Human Resource Management 15th Edition PDF

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 Full-Circle Learning MyLab™: Learning Full Circle for Marketing, Management, Business Communication, and Intro to Business BEFORE CLASS DSMs, pre-lecture homework, eText Writing MyLab AFTER Space,Video Cases, Quizzes/ Decision CLASS Sims,Videos, DURING Tests and Learning CLASS Catalytics  MyManagementLab : Improves Student ® Engagement Before, During, and After Class BREAKTHROUGH To better results OUGH Prep and BREA KTHR Engagement Personal Inventory Assessments (PIA) – NEW! Online questionnaires designed to promote self- reflection and engagement in students, because students learn better when they can connect what they are learning to their personal experience. Student results include a written explanation along with a graphic display that shows how their results compared to the class as a whole. Instructors will also have access to this graphic representation of results to promote classroom discussion. NEW! 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Writing Space can also check students’ work for improper citation or plagiarism by comparing it against the world’s most accurate text comparison database available from Turnitin. http://www.pearsonmylabandmastering.com  Company’s Strategic Goals Employee Competencies and Behaviors Required for Company to Achieve These Strategic Goals tegic and Leg Stra nvironment al E Re Place cru ment Relatio e itme ns e Employ nt and HR Policies and Practices Required to Produce Employee Competencies and Behaviors De rai ve T ion l t nin opme nsa g a nt pe nd Com WHERE WE ARE NOW The framework above introduces each chapter and makes the following point: That the firm’s HR policies and practices should produce the employee skills and behaviors the company needs to achieve its strategic aims. This page intentionally left blank Human Resource Management This page intentionally left blank Human Resource Management Fifteenth Edition GARY DESSLER Florida International University Boston Columbus Indianapolis New York San Francisco Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montréal Toronto Delhi Mexico City São Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Vice President, Business Publishing: Donna Battista Art Director: Janet Slowik Editor-in-Chief: Stephanie Wall Vice President, Director of Digital Strategy and Assessment: Senior Acquisitions Editor: Kris Ellis-Levy Paul Gentile Development Editor: Kerri Tomasso Manager of Learning Applications: Paul DeLuca Editorial Assistant: Lauren Russell Digital Editor: Brian Surette Vice President, Product Marketing: Maggie Moylan Director, Digital Studio: Sacha Laustsen Director of Marketing, Digital Services and Products: Jeanette Digital Studio Manager: Diane Lombardo Koskinas Digital Studio Project Manager: Monique Lawrence Executive Field Marketing Manager: Adam Goldstein Digital Studio Project Manager: Alana Coles Field Marketing Manager: Lenny Ann Kucenski Digital Studio Project Manager: Robin Lazrus Product Marketing Assistant: Jessica Quazza Full-Service Project Management and Composition: Margaret Team Lead, Program Management: Ashley Santora McConnell/Integra Software Services Program Manager: Sarah Holle Interior Designer: Integra Software Services, Inc. Team Lead, Project Management: Jeff Holcomb Cover Designer: Integra Software Services, Inc. Project Manager: Kelly Warsak Cover Art: Corbis Images Senior Operations Specialist: Carol Melville Printer/Binder: Courier Kendallville Creative Director: Blair Brown Cover Printer: Phoenix Color/Hagerstown Microsoft and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published as part of the services for any purpose. All such documents and related graphics are provided “as is” without warranty of any kind. Microsoft and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all warranties and conditions of merchantability, whether express, implied or statutory, fitness for a particular purpose, title and non-infringement. 