1 Managing Human Resources 1
Introduction 1
Human Resources and Company Performance 3
Responsibilities of Human Resource Departments 5
Analyzing and Designing Jobs 6
Recruiting and Hiring Employees 6
BEST PRACTICES 7
Success in Global Fast Food Depends on Good Selection for Overseas Assignments 7
Training and Developing Employees 8
Managing Performance 9
Planning and Administering Pay and Benefits 10
Maintaining Positive Employee Relations 11
Establishing and Administering Personnel Policies 11
Ensuring Compliance with Labor Laws 11
Supporting the Organization’s Strategy 13
Skills of HRM Professionals 13
HR HOW TO 14
Winning the War for Talent 14
Human Relations Skills 14
Decision-Making Skills 15
Leadership Skills 16
Technical Skills 16
HR Responsibilities of Supervisors 16
Ethics in Human Resource Management 17
Employee Rights 18
Standards for Ethical Behavior 19
Careers in Human Resource Management 20
Organization of This Book 21
Summary 23
Review and Discussion Questions 24
What’s Your HR IQ？ 25
BusinessWeek BusinessWeek Case 25
The Human Factor 25
Case：The Container Store：Human Resource Management Excellence Takes Different Forms 26
Notes 27
PART1 The Human Resource Environment 29
2 Trends in Human Resource Management 30
Introduction 30
Change in the Labor Force 32
An Aging Workforce 32
A Diverse Workforce 32
Skill Deficiencies of the Workforce 36
High-Performance Work Systems 36
HR HOW TO 37
Keeping Up with Change 37
Knowledge Workers 37
Employee Empowerment 40
Teamwork 40
BEST PRACTICES 41
Team Spirit Makes Winners of Whole Foods Employees 41
Focus on Strategy 42
High Quality Standards 43
Mergers and Acquisitions 44
Downsizing 44
Expanding into Global Markets 46
Reengineering 48
Outsourcing 49
Technological Change in HRM 49
A Changing Economy 50
Human Resources in E-Business 51
E-HRM Applications in Other Organizations 52
E-HRM 54
Help Yourself to HRM 54
Change in the Employment Relationship 55
A New Psychological Contract 55
Flexibility 56
Summary 58
Review and Discussion Questions 60
What’s Your HR IQ？ 60
BusinessWeek BusinessWeek Case 61
Click Here for HR 61
Case：HRM Flies through Turbulence at Delta Air Lines 62
Notes 63
3 Providing Equal Employment Opportunity and a Safe Workplace 66
Introduction 66
Regulation of Human Resource Management 68
Equal Employment Opportunity 68
Constitutional Amendments 69
Legislation 69
BEST PRACTICES 76
Blind Feeding the Blind 76
Executive Orders 77
The Government’s Role in Providing for Equal Employment Opportunity 77
Equal Employment Opportunity Commission （EEOC） 77
Office of Federal Contract Compliance Procedures （OFCCP） 81
Businesses’ Role in Providing for Equal Employment Opportunity 82
Avoiding Discrimination 82
Providing Reasonable Accommodation 85
Preventing Sexual Harassment 86
Valuing Diversity 87
Occupational Safety and Health Act （OSH Act） 88
General and Specific Duties 88
HR HOW TO 90
Off to a Safe Start 90
Enforcement of the OSH Act 91
Employee Rights and Responsibilities 92
Impact of the OSH Act 93
Employer-Sponsored Safety and Health Programs 94
Identifying and Communicating Job Hazards 94
Reinforcing Safe Practices 95
Promoting Safety Internationally 95
Summary 95
Review and Discussion Questions 96
What’s Your HR IQ？ 97
BusinessWeek BusinessWeek Case 97
Racism in the Workplace 97
Case：Home Depot’s Bumpy Road to Equality 98
Notes 99
4 Analyzing Work and Designing Jobs 101
Introduction 101
Work Flow in Organizations 102
Work Flow Analysis 102
Work Flow in Organizations 104
BEST PRACTICES 105
