs oF testing and seleCting eMPloyees 167
reliability 167
Validity 168
■ trends sHaPing Hr: Digital and social Media 169
evidence-Based Hr: How to Validate a test 170
Bias 172
Utility Analysis 172
■ iMProving PerForManCe: Hr as a ProFit Center: Using tests to Cut Costs
and Boost Profits 172
Validity Generalization 173
■ Know your eMPloyMent law: testing and equal employment opportunity 173
test takers’ individual rights and test security 173
Diversity Counts: Gender issues in testing 174
How Do employers Use tests at Work? 174
tyPes oF tests 175
tests of Cognitive Abilities 175
xvi Contents
tests of Motor and Physical Abilities 175
Measuring Personality and interests 176
■ iMProving PerForManCe: Hr PraCtiCes around tHe gloBe: testing for
Assignments Abroad 176
Achievement tests 177
Improving Performance Through HRIS: Computerization and online testing 177
■ iMProving PerForManCe: tHe strategiC Context: Crowdsourcing at
Google 178
worK saMPles and siMulations 178
Using Work sampling for employee selection 178
situational Judgment tests 179
Management Assessment Centers 179
situational testing and Video-Based situational testing 180
the Miniature Job training and evaluation Approach 181
realistic Job Previews 181
Choosing a selection Method 181
■ iMProving PerForManCe: Hr tools For line Managers
and sMall Businesses: employee testing and selection 182
BaCKground investigations and otHer seleCtion MetHods 183
Why Perform Background investigations and reference Checks? 183
■ Know your eMPloyMent law: Giving references 184
How to Check a Candidate’s Background 184
■ trends sHaPing Hr: Digital and social Media 186
Using Preemployment information services 186
Making the Background Check More Valuable 187
the Polygraph and Honesty testing 188
testing for Honesty: Practical Guidelines 189
Graphology 189
“Human Lie Detectors” 190
Physical exams 190
substance Abuse screening 190
Drug testing Legal issues 191
Complying with immigration Law 191
CHaPter seCtion suMMaries 192
disCussion Questions 193
individual and grouP aCtivities 193
exPeriential exerCise 193
aPPliCation Case: tHe insider 194
Continuing Case: Carter Cleaning CoMPany 194
translating strategy into Hr PoliCies and PraCtiCes Case: iMProving
PerForManCe at tHe Hotel Paris 195
Key terMs 196
endnotes 196
7 interviewing Candidates 201
BasiC tyPes oF interviews 203
structured Versus Unstructured interviews 203
interview Content (What types of Questions to Ask) 204
How should We Conduct the interview? 206
■ trends sHaPing Hr: Digital and social Media 207
■ iMProving PerForManCe: tHe strategiC Context: Urban outfitters 208
Avoiding errors that Can Undermine an interview’s Usefulness 208
first impressions (snap Judgments) 209
not Clarifying What the Job requires 209
Candidate-order (Contrast) error and Pressure to Hire 209
nonverbal Behavior and impression Management 210
effect of Personal Characteristics: Attractiveness, Gender, race 210
Contents xvii
Diversity Counts: Applicant Disability and the employment interview 211
■ iMProving PerForManCe: Hr PraCtiCes around tHe gloBe: selection
Practices Abroad 211
interviewer Behavior 212
How to design and ConduCt an eFFeCtive interview 212
Designing a structured situational interview 212
■ iMProving PerForManCe: Hr tools For line Managers and sMall
Businesses: How to Conduct an effective interview 213
Profiles and employee interviews 216
eMPloyee engageMent guide For Managers 217
Building engagement: A total selection Program 217
the toyota Way 217
■ trends sHaPing Hr: science in talent Management 218
develoPing and extending tHe JoB oFFer 219
CHaPter seCtion suMMaries 220
