HRM Principle

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EDITION 1 PRINCIPLES OF HUMAN RESOURCE MANAGEMENT Scott SnelL Professor of Business Administration, University of Virginia Professor Emeritus of Management, Arizona State University SOUTH-WESTERN CENGAGE Learning- Australia • Brazil 'Japan • Korea • Mexico • Singapore • Spain • United Kingdom • United States

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The Challenge of Human Resources Management

Transcript of HRM Principle

Page 1: HRM Principle

EDITION 1

PRINCIPLES OF

HUMAN RESOURCE

MANAGEMENT

Scott SnelLProfessor of Business Administration,University of Virginia

Professor Emeritus of Management,Arizona State University

SOUTH-WESTERNCENGAGE Learning-

Australia • Brazil 'Japan • Korea • Mexico • Singapore • Spain • United Kingdom • United States

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PART Human Resource Management in Perspective

Chapter 1 The Challenge of Human Resources Management 2

Why Study Human Resources Management? 4

Competitive Challenges and Human Resources Management 5

Challenge 1: Competing, Recruiting, and Staffing Globally 5

Challenge 2: Embracing New Technology 7

Highlights in HRM 1: A Guide to HR Internet Sites 8

Highlights in HRM 2: Automation of Talent Management Functions 11Challenge 3: Managing Change 12

Challenge 4: Managing Talent, or Human Capital 13

Challenge 5: Responding to the Market 15

Challenge 6: Containing Costs 17

Demographic and Employee Concerns 22

Demographic Changes 22

Highlights in HRM 3: Social Issues in HRM 23

Cultural Changes 28

Highlights in HRM 4: Why Diversity? 30

The Partnership of Line Managers and HR Departments 31

Responsibilities of the Human Resources Manager 32

Competencies of the Human Resources Manager 33

Highlights in HRM 5: SHRM Code of Ethical and ProfessionalStandards in Human Resource Management 35

Role of the Line Manager 38

Summary 39

Key Terms 40

Discussion Questions 41

HRM Experience: Balancing Competitive Challenges and EmployeeConcerns 41

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Contents

Case Study 1: A Chip off the Rock: Outsourcing HR atPrudential 42

Case Study 2: Managing "Daddy Stress" at BaxterHealthcare 43

Notes and References 45

Chapter 2 Strategy and Human Resources Planning 48

Strategic Planning and Human Resources 50

Strategic Planning and HR Planning: Linking the Processes 51

Step One: Mission, Vision, and Values 51

Step Two: Environmental Analysis 53

Competitive Environment 53

Step Three: Internal Analysis 57

The Three Cs: Culture, Capabilities, and Composition 57

Forecasting: A Critical Element of Planning 61

Highlights in HRM 1: HR Planning and Strategy Questions to AskBusiness Managers 64

Assessing a Firm's Human Capital Readiness: Gap Analysis 67

Highlights in HRM 2: Succession-Planning Checklist 68

Step Four: Formulating Strategy 70

Corporate Strategy 70

Business Strategy 72

Highlights in HRM 3: Key HR Activities Associated with Merger orAcquisition Phases 73

Functional Strategy: Ensuring Alignment 75

Step Five: Strategy Implementation 76

Taking Action: Reconciling Supply and Demand 77

Step Six: Evaluation and Assessment 79Evaluation and Assessment Issues 79

Highlights in HRM 4: Ten Measures of Human Capital 80Measuring a Firm's Strategic Alignment 81

Ensuring Strategic Flexibility for the Future 82

Summary 84

Key Terms 85

Discussion Questions 85

HRM Experience: Customizing HR for Different Types ofHuman Capital 86

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PART

Case Study 1: Misplaced Affections: Discharge forSexual Harassment 87

Case Study 2: A "Bad Hair Day" or Religious Custom? 89

Notes and References 90

Appendix: Calculating Turnover and Absenteeism 93

Employee Turnover Rates 93

Computing the Turnover Rate 93

Determining the Costs of Turnover 94

Employee Absenteeism Rates 94

Computing Absenteeism Rates 94

Highlights in HRM 5: Costs Associated with the Turnoverof One Computer Programmer 95

