Human Resource Management Functions, Applications, Skill Development
Robert N. Lussier Springfield College
John R. Hendon University of Arkansas at ...
Human Resource Management Functions, Applications, Skill Development
Robert N. Lussier Springfield College
John R. Hendon University of Arkansas at Little Rock
USAGE Los Angeles | London | New Delhi Singapore | Washington DC
Detailed Contents
About the Authors Preface
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PART I. 21ST-CENTURY HUMAN RESOURCE MANAGEMENT STRATEGIC PLANNING AND LEGAL ISSUES 1 Chapter 1 The New Human Resource Management Process 2 SHRM 3 Why Study Human Resource Management?
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HRM Past and Present 6 Past View of HRM 6 Present View of HRM 6
21st-century HRIi 8 HRM Challenges 8 The HRM Strategic View 9/ Technology and Knowledge 10 Labor Demographics 11 Productivity and Competitiveness Through HRM HRM Skills 12 Technical Skills 12 Human Relations Skills 13 Conceptual and Design Skills Business Skills 14
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Line Managers' HRM Responsibilities 15 Line Versus Staff Management 15 Major HR Responsibilities of Line Management
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HR Managers' Resonsibiiities: Disciplines Within HRW? 16 The Legal Environment: EEO and Diversity Management 17 Staffing 17 Training and Development 20 Employee Relations 20 Labor and Industrial Relations 20 Compensation and Benefits 20 Safety and Security 21 Ethics and Sustainability 21 HRM Careers 23 The Society for Human Resource Management Other HR Organizations 24 Professional liabiliy 24
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The Practitioner's Model for HRM The Model 24 Sections of the Model 25
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Trends and Issues in HRM 27 Technology and High-Performance Work Systems 27 Increasing Globalization 28 Ethical Issues—Reverse Discrimination Wrap-Up
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Chapter Summary
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Case 1.1 33
Chapter 2
Strategy-Driven Human Resource Management
SHRM
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Strategy and Strategic Planning in the 21 st Century The External Environment
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Strategy 45 What Is Strategy? 46 Visions and Missions 47 Types of Strategies 48 How Strategy Affects HRM 49 Strategic Analysis 50 Designing a Strategy 52 How HR Promotes Strategy 53
Structure 54 Basics of Organizational Structure 54 How Structure Affects Employee Behavior How Structure Affects HRM 57
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Organizational Culture 57 What Is Organizational Culture? 57 How Culture Controls Employee Behavior in Organizations Measurement Tools for Strategic HRM Economic Value Added 60 Return on Investment 61 Balanced Scorecard 61 HR Scorecad 62
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Human Resource Information Systems 62 WhatlsanHRIS? 62 How HRISs Assist in Making HR Decisions 62 Trends and Issues in HRM 63 Globalization Increases the Need for Strategic Planning 63 Ethics—Outsourcing and Employee Leasing 63 Does a Small, Entrepreneurial Organization Need a Strategic Plan? Can Sustainability Create a Competitive Advantage? Wrap-Up
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Chapter Summary Case 2.1
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Chapter 3
The Legal Environment and Diversity Management 74
SHRM 76
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The Legal Environment for HRM-Protecting Your Organization 78
CONTRACT AGREEMENjVy
A User's Guide to Managing People-The OUCH Test 78 Objective 79 Uniform in Application 79 Consistent in Effect 79 HasJobRelatedness 80
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EEO, Affirmative Action, and Diversity—What's the Difference? Affirmative Action 97 The Office of Federal Contract Compliance Programs 98 Diversity in the Workforce 98
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Sexual Harassment-A Special Type of Discrimination 101 Types of Sexual Harassment 101 What Constitutes Sexual Harassment? 103 Reducing Organizational Risk From Sexual Harassment Lawsuits 104 Religious Discrimintion 106 Trends and Issues in HRM 106 Religious Discrimination 106 Is Managing Diversity the Path to Corporate Sustainability? 107 Are Global Employees Subject to U.S. EEO Laws? 107 Help! 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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-PLANT mean* PlaUtt Ultf d e m t m W e S AC
Major Employment Laws 81 The Equal Pay Act of 1963 82 TitleVIIoftheCivilRightsActofl964 82 The Age Discrimination in Employment Act of 1967 85 The Vietnam Era Veterans' Readjustment Assistance Act of 1974 86 The Pregnancy Discrimination Act of 1978 87 The Americans With Disabilities Act of 1990 as Amended in 2008 87 TheCivil Rights Act of 1991 90 The Uniformed Services Employment and Reemployment Rights Act of 1994 91 The Veterans' Benefits Improvement Act of 2004 91 Title II of the Genetic Information Nondiscrimination Act of 2008 91 The Lilly Ledbetter Fair Pay Act of 2009 92 Immigration Laws Relating to Employment and Equal Opportunity 92 Reminder—State and Local Laws May Be Different 93 The Equal Employment Opportunity Commission What Does the EEOC Do? 93 Employee Rights Under the EEOC 95 Employer Prohibitions 95
