Human ResourceManagement

Functions, Applications, Skill Development

Robert N. LussierSpringfield College

John R. HendonUniversity of Arkansas at Little Rock

USAGELos Angeles | London | New Delhi

Singapore | Washington DC

Detailed Contents

About the Authors xxiv

Preface xxv

PART I. 21ST-CENTURY HUMAN RESOURCE MANAGEMENTSTRATEGIC PLANNING AND LEGAL ISSUES 1

Chapter 1 The New Human Resource Management Process 2

SHRM 3

Why Study Human Resource Management? 4

HRM Past and Present 6Past View of HRM 6Present View of HRM 6

21st-century HRIi 8HRM Challenges 8The HRM Strategic View 9/Technology and Knowledge 10Labor Demographics 11Productivity and Competitiveness Through HRM 12

HRM Skills 12Technical Skills 12Human Relations Skills 13Conceptual and Design Skills 13Business Skills 14

Line Managers' HRM Responsibilities 15Line Versus Staff Management 15Major HR Responsibilities of Line Management 15

HR Managers' Resonsibiiities: Disciplines Within HRW? 16The Legal Environment: EEO and Diversity Management 17Staffing 17Training and Development 20Employee Relations 20Labor and Industrial Relations 20Compensation and Benefits 20Safety and Security 21Ethics and Sustainability 21

HRM Careers 23The Society for Human Resource Management 23Other HR Organizations 24Professional liabiliy 24

The Practitioner's Model for HRM 24The Model 24Sections of the Model 25

Trends and Issues in HRM 27Technology and High-Performance

Work Systems 27Increasing Globalization 28Ethical Issues—Reverse Discrimination 28

Wrap-Up 29

Chapter Summary 30

Case 1.1 33

Chapter 2 Strategy-Driven Human Resource Management 38

SHRM 39

Strategy and Strategic Planning in the 21 st Century 41

The External Environment 41

Strategy 45What Is Strategy? 46Visions and Missions 47Types of Strategies 48How Strategy Affects HRM 49Strategic Analysis 50Designing a Strategy 52How HR Promotes Strategy 53

Structure 54Basics of Organizational Structure 54How Structure Affects Employee Behavior 56How Structure Affects HRM 57

Organizational Culture 57What Is Organizational Culture? 57How Culture Controls Employee Behavior in Organizations 59

Measurement Tools for Strategic HRM 60Economic Value Added 60Return on Investment 61Balanced Scorecard 61HR Scorecad 62

Human Resource Information Systems 62WhatlsanHRIS? 62How HRISs Assist in Making HR Decisions 62

Trends and Issues in HRM 63Globalization Increases the Need for Strategic Planning 63Ethics—Outsourcing and Employee Leasing 63Does a Small, Entrepreneurial Organization Need a Strategic Plan? 64

Can Sustainability Create a Competitive Advantage? 64

Wrap-Up 65

Chapter Summary 66

Case 2.1 69

Chapter 3 The Legal Environment and Diversity Management 74

SHRM 76

The Legal Environment for HRM-Protecting YourOrganization 78

A User's Guide to Managing People-The OUCH Test 78Objective 79Uniform in Application 79Consistent in Effect 79HasJobRelatedness 80

Major Employment Laws 81The Equal Pay Act of 1963 82TitleVIIoftheCivilRightsActofl964 82The Age Discrimination in Employment Act of 1967 85The Vietnam Era Veterans' Readjustment Assistance Act of 1974 86The Pregnancy Discrimination Act of 1978 87The Americans With Disabilities Act of 1990 as Amended in 2008 87TheCivil Rights Act of 1991 90The Uniformed Services Employment and Reemployment Rights Act of 1994 91The Veterans' Benefits Improvement Act of 2004 91Title II of the Genetic Information Nondiscrimination Act of 2008 91The Lilly Ledbetter Fair Pay Act of 2009 92Immigration Laws Relating to Employment and Equal Opportunity 92Reminder—State and Local Laws May Be Different 93

The Equal Employment Opportunity Commission 93What Does the EEOC Do? 93Employee Rights Under the EEOC 95Employer Prohibitions 95

EEO, Affirmative Action, and Diversity—What's the Difference? 96Affirmative Action 97The Office of Federal Contract Compliance Programs 98Diversity in the Workforce 98

Sexual Harassment-A Special Type ofDiscrimination 101Types of Sexual Harassment 101What Constitutes Sexual Harassment? 103Reducing Organizational Risk From

Sexual Harassment Lawsuits 104

Religious Discrimintion 106

Trends and Issues in HRM 106Religious Discrimination 106Is Managing Diversity the Path to Corporate

