Human Resource. Management. Eleventh Edition. John M. Ivancevich. McGraw-Hill Irwin
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1 Human Resource Management Eleventh Edition John M. Ivancevich Cullen Professor of Organizational Behavior and Management C. T. Bauer College of Business - University of Houston McGraw-Hill Irwin Boston Burr Ridge, IL Dubuque, IA New York San Francisco St. Louis Bangkok Bogota Caracas Kuala Lumpur Lisbon London Madrid Mexico City Milan Montreal New Delhi Santiago Seoul Singapore Sydney Taipei Toronto
2 Contents Preface vi Acknowledgments ix Appendix 1A Careers in HRM Notes PART ONE INTRODUCTION TO HUMAN RESOURCE MANAGEMENT AND THE ENVIRONMENT 1 Chapter 1 Human Resource Management 2 A Brief History of Human Resource Management 5 Strategic Importance of HRM 7 HRM and Organizational Effectiveness 9 Objectives of the HRM Function 10 Helping the Organization Reach Its Goals 11 Efficiently Employing the Skills and Abilities of the Workforce 11 Providing Well-Trained and Well-Motivated Employees 12 Increasing Employees'Job Satisfaction and Self-Actualization 12 Achieving Quality of Work Life 12 Communicating HRM Policies to All Employees 12 Maintaining Ethical Policies and Socially Responsible Behavior 13 Managing Change 13 Managing Increased Urgency and Faster Cycle Time 13 Who Performs HRM Activities 14 Outsourcing 14 The Interaction of Operating and HR Managers 15 HRM's Place in Management 15 HR Department Operations 16 HRM Strategy 16 Clarifying Meaningful HRM Objectives 17 HRM Policy 17 HRM Procedures 18 Organization of an HR Department 19 Summary 20 Key Terms 20 Questions for Review and Discussion 21 Application Case 1-1 The Human Resource Manager and Managing Multiple Responsibilities 21 Chapter 2 A Strategic Management Approach to Human Resource Management 28 A Model to Organize HRM 31 How to Take a Diagnostic Approach to HRM 32 External Environmental Influences 33 Government Law and Regulations 33 The Union 34 Economic Conditions 34 Competitiveness 36 Composition and Diversity of the Labor Force 36 Geographic Location of the Organization 39 Internal Environmental Influences 41 Strategy 41 Goals 41 Organization Culture 43 Nature of the Task 43 Work Group 44 Leader's Style and Experience 45 Strategies HRM: An Important Key to Success 45 Strategic Challenges Facing HRM 47 Technology 47 Diversity: Building a Competitive Workforce 48 Caliber of the Workforce 51 Organizational Restructuring and Downsizing 51 Contingent Workers 52 People and the HRM Diagnostic Framework 53 Abilities of Employees 53 Employees'Attitudes and Preferences 53 Motivation of Employees 53 Personality of Employees 54 Desirable End Results 54 Summary 55 Key Terms 57 Questions for Review and Discussion 57 Exercise 2-1 Dissecting the ARDM Model and Its Application 5 7 Application Case 2-1 Culture Clash 58 Notes 60 xii
3 Contents xiii Chapter 3 Equal Employment Opportunity: Legal Aspects of Human Resource Management 63 How Did EEO Emerge? 66 Societal Values and EEO 66 Economic Status of Minorities: Before The Government 67 Equal Employment Opportunity Laws: Content and Court Interpretations 67 Title VII of the 1964 Civil Rights Act 67 Title VII and Sexual Harassment 71 Title VII and Pregnancy Discrimination 72 Title VII and Religious Minorities 72 Title VII and "English-Only " Rules 73 Civil Rights Act of Executive Order (1965) 74 Equal Pay Act of Age Discrimination in Employment Act (ADEA) of Americans with Disabilities Act (ADA) of State Laws 77 Enforcing the Law 77 Equal Employment Opportunity Commission (EEOC) 77 The Courts 79 Affirmative Action in Organizations 80 What Is Affirmative Action? 