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PART II. STAFFING Chapter 4
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Matching Employees With Jobs
SHRM
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Employee and Job Matching
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Work Flow Analysis 124 Organizational Output 124 Tasks and Inputs 125 Job Analysis 126 Why Do We Need to Analyze Jobs? 126 Databases 127 Job Analysis Methods 127 Do We Really Have "Jobs" Anymore? 130 Task or Competency Based? 131 Outcomes: Job Description and Job Specification 131 JoB Design/Redesign 132 Organizational Structure and Job Deign 132 Approaches to Job Design and Redesign 134 The Job Characteristics Model 135 Designing Motivational Jobs 137 Job Simplification 137 Job Expansion 137 Work Teams 138 Applying the Job Characteristics Model 139 Job Design for Flexibility 140 Job Design Is Country Specific 141 HR Forecasting 141 Forecasting Methods 142 Measuring Absenteeism and Turnover ] 44 Reconciling Internal Labor Supply and Demand 144 Options for a Labor Surplus 146 Options for a Labor Shortage 149 Succession Planning 152 Trends and Issues in H RM 152 Work Flows and Job Design for Sustainability 152 Diversity and Job Design 153 High-Velocity and Entrepreneurial Organizations Need Flexibility in Job Design 154
Wrap-Up 154 Chapter Summary 155 Case 4.1 158 Chapter 5
Recruiting Job Candidates
SHRM
163
The Recruiting Process
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Defining the Process 165 External Forces Acting on Recruiting Efforts Recruiting Considerations and Sources What Policies to Set 167 When to Recruit 167 Alternatives to Recruitment 168 Reach of the Recruiting Effort 168 Internal and External Recruiting Internal Recruiting 169 External Recruiting 171
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Challenges and Constraints in Recruiting 177 Budgetary Constraints 177 Organizational Policies and Image 177 Job Characteristics and the Realistic Job Preview The Recruiter-Candidate Interaction 179 Evaluation of Recruiting Programs Yield Ratio 181 Cost per Hire 182 Time Required to Hire 182 New Hire Turnover 182 New Hire Performance 182
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Trends and Issues in H RM 183 Technology—The Internet and Recruiting Efforts Global Recruiting for Knowledge Workers 184 Should We Recruit for Diversity? 185 Wrap-Up
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Chapter Summary
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Case 5.1 188
Chapter 6
Selecting New Employees
SHRM
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The Selection Process 197 The Importance of the Selection Process Steps in the Selection Process 198
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Looking for Fit 198 Personality-Job Fit 200 Ability-Job Fit 200 Person-Organization Fit 200 Uniform Guidelines on Employment Selection Procedures 201 What Qualifies as an Employment Test? 201 Valid and Reliable Measures 201 Applications and Preliminary Screening Applications and Resumes 203 Preemployment Inquiries 204 Testing and Legal Issues 206 The EEOC and Employment Testing
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Polygraph Testing 207 Genetic Testing 207 Written Testing 208 Physical Testing 210 To Test, or Not to Test 213 Selection Interviews 213 Interviewing 213 Types of Interviews and Questions 214 Preparing for the Interview 215 Conducting the Interview 216 Background Checks 217 Credit Checks 217 Criminal Background Checks 219 Reference Checks 219 Web Searches 221 Selecting the Candidate and Offering the Job Problems to Avoid 222 Hiring 223
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Trends and Issues in HRM 223 Selection With a Global Workforce 224 Local Hiring as a Sustainable Business Practice 224 HRISs and the Selection Process 225 Wrap-Up
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Chapter Summary
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Case 6.1 230
PART III. DEVELOPING AND MANAGING
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Chapter 7 Training, Learning, Talent Management, and Development 236 SHRM 238 Training and Development and When It Is Needed Training and Development 240 When Is Training Needed? 241 The Training Process and Needs Assessment Steps in the Training Process 243 Needs Assessment 244 Challenges to the Training Process 245 Employee Readiness 246 Learning and Shaping Behavior Learning 247 Learning Theories 248 Shaping Behavior 249 Learning Styles 252
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Designing Training Methods 255 Skills and Training Methods 255 Employee and Managerial Use of Training Methods 256
Delivering Training 256 On-the-Job Training 256 Classroom Training 257 Distance or E-Learning 258 Simulations 259 Assessing Training 260 Assessment Methods 260 Choosing Assessment Methods