Team-Based Jobs Put the Focus on Patient Care 105
Job Analysis 105
HR HOW TO 106
Writing a Job Description 106
Job Descriptions 106
Job Specifications 108
Sources of Job Information 110
Position Analysis Questionnaire 111
Task Analysis Inventory 112
Fleishman Job Analysis System 112
Importance of Job Analysis 113
Trends in Job Analysis 115
Job Design 116
Designing Efficient Jobs 116
Designing Jobs That Motivate 117
Designing Ergonomic Jobs 122
Designing Jobs That Meet Mental Capabilities and Limitations 124
Summary 125
Review and Discussion Questions 126
What’s Your HR IQ？ 127
BusinessWeek BusinessWeek Case 127
The New Factory Worker 127
Case：From Big Blue to Efficient Blue 128
Notes 129
VDEO CASE 130
Southwest Airlines Competes by Putting People First 130
PART 2 Acquiring and Preparing Human Resources 133
5 Planning for and Recruiting Human Resources 134
Introduction 134
The Process of Human Resource Planning 135
Forecasting 136
Goal Setting and Strategic Planning 139
BEST PRACTICES 140
Just Enough People at ZF Micro Devices 140
HR HOW TO 143
Minimizing the Pain of Layoffs 143
Implementing and Evaluating the HR Plan 147
Applying HR Planning to Affirmative Action 148
Recruiting Human Resources 148
Personnel Policies 149
Internal versus External Recruiting 150
Lead-the-Market Pay Strategies 150
Employment-at-Will Policies 152
Image Advertising 152
Recruitment Sources 153
Internal Sources 153
External Sources 155
E-HRM 159
Web Opens the Door to a Global Labor Market 159
Evaluating the Quality of a Source 160
Recruiter Traits and Behaviors 161
Characteristics of the Recruiter 161
Behavior of the Recruiter 163
Enhancing the Recruiter’s Impact 163
Summary 164
Review and Discussion Questions 165
What’s Your HR IQ？ 165
BusinessWeek BusinessWeek Case 165
Forget the Huddled Masses：Send Nerds 165
Case：Southwest Airlines Focuses on Takeoffs，Not Layoffs 166
Notes 167
6 Selecting Employees and Placing Them in Jobs 170
Introduction 170
Selection Process 171
Reliability 172
Validity 173
Ability to Generalize 175
Practical Value 175
Legal Standards for Selection 176
Job Applications and Resumes 178
Application Forms 178
Resumes 180
References 180
Background Checks 181
Employment Tests and Work Samples 182
Physical Ability Tests 182
Cognitive Ability Tests 182
Job Performance Tests and Work Samples 184
Personality Inventories 184
Honesty Tests and Drug Tests 185
BEST PRACTICES 186
Impairment Tests：Ready or Not，Here They Come 186
Medical Examinations 187
Interviews 187
Interviewing Techniques 187
Advantages and Disadvantages of Interviewing 189
Preparing to Interview 189
HR HOW TO 190
Interviewing Effectively 190
Selection Decisions 191
How Organizations Select Employees 191
Communicating the Decision 192
Summary 193
Review and Discussion Questions 194
What’s Your HR IQ？ 194
BusinessWeek BusinessWeek Case 195
It’s Not Easy Making Pixie Dust 195
Case：Never Having to Say “You Never Know” 195
Notes 196
7 Training Employees 199
Introduction 199
Training Linked to Organizational Needs 200
Needs Assessment 201
Organization Analysis 202
Person Analysis 203
Task Analysis 203
Readiness for Training 205
Employee Readiness Characteristics 205
Work Environment 205
Planning the Training Program 206
Objectives of the Program 207
In-House or Contracted Out？ 207
HR HOW TO 209
Administering a Training Program 209
Choice of Training Methods 210
Training Methods 210
Classroom Instruction 210
Audiovisual Training 212
Computer-Based Training 212
BEST PRACTICES 214
Humanizing e-Learning 214
On-the-Job Training 214
Simulations 216
