McGraw-Hill irwin. Fourth Edition Raymond A. Noe. John R. Hollenbeck. Barry Gerhart. Patrick M. Wright. The Ohio State University

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1 Fourth Edition Raymond A. Noe The Ohio State University John R. Hollenbeck Michigan State University Barry Gerhart University of Wisconsin-Madison Patrick M. Wright Cornell University McGraw-Hill irwin

2 Content! 1 Managing Human Resources 1 Introduction 1 Human Resources and Company Performance 2 Responsibilities of Human Resource Departments 4 Engaged, Enabled Employees Deliver Bottom-Line Benefits 5 Analyzing and Designing Jobs 6 Recruiting and Hiring Employees 7 Training and Developing Employees 7 Managing Performance 8 Planning and Administering Pay and Benefits 8 HR HOW TO Putting Compensation in Perspective 9 Maintaining Positive Employee Relations 9 Establishing and Administering Personnel Policies 10 Ensuring Compliance with Labor Laws 10 Supporting the Organization's Strategy 11 For Lifespan, Data-Driven Approach Helps HR Get Better 12 Skills of HRM Professionals 13 HR Responsibilities of Supervisors 14 Ethics in Human Resource Management 15 Employee Rights 15 Ethics of a Financial Crisis 16 Standards for Ethical Behavior 17 Careers in Human Resource Management 18 Organization of This Book 19 Who's Responsible for Your Company's Reputation? 21 Summary 21 Key Terms 22 Review and Discussion Questions 22 Rebuilding Competitive Advantage 23 Case: Can the TSA Secure Top-Flight Performance? 24 IT'S A WRAP! 25 Notes 25 The Human Resource Environment 27 2 Trends in Human Resource Management 28 Introduction 28 Change in the Labor Force 29 An Aging Workforce 29 A Diverse Workforce 31 Skill Deficiencies of the Workforce 33 High-Performance Work Systems 34 Knowledge Workers 34 Top 10 Occupations for Job Growth 35 Employee Empowerment 36 Teamwork 37 Focus on Strategy 38 High Quality Standards 38 HR a Component of Quality at Mesa Products 40 Mergers and Acquisitions 40 Downsizing 41 Reengineering 42 Outsourcing 42 HR HOW TO Leading after Layoffs 43 XXIV

3 Contents XXV Expanding into Global Markets 43 Technological Change in HRM 45 The Internet Economy 46 Electronic Human Resource Management (e-hrm) 46 Sharing of Human Resource Information 47 High-Tech Scheduling at Bank of the West 48 Change in the Employment Relationship 48 A New Psychological Contract 48 Flexibility 49 When a Contractor Isn't a Contractor 50 The Ethics of Offshoring 52 Summary 52 Key Terms 54 Review and Discussion Questions 54 Raises or Rebuilding? A Business Owner's Dilemma 54 Case: Hershey's Sweet Mission 55 IT'S A WRAP! 56 Notes 56 3 Providing Equal Employment Opportunity and a Safe Workplace 59 Introduction 59 Regulation of Human Resource Management 60 Equal Employment Opportunity 61 Constitutional Amendments 61 Legislation 63 Verizon Connects with Disabled Workers 67 Executive Orders 70 The Government's Role in Providing for Equal Employment Opportunity 70 Equal Employment Opportunity Commission (EEOC) 70 Office of Federal Contract Compliance Procedures (OFCCP) 72 Businesses' Role in Providing for Equal Employment Opportunity 72 Video Resumes Perilous Policy? 73 Avoiding Discrimination 73 Providing Reasonable Accommodation 77 Preventing Sexual Harassment 78 Responding to Complaints of Harassment 79 Valuing Diversity 79 Occupational Safety and Health Act (OSH Act) 80 General and Specific Duties 80 Enforcement of the OSH Act 82 Employee Rights and Responsibilities 83 Impact of the OSH Act 84 Employer-Sponsored Safety and Health Programs 85 Identifying and Communicating Job Hazards 85 Top 10 Causes of Workplace Injuries 86 Construction Firm Falls Down on the Training Job 87 Reinforcing Safe Practices 87 Promoting Safety Internationally 88 Do Family-Friendly Policies Hurt Men? 88 Summary 89 Key Terms 90 Review and Discussion Questions 90 iiiimiiimwii Attacked by a Whale 91 Case: Walmart's Discrimination Difficulties 92 IT'S A WRAP! 93 Notes 93 4 Analyzing Work and Designing Jobs 95 Introduction 95 Work Flow in Organizations 96 Work Flow Analysis 96 Work Flow Design and an Organization's Structure 98 Job Analysis 98 An Undefined Job 99 Job Descriptions 99 Job Specifications 100

