HUMAN RESOURCE MANAGEMENT ELFTH

HUMAN RESOURCE MANAGEMENT ELFTH EDITION Gary Dessler Florida International University.I r e i l t l C e Jrl3.ll Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo

Contents Preface xxiii Acknowledgments xxvii Introduction to Human Resource Management 2 WHAT IS HUMAN RESOURCE MANAGEMENT AND WHY IS IT IMPORTANT? 4 What Is Human Resource Management? 4 Why Is Human Resource Management Important to All Managers? 5 Line and Staff Aspects of Human Resource Management 6 Line Managers' Human Resource Duties 6 Human Resource Manager's Duties 7 New Approaches to Organizing HR 9 Cooperative Line and Staff HR Management: An Example 9 Moving from Line Manager to HR Manager 10 THE TRENDS SHAPING HUMAN RESOURCE MANAGEMENT 10 Globalization and Competition Trends 11 Indebtedness ("Leverage") and Deregulation 12 Technological Trends 12 Trends in the Nature of Work 13 Workforce and Demographic Trends 14 Economic Challenges and Trends 15 IMPORTANT TRENDS IN HUMAN RESOURCE MANAGEMENT 16 The New Human Resource Managers 16 Strategic Human Resource Management 18 High-Performance Work Systems 19 Evidence-Based Human Resource Management 19 EVIDENCE-BASED HR: Why Should You Be Evidence-Based? 19 Managing Ethics 20 HR Certification 20 THE PLAN OF THIS BOOK 21 The Basic Themes and Features 21 CHAPTER CONTENTS OVERVIEW 22 Part 1: Introduction 22 Part 2: Recruitment and Placement 22 Part 3: Training and Development 22 Part 4: Compensation 23 Part 5: Employee Relations 23 The Topics Are Interrelated 23 VII

viii CONTENTS CHAPTER SECTION SUMMARIES 24 DISCUSSION QUESTIONS 24 INDIVIDUAL AND GROUP ACTIVITIES 25 EXPERIENTIAL EXERCISE: HELPING "THE DONALD" 25 APPLICATION CASE: JACK NELSON'S PROBLEM 26 CONTINUING CASE: CARTER CLEANING COMPANY 26 KEY TERMS 27 ENDNOTES 27 Equal Opportunity and the Law 30 EQUAL EMPLOYMENT OPPORTUNITY 1964-1991 32 Title VII of the 1964 Civil Rights Act 32 \ Executive Orders 32 i Equal Pay Act of 1963 33 i Age Discrimination in Employment Act of 1967 33 Vocational Rehabilitation Act of 1973 33 j Pregnancy Discrimination Act of 1978 34. j Federal Agency Guidelines 34 i Early Court Decisions Regarding Equal Employment Opportunity 34! EQUAL EMPLOYMENT OPPORTUNITY 1990-91-PRESENT 35 The Civil Rights Act of 1991 35 The Americans with Disabilities Act 36 Genetic Information Nondiscrimination Act of 2008 (GINA) 39 State and Local Equal Employment Opportunity Laws 39 I Sexual Harassment 39 j MANAGING THE N E W WORKFORCE: Enforcing Equal Employment Laws with International! Employees 45 ' DEFENSES AGAINST DISCRIMINATION ALLEGATIONS 46 The Central Role of Adverse Impact 46 Bona Fide Occupational Qualification 48 : Business Necessity 49 Other Considerations in Discriminatory Practice Defenses 50 ILLUSTRATIVE DISCRIMINATORY EMPLOYMENT PRACTICES 50 A Note on What You Can and Cannot Do 50 Recruitment 50 Selection Standards 51 Sample Discriminatory Promotion, Transfer, and Layoff Practices 52 What the Supervisor Should Keep in Mind 52 THE EEOC ENFORCEMENT PROCESS 53 Voluntary Mediation 54 Mandatory Arbitration of Discrimination Claims 55 ; DIVERSITY MANAGEMENT AND AFFIRMATIVE ACTION PROGRAMS 56 EVIDENCE-BASED HR: Will Workforce Diversity Cause Problems for Our Company? 57 Managing Diversity 57 \ Workforce Diversity in Practice 58 i Equal Employment Opportunity Versus Affirmative Action 60! Steps in an Affirmative Action Program 60 Improving Productivity Through HRIS: Measuring Diversity 61 < Reverse Discrimination 61 CHAPTER SECTION SUMMARIES 62 DISCUSSION QUESTIONS 63 INDIVIDUAL AND GROUP ACTIVITIES 63 EXPERIENTIAL EXERCISE: "SPACE CADET" OR VICTIM? 63 APPLICATION CASE: A CASE OF RACIAL DISCRIMINATION? 64 CONTINUING CASE: CARTER CLEANING COMPANY 65 KEY TERMS 65 i ENDNOTES 66 ;