disCussion Questions 220
individual and grouP aCtivities 221
exPeriential exerCise 221
aPPliCation Case: tHe out-oF-Control interview 222
Continuing Case: Carter Cleaning CoMPany 223
translating strategy into Hr PoliCies and PraCtiCes Case: iMProving
PerForManCe at tHe Hotel Paris 223
Key terMs 224
endnotes 224
aPPendix 1 For CHaPter 7 struCtured interview guide 227
aPPendix 2 For CHaPter 7 interview guide For interviewees 230
Part tHree training and develoPMent 231
8 training and developing employees 231
orienting and onBoarding new eMPloyees 233
the Purposes of employee orientation/onboarding 233
the orientation Process 233
eMPloyee engageMent guide For Managers: onBoarding
at toyota 234
overview oF tHe training ProCess 235
■ Know your eMPloyMent law: training and the Law 235
Aligning strategy and training 235
■ iMProving PerForManCe: tHe strategiC Context: the training Program
That Turned Macy’s Around 236
the ADDie five-step training Process 236
Conducting the training needs Analysis 236
Designing the training Program 239
Developing the Program 242
■ trends sHaPing Hr: Digital and social Media 242
iMPleMenting tHe training PrograM 243
on-the-Job training 243
Apprenticeship training 243
informal Learning 245
Job instruction training 245
Lectures 245
Programmed Learning 246
Behavior Modeling 246
Audiovisual-Based training 246
Vestibule training 247
electronic Performance support systems (ePss) 247
Videoconferencing 247
xviii Contents
Computer-Based training (CBt) 247
simulated Learning and Gaming 247
Lifelong and Literacy training techniques 248
■ iMProving PerForManCe: Hr PraCtiCes around tHe gloBe: Diversity
training at ABC Virtual Communications, inc. 248
team training 249
internet-Based training 249
the Virtual Classroom 250
■ trends sHaPing Hr: Digital and social Media 250
■ iMProving PerForManCe: Hr tools For line Managers and sMall
Businesses: Creating Your own training Program 251
iMPleMenting ManageMent develoPMent PrograMs 252
strategy’s role in Management Development 252
succession Planning 252
Improving Performance Through HRIS: succession systems 253
Candidate Assessment and the 9-Box Grid 253
Managerial on-the-Job training and rotation 254
■ iMProving PerForManCe: Hr PraCtiCes around tHe gloBe: Global Job
rotation 254
off-the-Job Management training and Development techniques 255
Leadership Development at Ge 257
■ trends sHaPing Hr: Customized talent Management through Differential Development
Assignments 257
Managing organizational CHange PrograMs 258
Lewin’s Change Process 258
Using organizational Development 259
evaluating tHe training eFFort 260
Designing the study 260
training effects to Measure 261
CHaPter seCtion suMMaries 263
disCussion Questions 264
individual and grouP aCtivities 264
exPeriential exerCise 265
aPPliCation Case: reinventing tHe wHeel at aPex door CoMPany 265
Continuing Case: Carter Cleaning CoMPany 265
translating strategy into Hr PoliCies and PraCtiCes Case: iMProving
PerForManCe at tHe Hotel Paris 266
Key terMs 267
endnotes 268
9 Performance Management and appraisal 272
BasiCs oF PerForManCe aPPraisal 274
the Performance Appraisal Process 274
Why Appraise Performance? 274
Defining the employee’s Goals and Performance standards 275
■ iMProving PerForManCe: Hr as a ProFit Center: setting Performance Goals
at Ball Corporation 275
■ iMProving PerForManCe: Hr tools For line Managers and sMall
Businesses: How to set effective Goals 275
Who should Do the Appraising? 276
teCHniQues For aPPraising PerForManCe 278
Graphic rating scale Method 278
Alternation ranking Method 278
Paired Comparison Method 278
forced Distribution Method 280