Comparing Absenteeism Data 96

Costs of Absenteeism 96

Absenteeism and HR Planning 96

Notes and References 97

Meeting Human Resources Requirements

Chapter 3 Equal Employment Opportunity and Human ResourcesManagement 98

Historical Perspective of EEO Legislation 101

Changing National Values 101

Economic Disparity 102

Early Legal Developments 102

Government Regulation of Equal EmploymentOpportunity 102

Major Federal Laws 103

Highlights in HRM 1: Test Your Knowledge of Equal EmploymentOpportunity Law 104

Other Federal Laws and Executive Orders 114

Fair Employment Practice Laws 115

Other Equal Employment Opportunity Issues 116

Sexual Harassment 116

Highlights in HRM 2: Questions Used in Auditing SexualHarassment 118

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Highlights in HRM 3: Basic Components of an Effective SexualHarassment Policy 119

Sexual Orientation 120

Immigration Reform and Control 120

Uniform Guidelines on Employee Selection Procedures 121

Enforcing Equal Employment Opportunity Legislation 124

The Equal Employment Opportunity Commission 124

Record-Keeping and Posting Requirements 125

Highlights in HRM 4: 2007 EEO-1 Survey 127Processing Discrimination Charges 128

Highlights in HRM 5: EEOC Poster 129

Highlights in HRM 6: EEOC Guidelines on Retaliation 131

Preventing Discrimination Charges 132

Diversity Management: Affirmative Action 133

Establishing Affirmative Action Programs 133

Highlights in HRM 7: Basic Steps in Developing an EffectiveAffirmative Action Program 134

Managing Diversity: Affirmative Action 135

Summary 137

Key Terms 138

Discussion Questions 138

HRM Experience: Sexual Harassment: A Frank Discussion 139

Case Study 1: Building a Stealth Fighter with Virtual Teams 140

Case Study 2: Empty Cubicles: How Would You Managethe Vacancy? 141

Appendix: Determining Adverse Impact 143

Notes and References 144

Chapter 4 Job Analysis, Employee Involvement, and FlexibleWork Schedules 148

Relationship of Job Requirements and HRM Functions 150

Recruitment 150

Selection 151

Training and Development 151

Performance Appraisal 151

Compensation Management 151

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Contents XI

Job Analysis 152

Job Analysis and Essential Job Functions 152

Gathering Job Information 153

Controlling the Accuracy of Job Information 154

Approaches to Job Analysis 155

Job Descriptions 158

Highlights in HRM 1: Job Description for an Employment Assistant 159Problems with Job Descriptions 161

Writing Clear and Specific Job Descriptions 161 ,

Job Design 162

Behavioral Concerns 162

Highlights in HRM 2: Empowered Employees Achieve Results 165Industrial Engineering Considerations 166

Ergonomic Considerations 167

Designing Work for Group/Team Contributions 168

Flexible Work Schedules 174

Highlights in HRM 3: How to Request a Flexible Work Schedule 175

Summary 179

Key Terms 180

Discussion Questions 180

HRM Experience: Establishing Ground Rules for Team Success 180

Case Study 1: Human Resources Planning at Donna KaranInternational 182

Case Study 2: Moen's Recruiting Faucet 183

Notes and References 184

PART Developing Effectiveness in Human Resources

Chapter 5 Expanding the Talent Pool: Recruitment andCareers 186

Recruiting Talent Externally 188

Highlights in HRM 1: Marriott's Recruitment PrinciplesOutside Sources for Recruitment 190

The Global Labor Market 198

Improving the Effectiveness of External Recruitment 198

Recruiting Talent Internally 200

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Advantages and Limitations of Recruiting from Within 201