CONTENTS ix The Manager's Role in Strategic Human Resource Management 70 WHY STRATEGIC PLANNING IS IMPORTANT TO ALL MANAGERS 72 The Hierarchy of Goals 72 FUNDAMENTALS OF MANAGEMENT PLANNING 73 The Planning Process 73 Putting Together the Business Plan 73 How Managers Set Objectives 75 THE STRATEGIC MANAGEMENT PROCESS 77 Introduction 78 Improving Productivity Through HRIS: Using Computerized Business Planning Software 81 Types of Strategies 81 The Top Manager's Role in Strategic Planning 83 Departmental Managers' Strategic Planning Roles 84 MANAGING THE NEW WORKFORCE: Dealing with Offshoring 85 STRATEGIC HUMAN RESOURCE MANAGEMENT 86 Human Resource Strategies and Policies 87 MANAGING HR IN CHALLENGING TIMES: Adjusting HR Policies to Challenging Times 88 Strategic HR in Action: Improving Mergers and Acquisitions 89 Strategic Human Resource Management Tools 90 HR APPs 4 U: Mobile Access to Strategy Maps 91 Translating Strategy into Human Resource Policies and Practices: Einstein Medical Example 92 BUILDING YOUR OWN HIGH-PERFORMANCE WORK SYSTEM 93 What Are High-Performance Work Systems? 93 High-Performance Human Resource Policies and Practices 94 The Line Manager's Role in Building a High-Performance Work System 95 CHAPTER SECTION SUMMARIES 96 DISCUSSION QUESTIONS 96 INDIVIDUAL AND GROUP ACTIVITIES 97 EXPERIENTIAL EXERCISE: DEVELOPING AN HR STRATEGY FOR STARBUCKS 97 APPLICATION CASE: SIEMENS BUILDS A STRATEGY-ORIENTED HR SYSTEM 98 CONTINUING CASE: THE CARTER CLEANING COMPANY: THE HIGH-PERFORMANCE WORK SYSTEM 98 KEY TERMS 99 PARIS CASE 99 APPENDIX FOR CHAPTER 3: Tools for Evidence-Based Human Resource Management 103 PART I VIDEO CASES APPENDIX 110 ENDNOTES 111 4 Job Analysis 114 THE BASICS OF JOB ANALYSIS 116 Uses of Job Analysis Information 116 Steps in Job Analysis 117 Job Analysis Guidelines 119 METHODS FOR COLLECTING JOB ANALYSIS INFORMATION 119 The Interview 119. Questionnaires 123 Observation 123 ;: Participant Diary/Logs 126 fj. Quantitative Job Analysis Techniques 126 v, Internet-Based Job Analysis 128

X CONTENTS WRITING JOB DESCRIPTIONS 130 Job Identification 130 Job Summary 132 Relationships 133 Responsibilities and Duties 133 Standards of Performance and Working Conditions 134 Duty: Accurately Posting Accounts Payable 135 MANAGING THE NEW WORKFORCE: Writing Job Descriptions That Comply with the ADA 135 Duty: Meeting Daily Production Schedule 136 Using the Internet for Writing Job Descriptions 136 WRITING JOB SPECIFICATIONS 139 Specifications for Trained Versus Untrained Personnel 140 Specifications Based on Judgment 140 Job Specifications Based on Statistical Analysis 141 JOB ANALYSIS IN A WORKER-EMPOWERED WORLD 141 From Specialized to Enriched Jobs 142 Competency-Based Job Analysis 143 How to Write Job Competencies-Based Job Descriptions 144 In Summary: Why Competency Analysis? 144 CHAPTER SECTION SUMMARIES 145 DISCUSSION QUESTIONS 145 INDIVIDUAL AND GROUP ACTIVITIES 146 EXPERIENTIAL EXERCISE: THE INSTRUCTOR'S JOB DESCRIPTION 146 APPLICATION CASE: TROPICAL STORM WILMA 146 CONTINUING CASE: CARTER CLEANING COMPANY 147 PARIS CASE 147 KEY TERMS 148 ENDNOTES 148 Personnel Planning and Recruiting 150 THE RECRUITMENT AND SELECTION PROCESS 152 PLANNING AND FORECASTING 152 Forecasting Personnel Needs 153 Forecasting the Supply of Inside Candidates 155 Forecasting the Supply of Outside Candidates 156 THE NEED FOR EFFECTIVE RECRUITING 157 Why Recruiting Is Important 157 What Makes Effective Recruiting a Challenge? 157 Organizing How You Recruit 158 The Recruiting Yield Pyramid 158 INTERNAL SOURCES OF CANDIDATES 159 Using Internal Sources: Pros and Cons 159 Finding Internal Candidates 159 Rehiring 159 Succession Planning 160 Improving Productivity Through HRIS: Succession Planning Systems 160 OUTSIDE SOURCES OF CANDIDATES 160 Recruiting via the Internet 161 HR APPs 4 U: Posting and Accessing Job Openings 162 MANAGING HR IN CHALLENGING TIMES: Reducing Recruitment Costs 164 Advertising 165 Employment Agencies 166 Temp Agencies and Alternative Staffing 167 Offshoring and Outsourcing Jobs 169 Executive Recruiters 170