5Cj Voluntary Affirmative Action Plans 81 Involuntary Affirmative Action Plans 82 Affirmative Action Issues 83 Summary 84 Key Terms 85 Questions for Review and Discussion 85 Exercise 3-1 Dissecting the Diagnostic Model and Its Application 86 HRM Legal Advisor 88 Application Case 3-1 Sexual Harassment Cases Are Becoming More Complex 89 Notes 91 Chapter 4 Global Human Resource Management 93 A Global Perspective 95 The Cultural Nature of Global HRM 96 The Concept of "Fit" in Global HRM 97 Multinational and Global Corporations 98 The Expatriate Manager in the Multinational Corporation 100 Selecting the Expatriate Manager 100 Culture Shock and the Expatriate Manager 102 Training the Expatriate Manager 103 Compensating the Expatriate Manager 106 Host Country Nationals and the Global Corporation 107 A Note on Global Corporate Boards of Directors 108 The Legal and Ethical Climate of Global HRM 108 Labor Relations and the International Corporation 109 Summary 112 Key Terms 113 Questions for Review and Discussion 113 Exercise 4-1 Development of Global Managers 113 Exercise 4-2 Avoiding Costly International HRM Mistakes 114 HRM Legal Advisor 115 Application Case 4-1 'Solving the Labor Dilemma in a Joint Venture in Japan 115 Application Case 4-2 Reverse Offshoring: A New Source of Jobs for College Graduates? 117 Notes 118 PART TWO ACQUIRING HUMAN RESOURCES 123 Chapter 5 Human Resource Planning and Alignment 124 Human Resource Planning 125 Strategic and Human Resource Planning 126 The HR Planning Process 127 Situation Analysis and Environmental Scanning 127 Forecasting Demand for Employees 127 Analyzing the Current Supply of Employees 131 Action Decisions in Human Resource Planning 133 Human Resource Information Systems 135 Employees'Privacy, Identity Theft, and HRIS 137 Summary 138 Key Terms 139 Questions for Review and Discussion 139 HRM Legal Advisor 140 Application Case 5-1 Human Resource Planning and Virtual Human Resource Management 141 Notes 142
4 xiv Contents Chapter 6 Job Analysis and Design 146 The Vocabulary of Job Analysis 148 The Steps in Job Analysis 148 The Uses of Job Analysis 149 Who Should Conduct the Job Analysis? 150 The Use of Charts 150 Methods of Data Collection 152 Observation 152 Interviews 155 Questionnaires 155 Job Incumbent Diary or Log 155 Which Method to Use? 156 Specific Quantitative Techniques 156 Functional Job Analysis 156 Position Analysis Questionnaire 158 Management Position Description Questionnaire 160 Job Descriptions and Specifications 161 Job Analysis and Strategic Human Resource Management 165 Job Analysis and Employee Competencies 165 Job Design 166 Scientific Management and the Mechanistic Approach 166 Job Enrichment: A Motivational Approach 167 Work-Family Balance and Job Design 169 Job Design: The Next Challenge 171 Summary 171 Key Terms 172 Questions for Review and Discussion 172 HRM Legal Advisor 173 Application Case 6-1 Job Analysis: Assistant Store Managers at Today's Fashion 174 Application Case 6-2 Job Analysis and Maternity Leave: Calming the Boss's and Co-workers'Nerves 176 Notes 177 Chapter 7 Recruitment 182 External Influences 185 Government and Union Restrictions 185 Labor Market Conditions 186 Composition of Labor Force and Location of Organization 187 Interactions of the Recruit and the Organization 187 The Organization's View of Recruiting 187 The Potential Employee's View of Recruiting 188 Methods of Recruiting 190 Internal Recruiting 190 External Recruiting 191 Realistic Job Previews 197 Alternatives to Recruitment 198 Overtime 198 Outsourcing 198 Temporary Employment 198 Cost-Benefit Analysis of Recruiting 199 Summary 200 Key Terms 201 Questions for Review and Discussion 201 Exercise 7-1 Netiquette: Effectively Communicating with 202 HRM Legal Advisor 203 Application Case 7-1 E-Recruiting: Too Much of a Good Thing? 