Critical incident Method 280
narrative forms 282
Contents xix
Behaviorally Anchored rating scales 283
Mixed standard scales 285
Management by objectives 285
Computerized and Web-Based Performance Appraisal 286
electronic Performance Monitoring 286
Conversation Days 287
Appraisal in Practice: Using Multiple Methods 287
■ trends sHaPing Hr: Customized talent Management 287
■ iMProving PerForManCe: tHe strategiC Context: trW’s new Global
Performance Appraisal/Management system 288
dealing witH rater error aPPraisal ProBleMs 288
Potential rating Problems 288
Diversity Counts: the Problem of Bias 290
the need for fairness 290
■ Know your eMPloyMent law: Appraising Performance 291
Managing tHe aPPraisal interview 292
How to Conduct the Appraisal interview 292
How to Handle a Defensive subordinate 293
How to Criticize a subordinate 293
How to Handle a formal Written Warning 294
eMPloyee engageMent guide For Managers 295
Use the Appraisal interview to Build engagement 295
PerForManCe ManageMent 296
total Quality Management and Performance Appraisal 296
What is Performance Management? 296
■ trends sHaPing Hr: Digital and social Media 297
■ iMProving PerForManCe: Hr PraCtiCes around tHe gloBe: Performance
Management at General Dynamics Armament systems (GDAs) 298
the Manager’s role in Performance Management 299
CHaPter seCtion suMMaries 299
disCussion Questions 300
individual and grouP aCtivities 300
exPeriential exerCise 300
aPPliCation Case: aPPraising tHe seCretaries at sweetwater u 301
Continuing Case: Carter Cleaning CoMPany 302
translating strategy into Hr PoliCies and PraCtiCes Case: iMProving
PerForManCe at tHe Hotel Paris 302
Key terMs 303
endnotes 303
10 Managing Careers and retention 307
Career ManageMent 309
Careers today 309
the Psychological Contract 309
the employee’s role in Career Management 310
the employer’s role in Career Management 311
employer Career Management Methods 311
Improving Performance Through HRIS: integrating talent Management and Career
and succession Planning 312
Diversity Counts: toward Career success 313
the Manager as Mentor and Coach 313
■ iMProving PerForManCe: tHe strategiC Context 314
eMPloyee engageMent guide For Managers 314
Career Management 314
Commitment-oriented Career Development efforts 315
■ iMProving PerForManCe: Hr PraCtiCes around tHe gloBe:
Career Development at Medtronic 315
xx Contents
Managing eMPloyee turnover and retention 316
■ iMProving PerForManCe: Hr as a ProFit Center: turnover and Performance 316
Managing Voluntary turnover 317
A Comprehensive Approach to retaining employees 317
■ trends sHaPing Hr: Digital and social Media 318
Job Withdrawal 319
eMPloyee liFe-CyCle Career ManageMent 319
Making Promotion Decisions 320
■ Know your eMPloyMent law: establish Clear Guidelines for Managing
Promotions 320
Diversity Counts: the Gender Gap 321
Managing transfers 322
Managing retirements 322
Managing disMissals 324
Grounds for Dismissal 324
■ Know your eMPloyMent law: termination at Will 325
Avoiding Wrongful Discharge suits 326
security Measures 326
supervisor Liability 327
the exit Process and termination interview 327
Layoffs and the Plant Closing Law 328
Adjusting to Downsizings and Mergers 329
CHaPter seCtion suMMaries 330
disCussion Questions 330
individual and grouP aCtivities 331
exPeriential exerCise 332
aPPliCation Case: google reaCts 332
Continuing Case: Carter Cleaning CoMPany 332
translating strategy into Hr PoliCies and PraCtiCes Case: iMProving
PerForManCe at tHe Hotel Paris 333
Key terMs 334
endnotes 334
aPPendix For CHaPter 10 Managing your Career and Finding a JoB 337
Part Four CoMPensation 344