CONTENTS xi On-Demand Recruiting Services 171 College Recruiting 172 Referrals and Walk-Ins 173 Telecommuters 174 Military Personnel 174 Recruiting Source Use and Effectiveness 174 EVIDENCE-BASED HR: Measuring Recruiting Effectiveness 174 Improving Productivity Through HRIS: An Integrated Approach to Recruiting 176 RECRUITING A MORE DIVERSE WORKFORCE 176 Single Parents 176 Older Workers 176 H MANAGING THE NEW WORKFORCE: Supervising Older Workers 177 Recruiting Minorities 178 Welfare-to-Work 178 The Disabled 178 DEVELOPING AND USING APPLICATION FORMS 179 Purpose of Application Forms 179 Application Guidelines 179 Application Forms and EEO Law 179 Using Application Forms to Predict Job Performance 181 Mandatory Arbitration 181 CHAPTER SECTION SUMMARIES 182 DISCUSSION QUESTIONS 183 INDIVIDUAL AND GROUP ACTIVITIES 183 EXPERIENTIAL EXERCISE: THE NURSING SHORTAGE 183 APPLICATION CASE: FINDING PEOPLE WHO ARE PASSIONATE ABOUT WHAT THEY DO 184 CONTINUING CASE: CARTER CLEANING COMPANY 184 PARIS CASE 185 KEY TERMS' 185 ENDNOTES 186 O Employee Testing and Selection 190 WHY CAREFUL SELECTION IS IMPORTANT 192 BASIC TESTING CONCEPTS 192 Reliability 192 Validity 193 Evidence-Based HR: How to Validate a Test 194 Test Takers' Individual Rights and Test Security 198 m MANAGING THE NEW WORKFORCE: Bias Against Working Mothers 198 How Do Employers Use Tests at Work? 199 Computerized and Online Testing 200 TYPES OF TESTS 201 Tests of Cognitive Abilities 201 HR APPs 4 U: Testing via the iphone 201 Tests of Motor and Physical Abilities 202 Measuring Personality and Interests 202 Achievement Tests 205 WORK SAMPLES AND SIMULATIONS 206 Using Work Sampling for Employee Selection 206 Management Assessment Centers 206 Situational Testing and Video-Based Situational Testing 207 The Miniature Job Training and Evaluation Approach 208 Realistic Job Previews 208 HR in Practice: Testing Techniques for Managers 209 Summary 209

xii CONTENTS BACKGROUND INVESTIGATIONS AND OTHER SELECTION METHODS 210 Why Perform Background Investigations and Reference Checks? 210 The Legal Dangers and How to Avoid Them 211 How to Check a Candidate's Background 212 Using Preemployment Information Services 214 The Polygraph and Honesty Testing 215 Graphology 216 Physical Exams 217 Substance Abuse Screening 217 Complying with Immigration Law 218 Improving Productivity Through HRIS: Using Automated Applicant Tracking and Screening Systems 219 CHAPTER SECTION SUMMARIES 220 DISCUSSION QUESTIONS 221 INDIVIDUAL AND GROUP ACTIVITIES 221 EXPERIENTIAL EXERCISE: A TEST FOR A RESERVATION CLERK 221 APPLICATION CASE: WHERE'S MY CZAR? 222 CONTINUING CASE: HONESTY TESTING AT CARTER CLEANING COMPANY 222 PARIS CASE 223 KEY TERMS 223 ENDNOTES 224 Interviewing Candidates 228 BASIC TYPES OF INTERVIEWS 230 Types of Employment Interviews 230 Structured Versus Unstructured Interviews 230 Interview Content (What Types of Questions to Ask) 232 How Should We Administer the Interview? 234 HR APPs 4 U: iphone Job Interviews 235 MANAGING HR IN CHALLENGING TIMES: Acing the Skype Interview 235 Three Ways to Make the Interview Useful 237 WHAT ERRORS CAN UNDERMINE AN INTERVIEWS USEFULNESS? 237 First Impressions (Snap Judgments) 237 Not Clarifying What the Job Requires 238 Candidate-Order (Contrast) Error and Pressure to Hire 238 Nonverbal Behavior and Impression Management 239 Effect of Personal Characteristics: Attractiveness, Gender, Race 239 MANAGING THE NEW WORKFORCE: Applicant Disability and the Employment Interview 240 Interviewer Behavior 241 HOW TO DESIGN AND CONDUCT AN EFFECTIVE INTERVIEW 241 The Structured Situational Interview 241 How to Conduct an Effective Interview 243 Using a Streamlined Interview Process 245 Guidelines for Interviewees 247 CHAPTER SECTION SUMMARIES 249 DISCUSSION QUESTIONS 250 INDIVIDUAL AND GROUP ACTIVITIES 250 EXPERIENTIAL EXERCISE: THE MOST IMPORTANT PERSON YOU'LL EVER HIRE 251 APPLICATION CASE: THE OUT-OF-CONTROL INTERVIEW 251 CONTINUING CASE: CARTER CLEANING COMPANY 252 PARIS CASE 252 KEY TERMS 253 APPENDIX FOR CHAPTER 7 254 PART II VIDEO CASES APPENDIX 257 ENDNOTES 258