Sustainability? 107Are Global Employees Subject to U.S. EEO Laws? 107Help! My Small Organization Can't Comply With This Law! 108

Wrap-Up 108

Chapter Summary 109

Case 3.1 113

Case 3.2 114

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PART II. STAFFING 119

Chapter 4 Matching Employees With Jobs 120

SHRM 122

Employee and Job Matching 124

Work Flow Analysis 124Organizational Output 124Tasks and Inputs 125

Job Analysis 126Why Do We Need to Analyze Jobs? 126Databases 127Job Analysis Methods 127Do We Really Have "Jobs" Anymore? 130Task or Competency Based? 131Outcomes: Job Description

and Job Specification 131

JoB Design/Redesign 132Organizational Structure and Job Deign 132Approaches to Job Design and Redesign 134The Job Characteristics Model 135

Designing Motivational Jobs 137Job Simplification 137Job Expansion 137Work Teams 138Applying the Job Characteristics Model 139Job Design for Flexibility 140Job Design Is Country Specific 141

HR Forecasting 141Forecasting Methods 142Measuring Absenteeism and Turnover ] 44

Reconciling Internal LaborSupply and Demand 144Options for a Labor Surplus 146Options for a Labor Shortage 149

Succession Planning 152Trends and Issues in H RM 152

Work Flows and Job Design for Sustainability 152Diversity and Job Design 153High-Velocity and Entrepreneurial

Organizations Need Flexibility in Job Design 154

Wrap-Up 154Chapter Summary 155Case 4.1 158

Chapter 5 Recruiting Job Candidates 162

SHRM 163

The Recruiting Process 165

Defining the Process 165External Forces Acting on Recruiting Efforts 165

Recruiting Considerations and Sources 167What Policies to Set 167When to Recruit 167Alternatives to Recruitment 168Reach of the Recruiting Effort 168

Internal and External Recruiting 168Internal Recruiting 169External Recruiting 171

Challenges and Constraints in Recruiting 177Budgetary Constraints 177Organizational Policies and Image 177Job Characteristics and the Realistic Job Preview 178The Recruiter-Candidate Interaction 179

Evaluation of Recruiting Programs 181Yield Ratio 181Cost per Hire 182Time Required to Hire 182New Hire Turnover 182New Hire Performance 182

Trends and Issues in H RM 183Technology—The Internet and Recruiting Efforts 183Global Recruiting for Knowledge Workers 184Should We Recruit for Diversity? 185

Wrap-Up 185

Chapter Summary 186

Case 5.1 188

Chapter 6 Selecting New Employees 194

SHRM 195

The Selection Process 197The Importance of the Selection Process 197Steps in the Selection Process 198

Looking for Fit 198Personality-Job Fit 200Ability-Job Fit 200Person-Organization Fit 200

Uniform Guidelines on Employment SelectionProcedures 201What Qualifies as an Employment Test? 201Valid and Reliable Measures 201

Applications and Preliminary Screening 203Applications and Resumes 203Preemployment Inquiries 204

Testing and Legal Issues 206The EEOC and Employment Testing 206

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Polygraph Testing 207Genetic Testing 207Written Testing 208Physical Testing 210To Test, or Not to Test 213

Selection Interviews 213Interviewing 213Types of Interviews and Questions 214Preparing for the Interview 215Conducting the Interview 216

Background Checks 217Credit Checks 217Criminal Background Checks 219Reference Checks 219Web Searches 221

Selecting the Candidate and Offering the Job 222Problems to Avoid 222Hiring 223

Trends and Issues in HRM 223Selection With a Global Workforce 224Local Hiring as a Sustainable Business Practice 224

HRISs and the Selection Process 225

Wrap-Up 226

Chapter Summary 227

Case 6.1 230

PART III. DEVELOPING AND MANAGING 235

Chapter 7 Training, Learning, Talent Management, andDevelopment 236

SHRM 238

Training and Development and When It Is Needed 240Training and Development 240When Is Training Needed? 241

The Training Process and Needs Assessment 243Steps in the Training Process 243Needs Assessment 244Challenges to the Training Process 245Employee Readiness 246

Learning and Shaping Behavior 247Learning 247Learning Theories 248Shaping Behavior 249Learning Styles 252

Designing Training Methods 255Skills and Training Methods 255Employee and Managerial Use of Training Methods 256

Delivering Training 256On-the-Job Training 256Classroom Training 257Distance or E-Learning 258Simulations 259

Assessing Training 260Assessment Methods 260Choosing Assessment Methods 261

Talent Management and Development 262Careers 263Why Career Development? 264Common Methods of Employee Development 264A Model of Career Development