4 XXVI Contents Writing a Job Description 101 Sources of Job Information 102 Position Analysis Questionnaire 103 Fleishman Job Analysis System 104 Importance of Job Analysis 104 Frito-Lay Takes a Fresh Look at Job Design 106 Trends in Job Analysis 107 Job Design 107 Designing Efficient Jobs 108 Designing Jobs That Motivate 108 Job Satisfaction Is Slipping 110 Designing Ergonomic Jobs 113 Designing Jobs That Meet Mental Capabilities and Limitations 114 "Office" Work on the Road 115 Is Telecommuting Fair to Those at the Office? 116 Summary 117 Key Terms 118 Review and Discussion Questions 118 Pfizer Outsources Tasks, Not Jobs 118 Case: Creative Jobs at W. L. Gore 119 IT'S A WRAP! 120 Notes 121 Acquiring and Preparing Human Resources Planning for and Recruiting Human Resources 124 Introduction 124 The Process of Human Resource Planning 125 Forecasting 125 Goal Setting and Strategic Planning 128 Using Temporary Employees and Contractors 133 Implementing and Evaluating the HR Plan 135 Applying HR Planning to Affirmative Action 135 Talent Management at North Shore-Long Island Jewish Health System 136 Recruiting Human Resources 136 Personnel Policies 137 Room to Bloom and Grow at Four Seasons 138 Recruitment Sources 139 Internal Sources 139 Four in Ten Positions Are Filled with Insiders 140 External Sources 140 Advertisements in Newspapers and Magazines 142 Electronic Recruiting 143 When Social Networking Gets Too "Social" 144 Evaluating the Quality of a Source 146 Recruiter Traits and Behaviors 147 Characteristics of the Recruiter 147 Behavior of the Recruiter 148 Enhancing the Recruiter's Impact 148 Citizens First? 150 Summary 150 Key Terms 151 Review and Discussion Questions 152 Direct Employers Association: New Directions for Online Job Search 152 Case: Apple's Make-vs.-Buy Decision 153 IT'S A WRAP! 154 Notes Selecting Employees and Placing Them in Jobs 157 Introduction 157 Selection Process 158 Strategy-Driven Selection for Mike's Carwash 159 Reliability 160 Validity 160 Ability to Generalize 162 Practical Value 162 Legal Standards for Selection 163 Confirming Eligibility with E-Verify 165 Job Applications and Resumes 166 Application Forms 166 Resumes 166

5 Contents XXVl'i References 168 Background Checks 169 Employment Tests and Work Samples 170 Physical Ability Tests 170 Cognitive Ability Tests 171 Job Performance Tests and Work Samples 171 Personality Inventories 172 Honesty Tests and Drug Tests 173 Medical Examinations 174 Interviews 174 Interviewing Techniques 174 What Turns Off an Interviewer 175 Advantages and Disadvantages of Interviewing 176 Interviewing Effectively 177 Preparing to Interview 177 Selection Decisions 178 How Organizations Select Employees 178 Style over Substance 179 Communicating the Decision 179 Tainted by Association 180 Summary 180 Key Terms 182 Review and Discussion Questions 182 Limits on Credit Checks 182 Case: When Recruiting on Campus Is Too Costly 183 IT'S A WRAP! 184 Notes Training Employees 188 Introduction 188 Training Linked to Organizational Needs 189 Needs Assessment 190 Organization Analysis 191 Orkin Trains Experts 192 Person Analysis 193 Task Analysis 193 Readiness for Training 194 Employee Readiness Characteristics 194 Work Environment 195 Planning the Training Program 196 Objectives of the Program 196 Many Companies Outsource Training Tasks 197 In-House or Contracted Out? 197 Choice of Training Methods 198 Training Methods 198 Classroom Instruction 199 Audiovisual Training 199 Developing Effective Classroom Presentations 200 Computer-Based Training 201 Training Gets Mobile 202 On-the-Job Training 202 Simulations 203 Business Games and Case Studies 204 Behavior Modeling 205 Experiential Programs 205 Team Training 206 When Training Crashes 207 Action Learning 207 Implementing the Training Program: Principles of Learning 208 Measuring Results of Training 210 Evaluation Methods 210 Applying the Evaluation 211 Applications of Training 212 Orientation of New Employees 212 Diversity Training 213 Training Employees to Respect Privacy 215 Summary 215 Key Terms 217 Review and Discussion Questions 217 The World Is IBM's Classroom 218 Case: Jack B. Kelley Drives Home Safety Lessons 219 IT'S A WRAP! 220 Notes 220