CONTENTS xiii 262 O Training and Developing Employees 262 INTRODUCTION TO ORIENTING AND TRAINING EMPLOYEES 264 The Purposes of Employee Orientation/Onboarding 264 The Orientation Process 264 HR APPs 4 U: Mobile Company Directory 266 The Training Process 266 Training, Learning, and Motivation 267 EVIDENCED-BASED HR: Sounds and Shortcuts: How to Design the Training Format to Improve Training Results 268 ANALYZING TRAINING NEEDS AND DESIGNING THE PROGRAM 269 Task Analysis: Assessing New Employees' Training Needs 269 Performance Analysis: Assessing Current Employees' Training Needs 270 Designing the Training Program 272 MANAGING HR IN CHALLENGING TIMES: Free Training Alternatives 273 IMPLEMENTING TRAINING PROGRAMS 273 On-the-Job Training 273 Apprenticeship Training 275 Informal Learning 275 Job Instruction Training 275 Lectures 276 Programmed Learning 277 Audiovisual-Based Training 278 Vestibule Training 278 Teletraining and Videoconferencing 278 Electronic Performance Support Systems (EPSS) 278 Computer-Based Training 279 Simulated Learning 279 Internet-Based Training 281 Improving Productivity Through HRIS: Learning Management Systems 281 The Virtual Classroom 281 Using Internet-Based Learning 282 HR APPs 4 U: Mobile Learning 283 Lifelong and Literacy Training Techniques 283 MANAGING THE NEW WORKFORCE: Diversity Training 284 HR in Practice: Creating Your Own Training Program 284 IMPLEMENTING MANAGEMENT DEVELOPMENT PROGRAMS 285 Managerial On-the-Job Training 286 Off-the-Job Management Training and Development Techniques 286 MANAGING ORGANIZATIONAL CHANGE PROGRAMS 289 What to Change 290 Lewin's Change Process 290 Leading Organizational Change 291 Using Organizational Development 292 EVALUATING THE TRAINING EFFORT 294 Designing the Study 294 Training Effects to Measure 295 CHAPTER SECTION SUMMARIES 297 DISCUSSION QUESTIONS 297 INDIVIDUAL AND GROUP ACTIVITIES 298 EXPERIENTIAL EXERCISE: FLYING THE FRIENDLIER SKIES 238 APPLICATION CASE: REINVENTING THE WHEEL AT APEX DOOR COMPANY 298 CONTINUING CASE: CARTER CLEANING COMPANY 299

xiv CONTENTS PARIS CASE 300 KEY TERMS 300 ENDNOTES 300 Performance Management and Appraisal 304 BASIC CONCEPTS IN PERFORMANCE MANAGEMENT AND APPRAISAL 306 Defining the Employee's Goals and Work Standards 307 TECHNIQUES FOR APPRAISING PERFORMANCE 308 Why Appraise Performance? 308 Realistic Appraisals 308 The Supervisor's Role 308 Steps in Appraising Performance 309 Graphic Rating Scale Method 309 Alternation Ranking Method 312 Paired Comparison Method 312 Forced Distribution Method 314 Critical Incident Method 314 Narrative Forms 315 Behaviorally Anchored Rating Scales 315 Management by Objectives 318 Computerized and Web-Based Performance Appraisal 318 Electronic Performance Monitoring 318 Appraisal in Practice 320 DEALING WITH PERFORMANCE APPRAISAL PROBLEMS 321 Potential Appraisal Problems 321 MANAGING THE N E W WORKFORCE: The Gender Gap in Appraisals 322 Five Guidelines for How to Hold Effective Appraisals 323 Appraisals and the Law 324 Who Should Do the Appraising? 325 EVIDENCE-BASED HR: Should We Encourage Upward Feedback? 327 THE APPRAISAL INTERVIEW 328 Types of Appraisal Interviews 328 How to Conduct the Appraisal Interview 328 Appraisals in Practice 331 PERFORMANCE MANAGEMENT 331 What is Performance Management? 331 Performance Appraisal Versus Performance Management 331 Basic Building Blocks of Performance Management 332 Why Performance Management? 331 HR APPs 4 U: Mobile Performance Management 333 Using Information Technology to Support Performance Management 333 Improving Productivity Through HRIS: TRW's New Performance Appraisal/ Management System 333 CHAPTER SECTION SUMMARIES 334 DISCUSSION QUESTIONS 335 INDIVIDUAL AND GROUP ACTIVITIES 335 EXPERIENTIAL EXERCISE: GRADING THE PROFESSOR 336 APPLICATION CASE: APPRAISING THE SECRETARIES AT SWEETWATER U 336 CONTINUING CASE: CARTER CLEANING COMPANY 337 TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE 337 KEY TERMS 338 ENDNOTES 338