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Copyright © 2017, 2015, 2013 by Pearson Education, Inc. or its affiliates. All Rights Reserved. Manufactured in the United States of America. This publication is protected by copyright, and permission should be obtained from the publisher prior to any prohibited reproduction, storage in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise. For information regarding permissions, request forms, and the appropriate contacts within the Pearson Education Global Rights and Permissions department, please visit www.pearsoned.com/permissions/. Acknowledgments of third-party content appear on the appropriate page within the text. PEARSON, ALWAYS LEARNING, and MyManagementLab ® are exclusive trademarks owned by Pearson Education, Inc. or its affiliates in the U.S. and/or other countries. Unless otherwise indicated herein, any third-party trademarks, logos, or icons that may appear in this work are the property of their respective owners, and any references to third-party trademarks, logos, icons, or other trade dress are for demonstrative or descriptive purposes only. Such references are not intended to imply any sponsorship, endorsement, authorization, or promotion of Pearson’s products by the owners of such marks, or any relationship between the owner and Pearson Education, Inc. or its affiliates, authors, licensees, or distributors. Library of Congress Cataloging-in-Publication Data Dessler, Gary Human resource management/Gary Dessler.—15 Edition. pages cm Revised edition of the author’s Human resource management, 2013. ISBN 978-0-13-423545-5—ISBN 0-13-423545-2 1. Personnel management. I. Title. HF5549.D4379 2015 658.3—dc23 2015030092 10 9 8 7 6 5 4 3 2 1 ISBN 10: 0-13-423545-2 ISBN 13: 978-0-13-423545-5 For Claudia This page intentionally left blank  BrieF Contents Preface xxix acknowledgments xxxv Part one introduCtion 1 1 introduction to Human resource Management 1 2 equal opportunity and the law 30 3 Human resource Management strategy and analysis 66 Part two reCruitMent, PlaCeMent, and talent ManageMent 94 4 Job analysis and the talent Management Process 94 5 Personnel Planning and recruiting 126 6 employee testing and selection 165 7 interviewing Candidates 201 Part tHree training and develoPMent 231 8 training and developing employees 231 9 Performance Management and appraisal 272 10 Managing Careers and retention 307 Part Four CoMPensation 344 11 establishing strategic Pay Plans 344 12 Pay for Performance and Financial incentives 385 13 Benefits and services 416 Part Five enriCHMent toPiCs in HuMan resourCe ManageMent 449 14 Building Positive employee relations 449 15 labor relations and Collective Bargaining 479 16 safety, Health, and risk Management 513 17 Managing global Human resources 559 18 Managing Human resources in small and entrepreneurial Firms 588 ix x Brief Contents aPPendiCes aPPendix a HrCi PHr® and sPHr® Certification Body of Knowledge 612 aPPendix B about the society for Human resource Management (sHrM) Body of Competency and KnowledgetM Model and Certification exams 618 aPPendix C Comprehensive Cases 630 glossary 646 name/organization index 655 subject index 667  Contents Preface xxix acknowledgments xxxv Part one introduCtion 1 1 introduction to Human resource Management 1 wHat is HuMan resourCe ManageMent? 3 Why is Human resource Management important to All Managers? 3 Line and staff Aspects of Human resource Management 5 Line Managers’ Human resource Management responsibilities 5 the Human resource Department 6 tHe trends sHaPing HuMan resourCe ManageMent 7 Workforce Demographics and Diversity trends 7 trends in How People Work 8 iMProving PerForManCe: Hr as a ProFit Center: Boosting Customer service 9 Globalization trends 10 economic trends 10 technology trends 12 today’s new HuMan resourCe ManageMent 13 A Brief History of Personnel/Human resource Management 13 Distributed Hr and the new Human resource Management 13 trends sHaPing Hr: Digital and social Media 14 A Quick summary 14 Hr and strategy 15 iMProving PerForManCe: tHe strategiC Context: Building L.L.Bean 15 Hr and Performance 16 Hr and Performance and sustainability 17 Hr and employee engagement 17 tHe new HuMan resourCe Manager 18 Hr and the Manager’s skills 19 Hr and ethics 19 Hr Manager Certification 19 Hr and the Manager’s Human resource Philosophy 20 tHe Plan oF tHis BooK 21 the Basic themes and features 21 Practical tools for every Manager 21 CHaPter Contents overview 22 Part 1: introduction 22 Part 2: recruitment, Placement, and talent Management 22 Part 3: training