Hrm Dessler Content

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THIRTEENTH EDITIONH U MANRESOURCEMANAGEMENTGLOBAL EDITION

GARY DESSLERFLORIDA INTERNATIONAL UNIVERSITY

PEARSONBoston 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

G O N T E N T S

Preface 23

Acknowledgments 27

PART ONE INTRODUCTION 28

1 Introduction to Human Resource Management 28WHAT IS HUMAN RESOURCE MANAGEMENT AND WHY IS IT IMPORTANT?

What Is Human Resource Management? 30

Why Is Human Resource Management Important to All Managers? 31

Line and Staff Aspects of Human Resource Management 32

Line Managers' Human Resource Duties 33

Human Resource Manager's Duties 33

New Approaches to Organizing HR 35

Cooperative Line and Staff HR Management: An Example 35

THE TRENDS SHAPING HUMAN RESOURCE MANAGEMENT 36Globalization and Competition Trends 37

Indebtedness ("Leverage") and Deregulation 38

Technological Trends 38

Trends in the Nature of Work 39

• HR AS A PROFIT CENTER: Boosting Customer Service 40

Workforce and Demographic Trends 40

Economic Challenges and Trends 42

THE NEW HUMAN RESOURCE MANAGERS 43Human Resource Management Yesterday and Today 43

They Focus More on Strategic, Big Picture Issues 43

• THE STRATEGIC CONTEXT: Building LL.Bean 43

They Use New Ways to Provide Transactional Services 44

They Take an Integrated, "Talent Management" Approach to Managing

Human Resources 45

They Manage Ethics 45

They Manage Employee Engagement 45

They Measure HR Performance and Results 45

They Use Evidence-Based Human Resource Management 46

They Add Value 46

They Have New Competencies 47

HR Certification 48

THE PLAN OF THIS BOOK 48The Basic Themes and Features 48

CHAPTER CONTENTS OVERVIEW 49Part 1: Introduction 49

Part 2: Recruitment, Placement, and Talent Management 49

Part 3: Training and Development 49

Part 4: Compensation 49

Part 5: Employee Relations 49

The Topics Are Interrelated 50

CHAPTER SECTION SUMMARIES 51

DISCUSSION QUESTIONS 51

INDIVIDUAL AND GROUP ACTIVITIES 52

EXPERIENTIAL EXERCISE: HELPING "THE DONALD" 52

APPLICATION CASE: JACK NELSON'S PROBLEM 53

CONTINUING CASE: CARTER CLEANING COMPANY 53

KEY TERMS 54

ENDNOTES 54

30

8 CONTENTS

2 Equal Opportunity and the Law 56EQUAL EMPLOYMENT OPPORTUNITY 1964-1991 58

Title VII of the 1964 Civil Rights Act 58

Executive Orders 58

Equal Pay Act of 1963 59

Age Discrimination in Employment Act of 1967 59

Vocational Rehabilitation Act of 1973 59

Pregnancy Discrimination Act of 1978 60

Federal Agency Guidelines 60

Early Court Decisions Regarding Equal Employment Opportunity 60

EQUAL EMPLOYMENT OPPORTUNITY 1990-91-PRESENT 61

The Civil Rights Act of 1991 61

The Americans with Disabilities Act 62

Genetic Information Nondiscrimination Act of 2008 (GINA) 65

State and Local Equal Employment Opportunity Laws 65

Sexual Harassment 65

DEFENSES AGAINST DISCRIMINATION ALLEGATIONS 69

The Central Role of Adverse Impact 70

Bona Fide Occupational Qualification 72

Business Necessity 73

Other Considerations in Discriminatory Practice Defenses 74

ILLUSTRATIVE DISCRIMINATORY EMPLOYMENT PRACTICES 74

A Note on What You Can and Cannot Do 74

Recruitment 75

Selection Standards 75

Sample Discriminatory Promotion, Transfer, and Layoff Practices 76

What the Supervisor Should Keep in Mind 77

THE EEOC ENFORCEMENT PROCESS 77

Voluntary Mediation 79

Mandatory Arbitration of Discrimination Claims 80

DIVERSITY MANAGEMENT AND AFFIRMATIVE ACTION PROGRAMS 81

Diversity's Potential Pros and Cons 81

• HR AS A PROFIT CENTER 82

Managing Diversity 82

Encouraging Inclusiveness 83

Developing a Multicultural Consciousness 84

Equal Employment Opportunity Versus Affirmative Action 85

Implementing the Affirmative Action Program 85

Reverse Discrimination 86




EXPERIENTIAL EXERCISE: "SPACE CADET" OR VICTIM? 89

APPLICATION CASE: THE EMIRATISATION HRM PRACTICES OF A PETROLEUM COMPANY 89


KEY TERMS 91

ENDNOTES 91

Human Resource Management Strategy and Analysis 96THE STRATEGIC MANAGEMENT PROCESS 98