203 Application Case 7-2 Are New Recruits Looking for Work-Life Balance? 206 Notes 207 Chapter 8 Selection 212 Influences on the Selection Process 213 Environmental Circumstances Influencing Selection 213 Selection Criteria 214 Categories of Criteria 215 Reliability and Validity of Selection Criteria 217 The Selection Process 220 Step 1: Preliminary Screening 220 Step 2: Employment Interview 223 Step 3: Employment Tests 227 Step 4: Reference Checks and Recommendations 232 Step 5: Selection Decision 232 Step 6: Physical Examinations 233 Selection of Managers 234 Cost-Benefit Analysis for the Selection Decision 237 Summary 237 Key Terms 238 Questions for Review and Discussion 238 Exercise 8-1 Posting Your Resume Online 239 HRM Legal Advisor 239 Application Case 8-1 Internet-Based Reference Checks:A New Approach 241 Application Case 8-2 Are Traditional Resumes Gone Forever? 242 Notes 243
5 Contents xv PART THREE REWARDING HUMAN RESOURCES 249 Chapter 9 Performance Evaluation and Management 250 The Case for Using Formal Evaluation 253 Purposes of Evaluation 253 Performance Evaluation and the Law 254 Format of Evaluation 256 Establish Criteria 256 Set Policies on Who Evaluates, When, and How Often 257 Who Should Evaluate the Employee? 25 7 Selected Evaluation Techniques 260 Individual Evaluation Methods 260 Multiple-Person Evaluation Methods 266 Management by Objectives 268 Which Technique to Use 270 Potential Problems in Performance Evaluations 270 Opposition to Evaluation 271 System Design and Operating Problems 271 Rater Problems 272 Eliminating Rater Errors 2 75 Avoiding Problems with Employees 275 The Feedback Interview 276 Summary 278 Key Terms 279 Questions for Review and Discussion 280 Exercise 9-1 Selecting and Appraising Administrative Assistants at Row Engineering 280 HRM Legal Advisor 283 Application Case 9-1 Evaluating Store Managers at Bridgestone/Firestone Tire & Rubber 284 Application Case 9-2 The Politics of Performance Appraisal 287 Notes 290 Chapter 10 Compensation: An Overview 293 Objective of Compensation 295 External Influences on Compensation 295 The Labor Market and Compensation 295 Economic Conditions and Compensation 298 Government Influences and Compensation 298 Union Influences and Compensation 303 Internal Influences on Compensation 303 The Labor Budget 305 Who Makes Compensation Decisions 305 Pay and Employees' Satisfaction 305 Pay and Employees'Productivity 306 Compensation Decisions 307 The Pay-Level Decision 307 Pay Surveys 308 The Pay Structure Decision 310 Delayering and Broadbanding 315 The Individual Pay Decision 316 Summary 317 Key Terms 317 Questions for Review and Discussion 318 HRM Legal Advisor 318 Application Case 10-1 The Comparable Worth Debate 319 Notes 322 Chapter 11 Compensation: Methods and Policies 325 Determination of Individual Pay 327 Methods of Payment 328 Flat Rates 328 Payment for Time Worked 328 Variable Pay: Incentive Compensation 329 Ownership 339 People-Based Pay 340 Executive Pay 341 Issues in Compensation Administration 344 Pay Secrecy or Openness 344 Pay Security 344 Pay Compression 345 Summary 346 Key Terms 347 Questions for Review and Discussion 347 HRM Legal Advisor 347 Application Case 11-1 Customizing Bonus Pay Plans 348 Notes 352 Chapter 12 Employee Benefits and Services 356 Background 358 Why Do Employers Offer Benefits and Services? 358 Who Makes Decisions about Benefits? 358 Mandated Benefits Programs 360 Unemployment Insurance 360 Social Security 361, Workers' Compensation 363