11 establishing strategic Pay Plans 344
BasiC FaCtors in deterMining Pay rates 346
Aligning total rewards with strategy 346
equity and its impact on Pay rates 346
Legal Considerations in Compensation 347
■ Know your eMPloyMent law: the Workday 348
■ Know your eMPloyMent law: the independent Contractor 350
Union influences on Compensation Decisions 352
Pay Policies 352
■ iMProving PerForManCe: tHe strategiC Context: Wegmans food
Markets 353
■ iMProving PerForManCe: Hr PraCtiCes around tHe gloBe:
Compensating expatriate employees 354
JoB evaluation MetHods 354
Compensable factors 354
Preparing for the Job evaluation 355
Job evaluation Methods: ranking 356
Job evaluation Methods: Job Classification 357
Job evaluation Methods: Point Method 358
Contents xxi
Computerized Job evaluations 358
How to Create a MarKet-CoMPetitive Pay Plan 359
1. Choose Benchmark Jobs 359
2. select Compensable factors 359
3. Assign Weights to Compensable factors 360
4. Convert Percentages to Points for each factor 360
5. Define each factor’s Degrees 361
6. Determine for each factor its factor Degrees’ Points 361
7. review Job Descriptions and Job specifications 361
8. evaluate the Jobs 362
9. Draw the Current (internal) Wage Curve 363
10. Conduct a Market Analysis: salary surveys 363
11. Draw the Market (external) Wage Curve 364
12. Compare and Adjust Current and Market Wage rates for Jobs 365
13. Develop Pay Grades 366
14. establish rate ranges 367
15. Address remaining Jobs 368
16. Correct out-of-Line rates 368
■ iMProving PerForManCe: Hr tools For line Managers and sMall
Businesses: Developing a Workable Pay Plan 368
PriCing Managerial and ProFessional JoBs 369
What Determines executive Pay? 369
Compensating executives 370
Compensating Professional employees 370
Improving Performance Through HRIS: Payroll Administration 371
ConteMPorary toPiCs in CoMPensation 371
Competency-Based Pay 372
■ iMProving PerForManCe: Hr PraCtiCes around tHe gloBe: JLG’s skill-Based
Pay Program 372
Broadbanding 373
Comparable Worth 374
Diversity Counts: the Pay Gap 375
Board oversight of executive Pay 375
eMPloyee engageMent guide For Managers 376
total rewards Programs 376
■ trends sHaPing Hr: Digital and social Media 376
total rewards and employee engagement 376
CHaPter seCtion suMMaries 377
disCussion Questions 378
individual and grouP aCtivities 378
exPeriential exerCise 379
aPPliCation Case: salary ineQuities at astrazeneCa 379
Continuing Case: Carter Cleaning CoMPany 379
translating strategy into Hr PoliCies and PraCtiCes Case: iMProving
PerForManCe at tHe Hotel Paris 380
Key terMs 381
endnotes 381
12 Pay for Performance and Financial incentives 385
Money’s role in Motivation 387
incentive Pay terminology 387
Linking strategy, Performance, and incentive Pay 387
Motivation and incentives 387
■ Know your eMPloyMent law: employee incentives and the Law 389
individual eMPloyee inCentive and reCognition PrograMs 389
Piecework 389
Merit Pay as an incentive 390
xxii Contents
incentives for Professional employees 391
nonfinancial and recognition-Based Awards 392
■ trends sHaPing Hr: Digital and social Media 392
■ iMProving PerForManCe: Hr tools For line Managers and sMall
Businesses 393
Job Design 394
■ iMProving PerForManCe: tHe strategiC Context: the fast-food Chain 394
inCentives For salesPeoPle 395
salary Plan 395
Commission Plan 395
Combination Plan 396
Maximizing sales results 396
sales incentives in Action 397
■ trends sHaPing Hr: Digital and social Media 397
inCentives For Managers and exeCutives 397
strategy and the executive’s Long-term and total rewards Package 398
short-term incentives and the Annual Bonus 398