• THE STRATEGIC CONTEXT: The Shanghai Portman Hotel 98

Goal-Setting and the Planning Process 98

Strategic Planning 99

Improving Productivity Through HRIS: Using Computerized Business Planning Software 102

Types of Strategies 102

Top Managers' Role in Strategic Planning 104

CONTENTS 9

Departmental Managers' Strategic Planning Roles 104

Departmental Managers' Strategic Planning Roles in Action: Improving Mergers and

Acquisitions 105

STRATEGIC HUMAN RESOURCE MANAGEMENT 106

Defining Strategic Human Resource Management 106

Human Resource Strategies and Policies 108

• HR AS A PROFIT CENTER: Albertsons Example 108

Strategic Human Resource Management Tools 108

HR METRICS AND BENCHMARKING 110Types of Metrics 111

Improving Productivity Through HRIS: Tracking Applicant Metrics for Improved Talent

Management 111

Benchmarking in Action 112

Strategy and Strategy-Based Metrics 113

Workforce/Talent Analytics and Data Mining 113

• HR AS A PROFIT CENTER: Using Workforce/Talent Analytics 114

What Are HR Audits? 115

Evidence-Based HR and the Scientific Way of Doing Things 116

WHAT ARE HIGH-PERFORMANCE WORK SYSTEMS? 117

High-Performance Human Resource Policies and Practices 118

CHAPTER SECTION SUMMARIES 119DISCUSSION QUESTIONS 120INDIVIDUAL AND GROUP ACTIVITIES 120

EXPERIENTIAL EXERCISE: DEVELOPING AN HR STRATEGY FOR STARBUCKS 121APPLICATION CASE: SIEMENS BUILDS A STRATEGY-ORIENTED HR SYSTEM 121CONTINUING CASE: CARTER CLEANING COMPANY 122

TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE 122KEY TERMS 124ENDNOTES 125PART 1 VIDEO CASES APPENDIX 126

PART TWO RECRUITMENT, PLACEMENT, AND TALENTMANAGEMENT 128

4 Job Analysis and the Talent Management Process 128THE TALENT MANAGEMENT PROCESS 130

What Is Talent Management? 130

THE BASICS OF JOB ANALYSIS 131

Uses of Job Analysis Information 132

• THE STRATEGIC CONTEXT: Daimler Alabama Example 133

Conducting a Job Analysis 133

• HR AS A PROFIT CENTER: Boosting Productivity through Work Redesign 134

Job Analysis Guidelines 136

METHODS FOR COLLECTING JOB ANALYSIS INFORMATION 136

The Interview 136

Questionnaires 139

Observation 140

Participant Diary/Logs 140

Quantitative Job Analysis Techniques 140

Internet-Based Job Analysis 142

WRITING JOB DESCRIPTIONS 144Job Identification 144

Job Summary 145

Relationships 147

Responsibilities and Duties 147

10 CONTENTS

D MANAGING THE NEW WORKFORCE: Writing Job Descriptions That Comply

with the ADA 148

Standards of Performance and Working Conditions 148

Duty: Accurately Posting Accounts Payable 148

Using the Internet for Writing Job Descriptions 148

WRITING JOB SPECIFICATIONS 152

Specifications for Trained Versus Untrained Personnel 152

Specifications Based on Judgment 152

Job Specifications Based on Statistical Analysis 153

Using Task Statements 153

PROFILES IN TALENT MANAGEMENT 154

Competencies and Competency-Based Job Analysis 154

How to Write Job Competencies-Based Job Descriptions 156


EXPERIENTIAL EXERCISE: THE INSTRUCTOR'S JOB DESCRIPTION 158APPLICATION CASE: RECRUITING IN EUROPE 159CONTINUING CASE: CARTER CLEANING COMPANY 159TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTELPARIS CASE 160KEY TERMS 160ENDNOTES 160

