Fundamentals of Human Resource Management Content, Competencies, and Applications
Florida International University
Pearson Education International
Contents Preface 21 Acknowledgments 23 About the Author 25 PART 1
Introduction
Chapter 1
27
Managing Human Resources Today
27
What Is Human Resource Management? 28 Why Is Human Resource Management Important to All Managers? 29 Line and Staff Aspects of HRM 29 Line Versus Staff Authority 29 Line Managers' Human Resource Management Responsibilities 30 Organizing the Human Resource Department's Responsibilities 30 The Changing Environment of Human Resource Management
32
Competitive Trends 33 Demographic and Workforce Trends 34 Human Resource Management's Changing Role
35
Example of HR Management's Changing Role 35 The Evolution to the New Human Resource Management 35 Important Human Resource Management Issues Today
36
New Human Resource Management Skills 36 Strategic Human Resource Management 37 HR and Technology 38 Managing Ethics 39 HR Certification 39 The Plan of This Book
40
The Chapters 40 Two Special Chapter Features 41
Review 41 Summary
41 •
Key Terms
41 •
Discussion Questions and Exercises 42
Application Exercises 42 M HR IN ACTION CASE INCIDENT 1: Jack Nelson's Problem
42
H HR IN ACTION CASE INCIDENT 2: Carter Cleaning Company Experiential Exercise
Chapter 2
42
43
Managing Equal Opportunity and Diversity Selected Equal Employment Opportunity Laws
45
46
Background 46 •
BUSINESS IN ACTION: Building Your Public Policy Knowledge
A Summary of U.S. Labor Laws
47
Equal Pay Act of 1963 47 Title VII of the 1964 Civil Rights Act 47 Executive Orders 47 Age Discrimination in Employment Act of 1967 48
46
CONTENTS Vocational Rehabilitation Act of 1973
48
Pregnancy Discrimination Act of 1978 48 Federal Agency Uniform Guidelines on Employee Selection Procedures 48 Sexual Harassment
48
Proving Sexual Harassment Court Decisions
49
50
Causes 50 •
PERSONAL COMPETENCIES: Building Your Ethical Skills 51
Decision-Making
•
HR IN PRACTICE: How to Minimize Liability in Sexual Harassment Claims 52
Selected Court Decisions Regarding Equal Employment Opportunity (EEO) 53 The Civil Rights Act of 1991 53 The Americans with Disabilities Act
54
Improving Productivity Through HRIS: Accommodating Disabled Employees
56
State and Local Equal Employment Opportunity Laws 57 •
GLOBAL ISSUES IN HR: Applying Equal Employment Law in a Global Setting 57
Summary
57
Defenses Against Discrimination Allegations What Is Adverse Impact?
Bona Fide Occupational Qualification Business Necessity
57
57 59
59
Illustrative Discriminatory Employment Practices
60
A Note on What You Can and Cannot Do 60 Recruitment
60
Selection Standards 61 Sample Discriminatory Promotion, Transfer, and Layoff Procedures The EEOC Enforcement Process Processing a Charge 62
62
62
How to Respond to Employment Discrimination Charges 63 Diversity Management and Affirmative Action Programs Managing Diversity
65
Boosting Workforce Diversity
65
Equal Employment Opportunity Versus Affirmative Action Steps in an Affirmative Action Program
Review Summary
64
66
66
68 68
•
Key Terms
69
•
Discussion Questions and Exercises
69
Application Exercises 69 • HR IN ACTION CASE INCIDENT 1: An Accusation of Sexual Harassment in Pro Sports 69 •
HR IN ACTION CASE INCIDENT 2: Carter Cleaning Company
Experiential Exercise
71
Chapter 3 Mergers, Acquisitions, and Strategic Human Resource Management 75 What Is Strategic Human Resource Management? The Strategic Management Process Steps in Strategic Management
76
77
77
Improving Productivity Through HRIS: Using Computerized Business Planning Software 80 Types of Strategies •
80
BUSINESS IN ACTION: Achieving Strategic Fit
The Importance of Leverage 82
81
70
CONTENTS
9
How Human Resource Management Creates Competitive Advantage Types of Competitive Advantage
Why Human Resources Are Important
83
Strategic Human Resource Management
84
Human Resource M a n a g e m e n t ' s Strategic Roles How Involved Is HR in Strategic Management? a
82
83
GLOBAL ISSUES IN HR: Offshoring
85
86
87
HR's Strategy Execution Role 87 HR's Strategy Formulation Role 87 •
HR IN PRACTICE: How t o Translate Strategy into Human Resource Policy and Practice
88
Strategic Human Resource Management: Einstein Medical Example
89
Strategic HR in Action: H u m a n Resource M a n a g e m e n t ' s Role in Mergers a n d Acquisitions
90
The Logic and Effectiveness of Mergers and Acquisitions
90
Why a Human Resource Management Role in Mergers and Acquisitions?