■ iMProving PerForManCe: Hr PraCtiCes around tHe gloBe 401
some other executive incentives 402
teaM and organization-wide inCentive Plans 402
How to Design team incentives 403
evidence-Based Hr: inequities that Undercut team incentives 404
Profit-sharing Plans 404
scanlon Plans 404
other Gainsharing Plans 405
At-risk Pay Plans 405
employee stock ownership Plans 406
incentive Plans in Practice: nucor 406
eMPloyee engageMent guide For Managers 407
incentives and engagement 407
CHaPter seCtion suMMaries 407
disCussion Questions 408
individual and grouP aCtivities 408
exPeriential exerCise 409
aPPliCation Case: inserting tHe teaM ConCePt into CoMPensation—or not 409
Continuing Case: Carter Cleaning CoMPany 410
translating strategy into Hr PoliCies and PraCtiCes Case: iMProving
PerForManCe at tHe Hotel Paris 411
Key terMs 412
endnotes 412
13 Benefits and services 416
introduCtion: tHe BeneFits PiCture today 418
Policy issues 418
Pay For tiMe not worKed 419
Unemployment insurance 419
Vacations and Holidays 419
■ Know your eMPloyMent law: some Legal Aspects of Vacations
and Holidays 421
sick Leave 421
■ iMProving PerForManCe: Hr as a ProFit Center: Controlling sick Leave 421
Leaves and the family and Medical Leave Act 422
■ Know your eMPloyMent law: fMLA Guidelines 422
severance Pay 423
supplemental Unemployment Benefits 424
insuranCe BeneFits 424
Workers’ Compensation 424
Contents xxiii
Hospitalization, Health, and Disability insurance 425
■ Know your eMPloyMent law: Patient Protection and Affordable Care
Act of 2010 426
trends in employer Health-Care Cost Control 428
■ iMProving PerForManCe: Hr as a ProFit Center: the Doctor is on the Phone 430
Long-term Care 430
Life insurance 430
Benefits for Part-time and Contingent Workers 431
retireMent BeneFits 431
social security 431
Pension Plans 431
■ Know your eMPloyMent law: Pension Planning and the Law 433
Pensions and early retirement 433
Improving Performance Through HRIS: online Benefits Management
systems 434
■ trends sHaPing Hr: Digital and social Media 434
Personal serviCes and FaMily-Friendly BeneFits 435
Personal services 435
family-friendly (Work–Life) Benefits 436
other Personal services Benefits 437
Diversity Counts 437
■ iMProving PerForManCe: tHe strategiC Context 437
executive Perquisites 438
FlexiBle BeneFits PrograMs 438
the Cafeteria Approach 438
■ iMProving PerForManCe: Hr tools For line Managers and sMall
Businesses: Benefits and employee Leasing 439
flexible Work schedules 440
eMPloyee engageMent guide For Managers 441
Costco’s Compensation Plan 441
CHaPter seCtion suMMaries 441
disCussion Questions 442
individual and grouP aCtivities 442
exPeriential exerCise 443
aPPliCation Case: striKing For BeneFits 443
Continuing Case: Carter Cleaning CoMPany 443
translating strategy into Hr PoliCies and PraCtiCes Case: iMProving
PerForManCe at tHe Hotel Paris 444
Key terMs 445
endnotes 445
Part Five enriCHMent toPiCs in HuMan resourCe ManageMent 449
14 Building Positive employee relations 449
wHat is eMPloyee relations? 451
eMPloyee relations PrograMs For Building and Maintaining Positive
eMPloyee relations 451
ensuring fair treatment 451
■ iMProving PerForManCe: tHe strategiC Context: A new Hr strategy at the
foxconn Plant in shenzhen, China 453
Bullying and Victimization 453
improving employee relations through Communications Programs 454
Develop employee recognition/relations Programs 454
Use employee involvement Programs 455
■ trends sHaPing Hr: Digital and social Media 455
xxiv Contents
■ iMProving PerForManCe: Hr as a ProFit Center: the Cost-effective suggestion
system 456
tHe etHiCal organization 456