Personnel Planning and Recruiting 162INTRODUCTION 164

WORKFORCE PLANNING AND FORECASTING 164

Strategy and Workforce Planning 164

• THE STRATEGIC CONTEXT: KPMG 165

Forecasting Personnel Needs (Labor Demand) 165

Improving Productivity Through HRIS: Computerized Personnel Forecasting 168

Forecasting the Supply of Inside Candidates 168

Forecasting the Supply of Outside Candidates 170

Talent Management and Predictive Workforce Monitoring 170

Developing an Action Plan to Match Projected Labor Supply and Labor Demand 171

The Recruiting Yield Pyramid 171

THE NEED FOR EFFECTIVE RECRUITING 172

Why Recruiting Is Important 172

What Makes Recruiting a Challenge? 172

Organizing How You Recruit 172

INTERNAL SOURCES OF CANDIDATES 173

Using Internal Sources: Pros and Cons 173

Finding Internal Candidates 173

Rehiring 173

Succession Planning 174

Improving Productivity Through HRIS: Succession and Talent Planning Systems 174

OUTSIDE SOURCES OF CANDIDATES 175

Recruiting via the Internet 175

Advertising 178

Employment Agencies 180

Temp Agencies and Alternative Staffing 181

Offshoring and Outsourcing Jobs 183

Executive Recruiters 183

On-Demand Recruiting Services 184

College Recruiting 184

Referrals and Walk-Ins 185

Telecommuters 186

Military Personnel 186

CONTENTS 11

Recruiting Source Use and Effectiveness 186

Evidence-Based HR: Measuring Recruiting Effectiveness 187

• HR AS A PROFIT CENTER: Personnel Planning and Recruiting 188

Improving Productivity Through HRIS: An Integrated Approach to Recruiting 188

RECRUITING A MORE DIVERSE WORKFORCE 188Single Parents 188

Older Workers 189

Recruiting Minorities 189

Welfare-to-Work 190

The Disabled 190

DEVELOPING AND USING APPLICATION FORMS 190Purpose of Application Forms 190

Application Guidelines 192

Application Forms and EEO Law 192

Using Application Forms to Predict Job Performance 193

Mandatory Arbitration 193

CHAPTER SECTION SUMMARIES 193DISCUSSION QUESTIONS 194INDIVIDUAL AND GROUP ACTIVITIES 194EXPERIENTIAL EXERCISE: THE NURSING SHORTAGE 195APPLICATION CASE: YA KUN KAYA TOAST 195CONTINUING CASE: CARTER CLEANING COMPANY 196TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTELPARIS CASE 196KEY TERMS 197ENDNOTES 197

6 Employee Testing and Selection 200WHY CAREFUL SELECTION IS IMPORTANT 202

Person and Job/Organization Fit 202

• THE STRATEGIC CONTEXT: Crowd Sourcing at Google 202

BASIC TESTING CONCEPTS 203Reliability 203

Validity 204

Evidence-Based HR: How to Validate a Test 206

Bias 208

Utility Analysis 208

• HR AS A PROFIT CENTER: Reducing Turnover at Key Bank 209

Validity Generalization 209

Test Takers' Individual Rights and Test Security 209

How Do Employers Use Tests at Work? 210

Computerized and Online Testing 211

TYPES OF TESTS 212Tests of Cognitive Abilities 212

Tests of Motor and Physical Abilities 213

Measuring Personality and Interests 213

Achievement Tests 216

WORK SAMPLES AND SIMULATIONS 216Using Work Sampling for Employee Selection 216

Situational Judgment Tests 217

Management Assessment Centers 217

Situational Testing and Video-Based Situational Testing 218

Computerized Multimedia Candidate Assessment Tools 218

The Miniature Job Training and Evaluation Approach 219

Realistic Job Previews 219

HR in Practice: Testing Techniques for Managers 219

Summary 220

12 CONTENTS

BACKGROUND INVESTIGATIONS AND OTHER SELECTION METHODS 220Why Perform Background Investigations and Reference Checks? 220

The Legal Dangers and How to Avoid Them 221

How to Check a Candidate's Background 222

The Social Network: Checking Applicants' Social Postings 224

Using Preemployment Information Services 225

The Polygraph and Honesty Testing 225

Graphology 227

"Human Lie Detectors" 227

Physical Exams 227

Substance Abuse Screening 228

Complying with Immigration Law 229

Improving Productivity Through HRIS: Using Automated Applicant Tracking and Screening

Systems 230


EXPERIENTIAL EXERCISE: A TEST FOR A RESERVATION CLERK 232APPLICATION CASE: KPMG 232

CONTINUING CASE: HONESTY TESTING AT CARTER CLEANING COMPANY 233TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE 233KEY TERMS 234ENDNOTES 234

7 Interviewing Candidates 238BASIC TYPES OF INTERVIEWS 240• THE STRATEGIC CONTEXT: Whirlpool Corp. 240

Structured Versus Unstructured Interviews 240

Interview Content (What Types of Questions to Ask) 241

How Should We Administer the Interview? 244

• HR AS A PROFIT CENTER: Great Western Bank 246

Three Ways to Make the Interview Usefulness 247

THE ERRORS THAT UNDERMINE AN INTERVIEW'S USEFULNESS 247First Impressions (Snap Judgments) 248

Not Clarifying What the Job Requires 248

Candidate-Order (Contrast) Error and Pressure to Hire 248

Nonverbal Behavior and Impression Management 249

Effect of Personal Characteristics: Attractiveness, Gender, Race 249

• MANAGING THE NEW WORKFORCE: Applicant Disability and the EmploymentInterview 250