6 A XXVlii Contents PART 3 Assessing Performance and Developing Employees Managing Employees' Performance 224 Introduction 224 The Process of Performance Management 225 Employees Want More Feedback 226 Purposes of Performance Management 226 Criteria for Effective Performance Management 227 Mining for Gold: Rating Employees with Data Mining 228 Methods for Measuring Performance 229 Making Comparisons 229 Rating Individuals 231 Measuring Results 237 Total Quality Management 238 Sources of Performance Information 239 Managers 239 Peers 240 Subordinates 240 Self 241 Customers 241 Customer Feedback Fuels Customer Satisfaction at United Community Bank 242 Errors in Performance Measurement 242 Types of Rating Errors 243 Ways to Reduce Errors 243 Political Behavior in Performance Appraisals 243 Giving Performance Feedback 244 Scheduling Performance Feedback 244 Preparing for a Feedback Session 245 Conducting the Feedback Session 245 Discussing Employee Performance 246 Finding Solutions to Performance Problems 246 Were All Above Average 247 Lega\ and Ethical \ssues in Performance Management 248 Legal Requirements for Performance Management 248 Electronic Monitoring and Employee Privacy 249 Did We Get Burned by Short-Term Goals? 250 Summary 250 Key Terms 252 Review and Discussion Questions 253 Performance Review Takes a Page from Facebook 253 Case: When Good Reviews Go Bad 254 IT'S A WRAP! 255 Notes Developing Employees for Future Success 258 Introduction 258 Training, Development, and Career Management 259 Development and Training 259 Development for Careers 259 Approaches to Employee Development 260 Formal Education 260 Assessment 261 Developmental Assessment Often an Unmet Need 263 Challenges Nourish Employees' Growth at Rainforest Alliance 267 Job Experiences 267 interpersonal Relationships 271 Finding a Mentor Online 273 Coaching Employees 274 Systems for Career Management 274 Data Gathering 275 Feedback 276 Goal Setting 277 Action Planning and Follow-Up 277 Development-Related Challenges 279 The Glass Ceiling 279 Succession Planning 279

7 Contents XXIX Succession Planning for Top Execs 280 Dysfunctional Managers 282 Developing Ethical Employees 282 Summary 283 Key Terms 284 Review and Discussion Questions 285 How GE and Zappos Develop Great Leaders 285 Case: How Leaders Flourish at Gunderson Lutheran Health System 286 IT'S A WRAP! 288 Notes Separating and Retaining Employees 292 Introduction 292 Managing Voluntary and Involuntary Turnover 293 Most Valued, Least Loyal 294 Employee Separation 295 Principles of Justice 295 Legal Requirements 296 Progressive Discipline 298' Electronic Monitoring of Employee Activity 300 Alternative Dispute Resolution 301 Employee Assistance Programs 302 Outplacement Counseling 303 Job Withdrawal 303 Job Dissatisfaction 304 Unpleasant Employees Are Bad for Business 306 Behavior Change 307 Physical Job Withdrawal 307 Psychological Withdrawal 308 Job Satisfaction 308 Creating a Positive Work Environment 309 Personal Dispositions 310 Tasks and Roles 310 Supervisors and Co-workers 312 Pay and Benefits 313 Monitoring Job Satisfaction 313 How Campbell Soup Stirred Up Employee Satisfaction 314 Keeping Employees When You Can't Keep Promises 316 Summary 316 Key Terms 317 Review and Discussion Questions 318 isiiiiimm How the MGM Grand Maintains Employee Engagement 318 Case: Texas Roadhouse Won't Skimp on Making Employees Happy 319 IT'S A WRAP! 320 Notes 321 PART 4 Compensating Human Resources Establishing a Pay Structure 326 Introduction 326 Decisions about Pay 327 Paying Employees Electronically 328 Legal Requirements for Pay 329 Equal Employment Opportunity 329 Minimum Wage 330 Overtime Pay 330 Booting Up Your Computer Is Work, Too 331 Child Labor 331 Prevailing Wages 332 Economic Influences on Pay 332 Product Markets 332 Labor Markets 333 Tech Workers Out-Earn Managers 334 Pay Level: Deciding What to Pay 334 Gathering Information about Market Pay 335 Gathering Wage Data at the BLS Web site 336 Employee Judgments about Pay Fairness 336