ethics and employee rights 457
What shapes ethical Behavior at Work? 458
the Person (What Makes Bad Apples?) 458
Which ethical situations Make for ethically Dangerous situations
(Bad Cases)? 458
What Are the “Bad Barrels”?—the outside factors that Mold ethical Choices 458
How Managers Can Create More ethical environments 459
How Human resource Managers Can Create More ethical environments 459
■ iMProving PerForManCe: Hr tools For line Managers and sMall
Businesses: small Business ethics 460
■ Know your eMPloyMent law: electronic Monitoring 462
■ trends sHaPing Hr: Digital and social Media 463
Managing eMPloyee disCiPline 464
the three Pillars of fair Discipline 464
Diversity Counts 465
How to Discipline an employee 465
Discipline Without Punishment 466
eMPloyee engageMent guide For Managers 467
How Companies Become “Best Companies to Work for” 467
the “Best Companies to Work for” 467
sAs: Great Benefits, trust, and Work-Life Balance 467
Google: Happiness and People Analytics 468
fedex: Guaranteed fair treatment 468
A “Best Company” Human resource Philosophy? 469
CHaPter seCtion suMMaries 470
disCussion Questions 471
individual and grouP aCtivities 471
exPeriential exerCise 472
aPPliCation Case: enron, etHiCs, and organizational Culture 472
Continuing Case: Carter Cleaning CoMPany 473
translating strategy into Hr PoliCies and PraCtiCes Case: iMProving
PerForManCe at tHe Hotel Paris 473
Key terMs 475
etHiCs Quiz answers 475
endnotes 475
15 labor relations and Collective Bargaining 479
tHe laBor MoveMent 481
■ iMProving PerForManCe: tHe strategiC Context: the “Anti-Walmart’s”
revenues 481
Why Do Workers organize? 481
employee engagement and Unionization 482
What Do Unions Want? 482
the AfL-Cio and the seiU 483
unions and tHe law 484
Period of strong encouragement: the norris-LaGuardia (1932) and national Labor relations
(or Wagner) Acts (1935) 484
Period of Modified encouragement Coupled with regulation: the taft-Hartley Act (1947) 485
Unfair Union Labor Practices 486
tHe union drive and eleCtion 487
step 1. initial Contact 487
step 2. obtaining Authorization Cards 488
step 3. Hold a Hearing 489
step 4. the Campaign 490
Contents xxv
step 5. the election 490
How to Lose an nLrB election 491
evidence-Based Hr: What to expect the Union to Do to Win the election 492
the supervisor’s role 492
■ Know your eMPloyMent law: rules regarding Literature and solicitation 493
Decertification elections: ousting the Union 493
■ iMProving PerForManCe: Hr PraCtiCes around tHe gloBe: france Comes
to the Workers’ Aid 493
tHe ColleCtive Bargaining ProCess 494
What is Collective Bargaining? 494
What is Good faith? 494
the negotiating team 495
Costing the Contract 495
Bargaining items 495
Building negotiating skills 496
Bargaining Hints 496
impasses, Mediation, and strikes 497
■ trends sHaPing Hr: Digital and social Media 500
the Contract Agreement 500
dealing witH disPutes and grievanCes 501
sources of Grievances 501
the Grievance Procedure 501
Guidelines for Handling Grievances 502
■ iMProving PerForManCe: Hr tools For line Managers and sMall
Businesses: How to Handle a Grievance situation 503
tHe union MoveMent today and toMorrow 503
What Are Unions Doing About it? 504
Cooperative Clauses 505
■ iMProving PerForManCe: Hr around tHe gloBe: Labor-Management
Cooperation and Works Councils in America 506
CHaPter seCtion suMMaries 506
disCussion Questions 507
individual and grouP aCtivities 507
exPeriential exerCise 508
aPPliCation Case: negotiating witH tHe writers guild oF aMeriCa 508
Continuing Case: Carter Cleaning CoMPany 509
translating strategy into Hr PoliCies and PraCtiCes Case: iMProving