Consequences 266

Trends and Issues in HRM 269Does Diversity Training Work? 269Sustainability Training Progams 270Measuring Development Success 271

Outsourcing Employee Training and Development 272

Wrap-Up 273

Chapter Summary 274

Case 7.1 277

Chapter 8 Performance Management and Appraisal 282

SHRM 283

Performance Management Systems 285Performance Management Versus Performance Appraisal 285The Performance Appraisal'Process 285Accurate Performance Measures 287

Why Do We Conduct Performance Appraisals? 289Communicating 289Decision Making (Evaluating) 289Motivating (Developing) 290Evaluating and Motivating (Development) 290

What Do We Assess? 291Trait Appraisals 291Behavioral Appraisals 293Results/Outcomes Appraisals 294Which Option Is Best? 294

How Do We Use Appraisal Methods and Forms? 295Critical Incidents Method 296Management by Objectives (MBO) Method 297Narrative Method or Form 298Graphic Rating Scale Form 298Behaviorally Anchored Rating Scale (BARS)

Form 299Ranking Method 300Which Option Is Best? 300

Who Should Assess Performance? 300Supervisor 301Peers 302Subordinates 302Self 303Customers 304360° Evaluation 304Who Do We Choose? 305

Performance Appraisal Problems to Avoid 306Common Problems With the Performance Appraisal Process 306Avoiding Performance Appraisal Process Problems 308

Debriefing the Appraisal 310The Evaluative Performance Appraisal Interview 310The Developmental Performance Appraisal Interview 311

Trends and Issues in HRM 312Is It Time to Do Away With Performance Appraisals? 312Technology: Electronic Performance Monitoring 313Competency-Based Performance Management 314Align ing the Appraisal Process 314

Wrap-Up 315

Chapter Summary 316

Case 8.1 319

Case 8.2 321

Chapter 9 Rights and Employee Development 326

SHRM 327

Overview 329

Commonly Accepted Employee Rights 329Rights and Privileges 329Right to Free Consent 330Right to Due Process 331Right to Life and Safety 331Right to Freedom of Conscience (Limited) 331Right to Privacy (Limited) 331Right to Free Speech (Limited) 332

Management Rights 332Codes ofConduct 333Workplace Monitoring 334Employment-at-Will 334Orientation (Probationary) Periods 335Drug Testing 335

Developing or Terminating Individual Employees 336Coaching 336Counseling 338Disciplining 340Terminating 344Gross Negligence and Serious Miscond uct 345

Termination of Nonmanagerial Employees 345Managerial or Executive Employees 346Employee Coaching, Counseling,

and Discipline May Differ Globally 347

Developing Teams 347Leadership 347Situational Management Model 348Building Effective Work Teams 354Managing the Change Process 355Overcoming Resistance to Change 356

Trends and Issues in HRM 357Positive Leadership and

Organizational Discipline 357Facebook, Twitter, and So On @

Work—The Burden of Control 358Does a Commitment to Sustainability

Foster Employee Motivation 358

Wrap-Up 359

Chapter Summary 360

Case 9.1 363

Chapter 10 Employee and Labor Relations 368

SHRM 370

Labor Relations: A Function of Trust and Communication 372Trust and Communications 372 /Sending Messages 372Receiving Messages 374

Job Satisfaction 376Job Satisfaction/Dissatisfaction and Performance 377Measuring J ob Satisfaction 377Determinants of Job Satisfaction 379

Legal Issues in Labor Relations 380TheRailwayLaborActofl926 382The National Labor Relations

Actof 1935 (The Wagner Act) 382The Labor Management Relations

Act of 1947 (The Taft-Hartley Act) 383The Labor Management Reporting

and Disclosure Act of 1959 (The Landrum-Griffin Act) 384The Worker Adjustment and

Retraining Notification Act of 1988 384Other Legal Issues in Labor Relations 385

Unions and Labor Rights 389Union Organizing 389Labor Relations and Collective Bargaining 391Grievances 391

Management Rights and Decertification Elections 392Limiting Union Organizing Efforts 392

Lockouts and Replacement Workers 393Decertification Elections 394

Managing Conflict 394Conflict 394Conflict Management Styles 395Initiating Conflict Resolution 397

Negotiations 399The Negotiation Process 399Planning the Negotiation 400Conducting the Negotiation 401Postponing the Negotiation 402Alternative Dispute Resolution—Mediation and Arbitration 403

Trends and Issues in HRM 404Variance in Worldwide Labor Relations 404Is a Union Suppression Policy Ethical? 405Should Congress Pass a Card-Check Law? 406