6 xvi Contents Voluntary Benefits 364 Compensation for Time Off 364 Paid Holidays 365 Paid Vacations 365 International Vacation Benefits 366 Personal Time Off 366 Sick Leave 367 Family Leave 367 Maternity and Parental Leave 368 Employer-Purchased Insurance 368 Health Insurance 368 Life Insurance 371 Disability Income Replacement Insurance 3 71 Income in Retirement 372 Retirement Income from Savings and Work 3 72 Individual Retirement Accounts (IRAs) 372 SEP (Simplified Employee Pension) IRAs (k) Plans 373 Employee Services 375 Stock Ownership Plans 375 Education Programs 375 Preretirement Programs 375 Child Care 375 Elder Care 376 Financial Services 3 76 Social and Recreational Programs 3 76 Flexible Benefits Plans and Reimbursement Accounts 376 Managing an Effective Benefits Program 378 Step 1: Set Objectives and Strategy for Benefits 3 78 Step 2: Involve Participants and Unions 378 Step 3: Communicate Benefits 378 Step 4: Monitor Costs Closely 3 79 Cost-Benefit Analysis of Benefits 379 Summary 379, Key Terms 380 Questions for Review and Discussion 381 HRM Legal Advisor 381 Application Case 12-1 Benefits Are Vanishing 382 Notes 385 PART FOUR DEVELOPING HUMAN RESOURCES 389 Chapter 13 Training and Development Introduction to Orientation 392 Goals of Orientation Who Orients New Employees? 393 Orientation Follow-Up 394 Introduction to Training 394 Goals of Training 395 Learning Theory and Training 396 Training Activities 397 Managing the Training Program 398 Determining Needs and Objectives 398 Choosing Trainers and Trainees 402 Training and Development Instructional Methods 402 On-the-Job Training 403 Case Method 404 Role-Playing 405 In-Basket Technique 405 Management Games 405 Behavior Modeling 406 Outdoor-Oriented Programs 407 Which Training and/or Development Approach Should Be Used? 407 Management Development: An Overview 414 What Is Management Development? 414 Development: Individual Techniques 415 Goal Setting 415 Behavior Modification 417 Development: Team Building 421 Evaluation of Training and Development 422 Criteria for Evaluation 422 A Matrix Guide for Evaluation 423 Summary 424 Key Terms 425 Questions for Review and Discussion 426 Exercise 13-1 Assessing Training Needs 426 HRM Legal Advisor 426 Application Case 13-1 Dunkiri Donuts and Domino's Pizza: Training for Quality and Hustle 42 7 Notes 429 Chapter 14 Career Planning and Development 433 The Concept of Career 435 Career Stages 437 Career Choices 439 Career Development: A Commitment 444 Career Development for Recent Hirees 446 Causes of Early Career Difficulties 446 How to Counteract Early Career Problems 447 Career Development during Midcareer 448
7 Contents xvii The Midcareer Plateau 448 How to Counteract Midcareer Problems 449 Preretirement Problems 450 How to Minimize Retirement Adjustment Problems 450 Career Planning and Pathing 451 Career Planning 451 Career Pathing 453 Career Development Programs: Problems and Issues 455 Integrating Career Development and Workforce Planning 455 Managing Dual Careers 455 Career Planning and Equal Employment Opportunity 456 Downsizing and Job Loss 457 Summary 462 Key Terms 462 Questions for Review and Discussion 463 Exercise 14-1 My Career Audit 463 HRM Legal Advisor 464 Application Case 14-1 The Dual-Career Couple 465 Notes 467 PART FIVE LABOR-MANAGEMENT RELATIONS AND PROMOTING SAFETY AND HEALTH 