Business Games and Case Studies 216
Behavior Modeling 217
Experiential Programs 217
Team Training 218
Action Learning 218
Implementing the Training Program：Principles of Learning 219
Measuring Results of Training 221
Evaluation Methods 222
Applying the Evaluation 223
Applications of Training 224
Orientation of New Employees 224
Diversity Training 225
E-HRM 226
Getting Oriented Online 226
Summary 227
Review and Discussion Questions 229
What’s Your HR IQ？ 229
BusinessWeek BusinessWeek Case 230
Look Who’s Building Online Classrooms 230
Case：Training Helps the Rubber Hit the Road at Tires Plus 231
Notes 232
VIDEO CASE 234
Developing a Diverse Workforce 234
PART 3 Assessing Performance and Developing Employees 237
8 Managing Employees’ Performance 238
Introduction 238
The Process of Performance Management 239
BEST PRACTICES 241
Managing Performance to Build Unity across Cultures and Jobs 241
Purposes of Performance Management 242
Criteria for Effective Performance Management 242
Methods for Measuring Performance 244
Making Comparisons 244
Rating Individuals 247
Measuring Results 253
Total Quality Management 254
Sources of Performance Information 255
Managers 255
E-HRM 256
Otis Elevator’s Appraisals Move Up，Down，and Sideways 256
Peers 257
Subordinates 257
Self 257
Customers 258
Errors in Performance Measurement 258
Types of Rating Errors 258
Ways to Reduce Errors 260
Political Behavior in Performance Appraisals 260
Giving Performance Feedback 260
Scheduling Performance Feedback 261
Preparing for a Feedback Session 261
HR HOW TO 262
Delivering Performance Feedback 262
Conducting the Feedback Session 263
Finding Solutions to Performance Problems 263
Legal and Ethical Issues in Performance Management 264
Legal Requirements for Performance Management 265
Electronic Monitoring and Employee Privacy 266
Summary 266
Review and Discussion Questions 268
What’s Your HR IQ？ 269
BusinessWeek BusinessWeek Case 269
Focusing on the Softer Side of Managing 269
Case：The Trials and Tribulations of Performance Management at Ford 270
Notes 271
9 Developing Employees for Future Success 273
Introduction 273
Training，Development，and Career Management 274
Development and Training 274
Development for Careers 275
Approaches to Employee Development 276
Formal Education 277
E-HRM 278
E-Learning Helps Build Management Talent at IBM 278
Assessment 279
Job Experiences 285
Interpersonal Relationships 289
HR HOW TO 290
Setting Up a Mentoring Program 290
Systems for Career Management 291
Self-Assessment 292
Reality Check 293
Goal Setting 294
Action Planning 294
Development-Related Challenges 296
The Glass Ceiling 296
BEST PRACTICES 297
Procter ＆ Gamble Selling Women on Careers 297
Succession Planning 298
Dysfunctional Managers 299
Summary 301
Review and Discussion Questions 302
What’s Your HR IQ？ 303
BusinessWeek BusinessWeek Case 303
Basic Training for CEOs 303
Case：Developing Employees Reduces Risk for First USA Bank 304
Notes 305
10 Separating and Retaining Employees 308
Introduction 308
Managing Voluntary and Involuntary Turnover 309
Employee Separation 310
Principles of Justice 310
Legal Requirements 312
Progressive Discipline 315
Alternative Dispute Resolution 318
Employee Assistance Programs 319
Outplacement Counseling 320
Job Withdrawal 320
Job Dissatisfaction 321
Behavior Change 323
Physical Job Withdrawal 324
Psychological Withdrawal 324
Job Satisfaction 324
Personal Dispositions 325
Tasks and Roles 326
BEST PRACTICES 327
Attracting Workers with Technology 327
Supervisors and Coworkers 328
Pay and Benefits 330