91
Human Resource Management's Specific Merger and Acquisition Roles 92 •
PERSONAL COMPETENCIES: Building Your Organizational Skills
Review Summary
94 Key Terms
95
Application Exercises
95
Activities
Culture
92
94
•
•
Discussion Questions and Group
95
H HR IN ACTION CASE INCIDENT 1: Is There Such a Thing as a Socially Responsible
Acquisition?
95
H HR IN ACTION CASE INCIDENT 2: The Carter Cleaning Company: The High-Quality Work System 96 Experiential Exercise 96 Part 1 Video Cases Appendix
97
Video 1: Introduction to Human Resource Management, and Strategic Human Resource Management
97
Video 2: Managing Equal Opportunity and Diversity
PART 2
97
Staffing the Organization 101
Chapter 4 Personnel Planning and Recruiting 101 Job Analysis 102 What Is Job Analysis? 102 Methods of Collecting Job Analysis Information 102 Writing Job Descriptions 104 Writing Job Specifications
107
Job Analysis in a "Jobless" World 108 Competency-Based Job Analysis 109
The Recruitment and Selection Process 109 Workforce Planning and Forecasting 110 How to Forecast Personnel Needs 111 Forecasting the Supply of Outside Candidates 112 Forecasting the Supply of Inside Candidates 112 Improving Productivity Through HRIS: Succession Planning Systems 114 Talent Management 114 Recruiting Job Candidates •
116
HR IN PRACTICE: The Hiring Manager's Obligations
Internal Sources of Candidates 116
116
10
CONTENTS Recruiting via the Internet 117 Advertising as a Source of Candidates 120 •
BUSINESS IN ACTION: Building Your Marketing
Knowledge
120
Employment Agencies as a Source of Candidates 121 H PERSONAL COMPETENCIES: Building Your Vendor Skills
Management
123
Executive Recruiters as a Source of Candidates 123 College Recruiting and Interns as a Source of Candidates 124 •
GLOBAL ISSUES IN HR: The Global Talent Search
124
Referrals and Walk-ins as a Source of Candidates 125 Summary of Current Recruitment Practices 126 Recruiting a More Diverse Workforce 126
Developing and Using Application Forms 128 Purpose of Application Forms 128 Equal Opportunity and Application Forms 128 After You Receive the Application 129
Review
131
Summary 131 • and Exercises 131
Key Terms
131
e
Discussion Questions
Application Exercises 132 m HR IN ACTION CASE INCIDENT 1: Finding People Who Are Passionate About What They Do 132 B HR IN ACTION CASE INCIDENT 2: Carter Cleaning Company: A Tight Labor Market for Cleaners—Applying Your Marketing Skills 133 Experiential Exercise 133
Appendix
136
Enrichment Topics in Job Analysis
Chapter 5
Selecting Employees
136
147
The Basics of Testing and Selecting Employees
148
Why Careful Selection Is Important 148 Reliability 148 Validity 149 How to Validate a Test 150 •
BUSINESS IN ACTION: Building Your Business Law Knowledge in Testing 151
Using Tests at Work
151
How Are Tests Used at Work? 151 •
GLOBAL ISSUES IN HR: Testing for Assignments Abroad
Types of Selection Interviews 159 How Useful Are Interviews? 161 How to Avoid Common Interviewing Mistakes 161 •
PERSONAL COMPETENCIES: Building Your Cross-Cultural Sensitivity: Skills to Reduce Employee Selection Errors 163
In Summary: Steps in Conducting an Effective Interview 164 S HR IN PRACTICE: Dos and Don'ts of Interview Questions Using Other Selection Techniques
166
Background Investigations and Reference Checks 166 Honesty Testing 169
166
CONTENTS •
HR IN PRACTICE: How to Spot Dishonesty
Graphology
170
171
Medical Exams 171 Drug Screening
171
Realistic Job Previews
172
Complying with Immigration Law 172 Evaluating the Selection Process
173
Improving Productivity Through HRIS: Comprehensive Automated Applicant Tracking and Screening Systems 173
Review
174
Summary 174 • Key Terms and Exercises 174 -
174
•
Discussion Questions
Application Exercises 175 i^
B HR IN ACTION CASE INCIDENT 1: Ethics and the Out-of-Control Interview 175 El HR IN ACTION CASE INCIDENT 2: Honesty Testing at Carter Cleaning Company 176 Experiential Exercise
177
Chapter 6 Training arid Developing Employees 183 Orienting Employees
184
Training's Purpose and Process Training Today •
185
185
BUSINESS IN ACTION: Building Your Strategic Management Knowledge 185
The Training and Development Process Traditional Training Techniques On-the-Job Training