Methods for Identifying Qualified Candidates 202

Career Management: Developing Talent over Time 205

The Goal: Matching Individual and Organizational Needs 206

Identifying Career Opportunities and Requirements 207

Highlights in HRM 2: Career Path of Jeffrey Immelt, CEO, GeneralElectric 210

Career Development Initiatives 214

Developing a Diverse Talent Pool 220

Recruiting and Developing Women 221

Eliminating Women's Barriers to Advancement 221

Glass Ceiling Audits 223

Preparing Women for Management 223

Accommodating Families 224

Recruiting and Developing Minorities 224

Providing Minority Internships 225

Advancing Minorities to Management 225

Highlights in HRM'3: Diversity Recruitment That Works 226

Other Important Talent Concerns 227

Recruiting the Disabled 227

Less Publicized Disadvantages 229

Highlights in HRM 4: Resources and Tips for Hiring and RetainingEmployees with Disabilities 229

Employing the Older Workforce 231

Employing Dual Career Couples 232

Summary 233

Key Terms 234

Discussion Questions 234

HRM Experience: Career Management 235

Case Study 1: Nike: Hiring Gets Off on the Right Foot 235

Case Study 2: Small Companies Need Diversity Too 237

Notes and References 238

Appendix: Personal Career Development 241

Developing Personal Skills and Competencies 241

Choosing a Career 241

Highlights in HRM 5: Career Competencies at Caterpillar 242

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Use of Available Resources 242

Accuracy of Self-Evaluation 243

The Significance of Interest Inventories 243

Highlights in HRM 6: Campbell Interest and Skill Survey: IndividualProfile 244

Evaluating Long-Term Employment Opportunities 246

Choosing an Employer 246

Questions to Ask Yourself Before You Accept a Job Offer 247

Becoming an Entrepreneur 247

Keeping a Career in Perspective 248Developing Off-the-Job Interests 248

Balancing Marital and/or Family Life 249

Planning for Retirement 249

Key Term 250

Notes and References 250

Chapter 6 Employee Selection 252

Matching People and Jobs 254

Person-Job Fit: Beginning with Job Analysis 255

Person-Organization Fit 255

The Selection Process 255

Obtaining Reliable and Valid Information 256

Sources of Information about Job Candidates 259

Application Forms 260

Online Applications 262

Biographical Information Blanks 262

Background Checks 263

Highlights in HRM 1: Sample Reference-Checking Questions 265Polygraph Tests 267

Honesty and Integrity Tests 267

Graphology 268

Medical Examinations 269

Drug Testing 269

Employment Tests 271

Nature of Employment Tests 271

Highlights in HRM 2: Best Practices for Employee Testingand Selection 272

Classification of Employment Tests 272

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The Employment Interview 277

Interviewing Methods 277

Highlights in HRM 3: Sample Situational Interview Question 279

Highlights in HRM 4: iring Managers Reveal Top Five BiggestMistakes Candidates Make During Job Interviews in CareerBuilder.com Survey 280

