Human Resource Management

Human Resource Management Tenth Edition Lloyd L. Byars, Ph.D. Professor Emeritus of Management College of Management Georgia Institute of Technology Leslie W. Rue, Ph.D. Professor Emeritus of Management Robinson College of Business Georgia State University Me Graw Hill McGraw-Hill Irwin

Table of Contents PART ONE INTRODUCTION AND BACKGROUND OF HUMAN RESOURCES 1 Chapter 1 Human Resource Management: A Strategic Function 3 Human Resource Functions 4 Who Performs the Human Resource Functions? 5 The Human Resource Department 5 Challenges for Today's Human Resource Managers 6 Diversity in the Workforce 6 Regulatory Changes 8 Structural Changes to Organizations 8 Technological and Managerial Changes within Organizations 9 Human Resource Management in the Future 10 Organizational Performance and the Human Resource Manager 12 Metrics and the HR Scorecard 12 Communicating Human Resource Programs 13 Guidelines for Communicating Human Resource Programs 13 Summary of Learning Objectives 14 Key Terms 15 Review Questions 16 Discussion Questions 16 Incident 1.1: Human Resource Management and Professionals 16 Incident 1.2: Choosing a Major 17 Exercise 1.1: Changes in Terminology 17 Exercise 1.2: Justifying the Human Resource Department 17 Exercise 1.3: Test Your Knowledge of HR History 17 Exercise 1.4: Are You Poised for Success? 18 Notes and Additional Readings 20 Chapter 2 Equal Employment Opportunity: The Legal Environment 23 Equal Employment Opportunity Laws 24 Equal Pay Act (1963) 24 Title VII, Civil Rights Act (1964) 25 Age Discrimination in Employment Act (1967) Rehabilitation Act (1973) 27 viii 26 Vietnam-Era Veterans Readjustment Assistance Act (1974) 27 Pregnancy Discrimination Act (1978) 28 Immigration Reform and Control Act (1986) 28 Americans with Disabilities Act (1990) 28 Older Workers Benefit Protection Act (1990) 29 Civil Rights Act (1991) 30 Family and Medical Leave Act (1993) 31 Executive Orders 11246, 11375, and 11478 31 State and Local Government Equal Employment Laws 32 Landmark Court Cases 32 Griggs v. Duke Power Company 34 McDonnell Douglas v. Green 34 Albemarle Paper v. Moody 35 University of California Regents v. Bakke 35 United Steelworkers of America v. Weber 35 Connecticut v. Teal 36 Memphis Firefighters, Local 1784 v. Stotts 36 City of Richmond v. J. A. Crosan Company 37 Wards Cove v. Atonio 3 7 Martin v. Wilks 37 Adarand Contractors v. Pena 38 State of Texas v. Hopwood 38 University of Michigan's Admission Procedures 38 Enforcement Agencies 38 Equal Employment Opportunity Commission 38 Office of Federal Contract Compliance Programs 39 Summary of Learning Objectives 39 Key Terms 41 Review Questions 41 Discussion Questions 42 Incident 2.1: Debate over Retirement Age 42 Incident 2.2: Accept Things as They Are 43 Exercise 2.1: Discrimination because of Sex, Religion, or National Origin 43 Notes and Additional Readings 44 Chapter 3 Implementing Equal Employment Opportunity 45 EEOC Compliance 46 Legal Powers of the EEOC 46 EEOC Posting Requirements 46 Records and Reports 46 Compliance Process 49 Preemployment Inquiry Guide 51 Affirmative Action Plans 52

Table of Contents ix Bona Fide Occupational Qualification (BFOQ) 52 Business Necessity 53 Sexual Harassment 54 Comparable Worth and Equal Pay Issues 55 Other Areas of Employment Discrimination 56 Religion 56 Native Americans 57 HIV-Positive Status 57 Sexual Orientation 57 Summary of Learning Objectives 58 Key Terms 58 Review Questions 59 Discussion Questions 59 Incident3.l.TheLayoff 59 Incident 3.2: Religion and Real Estate* 60 Exercise 3.1: Affirmative Action Debate 60 Exercise 3.2: How Much Do You Know about Sexual Harassment? 