Monitoring Job Satisfaction 330
HR HOW TO 331
Measuring Employee Satisfaction 331
Summary 333
Review and Discussion Questions 334
What’s Your HR IQ？ 334
BusinessWeek BusinessWeek Case 334
Low-Wage Lessons 334
Case：Feeling Insecure about Airline Security 336
Notes 336
VIDEO CASE 340
Creative Staffing Solutions Pairs Workers with Employers 340
PART 4 Compensating Human Resources 343
11 Establishing a Pay Structure 344
Introduction 344
Decisions about Pay 345
Legal Requirements for Pay 346
Equal Employment Opportunity 346
Minimum Wage 347
Overtime Pay 348
Child Labor 349
Prevailing Wages 349
Economic Influences on Pay 350
Product Markets 350
Labor Markets 350
Pay Level：Deciding What to Pay 351
Gathering Information about Market Pay 352
HR HOW TO 353
Gathering Wage Data at the BLS Website 353
Employee Judgments about Pay Fairness 354
Judging Fairness 354
Communicating Fairness 355
BEST PRACTICES 355
No More Secrets at Two Financial Companies 355
Job Structure：Relative Value of Jobs 356
Pay Structure：Putting It All Together 358
Pay Rates 358
Pay Grades 359
Pay Ranges 360
Pay Differentials 361
Alternatives to Job-Based Pay 362
Pay Structure and Actual Pay 363
Current Issues Involving Pay Structure 364
Pay during Military Duty 365
Pay for Executives 365
Summary 367
Review and Discussion Questions 369
What’s Your HR IQ？ 369
BusinessWeek BusinessWeek Case 369
Revenge of the “Managers” 369
Case：Corning Hopes Pay Structure Can Make It Nimble 370
Notes 371
12 Recognizing Employee Contributions 373
with Pay 373
Introduction 373
Incentive Pay 374
Pay for Individual Performance 376
Piecework Rates 376
Standard Hour Plans 378
Merit Pay 378
Performance Bonuses 379
HR HOW TO 381
Using Incentives to Motivate Salespeople 381
Sales Commissions 381
Pay for Group Performance 382
Gainsharing 382
Group Bonuses and Team Awards 385
Pay for Organizational Performance 385
Profit Sharing 386
BEST PRACTICES 387
Incentives for Tough Times 387
Stock Ownership 388
Balanced Scorecard 391
Processes That Make Incentives Work 392
Participation in Decisions 393
Communication 393
Incentive Pay for Executives 393
Performance Measures for Executives 394
Ethical Issues 395
Summary 396
Review and Discussion Questions 397
What’s Your HR IQ？ 398
BusinessWeek BusinessWeek Case 398
A Little Less in the Envelope This Week 398
Case：Paying for Good Employee Relations 399
Notes 400
13 Providing Employee Benefits 402
Introduction 402
The Role of Employee Benefits 403
Benefits Required by Law 404
Social Security 405
Unemployment Insurance 406
Workers’ Compensation 407
Unpaid Family and Medical Leave 407
Optional Benefits Programs 408
Paid Leave 408
Group Insurance 410
BEST PRACTICES 412
Giving Employees the Health Care Benefits They Want 412
Retirement Plans 415
“Family-Friendly”Benefits 420
Other Benefits 422
Selecting Employee Benefits 422
Organization’s Objectives 423
Employees’ Expectations and Values 424
Benefits’ Costs 425
HR HOW TO 426
Controlling the Cost of Benefits 426
Legal Requirements for Employee Benefits 427
Tax Treatment of Benefits 427
Antidiscrimination Laws 428
E-H RM 429
Tapping into Benefits Online 429
Accounting Requirements 430
Communicating Benefits to Employees 430
Summary 431
Review and Discussion Questions 432
What’s Your HR IQ？ 433
BusinessWeek BusinessWeek Case 433
Dr.Goodnight’s Company Town 433
Case：Is Retirement a Luxury？ 434
Notes 435
VIDEO CASE 437
Compensating Workers through Pay and Benefits 437
PART 5 Meeting Other HR Goals 439
14 Collective Bargaining and Labor Relations 440
Introduction 440