Guidelines for Employment Interviewers 283

Diversity Management: Are Your Questions Legal? 286

Highlights in HRM 5: Appropriate and Inappropriate InterviewQuestions 287

Reaching a Selection Decision 288

Summarizing Information about Applicants 288

Decision-Making Strategy 288

Final Decision 291

Summary 292

Key Terms 293

Discussion Questions 293

HRM Experience: Designing Selection Criteria and Methods 294

Case Study 1: Tapping Unused Resources in Lean Times 295

Case Study 2: Kodak Gets the Picture in ExecutiveEducation 297

Notes and References 299

Chapter 7 Training and Development 304

The Scope of Training 306

Investments in Training 306

A Systems Approach to Training 307

Phase 1: Conducting the Needs Assessment 308

Organization Analysis 309

Highlights in HRM 1: Notes on Rapid Needs Assessment 310Task Analysis 311

Highlights in HRM 2: A Competency Assessment for a ManagerialPosition 312

Person Analysis 314

Phase 2: Designing the Training Program 314

Instructional Objectives 315

Trainee Readiness and Motivation 315

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Principles of Learning 316

Characteristics of Instructors 319

Phase 3: Implementing the Training Program 320

Training Methods for Nonmanagerial Employees 320

Methods for Management Development 328

Phase 4: Evaluating the Training Program 333

Criterion 1: Reactions 333

Criterion 2: Learning 334

Criterion 3: Behavior 334

Criterion 4: Results, or Return on Investment (ROI) 335

Highlights in HRM 3: Calculating Training ROI: Examples 336

Highlights in HRM 4: Benchmarking HR Training 337

Special Topics in Training and Development 338

Orientation Training 338

Basic Skills Training 339

Highlights in HRM 5: Checklist for Orienting New Employees 340Team Training and Cross-Training 341

Ethics Training 343

Diversity Training 344

Highlights in HRM 6: Additional Ethics Training Resources 345

Summary 347

Key Terms 348

Discussion Questions 348

HRM Experience: Training and Learning Principles 349

Case Study 1: UPS Delivers the Goods 350

Case Study 2: Preparing a Career Development Plan 351

Case Study 3: Kodak Gets the Picture in ExecutiveEducation 352

Notes and References 355

Chapter 8 Appraising and Improving Performance 360

Performance Appraisal Programs 362

The Purposes of Performance Appraisal 363

Why Appraisal Programs Sometimes Fail 364

Developing an Effective Appraisal Program 366

What Are the Performance Standards? 367

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Are You Complying with the Law? 369

Who Should Appraise Performance? 370

Putting It All Together: 360-Degree Appraisal 374

Training Appraisers 376

Highlights in HRM 1: Supervisor's Checklist for the PerformanceAppraisal 379

Performance Appraisal Methods 379

Trait Methods 380

Highlights in HRM 2: Graphic Rating Scale with Provisionfor Comments 381

Highlights in HRM 3: Example of a Mixed-Standard ScaleBehavioral Methods 383

Highlights in HRM 4: BARS and BOS Examples 385Results Methods 386

Highlights in HRM 5: Personal Scorecard 389Which Performance Appraisal Method to Use? 390

Appraisal Interviews 391

Three Types of Appraisal Interviews 391

Conducting the Appraisal Interview 392

Improving Performance 395

Summary 398

Key Terms 399

Discussion Questions 400

HRM Experience: Performance Diagnosis 401

Case Study 1: Goodyear Ends Ratings System Ahead ofDiscrimination Suit 402

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Case Study 2: 360-Degree Appraisal at Johnson & Johnson

Notes and References 406

Implementing Compensation and Security

Chapter 9 Managing Compensation 410

Strategic Compensation Planning 412

Linking Compensation to Organizational Objectives 413

The Pay-for-Performance Standard 414

The Bases for Compensation 418

Determining Compensation—The Wage Mix 418

Internal Factors 419

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Highlights in HRM 1: Comparison of Compensation Strategies 421

External Factors 422

Job Evaluation Systems 423

Job Ranking System 424

Job Classification System 424

Point System 424

Highlights in HRM 2: Point Values for Job Factors of the AmericanAssociation of Industrial Management 426

Work Valuation 426

Highlights in HRM 3: Description of Education Factor and Degrees of theAmerican Association of Industrial Management 427

Job Evaluation for Management Positions 428

The Compensation Structure 428

Wage and Salary Surveys 428

Highlights in HRM 4: Bureau of Labor Statistics NationalCompensation Survey 430

The Wage Curve 431

Pay Grades 431

Rate Ranges 432

Competence-Based Pay 434

Government Regulation of Compensation 435

Highlights in HRM 5: Minimum Wage Laws in the States 436Davis-Bacon Act of 1931 437

Walsh-Healy Act of 1936 437

Fair Labor Standards Act of 1938 (as Amended) 437

Highlights in HRM 6: The Federal Wage Poster 439

Significant Compensation Issues 441

The Issue of Equal Pay for Comparable Worth 442

The Issue of Low Salary Budgets 442

The Issue of Wage Rate Compression 442

Summary 444

Key Terms 445

Discussion Questions 445

HRM Experience: Why This Salary? 446

Case Study 1: Pay Decisions at Performance Sports 447

Case Study 2: Mission Possible: A Competency-Based Compensation Programfor BestSource and SCE Federal Credit Unions 448

