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1 Managing Human Resources1

Introduction1

Human Resources and Company Performance3

Responsibilities of Human Resource Departments5

Analyzing and Designing Jobs6

Recruiting and Hiring Employees6

BEST PRACTICES7

Success in Global Fast Food Depends on Good Selection for Overseas Assignments7

Training and Developing Employees8

Managing Performance9

Planning and Administering Pay and Benefits10

Maintaining Positive Employee Relations11

Establishing and Administering Personnel Policies11

Ensuring Compliance with Labor Laws11

Supporting the Organization’s Strategy13

Skills of HRM Professionals13

HR HOW TO14

Winning the War for Talent14

Human Relations Skills14

Decision-Making Skills15

Leadership Skills16

Technical Skills16

HR Responsibilities of Supervisors16

Ethics in Human Resource Management17

Employee Rights18

Standards for Ethical Behavior19

Careers in Human Resource Management20

Organization of This Book21

Summary23

Review and Discussion Questions24

What’s Your HR IQ？25

BusinessWeek BusinessWeek Case25

The Human Factor25

Case：The Container Store：Human Resource Management Excellence Takes Different Forms26

Notes27

PART1 The Human Resource Environment29

2 Trends in Human Resource Management30

Introduction30

Change in the Labor Force32

An Aging Workforce32

A Diverse Workforce32

Skill Deficiencies of the Workforce36

High-Performance Work Systems36

HR HOW TO37

Keeping Up with Change37

Knowledge Workers37

Employee Empowerment40

Teamwork40

BEST PRACTICES41

Team Spirit Makes Winners of Whole Foods Employees41

Focus on Strategy42

High Quality Standards43

Mergers and Acquisitions44

Downsizing44

Expanding into Global Markets46

Reengineering48

Outsourcing49

Technological Change in HRM49

A Changing Economy50

Human Resources in E-Business51

E-HRM Applications in Other Organizations52

E-HRM54

Help Yourself to HRM54

Change in the Employment Relationship55

A New Psychological Contract55

Flexibility56

Summary58

Review and Discussion Questions60

What’s Your HR IQ？60

BusinessWeek BusinessWeek Case61

Click Here for HR61

Case：HRM Flies through Turbulence at Delta Air Lines62

Notes63

3 Providing Equal Employment Opportunity and a Safe Workplace66

Introduction66

Regulation of Human Resource Management68

Equal Employment Opportunity68

Constitutional Amendments69

Legislation69

BEST PRACTICES76

Blind Feeding the Blind76

Executive Orders77

The Government’s Role in Providing for Equal Employment Opportunity77

Equal Employment Opportunity Commission （EEOC）77

Office of Federal Contract Compliance Procedures （OFCCP）81

Businesses’ Role in Providing for Equal Employment Opportunity82

Avoiding Discrimination82

Providing Reasonable Accommodation85

Preventing Sexual Harassment86

Valuing Diversity87

Occupational Safety and Health Act （OSH Act）88

General and Specific Duties88

HR HOW TO90

Off to a Safe Start90

Enforcement of the OSH Act91

Employee Rights and Responsibilities92

Impact of the OSH Act93

Employer-Sponsored Safety and Health Programs94

Identifying and Communicating Job Hazards94

Reinforcing Safe Practices95

Promoting Safety Internationally95

Summary95

Review and Discussion Questions96

What’s Your HR IQ？97

BusinessWeek BusinessWeek Case97

Racism in the Workplace97

Case：Home Depot’s Bumpy Road to Equality98

Notes99

4 Analyzing Work and Designing Jobs101

Introduction101

Work Flow in Organizations102

Work Flow Analysis102

Work Flow in Organizations104

BEST PRACTICES105

Team-Based Jobs Put the Focus on Patient Care105

Job Analysis105

HR HOW TO106

Writing a Job Description106

Job Descriptions106

Job Specifications108

Sources of Job Information110

Position Analysis Questionnaire111

Task Analysis Inventory112

Fleishman Job Analysis System112

Importance of Job Analysis113

Trends in Job Analysis115

Job Design116

Designing Efficient Jobs116

Designing Jobs That Motivate117

Designing Ergonomic Jobs122

Designing Jobs That Meet Mental Capabilities and Limitations124

Summary125

Review and Discussion Questions126

What’s Your HR IQ？127

BusinessWeek BusinessWeek Case127

The New Factory Worker127

Case：From Big Blue to Efficient Blue128

Notes129

VDEO CASE130

Southwest Airlines Competes by Putting People First130

PART 2 Acquiring and Preparing Human Resources133

5 Planning for and Recruiting Human Resources134