Interviewer Behavior 250HOW TO DESIGN AND CONDUCT AN EFFECTIVE INTERVIEW 251

Designing a Structured Situational Interview 251

How to Conduct an Effective Interview 252

Talent Management: Profiles and Employee Interviews 255




EXPERIENTIAL EXERCISE: THE MOST IMPORTANT PERSON YOU'LL EVER HIRE 257

APPLICATION CASE: NURSE RECRUITMENT AT GULF HOSPITAL 257


TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE 258

KEY TERMS 259

ENDNOTES 259

APPENDIX 1 FOR CHAPTER 7 APPLICANT INTERVIEW GUIDE 262

APPENDIX 2 FOR CHAPTER 7 INTERVIEW GUIDE FOR INTERVIEWEES 264

PART 2 VIDEO CASES APPENDIX 266

CONTENTS 13

PART THREE TRAINING AND DEVELOPMENT 268

8 Training and Developing Employees 268ORIENTING AND ONBOARDING NEW EMPLOYEES 270

The Purposes of Employee Orientation/Onboarding 270

The Orientation Process 270

OVERVIEW OF THE TRAINING PROCESS 272

Aligning Strategy and Training 272

• THE STRATEGIC CONTEXT: CapitaLand 272

Training and Performance 273

The ADDIE Five-Step Training Process 273

Conducting the Training Needs Analysis 273

Designing the Training Program 276

Developing the Program 279

IMPLEMENTING TRAINING PROGRAMS 279

On-the-Job Training 279

Apprenticeship Training 281

Informal Learning 281

Job Instruction Training 281

Lectures 282

Programmed Learning 282

Audiovisual-Based Training 283

Vestibule Training 283

Electronic Performance Support Systems (EPSS) 283

Videoconferencing 284

Computer-Based Training (CBT) 284

Simulated Learning 284

Interactive Learning 285

Internet-Based Training 285

Improving Productivity Through HRIS: Learning Management Systems 286

Mobile Learning 286

The Virtual Classroom 287

Lifelong and Literacy Training Techniques 287

• MANAGING THE NEW WORKFORCE: Diversity Training 288

Team Training 288

IMPLEMENTING MANAGEMENT DEVELOPMENT PROGRAMS 289

Strategy and Development 289

Managerial On-the-Job Training 289

Off-the-Job Management Training and Development Techniques 290

Leadership Development at GE 292

Talent Management and Mission-Critical Employees: Differential Development

Assignments 293

MANAGING ORGANIZATIONAL CHANGE PROGRAMS 294

What to Change 294

Lewin's Change Process 295

Leading Organizational Change 295

Using Organizational Development 296

EVALUATING THE TRAINING EFFORT 298

Designing the Study 298

Training Effects to Measure 299

• HR AS A PROFIT CENTER: Judging Training's Impact 300




EXPERIENTIAL EXERCISE: FLYING THE FRIENDLIER SKIES 302

APPLICATION CASE: THE MENTORSHIP PROGRAM AT TVH 303


14 CONTENTS

TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE 304KEY TERMS 304ENDNOTES 304

9 Performance Management and Appraisal 308BASIC CONCEPTS IN PERFORMANCE MANAGEMENT AND APPRAISAL 310

The Performance Appraisal Process 310

Why Appraise Performance? 311

• HR AS A PROFIT CENTER: Setting Performance Goals at Ball Corporation 312

The Importance of Continual Feedback 312

Performance Management 312

• THE STRATEGIC CONTEXT: TRW 313

Defining the Employee's Goals and Performance Standards 313

Who Should Do the Appraising? 314

TECHNIQUES FOR APPRAISING PERFORMANCE 316

Graphic Rating Scale Method 316

Alternation Ranking Method 320

Paired Comparison Method 320

Forced Distribution Method 320

Critical Incident Method 321

Narrative Forms 322

Behaviorally Anchored Rating Scales 322

Mixed Standard Scales 325

Management by Objectives 326

Computerized and Web-Based Performance Appraisal 326

Electronic Performance Monitoring 327

Appraisal in Practice 327

DEALING WITH APPRAISAL PROBLEMS AND INTERVIEWS 328

Potential Appraisal Problems 329

Guidelines for Effective Appraisals 330

Appraisals and the Law 332

Managing the Appraisal Interview 332

PERFORMANCE MANAGEMENT 335

Performance Management vs. Performance Appraisal 335

Using Information Technology to Support Performance Management 336

TALENT MANAGEMENT PRACTICES AND EMPLOYEE APPRAISAL 337

Appraising and Actively Managing Employees 337 '