186
188
188
Informal Learning
189
Apprenticeship Training Vestibule Training
189
189
Behavior Modeling
189
Videoconference Distance Learning
190
Computer and Internet-Based Training DVD-Based Training Simulated Learning
190
190 191
Internet-Based Training
191
Improving Productivity Through HRIS: Learning Management Systems The Virtual Classroom
193
Improving Web-Based Learning Mobile Learning
Training for Special Purposes •
193
194 194
GLOBAL ISSUES IN HR: Exporting Values
Managerial Development and Training Trends in Management Development Managerial On-the-Job Training Action Learning
196
197
197
The Case Study Method Management Games Outside Seminars
196
197
197
198
University-Related Programs
198
In-House Learning and Development Centers Organizational Development
199
199
195
193
11
12
CONTENTS Organizational Change
200
Lewin's Process for Overcoming Resistance
200
•
HR IN PRACTICE: A Process for Leading Organizational Change
•
PERSONAL COMPETENCIES: Building Your Leadership
Evaluating the Training and Development Effort Training Effects to Measure
Review Summary Exercises
Skills
201 201
202
202
205 205 206
•
Key Terms
206
•
Discussion Questions and
Application Exercises 207 B HR IN ACTION CASE INCIDENT 1: Reinventing the Wheel at Apex Door Company 207 •
HR INACTION CASE INCIDENT 2: Carter Cleaning Company: The New Training Program 207
Experiential Exercise
PART 3
208
Appraising and Compensating Employees
Chapter 7
Performance Management and Appraisal Basic Concepts in Performance Management Performance Management
212
BUSINESS IN ACTION: Improving Your Organizational Goal-Setting Knowledge 214
Why Appraise Performance?
Behavior/
215
Who Should Do the Appraising? Appraisal Methods
211
212
212
Defining the Employee's Goals and Work Efforts •
211
215
219
Graphic Rating Scale Method
219
Alternation Ranking Method
219
Paired Comparison Method
219
Forced Distribution Method
219
Critical Incident Method
223
Behaviorally Anchored Rating Scales 223 Appraisal Forms in Practice
223
The Management by Objectives Method
223
Computerized and Web-Based Performance Appraisals Electronic Performance Monitoring •
224
226
GLOBAL ISSUES IN HR: Appraising Employees Abroad
The Appraisal Feedback Interview Preparing for the Appraisal Interview Conducting the Interview
226
227
m PERSONAL COMPETENCIES: Building Your Skills 227 Appraisal Problems Unclear Standards Halo Effect
226
226
Communications
228 228
228
Central Tendency
229
Leniency or Strictness
229
Bias 229 Legal Issues in Performance Appraisal •
229
HR IN PRACTICE: Making Appraisals More Defensible
Performance Management
230
What Is Performance Management?
230
230
CONTENTS Why Performance Management?
13
231
Information Technology-Supported Performance Management 232 Improving Productivity Through HRIS: RW's New Performance Management System 236 Career Management
236
The Employee's Role 237 The Employer's Role in Career Management Gender Issues in Career Development Managing Promotions and Transfers Retirement Counseling
Review Summary Exercises
238
239 240
240
241 241 242
•
Key Terms
242
•
Discussion Questions and
Application Exercises 242 m HR IN ACTION CASE INCIDENT 1: Appraising the Secretaries at Sweetwater U
242
H HR IN ACTION CASE INCIDENT 2: Carter Cleaning Company: The Performance Appraisal 243 Experiential Exercise
Chapter 8
244
Compensating Employees
249
What Determines How Much You Pay? Some Important Compensation Laws
250
250
How Unions Influence Compensation Decisions Compensation Policies
252
252
Equity and Its Impact on Pay Rates 252 How Employers Establish Pay Rates Step 1: Conduct the Salary Survey
253
253
Step 2: Determine the Worth of Each Job: Job Evaluation
253
B HR IN PRACTICE: Steps in the Ranking Method of Job Evaluation Step 3: Group Similar Jobs into Pay Grades
255
Step 4: Price Each Pay Grade: Wage Curves
255
Step 5: Develop Rate Ranges 255 Pricing Managerial and Professional Jobs 256 Current Trends in Compensation
257
Competency- and Skill-Based Pay 257 Broadbanding I
258
• GLOBAL ISSUES IN HR: Compensating Expatriate Employees Board Oversight of Executive Pay 259 Incentive Plans
259
Piecework Plans 260 Incentives for Managers and Executives Incentives for Salespeople