Introduction134

The Process of Human Resource Planning135

Forecasting136

Goal Setting and Strategic Planning139

BEST PRACTICES140

Just Enough People at ZF Micro Devices140

HR HOW TO143

Minimizing the Pain of Layoffs143

Implementing and Evaluating the HR Plan147

Applying HR Planning to Affirmative Action148

Recruiting Human Resources148

Personnel Policies149

Internal versus External Recruiting150

Lead-the-Market Pay Strategies150

Employment-at-Will Policies152

Image Advertising152

Recruitment Sources153

Internal Sources153

External Sources155

E-HRM159

Web Opens the Door to a Global Labor Market159

Evaluating the Quality of a Source160

Recruiter Traits and Behaviors161

Characteristics of the Recruiter161

Behavior of the Recruiter163

Enhancing the Recruiter’s Impact163

Summary164

Review and Discussion Questions165

What’s Your HR IQ？165

BusinessWeek BusinessWeek Case165

Forget the Huddled Masses：Send Nerds165

Case：Southwest Airlines Focuses on Takeoffs，Not Layoffs166

Notes167

6 Selecting Employees and Placing Them in Jobs170

Introduction170

Selection Process171

Reliability172

Validity173

Ability to Generalize175

Practical Value175

Legal Standards for Selection176

Job Applications and Resumes178

Application Forms178

Resumes180

References180

Background Checks181

Employment Tests and Work Samples182

Physical Ability Tests182

Cognitive Ability Tests182

Job Performance Tests and Work Samples184

Personality Inventories184

Honesty Tests and Drug Tests185

BEST PRACTICES186

Impairment Tests：Ready or Not，Here They Come186

Medical Examinations187

Interviews187

Interviewing Techniques187

Advantages and Disadvantages of Interviewing189

Preparing to Interview189

HR HOW TO190

Interviewing Effectively190

Selection Decisions191

How Organizations Select Employees191

Communicating the Decision192

Summary193

Review and Discussion Questions194

What’s Your HR IQ？194

BusinessWeek BusinessWeek Case195

It’s Not Easy Making Pixie Dust195

Case：Never Having to Say “You Never Know”195

Notes196

7 Training Employees199

Introduction199

Training Linked to Organizational Needs200

Needs Assessment201

Organization Analysis202

Person Analysis203

Task Analysis203

Readiness for Training205

Employee Readiness Characteristics205

Work Environment205

Planning the Training Program206

Objectives of the Program207

In-House or Contracted Out？207

HR HOW TO209

Administering a Training Program209

Choice of Training Methods210

Training Methods210

Classroom Instruction210

Audiovisual Training212

Computer-Based Training212

BEST PRACTICES214

Humanizing e-Learning214

On-the-Job Training214

Simulations216

Business Games and Case Studies216

Behavior Modeling217

Experiential Programs217

Team Training218

Action Learning218

Implementing the Training Program：Principles of Learning219

Measuring Results of Training221

Evaluation Methods222

Applying the Evaluation223

Applications of Training224

Orientation of New Employees224

Diversity Training225

E-HRM226

Getting Oriented Online226

Summary227

Review and Discussion Questions229

What’s Your HR IQ？229

BusinessWeek BusinessWeek Case230

Look Who’s Building Online Classrooms230

Case：Training Helps the Rubber Hit the Road at Tires Plus231

Notes232

VIDEO CASE234

Developing a Diverse Workforce234

PART 3 Assessing Performance and Developing Employees237

8 Managing Employees’ Performance238

Introduction238

The Process of Performance Management239

BEST PRACTICES241

Managing Performance to Build Unity across Cultures and Jobs241

Purposes of Performance Management242

Criteria for Effective Performance Management242

Methods for Measuring Performance244

Making Comparisons244

Rating Individuals247

Measuring Results253

Total Quality Management254

Sources of Performance Information255

Managers255

E-HRM256

Otis Elevator’s Appraisals Move Up，Down，and Sideways256

Peers257

Subordinates257

Self257

Customers258

Errors in Performance Measurement258

Types of Rating Errors258

Ways to Reduce Errors260

Political Behavior in Performance Appraisals260

Giving Performance Feedback260

Scheduling Performance Feedback261

Preparing for a Feedback Session261

HR HOW TO262

Delivering Performance Feedback262

Conducting the Feedback Session263

Finding Solutions to Performance Problems263

Legal and Ethical Issues in Performance Management264