Notes and References 449

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Chapter 10 Pay-for-Performance: Incentive Rewards 452

Strategic Reasons for Incentive Plans 454

Incentive Plans as Links to Organizational Objectives 454

Requirements for a Successful Incentive Plan 456

Setting Performance Measures 457

Administering Incentive Plans 457

Highlights in HRM 1: Setting Performance Measures—The Keys 458

Individual Incentive Plans 459

Piecework 459

Standard Hour Plan 460

Bonuses 460

Merit Pay 461

Lump Sum Merit Pay 462

Incentive Awards and Recognition 462

Sales Incentives 463

Highlights in HRM 2: Customize Your Noncash IncentiveAwards 464

Incentives for Professional Employees 465

The Executive Pay Package 466

Executive Compensation: Ethics and Accountability 469

Highlights in HRM 3: The "Sweetness" of Executive Perks 470Executive Compensation Reform 470

Group Incentive Plans 471

Team Compensation 471

Gainsharing Incentive Plans 472

Highlights in HRM 4: Lessons Learned: Designing EffectiveTeam Incentives 473

Enterprise Incentive Plans 476

Profit Sharing Plans 476

Employee Stock Options Plans 477

Highlights in HRM 5: Employee Stock Option Plans 478

Employee Stock Ownership Plans (ESOPs) 479

Advantages of ESOPs 479

Summary 480

Key Terms 481

Discussion Questions 481

HRM Experience: Awarding Salary Increases 482

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Case Study 1: Pay-for-Performance: The Merit Question 483