60 Notes and Additional Readings 61 On the Job: Preemployment Inquiry Guide 61 Chapter 4 Job Analysis and Job Design 65 Basic Terminology 66 Job Analysis 66 Products of Job Analysis 68 Job Analysis Methods 69 The ADA and Job Analysis 72 Potential Problems with Job Analysis 73,' Job Design 74 Job Scope and Job Depth 75 Sociotechnical Approach to Job Design 75 The Physical Work Environment 76 Flexible Work Arrangements (FWAs) 76 Summary of Learning Objectives 79 Key Terms 81 Review Questions 81 Discussion Questions 81 Incident 4.1: The Tax Assessor's Office 81 Incident 4.2: Turnover Problems 82 Exercise 4.1: Introduction to O*NET 82 Exercise 4.2: Writing a Job Description 82 Exercise 4.3: Performing a Job Analysis 83 Notes and Additional Readings 83 On the Job: Sample Job Analysis Questionnaire 84 PART TWO ACQUIRING HUMAN RESOURCES 87 Chapter 5 Human Resource Planning 89 How HRP Relates to Organizational Planning Strategy-Linked HRP 91 90 Time Frame of HRP 91 HRP: An Evolving Process 92 s Steps in the HRP Process 92 Determining Organizational Objectives 92 Determining the Skills and Expertise Required (Demand) 94 Determining Additional (Net) Human Resource Requirements 95 Developing Action Plans 96 Synthesizing the HRP Process 98 Succession Planning 100 Human Resource Information Systems (HRIS) 101 HR and the Internet 102 HR Intranets and Portals 102 HR and Web 2.0 104 Software as a Service 104 Summary of Learning Objectives 105 Key Terms 106 Review Questions 106 Discussion Questions 106 Incident 5.1: Human Resource Planning What Is That? 107 Incident 5.2: New Boss 107 Exercise 5.1: Avoiding Layoffs? 108 Exercise 5.2: Locating HR Software 108 Notes and Additional Readings 108 Chapter 6 Recruiting Employees 111 Job Analysis, Human Resource Planning, and Recruitment 112 Personnel Requisition Form 112 Sources of Qualified Personnel 113 Internal Sources 113 External Sources 115 Effectiveness of Recruitment Methods 117 Realistic Job Previews 118 Who Does the Recruiting, and How? 119 Organizational Inducements in Recruitment 120 Equal Employment Opportunity and Recruitment 120 Summary of Learning Objectives 121 Key Terms 122 Review Questions 122 Discussion Questions 122 Incident 6.1: Inside or Outside Recruiting? 123 Incident 6.2: A Malpractice Suit against a Hospital 123 Exercise 6.1: Writing a Resume 124 Notes and Additional Readings 124 Chapter 7 Selecting Employees 125 The Selection Process 125 Employment Application Form 126 Preliminary Interview 127 Formal Testing 128

x Table of Contents Second or Follow- Up Interview 131 Reference Checking -132 Physical Examination 132 Making the Final Selection Decision 133 Validation of Selection Procedures 133 Criterion-Related Validity 134 Content and Construct Validity 137 Reliability 137 Uniform Guidelines on Employee Selection Procedures 137 Adverse (or Disparate) Impact 138 Where Adverse Impact Exists: The Basic Options 139 Summary of Learning Objectives 139 Key Terms 140 Review Questions 140 Discussion Questions 141 Incident 7.1: Promotions at OMG 141 Incident 7.2: The Pole Climbers 142 Exercise 7.1: Developing a Frequency Distribution 143 Notes and Additional Readings 143 On the Job: Sample Online Application for Employment 144 PART THREE TRAINING AND DEVELOPING EMPLOYEES 147 Chapter 8 Orientation and Employee Training 149 Orientation 151 Shared Responsibility 151 Organizational Orientation 151 Departmental and Job Orientation 151 Orientation Kit 151 Orientation Length and Timing 153 Follow-Up and Evaluation 154 Training Employees 154 Needs Assessment 155 Establishing Training Objectives 156 Methods of Training 157 On-the-Job Training and Job Rotation 157 Apprenticeship Training 159 Classroom Training 160 Virtual Classroom 160 