CONTENTS xv 1U Coaching, Careers, and Talent Management 342 IMPROVING YOUR COACHING SKILLS 344 Coaching's Importance 344 Preparing to Coach 344 Planning 345 Active Coaching 345 Follow-Up 346 CAREER MANAGEMENT BASICS 347 Career Terminology 347 Careers Today 347 Employer Career Efforts Today 348 The Employee's Role 349 CAREER MANAGEMENT METHODS 350 The Employer's Role 350 Some Innovative Employer Career Initiatives 351 Commitment-Oriented Career Development Efforts 353 B MANAGING THE N E W WORKFORCE: Different Career Development Needs 354 The Manager's Role 355 Building Your Mentoring Skills 356 Improving Productivity Through HRIS: Career Planning and Development 357 EMPLOYER LIFE-CYCLE CAREER MANAGEMENT 357 Making Promotion Decisions 358 Sources of Bias in Promotion Decisions 359 Promotions and the Law 360 Managing Transfers 360 ' Managing Retirements 360 MANAGING HR IN CHALLENGING TIMES 362 TALENT MANAGEMENT 362 What Is Talent Management? 362 Talent Management Systems 363 CHAPTER SECTION SUMMARIES 363 DISCUSSION QUESTIONS 364 INDIVIDUAL AND GROUP ACTIVITIES 364 EXPERIENTIAL EXERCISE: WHERE AM I GOING... AND WHY? 365 APPLICATION CASE: THE MENTOR RELATIONSHIP TURNS UPSIDE DOWN 365 CONTINUING CASE: CARTER CLEANING COMPANY 365 TRANSLATING STRATEGY INTO HR POUCIES & PRACTICES CASE: THE HOTEL PARIS CASE 366 KEY TERMS 366 APPENDrX FOR CHAPTER 10 367 PART III VIDEO CASES APPENDIX 381 ENDNOTES 382 ^WfF@y^ I (g»im!im M 384 11 Establishing Strategic Pay Plans 384 BASIC FACTORS IN DETERMINING PAY RATES 386 Legal Considerations in Compensation 386 HR APPs 4 U: Mobile PDA Handheld Timesheet Solutions 387 m MANAGING THE NEW WORKFORCE: The Independent Contractor 387 Union Influences on Compensation Decisions 391 Competitive Strategy, Corporate Policies, and Compensation l 391 MANAGING HR IN CHALLENGING TIMES: Salary and Incentives in Tough Times 392 Equity and Its Impact on Pay Rates 393

XVi CONTENTS 12 ESTABLISHING PAY RATES 394 Step 1. The Salary Survey 395 Step 2. Job Evaluation 397 Step 3. Group Similar Jobs into Pay Grades 401 Step 4. Price Each Pay Grade Wage Curves 402 - Step 5. Fine-Tune Pay Rates 402 HR in Practice: Developing a Workable Pay Plan 404 PRICING MANAGERIAL AND PROFESSIONAL JOBS 406 Compensating Executives and Managers 407 What Determines Executive Pay? 407 Compensating Professional Employees 408 COMPETENCY-BASED PAY 408 Introduction 408 What Is Competency-Based Pay? 408 Why Use Competency-Based Pay? 409 Competency-Based Pay in Practice 410 The Bottom Line on Competency-Based Pay 410 SPECIAL TOPICS IN COMPENSATION 411 Broadbanding 411 Comparable Worth 413 Board Oversight of Executive Pay 414 Tomorrow's Pay Programs 414 Improving Productivity Through HRIS: Automating Compensation Administration 415 CHAPTER SECTION SUMMARIES 416 DISCUSSION QUESTIONS 416 INDIVIDUAL AND GROUP ACTIVITIES 417 EXPERIENTIAL EXERCISE: RANKING THE COLLEGE'S ADMINISTRATORS 417 APPLICATION CASE: SALARY INEQUITIES AT ACME MANUFACTURING 417 CONTINUING CASE: CARTER CLEANING COMPANY 418 PARIS CASE 419 KEY TERMS 419 APPENDIX FOR CHAPTER 11 420 ENDNOTES 428 Pay for Performance and Financial Incentives 432 MONEY AND MOTIVATION 434 Linking Performance and Pay 434 Motivation and Incentives 434 Incentive Pay Terminology 436 Employee Incentives and the Law 436 INDIVIDUAL EMPLOYEE INCENTIVE AND RECOGNITION PROGRAMS 437 Piecework Plans 437 Merit Pay as an Incentive 438 Incentives for Professional Employees 439 Nonfinancial and Recognition-Based Awards 440 Online and IT-Supported Awards 441 INCENTIVES FOR SALESPEOPLE 441 Salary Plan 441 Commission Plan 442 Combination Plan 442 Maximizing Sales Force Results 442 EVIDENCE-BASED HR: How Effective are Your Incentives? 443 INCENTIVES FOR MANAGERS AND EXECUTIVES 444 Sarbanes-Oxley 445 Short-Term Incentives: The Annual Bonus 445