260
261
Non-Tangible and Recognition-Based Awards
261
B HR IN PRACTICE: Incentives Supervisors Can Use Online Award Programs Merit Pay as an Incentive
263
E3 PERSONAL COMPETENCIES: Building Your Skills and Team Incentives Profit-sharing Plans
CONTENTS Improving Productivity Through HRIS: Incentive Management Systems 266
Employee Benefits 266 Pay for Time Not Worked 266 Insurance Benefits 268 Hospitalization, Medical, and Disability Insurance 269 U.S. Retirement Benefits 271 Employee Services and Family-Friendly Benefits 273 Flexible Benefits 274 Benefits and Employee Leasing 275 Benefits Web Sites 275 •
BUSINESS IN ACTION: Building Your Finance and Knowledge 276
Review
Budgeting
276
Summary 276 • and Exercises 277
Key Terms
277 •
Discussion Questions
Application Exercises 278 H HR IN ACTION CASE INCIDENT 1 : Inserting the Team Concept into Compensation—or Not 278 H HR IN ACTION CASE INCIDENT 2 : Carter Cleaning Company: The Incentive Plan 279 Experiential Exercise 279
PART 4
Employee and Labor Relations 285
Chapter 9 Ethics, Employee Rights, and Fair Treatment at Work 285 Ethics, Employee Rights, and Fair Treatment at Work 286 Workplace Unfairness 286 Why Treat Employees Fairly? 287 The Meaning of Ethics 287 Ethics and the Law 288 •
BUSINESS IN ACTION: Building Your Employee and Business Law Knowledge 288
Rights
What Shapes Ethical Behavior at Work? 289 Individual Factors 289 Organizational Pressures 291 The Boss's Influence 292 Ethics Policies and Codes 292 The Organization's Culture 293 El PERSONAL COMPETENCIES: Building Your Organizational Skills 293 Research Findings: Important Facts About Cultivating Ethical Behavior at Work 294
HR Management's Role in Ethics and Fair Treatment 295 Staffing and Selection 295 Training 296 Improving Productivity Through HRIS: Web-Based Ethics Training 296 Performance Appraisal 296 Reward and Disciplinary Systems 297 Workplace Aggression and Violence 297 Building Two-Way Communication 298 Other Illustrative HR Ethics Activities 298
Employee Discipline and Privacy 298
Culture
CONTENTS Three Pillars •
15
299
HR IN PRACTICE: Fair Discipline Guidelines
Employee Privacy
300
301
Managing Dismissals
303
Grounds for Dismissal 303 Avoiding Wrongful Discharge Suits Personal Supervisory Liability The Termination Interview
304
304
305
Layoffs and the Plant Closing Law 306 •
GLOBAL ISSUES IN HR: Employment Contracts
Adjusting to Downsizings and Mergers
Review Summary Exercises
308 308 309
Application •
307
308
•
Key Terms
Exercises
309
•
Discussion Questions and
310
HR IN ACTION CASE INCIDENT 1: Enron, Ethics, and Organizational Culture 310
B HR IN ACTION CASE INCIDENT 2: Carter Cleaning Company: Guaranteeing Fair Treatment Experiential Exercise
Ethics Quiz Answers
Chapter 10
310
311
311
Working with Unions and Resolving Disputes The Labor Movement
315
316
Unions Today 316 Why Do Workers Organize? /
316
What Do Unions Want? What Are Their Aims? 317 TheAFL-CIO
318
Unions and the Law
318
Period of Strong Encouragement: The Norris-LaGuardia Act (1932) and the National Labor Relations Act (1935)
318
Period of Modified Encouragement Coupled with Regulation: The Taft-Hartley Act (1947) 319 Period of Detailed Regulation of Internal Union Affairs: The Landrum-Griffin Act (1959) 321 •
BUSINESS IN ACTION: Building Your Social Knowledge 321
The Union Drive and Election Step 1: Initial Contact
Responsibility
322
322
Improving Productivity Through HRIS: Unions Go Online
323
Step 2: Authorization Cards 324 Step 3: The Hearing
324
Step 4: The Campaign
326
a HR IN PRACTICE: The Supervisor's Role in the Unionizing Effort Step 5: The Election
328
Decertification Elections: When Employees Want to Oust Their Union The Collective Bargaining Process What Is Collective Bargaining? What Is Good-Faith Bargaining?
329
329 329
The Negotiating Team 330 H PERSONAL COMPETENCIES: Building Your Skills
330
Bargaining Items
331
Negotiating
328
326
16
CONTENTS Bargaining Stages
331
B HR IN PRACTICE: Negotiating Guidelines Impasses, Mediation, and Strikes The Contract Agreement Handling Grievances
332
332
336
336
a HR IN PRACTICE: Guidelines for How to Handle a Grievance Dispute Resolution