PerForManCe at tHe Hotel Paris 509
Key terMs 510
endnotes 510
16 safety, Health, and risk Management 513
introduCtion: saFety and tHe Manager 515
Why safety is important 515
■ iMProving PerForManCe: Hr as a ProFit Center: improving safety Boosts
Profits 515
Management’s role in safety 515
■ iMProving PerForMaCe: tHe strategiC Context: Deepwater Horizon 516
the supervisor’s role in Accident Prevention 516
Manager’s BrieFing on oCCuPational saFety law 516
osHA standards and record Keeping 517
inspections and Citations 518
responsibilities and rights of employers and employees 520
■ iMProving PerForManCe: Hr tools For line Managers and sMall
Businesses: free on-site safety and Health services 521
xxvi Contents
■ trends sHaPing Hr: Digital and social Media 522
wHat Causes aCCidents? 523
What Causes Unsafe Conditions? 523
What Causes Unsafe Acts? 524
How to Prevent aCCidents 524
reducing Unsafe Conditions 524
Diversity Counts: Protecting Vulnerable Workers 528
reducing Unsafe Acts 529
reducing Unsafe Acts through screening 529
reducing Unsafe Acts through training 529
Improving Performance Through HRIS: online safety training 530
reducing Unsafe Acts through Posters, incentives, and Positive reinforcement 530
■ iMProving PerForManCe: Hr as a ProFit Center: Using Positive
reinforcement 530
reducing Unsafe Acts by fostering a Culture of safety 532
reducing Unsafe Acts by Creating a supportive environment 532
reducing Unsafe Acts by establishing a safety Policy 532
reducing Unsafe Acts by setting specific Loss Control Goals 532
reducing Unsafe Acts through Behavior-Based and safety Awareness Programs 532
reducing Unsafe Acts through employee Participation 532
■ trends sHaPing Hr: Digital and social Media 533
Conducting safety and Health Audits and inspections 533
eMPloyee engageMent guide For Managers 534
Milliken & Company—World-Class safety through employee engagement 534
involvement-Based employee engagement 534
worKPlaCe HealtH Hazards: ProBleMs and reMedies 535
Chemicals and industrial Hygiene 535
■ iMProving PerForManCe: Hr PraCtiCes around tHe gloBe: safety at saudi
Petrol Chemical 535
■ Know your eMPloyMent law: Hazard Communication 537
Asbestos exposure at Work and Air Quality 537
Alcoholism and substance Abuse 537
stress, Burnout, and Depression 539
solving Computer-related ergonomic Problems 540
repetitive Motion Disorders 541
infectious Diseases 541
Workplace smoking 541
oCCuPational seCurity and risK ManageMent 542
enterprise risk Management 542
Preventing and Dealing with Violence at Work 542
securing the facility 544
Company security and employee Privacy 545
Business Continuity and emergency Plans 546
■ trends sHaPing Hr: Digital and social Media 546
twitter notifications 546
terrorism 546
CHaPter seCtion suMMaries 547
disCussion Questions 547
individual and grouP aCtivities 548
exPeriential exerCise 548
aPPliCation Case: tHe new saFety and HealtH PrograM 552
Continuing Case: Carter Cleaning CoMPany 553
translating strategy into Hr PoliCies and PraCtiCes Case: iMProving
PerForManCe at tHe Hotel Paris 553
Key terMs 554
endnotes 554
Contents xxvii
17 Managing global Human resources 559
tHe Manager’s gloBal CHallenge 561
What is international Human resource Management? 561
adaPting HuMan resourCe aCtivities to interCountry diFFerenCes 561
Cultural factors 562
economic systems 563
Hr Abroad example: the european Union 563
Hr Abroad example: China 564
■ iMProving PerForManCe: Hr PraCtiCes around tHe gloBe:
Comparing small Businesses, Hr Practices in the United states and China 565
staFFing tHe gloBal organization 565
international staffing: Home or Local? 566