CONTENTS xvii MANAGING HR IN CHALLENGING TIMES: Incentives for Top Performers 447 Long-Term Incentives 447 Other Executive Incentives 448 Strategy and the Executive's Total Rewards Package 448 TEAM AND ORGANIZATIONWIDE INCENTIVE PLANS 449 How to Design Team Incentives 449 EVIDENCE-BASED HR: Inequities That Undercut Team Incentives 450 Profit-Sharing Plans 450 Scanlon Plans 451 Other Gainsharing Plans 452 At-Risk Pay Plans 452 Employee Stock Ownership Plans 453 DESIGNING EFFECTIVE INCENTIVE PROGRAMS 453 Research Insight: The Impact of Financial and Nonfinancial Incentives 454 The Five Building Blocks of Effective Incentive Plans 454 Incentive Plans in Practice: Nucor 455 CHAPTER SECTION SUMMARIES 455 DISCUSSION QUESTIONS 456 INDIVIDUAL AND GROUP ACTIVITIES 456 EXPERIENTIAL EXERCISE: MOTIVATING THE SALES FORCE AT EXPRESS AUTO 457 APPLICATION CASE: INSERTING THE TEAM CONCEPT INTO COMPENSATION OR NOT 457 CONTINUING CASE: CARTER CLEANING COMPANY 458 PARIS CASE 459 KEY TERMS 459 ENDNOTES 460 ±3 Benefits and Services 464 THE BENEFITS PICTURE TODAY 466 PAY FOR TIME NOT WORKED 467 Unemployment Insurance 467 Vacations and Holidays 468 Sick Leave 469 D EVIDENCE-BASED HR: Tracking Sick Leave 470 Parental Leave and the Family and Medical Leave Act 470 Severance Pay 473 Supplemental Unemployment Benefits 473 INSURANCE BENEFITS 474 Workers' Compensation 474 Hospitalization, Health, and Disability Insurance 475 The Legal Side of Health Benefits 476 MANAGING HR IN CHALLENGING TIMES: Providing Extended Health Care Benefits 476 Trends in Health Care Cost Control 478 Long-Term Care 479 Life Insurance 479 Benefits for Part-Time and Contingent Workers 479 RETIREMENT BENEFITS 480 Social Security 480 Pension Plans 480 Pension Planning and the Law 482 Key Pension Policy Issues 482 Pensions and Early Retirement 483 Improving Productivity Through HRIS: Online Benefits Management Systems 484

xviii CONTENTS PERSONAL SERVICES AND FAMILY-FRIENDLY BENEFITS 484 Personal Services 484 Family-Friendly (Work-Life) Benefits 485 Other Job-Related Benefits 487 HR APPs 4 U: ipods at Work 487 B MANAGING THE NEW WORKFORCE: Domestic Partner Benefits 488 Executive Perquisites 488 FLEXIBLE BENEFITS PROGRAMS 488 The Cafeteria Approach 490 Benefits and Employee Leasing 490 Flexible Work Schedules 491 CHAPTER SECTION SUMMARIES 493 DISCUSSION QUESTIONS 494 INDIVIDUAL AND GROUP ACTIVITIES 494 EXPERIENTIAL EXERCISE: REVISING THE BENEFITS PACKAGE 494 APPLICATION CASE: STRIKING FOR BENEFITS 494 CONTINUING CASE: CARTER CLEANING COMPANY 495 PARIS CASE 495 KEY TERMS 496 PART IV VIDEO CASES APPENDIX 497 ENDNOTES 498 i mmmm, mjmmm 502 14 Ethics, Justice, and Fair Treatment in HR Management 502 ETHICS AND FAIR TREATMENT AT WORK 504 The Meaning of Ethics 506 Ethics and the Law 506 Ethics, Justice, and Fair Treatment 507 Employee Rights 507 WHAT DETERMINES ETHICAL BEHAVIOR AT WORK? 508 Research Findings: What Do We Know About Ethical Behavior At Work? 508 The Person 509 The Boss 509 The Company 511 HOW MANAGERS USE PERSONNEL METHODS TO PROMOTE ETHICS AND FAIR TREATMENT 512 Selection 512 Ethics Training 512 Performance Appraisal 514 Reward and Disciplinary Systems 514 Managing Ethics Compliance 515 Personnel-Related Methods for Ensuring Fair Treatment 515 MANAGING EMPLOYEE DISCIPLINE AND PRIVACY 517 H MANAGING THE N E W WORKFORCE: Comparing Males and Females in a Discipline Situation 517 Basics of a Fair and Just Disciplinary Process 517 Employee Privacy 520 Employee Monitoring 521 HR APPs 4 U: ipods and Ethics at Work 524 MANAGING DISMISSALS 524 Termination at Will and Wrongful Discharge 524 Grounds for Dismissal 525