Evaluating Training 160 Reaction 160 Learning 160 Behavior 161 Results 161 Principles of Learning 162 Motivation to Achieve Personal Goals 162 Knowledge of Results 162 Reinforcement 162 Flow of the Training Program 163 Practice and Repetition 163 Spacing of Sessions 163 Whole or Part Training 163 Summary of Learning Objectives 163 ^ Key Terms 164 Review Questions 164 Discussion Questions 164 Incident 8.1: Starting a New Job 164 Incident 8.2: Implementing On-the-Job Training 165 Exercise 8.1: McDonald's Training Program 166 Exercise 8.2: Virtual Classroom 166 Notes and Additional Readings 166 Chapter 9 Management and Organizational Development 167 The Management Development Process 168 Determining the Net Management Requirements 168 Organizational Objectives 168 Management Inventory and Succession Plan 168 Changes in the Management Team 169 Needs Assessment 169 Establishing Management Development Objectives 172 Methods Used in Management Development 174 Understudy Assignments 174 Coaching 174 Experience 175 Job Rotation 175 Special Projects and Committee Assignments 175 Classroom Training 175 In-Basket Technique 176 Web-Based Training 177 Business Simulations 177 Adventure Learning 177 University and Professional Association Seminars 178 Evaluation of Management Development Activities 178 Assessment Centers 179 Organizational Development 179 Diagnosis 180 Strategy Planning 180 Education 181 Evaluation 181 Summary of Learning Objectives 182 Key Terms 182 Review Questions 182 Discussion Questions 183 Incident 9.1: The 40- Year Employee 183 Incident 9.2: Consolidating Three Organizations 184 Exercise 9.1: Training Methods 184 Notes and Additional Readings 185 On the Job: Comparison of Training Methods 185 Chapter 10 Career Development 189 Why Is Career Development Necessary? 190

Table of Contents xi Who Is Responsible for Career Development? 191 Organization's Responsibilities 191 Employee's Responsibilities 191 Manager's Responsibilities 192 Implementing Career Development 192 Individual Assessment 192 Assessment by the Organization 194 Communicating Career Options 194 Career Pathing 194 Career Self-Management 194 Career Counseling 195 Reviewing Career Progress 196 Career-Related Myths 197 Myths Held by Employees 197 Myths Held by Managers 198 Dealing with Career Plateaus 198 Rehabilitating Ineffective Plateauees 200 Career Lattices 200 The Impact of Dual-Employed Couples and Single-Parent Employees 201 Outplacement 202 Breaking the Glass Ceiling 202 Career Development Online 203 Summary of Learning Objectives 204 Key Terms 205 Review Questions 205 Discussion Questions 206 Incident 10.1: The Unhappy Power Line Installer 206 Incident 10.2: Hire Me, Hire My Husband! 207 Exercise 10.1: How Do You Rate as a Career Counselor? 208 Exercise 10.2: Becoming an Effective Career Planner 209 Exercise 10.3: Online Self-Assessment 209 Notes and Additional Readings 209 On the Job: Online Self-Assessment Tools 210 Chapter 11 Performance Management Systems 213 Understanding Performance 214 Determinants of Performance 214 Environmental Factors as Performance Obstacles 214 Responsibilities of the Human Resource Department in Performance Management 214 Performance Appraisal: Definition and Uses 215 Performance Appraisal Methods 216 Management by Objectives (MBO) 216 Multi-Rater Assessment (or 360-Degree Feedback) 217 Graphic Rating Scale 217 Behaviorally Anchored Rating Scale (BARS) 217 Critical-Incident Appraisal 219 Essay Appraisal 220 Checklist 220 Forced-Choice Rating 220 Ranking Methods 221 Work Standards 222 Potential Errors in Performance Appraisals 222 Overcoming Errors in Performance Appraisals 223 Providing Feedback through the Appraisal Interview 223 Developing