Segmenting and Actively Managing Employees in Practice 337




EXPERIENTIAL EXERCISE: GRADING THE PROFESSOR 340

APPLICATION CASE: APPRAISING THE SECRETARIES AT SWEETWATER U 340



KEY TERMS 342

ENDNOTES 342

1 0 Employee Retention, Engagement, and Careers 346MANAGING EMPLOYEE TURNOVER AND RETENTION 348

Costs of Turnover 348

• HR AS A PROFIT CENTER 348

Managing Voluntary Turnover 348

Retention Strategies for Reducing Voluntary Turnover 349

A Comprehensive Approach to Retaining Employees 350

• THE STRATEGIC CONTEXT: IBM Aims for Flexibility 350

Managing Involuntary Turnover 351

CONTENTS 15

Talent Management and Employee Retention 351

Job Withdrawal 351

EMPLOYEE ENGAGEMENT 352Why Engagement Is Important 352

Actions That Foster Engagement 352

Monitoring Employee Engagement 352

CAREER MANAGEMENT 353Careers Terminology 353

Careers Today 354

Psychological Contract 354

The Employee's Role in Career Management 354

The Employer's Role in Career Management 356

Career Management Systems 356

Gender Issues in Career Development 358

The Manager's Role 359

IMPROVING COACHING SKILLS 359Building Your Coaching Skills 359

Building Your Mentoring Skills 360

Improving Productivity Through HRIS: Integrating Talent Management and Career

and Succession Planning 362

MAKING PROMOTION DECISIONS 363Decision 1: Is Seniority or Competence the Rule? 363

Decision 2: How Should We Measure Competence? 363

Decision 3: Is the Process Formal or Informal? 364

Decision 4: Vertical, Horizontal, or Other? 364

Practical Considerations 364

Sources of Bias in Promotion Decisions 364

Promotions and the Law 365

Managing Transfers 365

^Managing Retirements 366




EXPERIENTIAL EXERCISE: WHERE AM I GOING . . . AND WHY? 368

APPLICATION CASE: GOELECTRIX 369



KEY TERMS 370

ENDNOTES 370


PART FOUR COMPENSATION 376

1 1 Establishing Strategic Pay Plans 376BASIC FACTORS IN DETERMINING PAY RATES 378

Aligning Total Rewards with Strategy 378

• THE STRATEGIC CONTEXT: Wegmans Foods 378

Equity and Its Impact on Pay Rates 379

Legal Considerations in Compensation 380

D M A N A G I N G THE N E W WORKFORCE: The Independent Contractor 381

Union Influences on Compensation Decisions 384

Pay Policies 384

• HR AS A PROFIT CENTER: Wegmans Foods 385

JOB EVALUATION METHODS 385

Compensable Factors 386

Preparing for the Job Evaluation 386

16 CONTENTS

Job Evaluation Methods: Ranking 387

Job Evaluation Methods: Job Classification 388

Job Evaluation Methods: Point Method 389

Computerized Job Evaluations 389

HOW TO CREATE A MARKET-COMPETITIVE PAY PLAN 3901. Choose Benchmark Jobs 390

2. Select Compensable Factors 390

3. Assign Weights to Compensable Factors 391

4. Convert Percentages to Points for Each Factor 391

5. Define Each Factor's Degrees 392

6. Determine for Each Job Its Factors' Degrees and Assign Points 392

7. Review Job Descriptions and Job Specifications 392

8. Evaluate the Jobs 393

9. Draw the Current (Internal) Wage Curve 393

10. Conduct a Market Analysis: Salary Surveys 394

11. Draw the Market (External) Wage Curve 396

12. Compare and Adjust Current and Market Wage Rates for Jobs 396

13. Develop Pay Grades 397

14. Establish Rate Ranges 397

15. Address Remaining Jobs 399

16. Correct Out-of-Line Rates 399

PRICING MANAGERIAL AND PROFESSIONAL JOBS 400Compensating Executives and Managers 400