8 Contents XXXi, DIDYOUKNOW? U.S. and Japanese Workers Take Short Vacations 392 Group Insurance 393 Online Benefits Portal Pushes Wellness Effort at Leviton 397 Retirement Plans 397 "Family-Friendly" Benefits 401 Other Benefits 403 Selecting Employee Benefits 404 The Organization's Objectives 404 Employees' Expectations and Values 404 Underestimating the Importance of Employee Discounts 406 Benefits' Costs 407 Legal Requirements for Employee Benefits 407 Tax Treatment of Benefits 408 Antidiscrimination Laws 408 Accounting Requirements 409 Communicating Benefits to Employees 409 Communicating about Benefits 410 Is It Fair for Executives' Retirements to Be More Secure? 411, Summary 411 Key Terms 413 Review and Discussion Questions 413 GE Gets Radical with Health Benefits 414 Case: Employees Gobble Up the Benefits at General Mills 414 IT'S A WRAP! 415 Notes 415 PART 5 Meeting Other HR Goals Collective Bargaining and Labor Relations 420 Introduction 420 Role of Unions and Labor Relations 421 National and International Unions 422 Local Unions 423 Trends in Union Membership 424 Many Union Workers Hold Government Jobs 426 Unions in Government 426 Impact of Unions on Company Performance 427 Goals of Management, Labor Unions, and Society 428 Management Goals 428 Labor Union Goals 428 Societal Goals 429 Laws and Regulations Affecting Labor Relations 430 National Labor Relations Act (NLRA) 430 Laws Amending the NLRA 431 Avoiding Unfair Labor Practices 432 National Labor Relations Board (NLRB) 433 Thou Shalt Not Threaten 434 Union Organizing 435 The Process of Organizing 435 Management Strategies 436 Union Strategies 437 Decertifying a Union 438 Collective Bargaining 438 Bargaining over New Contracts 440 When Bargaining Breaks Down 441 Contract Administration 444 Labor-Management Cooperation 446 Union Members Valued at Midwest Mechanical 447 Is Communicating Enough? 448 Summary 448 Key Terms 450 Review and Discussion Questions 450 U.S. Labor Lobbies European Management 450 Case: Boeing's Prickly Relationship with Its Unions 451 IT'S A WRAP! 452 Notes 452

9 XXXii Contents 15 Managing Human Resources Globally 456 Introduction 456 HRM in a Global Environment 457 Employees in an International Workforce 458 Innovation Is a Global Affair at Cisco 459 Employers in the Global Marketplace 459 The Internet Brings Together P&G Employees 461 Factors Affecting HRM in International Markets 462 Culture 462 Education and Skill Levels 464 Sometimes No One Reads between the Lines 465 Economic System 465 Political-Legal System 466 Human Resource Planning in a Global Economy 467 Selecting Employees in a Global Labor Market 467 Training and Developing a Global Workforce 469 Training Programs for an International Workforce 469 Cross-Cultural Preparation 470 Training Programs in Other Countries 471 Global Employee Development 471 Performance Management across National Boundaries 471 Compensating an International Workforce 472 Pay Structure 472 Incentive Pay 474 Employee Benefits 474 International Labor Relations 475 Managing Expatriates 476 Selecting Expatriate Managers 476 Preparing Expatriates 476 Managing Expatriates' Performance 479 Compensating Expatriates 480 Tokyo Tops Priciest Cities 481 Helping Expatriates Return Home 482 Job Location: Is It All about the Money? 484 Summary 484 Key Terms 485 Review and Discussion Questions 486 Will Hardship Pay Survive the Downturn? 486 Case: How Roche Diagnostics Develops Global Managers 487 IT'S A WRAP! 488 Notes Creating and Maintaining High- Performance Organizations 491 Introduction 491 High-Performance Work Systems 492 Elements of a High-Performance Work System 492 Outcomes of a High-Performance Work System 494 Conditions That Contribute to High Performance 495 Teamwork and Empowerment 495 Knowledge Sharing 496 Job Satisfaction 497 Satisfaction at Top Government Agencies Compares Favorably with Big Businesses 498 Ethics 499 HRM's Contribution to High Performance 500 Job Design 500 Recruitment and Selection 500 Training and Development 501 Performance Management 501 Setting Performance Measures in Not-for-Profit Organizations 503 Compensation 504 HRM Technology 504 Inflexible without Technology 505 Web 2.0 for Human Resource Management 508 Effectiveness of Human Resource Management 509 Human Resource Management Audits 509 Analyzing the Effect of HRM Programs 511 PricewaterhouseCoopers Applies the Data 512

10 Contents XXXiii IT'S A WRAP! 517 Can HRM Make Organizations More Ethical? CA-. M Notes 517 Summary 513 v -r el/. Glossary 519 Key Terms 514 Review and Discussion Questions 514 photo Credits 528 lil «M Name and Company Index 530 How MasterCard and Others Are Keeping Subject Index 542 Employees Creative 515 Case: Preparing for an Uncertain Future 515

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