Performance Improvement Plans 224 Performance Appraisal and the Law 225 Summary of Learning Objectives 225 Key Terms 226 Review Questions 226 Discussion Questions 227 Incident 11.1: The College Admissions Office 227 Incident 11.2: The Lackadaisical Plant Manager 228 Exercise 11.1: Developing a Performance Appraisal System 228 Notes and Additional Readings 229 PART FOUR COMPENSATING HUMAN RESOURCES 231 Chapter 12 The Organizational Reward System 233 Defining the System 234 Selection of Rewards 234 Relating Rewards to Performance 235 Job Satisfaction and Rewards 236 The Satisfaction-Performance Controversy 237 Other Factors Affecting Job Satisfaction 238 Employee Compensation 238 Compensation Policies 239 Pay Secrecy 239 Government and Union Influence 240 Impact of Comparable Worth 241 The Importance of Fair Pay 241 Pay Equity 242 Pay Satisfaction Model 243 The Role of the Human Resource Manager in the Reward System 244 Summary of Learning Obj ectives _ 245 Key Terms 246 Review Questions 246 Discussion Questions 247 Incident 12.1: An Informative Coffee Break 247 Incident 12.2: Does Money Motivate? 248 Exercise 12.1: Relating Rewards to Performance 249 Notes and Additional Readings 249 Chapter 13 Base Wage and Salary Systems 251 Objective of the Base Wage and Salary System 252 Conventional Job Evaluation 252 Job Ranking Method 253 Job Classification Method 254 Point Method 254 Factor Comparison Method 257 Comparison of Job Evaluation Methods 258

xii Table of Contents Pricing the Job 259 Wage and Salary Surveys 259 Wage and Salary Curves 261 Base Wage/Salary Structure 263 New Approaches to the Base Wage/Salary Structure 263 Broadbanding 264 Skill-Based Pay 264 Competency-Based Pay 265 Market-Based Pay 266 Total Rewards 266 Summary of Learning Objectives 267 Key Terms 268 Review Questions 268 Discussion Questions 269 Incident 13.1: Fair Pay for Pecan Workers 269 Incident 13.2: A Dead-End Street? 269 Exercise 13.1: Ranking Jobs 270 Exercise 13.2: Wage/Salary Survey 270 Notes and Additional Readings 271 Chapter 14 Incentive Pay Systems 273 Requirements of Incentive Plans 274 Individual Incentives 275 Piece Rate Plans 2 75 Plans Based on Time Saved 275 Plans Based on Commissions 275 Individual Bonuses 276 Suggestion Systems 276 Incentives for Managerial Personnel 2 76 Stock Options for Nonmanagerial Personnel 281 Group Incentives 281 Gain-Sharing or Profit-Sharing Plans 282 Scanlon-Type Plans 283 Employee Stock Ownership Plans (ESOPs) 283 Making Incentive Plans Work 285 Summary of Learning Objectives 285 Key Terms 287 Review Questions 287 Discussion Questions 287 Incident 14.1: Rewarding Good Performance at a Bank 287 Incident 14.2: Part-Time Pool Personnel 288 Exercise 14.1: Implementing Incentives 289 Exercise 14.2: Proven Suggestion Systems 289 Exercise 14.3: The Status of the Corporate and Financial Institutions Compensation Fairness Act (CFICF) 289 Notes and Additional Readings 289 Chapter 15 Employee Benefits 291 What Are Employee Benefits? 292 Growth in Employee Benefits 293 Legally Required Benefits 294 Social Security 294 Unemployment Compensation 296 Workers' Compensation 29 7 Retirement-Related Benefits 298 Company-Sponsored Retirement Plans 298 ERISA and Related Acts 302 Employees Not Covered by Company Retirement Plans 303 Preretirement Planning 304 Insurance-Related Benefits 304 Health Insurance 305 Dental Insurance 306 Life Insurance 306 Accident and Disability Insurance 307 Payment for Time Not Worked 307 Paid Holidays and Paid Vacations 307 Other Benefits 307 Employee Preferences among Benefits 307 Flexible-Benefit Plans 308 The Benefit Package 309 Communicating the Benefit Package 309 Summary of Learning Objectives.311 Key Terms 313 Review Questions 313 Discussion Questions 314 Incident 15.1: Who Is Eligible for Retirement Benefits? 