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Talent Management and Development 262 Careers 263 Why Career Development? 264 Common Methods of Employee Development A Model of Career Development Consequences 266
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Trends and Issues in HRM 269 Does Diversity Training Work? 269 Sustainability Training Progams 270 Measuring Development Success 271 Outsourcing Employee Training and Development Wrap-Up
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Chapter Summary
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Case 7.1 277 Chapter 8
Performance Management and Appraisal
SHRM
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Performance Management Systems 285 Performance Management Versus Performance Appraisal The Performance Appraisal'Process 285 Accurate Performance Measures 287 Why Do We Conduct Performance Appraisals? 289 Communicating 289 Decision Making (Evaluating) 289 Motivating (Developing) 290 Evaluating and Motivating (Development) 290 What Do We Assess? 291 Trait Appraisals 291 Behavioral Appraisals 293 Results/Outcomes Appraisals Which Option Is Best? 294
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How Do We Use Appraisal Methods and Forms? Critical Incidents Method 296 Management by Objectives (MBO) Method 297 Narrative Method or Form 298 Graphic Rating Scale Form 298 Behaviorally Anchored Rating Scale (BARS) Form 299 Ranking Method 300 Which Option Is Best? 300
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Who Should Assess Performance? Supervisor 301 Peers 302 Subordinates 302 Self 303 Customers 304 360° Evaluation 304 Who Do We Choose? 305
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Performance Appraisal Problems to Avoid 306 Common Problems With the Performance Appraisal Process Avoiding Performance Appraisal Process Problems 308 Debriefing the Appraisal 310 The Evaluative Performance Appraisal Interview 310 The Developmental Performance Appraisal Interview 311 Trends and Issues in HRM 312 Is It Time to Do Away With Performance Appraisals? 312 Technology: Electronic Performance Monitoring 313 Competency-Based Performance Management 314 Align ing the Appraisal Process 314 Wrap-Up 315 Chapter Summary Case 8.1 319 Case 8.2 321 Chapter 9
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Rights and Employee Development
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SHRM 327 Overview
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Commonly Accepted Employee Rights 329 Rights and Privileges 329 Right to Free Consent 330 Right to Due Process 331 Right to Life and Safety 331 Right to Freedom of Conscience (Limited) 331 Right to Privacy (Limited) 331 Right to Free Speech (Limited) 332 Management Rights 332 Codes ofConduct 333 Workplace Monitoring 334 Employment-at-Will 334 Orientation (Probationary) Periods 335 Drug Testing 335 Developing or Terminating Individual Employees Coaching 336 Counseling 338 Disciplining 340 Terminating 344 Gross Negligence and Serious Miscond uct 345
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Termination of Nonmanagerial Employees 345 Managerial or Executive Employees 346 Employee Coaching, Counseling, and Discipline May Differ Globally 347 Developing Teams 347 Leadership 347 Situational Management Model 348 Building Effective Work Teams 354 Managing the Change Process 355 Overcoming Resistance to Change 356 Trends and Issues in HRM 357 Positive Leadership and Organizational Discipline 357 Facebook, Twitter, and So On @ Work—The Burden of Control 358 Does a Commitment to Sustainability Foster Employee Motivation Wrap-Up
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Chapter Summary
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Case 9.1 363 Chapter 10
Employee and Labor Relations
SHRM
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Labor Relations: A Function of Trust and Communication Trust and Communications 372 / Sending Messages 372 Receiving Messages 374 Job Satisfaction 376 Job Satisfaction/Dissatisfaction and Performance Measuring J ob Satisfaction 377 Determinants of Job Satisfaction 379
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Legal Issues in Labor Relations 380 TheRailwayLaborActofl926 382 The National Labor Relations Actof 1935 (The Wagner Act) 382 The Labor Management Relations Act of 1947 (The Taft-Hartley Act) 383 The Labor Management Reporting and Disclosure Act of 1959 (The Landrum-Griffin Act) The Worker Adjustment and Retraining Notification Act of 1988 384 Other Legal Issues in Labor Relations 385 Unions and Labor Rights 389 Union Organizing 389 Labor Relations and Collective Bargaining Grievances 391
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Management Rights and Decertification Elections Limiting Union Organizing Efforts 392
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Lockouts and Replacement Workers Decertification Elections 394
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Managing Conflict 394 Conflict 394 Conflict Management Styles 395 Initiating Conflict Resolution 397 Negotiations 399 The Negotiation Process 399 Planning the Negotiation 400 Conducting the Negotiation 401 Postponing the Negotiation 402 Alternative Dispute Resolution—Mediation and Arbitration