WraprUp 407

Chapter Summary 409

Case 10.1 413

PART IV. COMPENSATING AND PROTECTING 417

Chapter 11 Compensation Management 418

SHRM 420

Compensation Management 422The Compensation System 422Motivation and Compensation Planning 423

Organizational Philosophy 427Ability to Pay 427What Types of Compensation? 427Pay for Performance or Pay for Longevity? 428Skill-Based or Competency-Based Pay? 429At, Above, or Below the Market? 429Wage Compression 430Pay Secrecy 431

Legal and Fairness Issues in Compensation 432Fair Labor Standards Act of 1938 (Amended) 432Pay Equity and Comparable Worth 437Other Legal Issues 438

Job Evaluation 438Job Ranking Method 439Point-Factor Method 439Factor Comparison Method 439

Developing a Pay System 440Job Structure and Pay Levels 441Pay Structure 444

Trends and Issues in HRM 446Is Minimum Wage a Sustainable Wage? 446Compensation in the

Global Environment 449A Shift From Base Pay to Variable Pay 449The Technology of Compensation 450

Wrap Up 450

Chapter Summary 452

Case 11.1 456

Chapter 12 Incentive Pay 460

SHRM 461

Why Do We Give Incentives? 463

Individual and Group-Based Incentives 463Individual Incentive Advantages and Disadvantages 464Group Incentive Advantages and Disadvantages 465

Incentive Options for Individuals 468Bonus 469Commissions 470Merit Pay 471Piecework Plans 472Standard Hour Plans 473Recognition and Other Nonmonetary Incentives 474Giving Praise 475

Incentive Options for Groups 476Profit Sharing Plans 477Gainsharing Plans 478Employee Stock Ownership Plans 478Stock Options and Stock Purchasing Plans 479Evenly Distributed or Fairly Distributed GroupIncentives? 480

Failure, Challenges, and Guidelines in Creating Incentive PaySystems 480Why Do Incentive Pay Systems Fail? 480Challenges to Incentive Pay Systems 483Guidelines for Creating Motivational Incentive Systems 485

Executive Compensation 490Too Much or Just Enough? 490The Dodd-Frank Wall Street Reform and Consumer Protection

Act of 2010 491Executive Incentives 491Short-Terrn Versus Long-Term 492The Goal of Executive Compensation 493

Trends and Issues in HRM 493Variable Pay Rising? 493Entrepreneurial Organizations

Rely on Incentives to Perform 494

Incentives to Act Unethically 494Incentives in Global Firms 495

Wrap-Up 495

Chapter Summary 497

Case 12.1 500

Chapter 13 Employee Benefits 504

SHRM 506

Overview of Benefits Management 508The Strategic Value of Benefits Programs 508Why Are Benefits Growing as a

Portion of Overall Compensation? 509Considerations in Providing Benefits

Programs 511

Statutory Benefits 512Social Security and Medicare 512Workers' Compensation 515Unemployment Insurance 518The Family and Medical Leave Act

of 1993 519The Patient Protection and

AffordableCareActof20I0 521Statutory Requirements When

Providing Certain VoluntaryBenefits 522

Voluntary Benefits 527Paid Time Off 527Group Health Insurance 528Retirement Benefits 533Employee Insurance Coverage 536Employee Services 538

Administration and Communication of Benefits 539Flexible Benefit (Cafeteria) Plans 539Canunutiicate Val ue to Employees 543

Trends and Issues in HRM 543Benefits for Domestic Partners 543Benefits Programs Around the World 544Sustainability-Based Benefits 545

Wrap-Up 546

Chapter Summary 547

Case 13.1 551

CHAPTER 14 Workplace Safety, Health, and Security 554

SHRM 556

Workplace Safety and OSHA 558The Occupational Safety and Health Act of 1970 558The Occupational Safety and Health Administration 559The National Institute for Occupational Safety

and Health 563Federal Notice Posting Requirements 563

Employee Health 564Work-Life Balance 564Employee Assistance and Wellness Programs 566Ergonomics and Musculoskeletal Disorders 567Safety and Health Management and Training 568

Stress 568Functional and Dysfunctional Stress 568Causes of Job Stress 569Stress Management 571The Stress Tug-of-War 574

Workplace Security 575Cyber Security 575Workplace Violence 576Employee Selection and Screening 578General Security Policies Including

Business Continuity ad Recovery 579

Trends and Issues in HRM 580Smoking and Indoor Clean Air 580Strong Leaders Demand Safe Workplaces 581

eDocAmerica—Health and Wellness Online 581

Wrap-Up 582

Chapter Summary 583

Case 14.1 586

Appendix A. SHRM 2010 Curriculum Guidebook A-1

Appendix B. Additional Cases A-9

Notes N-1

Photo Credits P-1

Index 1-1