Case Study 2: Team-Based Incentive Rewards: It's NotAll Roses 484

Notes and References 485

Chapter 11 Employee Benefits 488Employee Benefits Programs 490

HRIS and Employee Benefits 490

Requirements for a Sound Benefits Program 491

Communicating Employee Benefits Information 493

Concerns of Management 495

Highlights in HRM 1: Crafting an Effective Benefits CommunicationProgram 495

Highlights in HRM 2: A Personalized Statement of Benefits Costs 496

Highlights in HRM 3: U.S. Chamber of Commerce Employee BenefitsSurvey—2007 497

Employee Benefits Required by Law 499

Social Security Insurance 499

Unemployment Insurance 500

Workers' Compensation Insurance 501

Consolidated Omnibus Budget Reconciliation Act (COBRA) 501

Family and Medical Leave Act 502

Older Workers Benefit Protection Act 503

Discretionary Major Employee Benefits 503

Health Care Benefits 503

Highlights in HRM 4: 'Your Rights": Another Federally Required Poster 504

Highlights in HRM 5: Employers Methods for Containing Health Care Costs 506

Payment for Time Not Worked 508

Supplemental Unemployment Benefits 509

Life Insurance 509

Long-Term Care Insurance 509

Retirement Programs 510

Pension Plans 511

Employee Services: Creating a Work/Life Setting 514

Employee Assistance Programs 515

Counseling Services 516

Child and Elder Care 516

Other Benefits and Services 517

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Summary 518

Key Terms 519

HRM Experience: Understanding Employer Benefit Programs 519

Discussion Questions 520

Case Study 1: Using "Sticky" Awards: KFC Does It Right 521

Case Study 2: Adobe's Family-Friendly Benefits: An Unexpected Backlash 522

Notes and References 523

Chapter 12 Promoting Safety and Health 526

Safety and Health: It's the Law 528

Highlights in HRM 1: Test Your Safety Smarts 529OSHA's Coverage 530

OSHA Standards 530

Enforcing OSHA Standards 530

OSHA Consultation Assistance 532

Responsibilities and Rights under OSHA 533

Highlights in HRM 2: What Are My Responsibilities under theOSH Act? 534

Right-to-Know Laws 535

OSHA's Enforcement Record 536

Promoting a Safe Work Environment 536

Creating a Culture of Safety 537

Enforcing Safety Rules 538

Investigating and Recording Accidents 539

Creating a Healthy Work Environment 539

Health Hazards and Issues 540

Highlights in HRM 3: Job Safety and Health ProtectionPoster 541

Highlights in HRM 4: Holsum Bakery's Workplace SmokingPolicy 543

Workplace Violence 546

Building Better Health 549

Employee Assistance Programs 551

Highlights in HRM 5: Selected Items from Salt River Project'sSubstance Abuse Policy 554

The Management of Stress 556

What Is Stress? 557

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Job-Related Stress 558

Coping with Stress 558

Summary 559

Key Terms 560

Discussion Questions 561

HRM Experience: Reducing Employee Stress 562

Case Study 1: Safety Training at Pro's Choice: It's NotWorking 563

Case Study 2: Coping with Stress at U.S. Customs 564

Notes and References 565

PART Enhancing Employee-Management Relations

Chapter 13 Employee Rights and Discipline 568

Employee Rights and Privacy 570

Employee Rights vs. Employer Responsibilities 571

Negligent Hiring 571

Job Protection Rights 571

Highlights in HRM 1: Examples of Employment-at-WillStatements 576

Privacy Rights 578

Electronic Surveillance and Monitoring 581

Disciplinary Policies and Procedures 587

The Results of Inaction 588

Setting Organizational Rules 589

Defining Discipline 590

Investigating the Disciplinary Problem 591

Approaches to Disciplinary Action 593

Discharging Employees 594

Highlights in HRM 2: Banner Health System Corrective ActionProcess 595

Alternative Dispute Resolution Procedures 598

Managerial Ethics in Employee Relations 601

Summary 602

Key Terms 604

Discussion Questions 604

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HRM Experience: Learning about Employee Rights 605

Case Study 1: Discharged for Off-Duty Behavior 606

Case Study 2: "You Can't Fire Me! I Passed the Test" 607

Notes and References 608

Chapter 14 The Dynamics of Labor Relations 612

Highlights in HRM 1: Test Your Labor Relations Know-How 615

Government Regulation of Labor Relations 616

Railway Labor Act 616

Norris-LaGuardia Act 616

Wagner Act 616

Taft-Hartley Act 618

Landrum-Griffin Act 619

The Labor Relations Process 619

Why Employees Unionize 619

Organizing Campaigns 621

Highlights in HRM 2: United Food and Commercial WorkersInternational Union Authorization Card 623

Employer Tactics Opposing Unionization 624

Highlights in HRM 3: Employer "Don'ts" during Union OrganizingCampaigns 625

How Employees Become Unionized 625

NLRB Representation Election 625

Impact of Unionization on Managers 626

Highlights in HRM 4: NLRB Election Poster 627

Structures, Functions, and Leadership of Labor Unions 628

Structure and Functions of the AFL-CIO 629

Structure and Functions of National Unions 629

Structure and Functions of Local Unions 630

Union Leadership Commitment and Philosophies 631

Labor Relations in the Public Sector 631

The Bargaining Process 632

Preparing for Negotiations 633

Gathering Bargaining Data 634

Developing Bargaining Strategies and Tactics 634

Negotiating the Labor Agreement 635

Good Faith Bargaining 635

Interest-Based Bargaining 637

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Management and Union Power in Collective Bargaining 637

Resolving Bargaining Deadlocks 639

The Labor Agreement 639

The Issue of Management Rights 640

Union Security Agreements 641

High l ights in HRM 5: I tems in a Labor Agreement 640

Administration of the Labor Agreement 641

Negotiated Grievance Procedures 641

The Grievance Procedure in Action 642

Grievance Arbitration 643

Contemporary Challenges to Labor Organizations 645

Foreign Competition and Technological Change 645

Decrease in Union Membership 645

Employers' Focus on Maintaining Nonunion Status 646

Summary 647

Key Terms 648

Discussion Questions 648

HRM Experience: Learn about Unions 649

Case Study 1: The Union Drive at Apollo Corporation: ULPs and OrganizingTactics 650