314 Incident 15.2: Benefits for Professionals 314 Exercise 15.1: Taking a Raise 315 Notes and Additional Readings 315 PART FIVE EMPLOYEE WELL-BEING AND LABOR RELATIONS 317 Chapter 16 Employee Safety and Health 319 Occupational Safety and Health Act 320 OSHA Standards 321 Penalties 322 Reporting/Record-Keeping Requirements 322 The Causes of Accidents 323 Personal Acts 323 Physical Environment 324 Accident Proneness 324 How to Measure Safety 324 Organizational Safety Programs 325 Promoting Safety 325 Establishing a Safety Training Program 325 Employee Health 326 Occupational Health Hazards 326 Stress in the Workplace 327 Alcoholism and Drug Abuse 329 AIDS 331 Employee Assistance Programs (EAPs) 332 Work/Life Programs 333 Wellness Programs 334 ^

Table of Contents xiii Violence in the Workplace 335 Summary of Learning Objectives 335 Key Terms 337 Review Questions 337 Discussion Questions 337 Incident 16.1: Safety Problems at Blakely 338 Incident 16.2: To Fire or Not to Fire? 338 Exercise 16.1: Filing OSHA Reports 339 Exercise 16.2: Preventing Violence in the Workplace Notes and Additional Readings 339 Chapter 17 Employee Relations 343 Employment at Will 343..- Causes of Disciplinary Actions 344 Administering Discipline 344 Prediscipline Recommendations 345 Guidelines for Administering Discipline 346 Legal Restrictions 347 Grievance Procedures 348 Just Cause 348 Due Process^ 350 Duty of Fair Representation 350 Time Delays 351 Grievance Arbitration 351 Summary of Learning Objectives 352 Key Terms 353 Review Questions 353 Discussion Questions 353 / Incident 17.1: Tardy Tom 354 Incident 17.2: Keys to the Drug Cabinet 354 Exercise 17.1: Mock Arbitration 355 Notes and Additional Readings 356 Chapter 18 The Legal Environment and Structure of Labor Unions 357 The Legal Environment of Labor-Management Relations 358 Sherman Anti-Trust Act (1890) 359 Clayton Act (1914) 360 Railway Labor Act (1926) 360 Norris-La GuardiaAct (1932) 360 National Labor Relations (Wagner) Act (1935) 361 Labor-Management Relations (Taft-Hartley) Act (1947) 361 Labor-Management Reporting and Disclosure (Landrum-Griffm) Act (1959) 364 Civil Service Reform Act (1978) 364 Union Structures 365 AFL-CIO 365 National and International Unions 366 City and State Federations 366 Local Unions 366 Current and Future Developments in the Labor Movement 367 Summary of Learning Objectives 368 Key Terms 369 Review Questions 369 Discussion Questions 369 339 Incident 18.1: Unions and Management 370 Incident 18.2: Voluntary Resignations during a Strike 370 Exercise 18.1: Need for Unions 370 Notes and Additional Readings 371 Chapter 19 Union Organizing Campaigns and Collective Bargaining 373 Union Membership Decision 374 Reasons for Joining 374 The Opposition View 374 Union Organizing Campaign 374 Determining the Bargaining Unit 375 Election Campaigns 375 Election, Certification, and Decertification 376 Good-Faith Bargaining 377 Participants in Negotiations 378 Employer's Role 378 Union's Role 379 Role of Third Parties 3 79 Collective Bargaining Agreements 381 Specific Issues in Collective Bargaining Agreements 382 Management Rights 382 Union Security 382 Wages and Employee Benefits 383 Individual Security (Seniority) Rights 384 Dispute Resolution 384 Impasses in Collective Bargaining 384 Trends in Collective Bargaining 385 Summary of Learning Objectives 386 Key Terms 387 Review Questions 387 Discussion Questions 387 Incident 19.1: Florida National Guard and NAGE 387 Incident 19.2: Retiree Benefits 388 Exercise 19.1: Contract Negotiations 388 Notes and Additional Readings 389 Glossary 391 Index 401