What Determines Executive Pay? 400

Compensating Professional Employees 401

CONTEMPORARY TOPICS IN COMPENSATION 402Competency-Based Pay 402

Broadbanding 404

Actively Managing Compensation Allocations and Talent Management 406

Comparable Worth 406

Board Oversight of Executive Pay 407

Total Rewards and Tomorrow's Pay Programs 407

Improving Productivity Through HRIS: Automating Strategic

Compensation Administration 408




EXPERIENTIAL EXERCISE: RANKING THE COLLEGE'S ADMINISTRATORS 410

APPLICATION CASE: GATES SOLUTIONS 410



KEY TERMS 412

ENDNOTES 412

1 2 Pay for Performance and Financial Incentives 416MONEY AND MOTIVATION 418

Linking Strategy, Performance, and Incentive Pay 418

• THE STRATEGIC CONTEXT: The Car Sales Commission 418

Motivation and Incentives 419

Incentive Pay Terminology 421

Employee Incentives and the Law 421

INDIVIDUAL EMPLOYEE INCENTIVE AND RECOGNITION PROGRAMS 422Piecework Plans 422

Merit Pay as an Incentive 422

Incentives for Professional Employees 424

Nonfinancial and Recognition-Based Awards 424

Online and IT-Supported Awards 426

Job Design 426

CONTENTS 17

INCENTIVES FOR SALESPEOPLE 426

Salary Plan 427

Commission Plan 427

Combination Plan 427

Maximizing Sales Force Results 428

Evidence-Based HR: How Effective Are Your Incentives? 428

INCENTIVES FOR MANAGERS AND EXECUTIVES 429

Strategy and the Executive's Long-Term and Total Rewards Package 429

Sarbanes-Oxley 430

Short-Term Incentives and the Annual Bonus 430

Strategic Long-Term Incentives 432

Other Executive Incentives 433

TEAM AND ORGANIZATION WIDE INCENTIVE PLANS 433

How to Design Team Incentives 433

Evidence-Based HR: How Effective Are Your Incentives? 434

Profit-Sharing Plans 435

Scanlon Plans 435

Other Gainsharing Plans 436

At-Risk Pay Plans 436

Employee Stock Ownership Plans 437

DESIGNING EFFECTIVE INCENTIVE PROGRAMS 437

• HR AS A PROFIT CENTER: The Impact of Financial and Nonfinancial Incentives 438

The Five Building Blocks of Effective Incentive Plans 438

Incentive Plans in Practice: Nucor 439




EXPERIENTIAL EXERCISE: MOTIVATING THE SALES FORCE AT EXPRESS AUTO 441

APPLICATION CASE: GYC FINANCIAL ADVISORY PTE. LTD. 441



KEY TERMS 443

ENDNOTES 444

1 3 Benefits and Services 448THE BENEFITS PICTURE TODAY 450

Policy Issues 450

• THE STRATEGIC CONTEXT: NES Rentals 451

PAY FOR TIME NOT WORKED 451

Unemployment Insurance 451

Vacations and Holidays 453

Sick Leave 453

Evidence-Based HR: Tracking Sick Leave 454

• HR AS A PROFIT CENTER: Cutting Absences at the Driver and Vehicle Licensing Agency 454

Parental Leave and the Family and Medical Leave Act 455

Severance Pay 457

Supplemental Unemployment Benefits 458

INSURANCE BENEFITS 458

Workers' Compensation 458

Hospitalization, Health, and Disability Insurance 459

The Legal Side of Health Benefits 460

Trends in Employer Health Care Cost Control 461

Long-Term Care 463

Life Insurance 464

Benefits for Part-Time and Contingent Workers 464

RETIREMENT BENEFITS 464

Social Security 464

HNfi^fc^Bia*k

18 CONTENTS

Pension Plans 464

Pension Planning and the Law 467

Pensions and Early Retirement 468

Improving Productivity Through HRIS: Online Benefits Management Systems 468

PERSONAL SERVICES AND FAMILY-FRIENDLY BENEFITS 469

Personal Services 469

Family-Friendly (Work-Life) Benefits 469

Other Job-Related Benefits 471

Executive Perquisites 471

FLEXIBLE BENEFITS PROGRAMS 472

The Cafeteria Approach 472

Benefits and Employee Leasing 473

Flexible Work Schedules 474


EXPERIENTIAL EXERCISE: REVISING THE BENEFITS PACKAGE 476APPLICATION CASE: STRIKING FOR BENEFITS 477CONTINUING CASE: CARTER CLEANING COMPANY 477

TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASEKEY TERMS 478ENDNOTES 479PART 4 VIDEO CASES APPENDIX 482

478

PART FIVE EMPLOYEE RELATIONS 484

1 4 Ethics and Employee Rights and Discipline 484ETHICS AND FAIR TREATMENT AT WORK 486