Case Study 2: The Arbitration Case of Jesse Stansky 651

Notes and References 652

PART Expanding Human Resources Management Horizons

Chapter 15 International Human Resources Management 656

Managing across Borders 658

How Does the Global Environment Influence Management? 660

Domestic versus International HRM 663

International Staffing 664

Recruiting Internationally 665

Selecting Employees Internationally 668

Highlights in HRM 1: Global Laws and Pacts ProhibitingDiscrimination 669

Highlights in HRM 2: Skills of Expatriate Managers 671

Training and Development 673

Content of Training Programs 674

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Highlights in HRM 3: Nonverbal Communications in DifferentCultures 677

Highlights in HRM 4: Repatriation Checklist 682

Compensation 683

Compensation of Host-Country Employees 683

Compensation of Host-Country Managers 685

Compensation of Expatriate Managers 686

Performance Appraisal 688

Who Should Appraise Performance? 688

Home versus Host-Country Evaluations 689

Performance Criteria 689

Providing Feedback 690

The Labor Environment Worldwide 691Collective Bargaining in Other Countries 691

International Labor Organizations 692

Labor Participation in Management 693

Summary 694

Key Terms 695

Discussion Questions 695

HRM Experience: An American (Expatriate) in Paris 696

Case Study 1: International HRM at Molex, Inc. 697

Case Study 2: How Deloitte Builds Global Expertise 699

Notes and References 703

Chapter 16 Creating High-Performance WorkSystems 708Fundamental Principles 710

Egalitarianism and Engagement 711

Shared Information 713

Knowledge Development 714

Performance-Reward Linkage 714

Anatomy of High-Performance Work Systems 715

Work-Flow Design and Teamwork 716

Complementary Human Resources Policies and Practices 716

Management Processes and Leadership 718

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Supportive Information Technologies 719

Fitting It All Together 719

Ensuring Internal Fit 719

Establishing External Fit 720

Assessing Strategic Alignment: The HR Scorecard 721

Implementing the System 721

Highlights in HRM 1A: Diagnosing Internal Fit 722

Highlights in HRM IB: Testing the Alignment of the HR System withHR Deliverables 723

Highlights in HRM 1C: Testing the Alignment of HRDeliverables 724

Building a Business Case for Change 724

Establishing a Communications Plan 725

Involving Unions 726

Navigating the Transition to High-Performance Work Systems 728

Evaluating the Success of the System and Sustaining It 730

Outcomes of High-Performance Work Systems 731

Employee Outcomes and Quality of Work Life 731

Organizational Outcomes and Competitive Advantage 732

Highlights in HRM 2: The Impact of High-Performance WorkSystems 733

Summary 734

Key Terms 734

Discussion Questions 735

HRM Experience: Assessing the Strategic Fit of High-PerformanceWork Systems 735

Case Study 1: HPWS at Tomex Incorporated 737

Case Study 2: HPWS at Xerox Corporation 738

Notes and References 740

Cases 745

Case 1: United Technologies Seeks Intangibles withEducation Plan 745

Case 2: Running the Global Recruiting Machine: ClientLogic 749

Case 3: Job Analysis and Hiring Decisions at Ovania Chemical 752

Case 4: Ill-Fated Love at Centrex Electronics 757

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Case 5: Returning Ethics to Putnam 758

Case 6: Realigning HR Practices at Egan's Clothiers 763

Case 7: A Performance Appraisal Snafu 765

Case 8: The Last Straw for Aero Engine 769

Case 9: I.B.M.: Take as Much Vacation Time as You Want To? 771

Case 10: Newell's Decision to Downsize: An Ethical Dilemma 774

Case 11: Someone Has to Go: A Tough Layoff Decision 776

Glossary 778

Name Index 789

Organization Index 791

Subjet Index 801