Legal Requirements for Performance Management265

Electronic Monitoring and Employee Privacy266

Summary266

Review and Discussion Questions268

What’s Your HR IQ？269

BusinessWeek BusinessWeek Case269

Focusing on the Softer Side of Managing269

Case：The Trials and Tribulations of Performance Management at Ford270

Notes271

9 Developing Employees for Future Success273

Introduction273

Training，Development，and Career Management274

Development and Training274

Development for Careers275

Approaches to Employee Development276

Formal Education277

E-HRM278

E-Learning Helps Build Management Talent at IBM278

Assessment279

Job Experiences285

Interpersonal Relationships289

HR HOW TO290

Setting Up a Mentoring Program290

Systems for Career Management291

Self-Assessment292

Reality Check293

Goal Setting294

Action Planning294

Development-Related Challenges296

The Glass Ceiling296

BEST PRACTICES297

Procter ＆ Gamble Selling Women on Careers297

Succession Planning298

Dysfunctional Managers299

Summary301

Review and Discussion Questions302

What’s Your HR IQ？303

BusinessWeek BusinessWeek Case303

Basic Training for CEOs303

Case：Developing Employees Reduces Risk for First USA Bank304

Notes305

10 Separating and Retaining Employees308

Introduction308

Managing Voluntary and Involuntary Turnover309

Employee Separation310

Principles of Justice310

Legal Requirements312

Progressive Discipline315

Alternative Dispute Resolution318

Employee Assistance Programs319

Outplacement Counseling320

Job Withdrawal320

Job Dissatisfaction321

Behavior Change323

Physical Job Withdrawal324

Psychological Withdrawal324

Job Satisfaction324

Personal Dispositions325

Tasks and Roles326

BEST PRACTICES327

Attracting Workers with Technology327

Supervisors and Coworkers328

Pay and Benefits330

Monitoring Job Satisfaction330

HR HOW TO331

Measuring Employee Satisfaction331

Summary333

Review and Discussion Questions334

What’s Your HR IQ？334

BusinessWeek BusinessWeek Case334

Low-Wage Lessons334

Case：Feeling Insecure about Airline Security336

Notes336

VIDEO CASE340

Creative Staffing Solutions Pairs Workers with Employers340

PART 4 Compensating Human Resources343

11 Establishing a Pay Structure344

Introduction344

Decisions about Pay345

Legal Requirements for Pay346

Equal Employment Opportunity346

Minimum Wage347

Overtime Pay348

Child Labor349

Prevailing Wages349

Economic Influences on Pay350

Product Markets350

Labor Markets350

Pay Level：Deciding What to Pay351

Gathering Information about Market Pay352

HR HOW TO353

Gathering Wage Data at the BLS Website353

Employee Judgments about Pay Fairness354

Judging Fairness354

Communicating Fairness355

BEST PRACTICES355

No More Secrets at Two Financial Companies355

Job Structure：Relative Value of Jobs356

Pay Structure：Putting It All Together358

Pay Rates358

Pay Grades359

Pay Ranges360

Pay Differentials361

Alternatives to Job-Based Pay362

Pay Structure and Actual Pay363

Current Issues Involving Pay Structure364

Pay during Military Duty365

Pay for Executives365

Summary367

Review and Discussion Questions369

What’s Your HR IQ？369

BusinessWeek BusinessWeek Case369

Revenge of the “Managers”369

Case：Corning Hopes Pay Structure Can Make It Nimble370

Notes371

12 Recognizing Employee Contributions373

with Pay373

Introduction373

Incentive Pay374

Pay for Individual Performance376

Piecework Rates376

Standard Hour Plans378

Merit Pay378

Performance Bonuses379

HR HOW TO381

Using Incentives to Motivate Salespeople381

Sales Commissions381

Pay for Group Performance382

Gainsharing382

Group Bonuses and Team Awards385

Pay for Organizational Performance385

Profit Sharing386

BEST PRACTICES387

Incentives for Tough Times387

Stock Ownership388

Balanced Scorecard391

Processes That Make Incentives Work392

Participation in Decisions393

Communication393

Incentive Pay for Executives393

Performance Measures for Executives394

Ethical Issues395

Summary396

Review and Discussion Questions397

What’s Your HR IQ？398

BusinessWeek BusinessWeek Case398

A Little Less in the Envelope This Week398

Case：Paying for Good Employee Relations399

Notes400

13 Providing Employee Benefits402

Introduction402

The Role of Employee Benefits403

Benefits Required by Law404

Social Security405

Unemployment Insurance406

Workers’ Compensation407

Unpaid Family and Medical Leave407

Optional Benefits Programs408