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Trends and Issues in HRM 404 Variance in Worldwide Labor Relations 404 Is a Union Suppression Policy Ethical? 405 Should Congress Pass a Card-Check Law? 406 WraprUp
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Chapter Summary Case 10.1
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PART IV. COMPENSATING AND PROTECTING Chapter 11
Compensation Management
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SHRM 420 Compensation Management 422 The Compensation System 422 Motivation and Compensation Planning
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Organizational Philosophy 427 Ability to Pay 427 What Types of Compensation? 427 Pay for Performance or Pay for Longevity? 428 Skill-Based or Competency-Based Pay? 429 At, Above, or Below the Market? 429 Wage Compression 430 Pay Secrecy 431 Legal and Fairness Issues in Compensation 432 Fair Labor Standards Act of 1938 (Amended) 432 Pay Equity and Comparable Worth 437 Other Legal Issues 438 Job Evaluation 438 Job Ranking Method 439 Point-Factor Method 439 Factor Comparison Method
Developing a Pay System
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Job Structure and Pay Levels Pay Structure 444
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Trends and Issues in HRM 446 Is Minimum Wage a Sustainable Wage? 446 Compensation in the Global Environment 449 A Shift From Base Pay to Variable Pay 449 The Technology of Compensation 450 Wrap Up
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Chapter Summary
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Case 11.1 456
Chapter 12
Incentive Pay
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SHRM 461 Why Do We Give Incentives?
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Individual and Group-Based Incentives 463 Individual Incentive Advantages and Disadvantages 464 Group Incentive Advantages and Disadvantages 465 Incentive Options for Individuals 468 Bonus 469 Commissions 470 Merit Pay 471 Piecework Plans 472 Standard Hour Plans 473 Recognition and Other Nonmonetary Incentives Giving Praise 475
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Incentive Options for Groups 476 Profit Sharing Plans 477 Gainsharing Plans 478 Employee Stock Ownership Plans 478 Stock Options and Stock Purchasing Plans 479 Evenly Distributed or Fairly Distributed Group Incentives? 480 Failure, Challenges, and Guidelines in Creating Incentive Pay Systems 480 Why Do Incentive Pay Systems Fail? 480 Challenges to Incentive Pay Systems 483 Guidelines for Creating Motivational Incentive Systems 485 Executive Compensation 490 Too Much or Just Enough? 490 The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 491 Executive Incentives 491 Short-Terrn Versus Long-Term 492 The Goal of Executive Compensation 493 Trends and Issues in HRM 493 Variable Pay Rising? 493 Entrepreneurial Organizations Rely on Incentives to Perform
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Incentives to Act Unethically 494 Incentives in Global Firms 495 Wrap-Up 495 Chapter Summary 497 Case 12.1 Chapter 13
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Employee Benefits
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SHRM 506 Overview of Benefits Management 508 The Strategic Value of Benefits Programs 508 Why Are Benefits Growing as a Portion of Overall Compensation? 509 Considerations in Providing Benefits Programs 511 Statutory Benefits 512 Social Security and Medicare 512 Workers' Compensation 515 Unemployment Insurance 518 The Family and Medical Leave Act of 1993 519 The Patient Protection and AffordableCareActof20I0 521 Statutory Requirements When Providing Certain Voluntary Benefits 522 Voluntary Benefits 527 Paid Time Off 527 Group Health Insurance 528 Retirement Benefits 533 Employee Insurance Coverage 536 Employee Services 538 Administration and Communication of Benefits 539 Flexible Benefit (Cafeteria) Plans 539 Canunutiicate Val ue to Employees 543 Trends and Issues in HRM 543 Benefits for Domestic Partners 543 Benefits Programs Around the World Sustainability-Based Benefits 545 Wrap-Up 546 Chapter Summary 547 Case 13.1
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CHAPTER 14 Workplace Safety, Health, and Security SHRM
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Workplace Safety and OSHA 558 The Occupational Safety and Health Act of 1970 558 The Occupational Safety and Health Administration 559 The National Institute for Occupational Safety and Health 563 Federal Notice Posting Requirements 563 Employee Health 564 Work-Life Balance 564 Employee Assistance and Wellness Programs 566 Ergonomics and Musculoskeletal Disorders 567 Safety and Health Management and Training 568 Stress 568 Functional and Dysfunctional Stress Causes of Job Stress 569 Stress Management 571 The Stress Tug-of-War 574
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Workplace Security 575 Cyber Security 575 Workplace Violence 576 Employee Selection and Screening 578 General Security Policies Including Business Continuity ad Recovery 579 Trends and Issues in HRM 580 Smoking and Indoor Clean Air 580 Strong Leaders Demand Safe Workplaces