CONTENTS xix Avoiding Wrongful Discharge Suits 527 Personal Supervisory Liability 527 The Termination Interview 528 Layoffs, Downsizing, and the Plant Closing Law 530 MANAGING HR IN CHALLENGING TIMES: Preparing for Layoffs 532 Adjusting to Downsizings and Mergers 533 CHAPTER SECTION SUMMARIES 534 DISCUSSION QUESTIONS 534 INDIVIDUAL AND GROUP ACTIVITIES 535 EXPERIENTIAL EXERCISE: DISCIPLINE OR NOT? 535 APPLICATION CASE: ENRON, ETHICS, AND ORGANIZATIONAL CULTURE 536 CONTINUING CASE: CARTER CLEANING COMPANY 537 PARIS CASE 537 KEY TERMS 538 ENDNOTES 538 Labor Relations and Collective Bargaining 542 THE LABOR MOVEMENT 544 A Brief History of the American Union Movement 544 Why Do Workers Organize? 545 What Do Unions Want? 546 The AFL-CIO 546 UNIONS AND THE LAW 547 Period of Strong Encouragement: The Norris-LaGuardia (1932) and National Labor Relations or Wagner Acts (1935) 548 Period of Modified Encouragement Coupled with Regulation: The Taft-Hartley Act (1947) 548 Unfair Union Labor Practices 550 THE UNION DRIVE AND ELECTION 551 Step 1. Initial Contact 551 Step 2. Obtaining Authorization Cards 552 Step 3. Hold a Hearing 553 Step 4. The Campaign 555 Step 5. The Election 555 How to Lose an NLRB Election 556 EVIDENCE-BASED HR: What Can I Expect the Union to Do to Win the Election? 557 The Supervisor's Role 557 Rules Regarding Literature and Solicitation 558 Decertification Elections: Ousting the Union 559 THE COLLECTIVE BARGAINING PROCESS 559 What Is Collective Bargaining? 559 What Is Good Faith? 559 The Negotiating Team 560 Bargaining Items 561 Bargaining Stages 562 Bargaining Hints 562 Impasses, Mediation, and Strikes 562 The Contract Agreement 566 GRIEVANCES 566 Sources of Grievances 567 The Grievance Procedure 567 Guidelines for Handling Grievances 568 THE UNION MOVEMENT TODAY AND TOMORROW 569 Why Union Membership Is Down 569 An Upswing for Unions? 570 Public Employees and Unions 570

XX CONTENTS Organizing Professionals and White-Collar Employees 570 Card Check and Other New Union Tactics 570 Improving Productivity Through HRIS: Unions Go High-Tech 572 HR APPs 4 U: Union ipod Organizing 572 High-Performance Work Systems, Employee Participation, and Unions 572 CHAPTER SECTION SUMMARIES 573 DISCUSSION QUESTIONS 574 INDIVIDUAL AND GROUP ACTIVITIES 574 EXPERIENTIAL EXERCISE: THE UNION-ORGANIZING CAMPAIGN AT PIERCE U. 575 APPLICATION CASE: NEGOTIATING WITH THE WRITERS GUILD OF AMERICA 575 CONTINUING CASE: CARTER CLEANING COMPANY 576 PARIS CASE 576 KEY TERMS 577 ENDNOTES 577 1 6 Employee Safety and Health 580 WHY SAFETY IS IMPORTANT 582 Management's Role in Safety 582 What Top Management Can Do 582 The Supervisor's Role in Safety 583 OCCUPATIONAL SAFETY LAW 583 OSHA Standards and Record Keeping 583 Inspections and Citations 585 Responsibilities and Rights of Employers and Employees 589 WHAT CAUSES ACCIDENTS? 590 Unsafe Conditions and Other Work-Related Factors 590 What Causes Unsafe Acts? (A Second Basic Cause of Accidents) 591 HOW TO PREVENT ACCIDENTS 591 Reducing Unsafe Conditions 592 H MANAGING THE N E W WORKFORCE: Protecting Vulnerable Workers 596 Reducing Unsafe Acts 597 Reducing Unsafe Acts Through Selection and Placement 597 Reducing Unsafe Acts Through Training 597 1! MANAGING THE N E W WORKFORCE: Safety Training for Hispanic Workers 598 Reducing Unsafe Acts Through Motivation: Posters, Incentives, and Positive Reinforcement 598 Use Behavior-Based Safety 600 Use Employee Participation 600 Conduct Safety and Health Audits and Inspections 601 Research Insight: High-Performance Systems and Safety 601 HR APPs 4 U: PDA Safety Audits 601 Controlling Workers' Compensation Costs 602 MANAGING HR IN CHALLENGING TIMES: Cutting Safety Costs Without Cutting Costs 603 WORKPLACE HEALTH HAZARDS: PROBLEMS AND REMEDIES 604 The Basic Industrial Hygiene Program 604 Asbestos Exposure at Work 605 Improving Productivity Through HRIS: Internet-Based Safety Improvement Solutions 605 Infectious Diseases 606 Alcoholism and Substance Abuse 606 Stress, Burnout, and Depression 608 Solving Computer-Related Ergonomic Problems 610 Workplace Smoking 611 Violence at Work 611