• THE STRATEGIC CONTEXT: Berkshire Hathaway 486

What Is Ethics? 487

Ethics and the Law 487

Ethics, Justice, and Fair Treatment 487

Ethics, Public Policy, and Employee Rights 488

WHAT SHAPES ETHICAL BEHAVIOR AT WORK? 489

There's No One Smoking Gun 489

The Person (What Makes Bad Apples?) 490

Outside Forces That Shape Ethical Decisions (Bad Barrels) 490

In Summary: Some Things to Keep in Mind About Ethical Behavior at Work 492

USING HUMAN RESOURCE MANAGEMENT METHODS TO PROMOTE ETHICS

AND FAIR TREATMENT 493

Selection 493

Ethics Training 494

Performance Appraisal 494

Reward and Disciplinary Systems 494

Managing Ethics Compliance 494

MANAGING EMPLOYEE DISCIPLINE AND PRIVACY 494

Fairness in Disciplining 495

Bullying and Victimization 495

What Causes Unfair Behavior 496

Basics of a Fair and Just Disciplinary Process 497

Employee Privacy 500

Employee Monitoring 500

MANAGING DISMISSALS 502

Termination at Will and Wrongful Discharge 502

Grounds for Dismissal 503

Avoiding Wrongful Discharge Suits 504

CONTENTS 19

• HR AS A PROFIT CENTER: Wrongful Terminations 505

Personal Supervisory Liability 506

The Termination Interview 507

Layoffs, Downsizing, and the Plant Closing Law 509

Adjusting to Downsizings and Mergers 511




EXPERIENTIAL EXERCISE: DISCIPLINE OR NOT? 513

APPLICATION CASE: ENRON, ETHICS, AND ORGANIZATIONAL CULTURE 514



KEY TERMS 516

ETHICS QUIZ ANSWERS 516

ENDNOTES 516

1 5 Labor Relations and Collective Bargaining 520THE LABOR MOVEMENT 522

• THE STRATEGIC CONTEXT: The "Anti-Walmart" 522

Why Do Workers Organize? 522

What Do Unions Want? 523

TheAFL-CIOandtheSEIU 524

UNIONS AND THE LAW 524Period of Strong Encouragement: The Norris-LaGuardia (1932) and National Labor Relations

(or Wagner) Acts (1935) 525

Period of Modified Encouragement Coupled with Regulation: The Taft-Hartley Act (1947) 527

Unfair Union Labor Practices 527

THE UNION DRIVE AND ELECTION 528Step 1. Initial Contact 528

Step 2. Obtaining Authorization Cards 530

Step 3. Hold a Hearing 531

Step 4. The Campaign 531 '

Step 5. The Election 532

How to Lose an NLRB Election 533

Evidence-Based HR: What to Expect the Union to Do to Win the Election 534

The Supervisor's Role 534

Rules Regarding Literature and Solicitation 535 '

Decertification Elections: Ousting the Union 535

THE COLLECTIVE BARGAINING PROCESS 535What Is Collective Bargaining? 535

What Is Good Faith? 536

The Negotiating Team 536 -

• HR AS A PROFIT CENTER: Costing the Contract 537

Bargaining Items 537

Bargaining Hints 537

Impasses, Mediation, and Strikes 538

Improving Productivity Through HRIS: Unions Go High-Tech 542

The Contract Agreement 542

DEALING WITH DISPUTES AND GRIEVANCES 543Sources of Grievances 543

The Grievance Procedure 544

Guidelines for Handling Grievances 545

THE UNION MOVEMENT TODAY AND TOMORROW 546Why Union Membership Is Down 546

An Upswing for Unions? 546

Card Check and Other New Union Tactics 547

High-Performance Work Systems, Employee Participation, and Unions 547

2 0 CONTENTS




EXPERIENTIAL EXERCISE: THE UNION-ORGANIZING CAMPAIGN AT PIERCE U. 550

APPLICATION CASE: NEGOTIATING WITH THE WRITERS GUILD OF AMERICA 551



KEY TERMS 552

ENDNOTES 553

1 6 Employee Safety and Health 556SAFETY AND THE MANAGER 558

Why Safety Is Important 558

Management's Role in Safety 558

What Top Management Can Do 558

• THE STRATEGIC CONTEXT: Deepwater Horizon 558

The Supervisor's Role in Safety 559

OCCUPATIONAL SAFETY LAW 559OSHA Standards and Record Keeping 559

Inspections and Citations 561

Responsibilities and Rights of Employers and Employees 564

WHAT CAUSES ACCIDENTS? 565What Causes Unsafe Conditions and Other Work-Related Safety Problems? 565

What Causes Unsafe Acts? (A Second Basic Cause of Accidents) 566

HOW TO PREVENT ACCIDENTS 566

Reducing Unsafe Conditions 566

• MANAGING THE NEW WORKFORCE: Protecting Vulnerable Workers 571

Reducing Unsafe Acts 572Reducing Unsafe Acts through Selection and Placement 572

Reducing Unsafe Acts through Training 572

Q M A N A G I N G THE NEW WORKFORCE: Safety Training for Hispanic Workers 573

Reducing Unsafe Acts through Motivation: Posters, Incentives, and Positive Reinforcement 573

Reducing Unsafe Acts through Behavior-Based Safety 574

Reducing Unsafe Acts through Employee Participation 574

Reducing Unsafe Acts by Conducting Safety and Health Audits and Inspections 575

Controlling Workers' Compensation Costs 576

• HR AS A PROFIT CENTER: Reducing Workers Compensation Claims 577

WORKPLACE HEALTH HAZARDS: PROBLEMS AND REMEDIES 577The Basic Industrial Hygiene Program 578