■ iMProving PerForManCe: Hr as a ProFit Center:
reducing expatriate Costs 567
■ trends sHaPing Hr: Digital and social Media 567
Management Values and international staffing Policy 568
ethics and Codes of Conduct 568
selecting international Managers 569
Diversity Counts: sending Women Managers Abroad 570
Avoiding early expatriate returns 570
■ iMProving PerForManCe: Hr tools For line Managers
and sMall Businesses: some Practical solutions to the expatriate Challenge 571
training and Maintaining eMPloyees aBroad 571
orienting and training employees on international Assignment 571
Performance Appraisal of international Managers 572
Compensating Managers Abroad 573
Union relations Abroad 575
terrorism, safety, and Global Hr 575
■ iMProving PerForManCe: Hr PraCtiCes around tHe gloBe:
Business travel 576
repatriation: Problems and solutions 576
eMPloyee engageMent guide For Managers 577
engagement Around the Globe 577
Managing Hr loCally: How to Put into PraCtiCe a gloBal
HR SyStem 577
■ iMProving PerForManCe: tHe strategiC Context: Hitachi 578
Developing a More effective Global Hr system 579
Making the Global Hr system More Acceptable 579
implementing the Global Hr system 579
CHaPter seCtion suMMaries 580
disCussion Questions 581
individual and grouP aCtivities 581
exPeriential exerCise 581
aPPliCation Case: “Boss, i tHinK we Have a ProBleM” 582
Continuing Case: Carter Cleaning CoMPany 582
translating strategy into Hr PoliCies and PraCtiCes Case: iMProving
PerForManCe at tHe Hotel Paris 583
Key terMs 584
endnotes 584
18 Managing Human resources in small
and entrepreneurial Firms 588
tHe sMall Business CHallenge 590
How small Business Human resource Management is Different 590
xxviii Contents
Diversity Counts: necessity and the entrepreneur 591
Why HrM is important to small Businesses 591
using internet and governMent tools to suPPort tHe Hr eFFort 591
Complying with employment Laws 592
employment Planning and recruiting 593
■ trends sHaPing Hr: Digital and social Media 593
employment selection 594
employment training 596
employment Appraisal and Compensation 596
employment safety and Health 596
leveraging sMall size witH FaMiliarity, FlexiBility, Fairness,
and InfoRmalIty 597
simple, informal employee selection Procedures 597
■ iMProving PerForManCe: Hr tools For line Managers and sMall
Businesses: A streamlined interviewing Process 597
flexibility in training 598
flexibility in Benefits and rewards 598
fairness and the family Business 600
using ProFessional eMPloyer organizations 600
How Do Peos Work? 600
Why Use a Peo? 601
Caveats 601
Managing Hr systeMs, ProCedures, and PaPerworK 602
introduction 602
■ iMProving PerForManCe: tHe strategiC Context: City Garage 602
Basic Components of Manual Hr systems 603
Automating individual Hr tasks 604
Human resource information systems (Hris) 604
improved transaction Processing 604
online self-Processing 605
improved reporting Capability 605
Hr system integration 605
Hris Vendors 605
■ trends sHaPing Hr: Digital and social Media 605
CHaPter seCtion suMMaries 606
disCussion Questions 606
individual and grouP aCtivities 606
exPeriential exerCise 607
aPPliCation Case: netFlix BreaKs tHe rules 607
Continuing Case: Carter Cleaning CoMPany 608
translating strategy into Hr PoliCies and PraCtiCes Case: iMProving
PerForManCe at tHe Hotel Paris 608
endnotes 609
aPPendiCes
aPPendix a HrCi PHr® and sPHr® Certification Body of Knowledge 612
aPPendix B about the society for Human resource Management (sHrM)
Body of Competency and KnowledgetM Model
and Certification exams 618
aPPendix C Comprehensive Cases 630
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