Paid Leave408

Group Insurance410

BEST PRACTICES412

Giving Employees the Health Care Benefits They Want412

Retirement Plans415

“Family-Friendly”Benefits420

Other Benefits422

Selecting Employee Benefits422

Organization’s Objectives423

Employees’ Expectations and Values424

Benefits’ Costs425

HR HOW TO426

Controlling the Cost of Benefits426

Legal Requirements for Employee Benefits427

Tax Treatment of Benefits427

Antidiscrimination Laws428

E-H RM429

Tapping into Benefits Online429

Accounting Requirements430

Communicating Benefits to Employees430

Summary431

Review and Discussion Questions432

What’s Your HR IQ？433

BusinessWeek BusinessWeek Case433

Dr.Goodnight’s Company Town433

Case：Is Retirement a Luxury？434

Notes435

VIDEO CASE437

Compensating Workers through Pay and Benefits437

PART 5 Meeting Other HR Goals439

14 Collective Bargaining and Labor Relations440

Introduction440

Role of Unions and Labor Relations441

National and International Unions442

Local Unions444

Trends in Union Membership444

E-HRM446

Will Unions Play a Role in High-Tech Industries？446

Unions in Government448

Impact of Unions on Company Performance448

Goals of Each Group449

Goals of Management449

Goals of Labor Unions450

Goals of Society451

Laws and Regulations Affecting Labor Relations451

National Labor Relations Act （NLRA）451

HR HOW TO453

Avoiding Unfair Labor Practices453

Laws Amending the NLRA453

National Labor Relations Board （NLRB）454

Union Organizing456

The Process of Organizing456

Management Strategies457

Union Strategies459

Decertifying a Union460

Collective Bargaining460

Bargaining over New Contracts462

When Bargaining Breaks Down463

Contract Administration465

Labor-Management Cooperation467

BEST PRACTICES468

Brass Factory Polishes Employees’ Understanding—And Morale，Too468

Summary470

Review and Discussion Questions471

What’s Your HR IQ？471

BusinessWeek BusinessWeek Case472

A World of Sweatshops472

Case：Verizon Strikes Out against Unions473

Notes474

15 Managing Human Resources Globally477

Introduction477

HRM in a Global Environment478

Employees in an International Workforce479

Employers in the Global Marketplace479

Factors Affecting HRM in International Markets481

Culture481

Education and Skill Levels484

Economic System484

Political-Legal System486

Human Resource Planning in a Global Economy486

Selecting Employees in a Global Labor Market487

Training and Developing a Global Workforce489

Training Programs for an International Workforce489

Cross-Cultural Preparation491

Global Employee Development491

BEST PRACTICES492

Deloitte Develops a Global Workforce492

Performance Management across National Boundaries492

Compensating an International Workforce493

Pay Structure493

Incentive Pay495

Employee Benefits495

International Labor Relations496

Managing Expatriates497

Selecting Expatriate Managers497

Preparing Expatriates500

Compensating Expatriates501

HR HOW TO502

Communicating across Language Barriers502

Helping Expatriates Return Home504

Summary506

Review and Discussion Questions507

What’s Your HR IQ？508

BusinessWeek BusinessWeek Case508

The High Cost of France’s Aversion to Layoffs508

Case：Human Resource Management in a World with Terrorism509

Notes510

16 Creating and Maintaining High-Performance Organizations513

Introduction513

High-Performance Work Systems514

Elements of a High-Performance Work System515

Outcomes of a High-Performance Work System516

Conditions That Contribute to High Performance517

Teamwork and Empowerment518

Knowledge Sharing518

Job Satisfaction520

Ethics521

HRM’s Contribution to High Performance522

Job Design522

BEST PRACTICES523

HR Policies Deliver High Performance for FedEx523

Recruitment and Selection524

Training and Development524

Performance Management525

Compensation526

HRM Technology527

HR HOW TO527

Using Information Systems in a Learning Organization527

E-HRM530

Oracle Spells Human Resource Management “B2E”530

Effectiveness of Human Resource Management531

Human Resource Management Audits532

Analyzing the Effect of HRM Programs534

Summary534

Review and Discussion Questions535

What’s Your HR IQ？536

BusinessWeek BusinessWeek Case536

From Devastation to High Performance536

Case：A Giant Falls537

Notes538

VIDEO CASE540

Workplace Ergonomics Is Good Business540

Glossary542

Photo Credits553

Name and Company Index555

Subject Index561