Asbestos Exposure at Work 578

Infectious Diseases 579

Air Quality 579

Alcoholism and Substance Abuse 579

Stress, Burnout, and Depression 581

Solving Computer-Related Ergonomic Problems 583

Repetitive Motion Disorders 583

Workplace Smoking 584• HR AS A PROFIT CENTER: Wellness Pays 584

Violence at Work 584

Workplace Violence Supervisory Training 586

OCCUPATIONAL SECURITY AND SAFETY 587Basic Prerequisites for a Crime Prevention Plan 588

Setting Up a Basic Security Program 588

Evacuation Plans 589

Company Security and Employee Privacy 589



CONTENTS 21


EXPERIENTIAL EXERCISE: HOW SAFE IS MY UNIVERSITY? 591

APPLICATION CASE: HEALTH AND SAFETY AT EDMUND CAFE 595



KEY TERMS 597

ENDNOTES 597

1 7 Managing Global Human Resources 602The Manager's Global Challenge 604

• THE STRATEGIC CONTEXT: Trident Support LLC: Tall, Lean, and Mean 604

ADAPTING HUMAN RESOURCE ACTIVITIES TO INTERCOUNTRYDIFFERENCES 604

Cultural Factors 605

Economic Systems 606

Legal, Political, and Labor Relations Factors 606

Ethics and Codes of Conduct 607

HR Abroad Example: The European Union 607

HR Abroad Example: China 607

STAFFING THE GLOBAL ORGANIZATION 608International Staffing: Home or Local? 608

• HR AS A PROFIT CENTER: Reducing Expatriate Costs 609

Offshoring 611

Management Values and International Staffing Policy 611

Selecting Expatriate Managers 612

Avoiding Early Expatriate Returns 615

TRAINING AND MAINTAINING EMPLOYEES ABROAD 616Orienting and Training Employees on International Assignment 616

^Appraising Managers Abroad 616

Compensating Managers Abroad 617

Labor Relations Abroad 619

Terrorism, Safety, and Global HR 619 '

Repatriation: Problems and Solutions 620

Improving Productivity Through HRIS: Taking the HRIS Global 621

MANAGING HR LOCALLY: HOW TO PUT INTO PRACTICE A GLOBAL HR SYSTEM 621

Developing a More Effective Global HR System 622

Making the Global HR System More Acceptable' 622

Implementing the Global HR System 623




EXPERIENTIAL EXERCISE: A TAXING PROBLEM FOR EXPATRIATE EMPLOYEES—625

APPLICATION CASE: EUROPE—IT'S ALL ABOUT PERSPECTIVES 625


TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE:

THE HOTEL PARIS CASE 626

KEY TERMS 627

ENDNOTES 627

1 8 Managing Human Resources in Small and EntrepreneurialFirms 630THE SMALL BUSINESS CHALLENGE 632

Why Small Business Is Important 632

How Small Business Human Resource Management Is Different 632

Why HRM Is Important to Small Businesses 633

• THE STRATEGIC CONTEXT: Le Charcutier Aoun 634

USING INTERNET AND GOVERNMENT TOOLS TO SUPPORT THE HR EFFORT 634

2 2 CONTENTS

Complying with Employment Laws 634

Employment Planning and Recruiting 637

Employment Selection 637

Employment Training 638

Employment Appraisal and Compensation 639

Employment Safety and Health 640

LEVERAGING SMALL SIZE: FAMILIARITY, FLEXIBILITY, FAIRNESS, INFORMALITY,AND HRM 640

Simple, Informal Employee Selection Procedures 640

A Streamlined Interviewing Process 640

Work-Sampling Tests 642

Flexibility in Training 642

Flexibility in Benefits and Rewards 643

Improved Communications 646

• HR AS A PROFIT CENTER: IHOP 646Fairness and the Family Business 646

USING PROFESSIONAL EMPLOYER ORGANIZATIONS 647How Do PEOs Work? 647

Why Use a PEO? 647

Caveats 648

MANAGING HR SYSTEMS, PROCEDURES, AND PAPERWORK 649Introduction 649

Basic Components of Manual HR Systems 649

Automating Individual HR Tasks 650

Human Resource Information Systems (HRIS) 650

Improved Transaction Processing 651

Online Self-Processing 651

Improved Reporting Capability 651

HR System Integration 651

HRIS Vendors 651

HR and Intranets 651




EXPERIENTIAL EXERCISE: BUILDING AN HRIS 653

APPLICATION CASE: NETFLIX BREAKS THE RULES 653



ENDNOTES 655


APPENDIX A

APPENDIX B

APPENDICES

PHR and SPHR Knowledge Base

Comprehensive Cases 667

659

Glossary 681

Name and Organization Index 689

Subject Index 704

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