Role of Unions and Labor Relations 441
National and International Unions 442
Local Unions 444
Trends in Union Membership 444
E-HRM 446
Will Unions Play a Role in High-Tech Industries？ 446
Unions in Government 448
Impact of Unions on Company Performance 448
Goals of Each Group 449
Goals of Management 449
Goals of Labor Unions 450
Goals of Society 451
Laws and Regulations Affecting Labor Relations 451
National Labor Relations Act （NLRA） 451
HR HOW TO 453
Avoiding Unfair Labor Practices 453
Laws Amending the NLRA 453
National Labor Relations Board （NLRB） 454
Union Organizing 456
The Process of Organizing 456
Management Strategies 457
Union Strategies 459
Decertifying a Union 460
Collective Bargaining 460
Bargaining over New Contracts 462
When Bargaining Breaks Down 463
Contract Administration 465
Labor-Management Cooperation 467
BEST PRACTICES 468
Brass Factory Polishes Employees’ Understanding—And Morale，Too 468
Summary 470
Review and Discussion Questions 471
What’s Your HR IQ？ 471
BusinessWeek BusinessWeek Case 472
A World of Sweatshops 472
Case：Verizon Strikes Out against Unions 473
Notes 474
15 Managing Human Resources Globally 477
Introduction 477
HRM in a Global Environment 478
Employees in an International Workforce 479
Employers in the Global Marketplace 479
Factors Affecting HRM in International Markets 481
Culture 481
Education and Skill Levels 484
Economic System 484
Political-Legal System 486
Human Resource Planning in a Global Economy 486
Selecting Employees in a Global Labor Market 487
Training and Developing a Global Workforce 489
Training Programs for an International Workforce 489
Cross-Cultural Preparation 491
Global Employee Development 491
BEST PRACTICES 492
Deloitte Develops a Global Workforce 492
Performance Management across National Boundaries 492
Compensating an International Workforce 493
Pay Structure 493
Incentive Pay 495
Employee Benefits 495
International Labor Relations 496
Managing Expatriates 497
Selecting Expatriate Managers 497
Preparing Expatriates 500
Compensating Expatriates 501
HR HOW TO 502
Communicating across Language Barriers 502
Helping Expatriates Return Home 504
Summary 506
Review and Discussion Questions 507
What’s Your HR IQ？ 508
BusinessWeek BusinessWeek Case 508
The High Cost of France’s Aversion to Layoffs 508
Case：Human Resource Management in a World with Terrorism 509
Notes 510
16 Creating and Maintaining High-Performance Organizations 513
Introduction 513
High-Performance Work Systems 514
Elements of a High-Performance Work System 515
Outcomes of a High-Performance Work System 516
Conditions That Contribute to High Performance 517
Teamwork and Empowerment 518
Knowledge Sharing 518
Job Satisfaction 520
Ethics 521
HRM’s Contribution to High Performance 522
Job Design 522
BEST PRACTICES 523
HR Policies Deliver High Performance for FedEx 523
Recruitment and Selection 524
Training and Development 524
Performance Management 525
Compensation 526
HRM Technology 527
HR HOW TO 527
Using Information Systems in a Learning Organization 527
E-HRM 530
Oracle Spells Human Resource Management “B2E” 530
Effectiveness of Human Resource Management 531
Human Resource Management Audits 532
Analyzing the Effect of HRM Programs 534
Summary 534
Review and Discussion Questions 535
What’s Your HR IQ？ 536
BusinessWeek BusinessWeek Case 536
From Devastation to High Performance 536
Case：A Giant Falls 537
Notes 538
VIDEO CASE 540
Workplace Ergonomics Is Good Business 540
Glossary 542
Photo Credits 553
Name and Company Index 555
Subject Index 561