CONTENTS xxi OCCUPATIONAL SECURITY AND SAFETY 615 Basic Prerequisites for a Security Plan 615 Setting Up a Basic Security Program 616 Evacuation Plans 617 Company Security and Employee Privacy 617 CHAPTER SECTION SUMMARIES 617 DISCUSSION QUESTIONS 618 INDIVIDUAL AND GROUP ACTIVITIES 618 EXPERIENTIAL EXERCISE: HOW SAFE IS MY UNIVERSITY? 619 APPLICATION CASE: THE NEW SAFETY AND HEALTH PROGRAM 622 CONTINUING CASE: CARTER CLEANING COMPANY 623 PARIS CASE 624 KEY TERMS 624 ENDNOTES 624 1 / Managing Global Human Resources 630 HR AND THE INTERNATIONALIZATION OF BUSINESS 632 The Manager's Global Challenge 632 How Intercountry Differences Affect HRM 632 Cultural Factors 632 Economic Systems 633 Legal, Political, and Labor Relations Factors 633 Ethics and Codes of Conduct 634 HR Abroad: The European Union 634 HR Abroad: China 635 STAFFING THE GLOBAL ORGANIZATION 635 International Staffing: Home or Local? 635 Offshoring 637 /Management Values and International Staffing Policy 637 Selecting Expatriate Managers 638 MANAGING THE NEW WORKFORCE: Sending Women Managers Abroad 640 Making Expatriate Assignments Successful 642 TRAINING AND MAINTAINING EXPATRIATE EMPLOYEES 643 Orienting and Training Employees on International Assignment 643 Compensating Expatriates 644 MANAGING HR IN CHALLENGING TIMES: Getting a Handle on Global Compensation 647 Appraising Expatriate Managers 647 International Labor Relations 647 Terrorism, Safety, and Global HR 648 HR APPs 4 U: Traveling Safely with Google Maps 649 Repatriation: Problems and Solutions 649 Improving Productivity Through HRIS: Taking the HRIS Global 649 HOW TO IMPLEMENT A GLOBAL HR SYSTEM 650 Developing a More Effective Global HR System 650 Making the Global HR System More Acceptable 651 Implementing the Global HR System 651 CHAPTER SECTION SUMMARIES 652 DISCUSSION QUESTIONS 653 INDIVIDUAL AND GROUP ACTIVITIES 653 EXPERIENTIAL EXERCISE: A TAXING PROBLEM FOR EXPATRIATE EMPLOYEES 654 APPLICATION CASE: "BOSS, I THINK WE HAVE A PROBLEM" 654 CONTINUING CASE: CARTER CLEANING COMPANY GOING ABROAD 655 PARIS CASE 655 KEY TERMS 656 ENDNOTES 656

xxii CONTENTS Managing Human Resources in Entrepreneurial Firms 660 THE SMALL BUSINESS CHALLENGE 662 Why Entrepreneurship Is Important 662 How Small Business Human Resource Management Is Different 662 D EVIDENCE-BASED HR: Is Entrepreneurship for You? 663 The Entrepreneur's Risky Human Resource Management Situation 664 Why HRM Is Important to Small Businesses 664 USING INTERNET AND GOVERNMENT TOOLS TO SUPPORT THE HR EFFORT 665 Complying with Employment Laws 665 Employment Planning and Recruiting 667 Employment Selection 667 Employment Training 668 Employment Appraisal and Compensation 669 Employment Safety and Health 669 LEVERAGING SMALL SIZE: FAMILIARITY, FLEXIBILITY, INFORMALITY, AND HRM 671 Flexibility in Benefits and Rewards 671 Simple, Informal Employee Selection Procedures 673 Flexibility in Training 673 Fairness and the Family Business 674 Building Communications 675 USING PROFESSIONAL EMPLOYER ORGANIZATIONS 675 How Do PEOs Work? 675 Why Use a PEO? 676 Caveats 676 Guidelines for Finding and Working with PEOs 677 MANAGING HR SYSTEMS, PROCEDURES, AND PAPERWORK 677 Introduction 677 Basic Components of Manual HR Systems 678 Automating Individual HR Tasks 679 Human Resource Management Information Systems (HRIS) 680 CHAPTER SECTION SUMMARIES 681 DISCUSSION QUESTIONS 682 INDIVIDUAL AND GROUP PROJECTS 682 EXPERIENTIAL EXERCISE: BUILDING AN HRIS 683 APPLICATION CASE: THE LIQUIDITY CRISIS AND THE NEW HEDGE FUND 683 CONTINUING CASE: CARTER CLEANING COMPANY 684 PARIS CASE 684 APPENDIX FOR CHAPTER 18 685 PART V VIDEO CASES APPENDIX 694 ENDNOTES 696 Appendix A Applying HR Content, Personal Competencies, and Business Knowledge 699 Appendix B Comprehensive Cases 707 Glossary 723 Name and Organization Index 733 Subject Index 747