471 Chapter 15 Labor Relations and Collective Bargaining 472 Early Collective Action and Union Formation 474 Labor Legislation Overview 476 National Labor Relations Act (Wagner Act) 476 Labor Management Relations Act (Taft-Hartley Act) 477 ' Labor-Management Reporting and Disclosure Act (Landrum-Griffin Act) 477 Structure and Management of Unions 477 Federation of Unions 477 Intermediate Union Bodies 478 National Unions 479 Local Unions 479 The Union Organizing Campaign 479 Authorization Card Campaign and Union Certification 480 Union Security 481 Levels of Union Security 481 Right-to-Work Requirements 482 Public Employee Associations 483 Background 483 Public Sector Labor Legislation 483 Collective Bargaining 484 Prenegotiation 484 Selecting the Negotiators 485 Developing a Bargaining Strategy 486 Using the Best Tactics 486 Reaching a Formal Contractual Agreement 487 Contract Ratification 487 Failure to Reach Agreement 488 Strikes 488 Lockouts 489 Permanent Replacements 489 Third-Party Intervention 490 Administering the Contract 490 Discipline 490 Grievances 491 Arbitration 492 The Changing Climate of Unionization in the United States 493 Union Membership Trends 493 Global Unionization 494 Union Organizing Trends 495 Summary 497 Key Terms 498 Questions for Review and Discussion 499 Exercise 15-1 Reporting on Labor Unions 499 Exercise 15-2 Union-Management Contract Negotiations 499 HRM Legal Advisor 502 Application Case 15-1 The Union's Demand for Recognition and Bargaining Rights 503 Notes 505 Chapter 16 Managing Employee Discipline 508 Categories of Difficult Employees 510 Category 1: Ineffective Employees 511 Category 2: Alcoholic and Substance-Abusing Employees 511 Category 3: Participants in Theft, Fraud, and Other IllegalActs 513 Category 4: Rule Violators 518 The Discipline Process 520
8 xviii Contents Approaches to Discipline 521 The Hot Stove Rule 522 Progressive Discipline 522 Positive Discipline 522 The Disciplinary Interview: A Constructive Approach 524 Legal Challenges to Discipline and Termination 525 Employment at Will 525 Alternative Dispute Resolution 527 Summary 528 Key Terms 529 Questions for Review and Discussion 529 Exercise 16-1 Making Difficult Decisions 530 HRM Legal Advisor 531 Application Case 16-1 The Case for and against Drug Testing 532 Notes 534 Chapter 17 Promoting Safety and Health 537 Background 538 Causes of Work-Related Accidents and Illnesses 541 Who Is Involved with Safety and Health? 543 Governmental Responses to Safety and Health Problems 544 OSHA Safety Standards 546 OSHA Inspections 546 OSHA Record Keeping and Reporting 54 7 OSHA: A Report Card 549 Organizational Responses to Safety and Health Issues 549 Safety Design and Preventive Approaches 549 Inspection, Reporting, and Accident Research 550 Safety Training and Motivation Programs 550 Preventive Health Programs: A Wellness Approach 551 Safety and Health Issues 553 Stress Management 553 Violence in the Workplace 555 Indoor Environmental Quality (IEQ) 556 HIV-AIDS in the Workplace 558 Cumulative Trauma Disorders (CTDs) 559 Evaluation of Safety and Health Programs 560 Summary 561 Key Terms 562 Questions for Review and Discussion 563 Exercise 17-1 Preparing for an OSHA Inspection 563 Application Case 17-1 Campus Food Systems 564 Notes 565 Appendix A Measuring Human Resource Activities 569 Appendix B Sources of Information about Human Resource Management: Where to Find Facts and Figures 575 Appendix C Career Planning 583 Glossary 593 Name Index 603 Company Index 612 Subject Index 615
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