and Development 22 Part 4: Compensation 22 Part 5: enrichment topics in Human resource Management 22 tHe toPiCs are interrelated 23 CHaPter seCtion suMMaries 23 disCussion Questions 24 individual and grouP aCtivities 24 exPeriential exerCise 25 aPPliCation Case: JaCK nelson’s ProBleM 25 Continuing Case: Carter Cleaning CoMPany 25 Key terMs 27 endnotes 27 xi xii Contents 2 equal opportunity and the law 30 eQual oPPortunity laws enaCted FroM 1964 to 1991 32 title Vii of the 1964 Civil rights Act 32 executive orders 32 equal Pay Act of 1963 33 Age Discrimination in employment Act of 1967 33 Vocational rehabilitation Act of 1973 33 Pregnancy Discrimination Act of 1978 33 federal Agency Guidelines 33 early Court Decisions regarding equal employment opportunity 34 tHe laws enaCted FroM 1991 to tHe Present 35 the Civil rights Act of 1991 35 the Americans with Disabilities Act 35 Uniformed services employment and reemployment rights Act 37 Genetic information nondiscrimination Act of 2008 (GinA) 37 state and Local equal employment opportunity Laws 37 in summary: religious and other types of Discrimination 37 recent trends in Discrimination Law 38 sexual Harassment 38 trends sHaPing Hr: Digital and social Media 42 deFenses against disCriMination allegations 42 the Central role of Adverse impact 42 Bona fide occupational Qualification 45 Business necessity 46 Know your eMPloyMent law: examples of What You Can and Cannot Do 47 tHe eeoC enForCeMent ProCess 49 Voluntary Mediation 51 Mandatory Arbitration of Discrimination Claims 52 iMProving PerForManCe: Hr tools For line Managers and sMall Businesses 52 diversity ManageMent 53 Potential threats to Diversity 53 iMProving PerForManCe: Hr as a ProFit Center 54 Managing Diversity 54 iMProving PerForManCe: Hr as a ProFit Center 55 implementing the Affirmative Action Program 55 reverse Discrimination 57 CHaPter seCtion suMMaries 57 disCussion Questions 58 individual and grouP aCtivities 59 exPeriential exerCise 59 aPPliCation Case: an aCCusation oF sexual HarassMent in Pro sPorts 60 Continuing Case: Carter Cleaning CoMPany 60 Key terMs 61 endnotes 61 3 Human resource Management strategy and analysis 66 tHe strategiC ManageMent ProCess 68 the Management Planning Process 68 What is strategic Planning? 69 the strategic Management Process 69 tyPes oF strategies 71 Corporate strategy 71 Competitive strategy 72 functional strategy 73 Managers’ roles in strategic Planning 73  Contents xiii strategiC HuMan resourCe ManageMent 73 What is strategic Human resource Management? 74 iMProving PerForManCe: tHe strategiC Context: the shanghai ritz-Carlton Portman Hotel 74 iMProving PerForManCe: Hr as a ProFit Center: the Zappos “WoW” Way 75 sustainability and strategic Human resource Management 75 strategic Human resource Management tools 76 Hr MetriCs, BenCHMarKing, and data analytiCs 78 Improving Performance Through HRIS: tracking Applicant Metrics for improved talent Management 78 Benchmarking 78 strategy and strategy-Based Metrics 79 What Are Hr Audits? 80 trends sHaPing Hr: Digital and social Media 81 trends sHaPing Hr: science in talent Management 82 HigH-PerForManCe worK systeMs 83 eMPloyee engageMent guide For Managers: eMPloyee engageMent and PerForManCe 84 the employee engagement Problem 85 What Can Managers Do to improve employee engagement? 85 How to Measure employee engagement 85 How Kia Motors (UK) improved Performance with an Hr strategy Aimed at Boosting employee engagement 85 CHaPter seCtion suMMaries 87 disCussion Questions 88 individual and grouP aCtivities 88 exPeriential exerCise 89 aPPliCation Case: sieMens Builds a strategy-oriented Hr systeM 89 Continuing Case: Carter Cleaning CoMPany 89 translating strategy into Hr PoliCies and PraCtiCes Case: iMProving PerForManCe at tHe Hotel Paris 90 Key terMs 92 endnotes 92 Part two reCruitMent, PlaCeMent, and talent ManageMent 94 4 Job analysis and the talent Management Process 94 tHe talent ManageMent ProCess 96 Improving Performance Through HRIS: talent Management software 96 tHe BasiCs oF JoB analysis 97 What is Job Analysis? 97 Uses of Job Analysis information 98 Conducting a Job Analysis 98 iMProving PeForManCe: Hr as a ProFit Center: Boosting Productivity through Work redesign 99 MetHods For ColleCting JoB analysis inForMation 100 the interview 101 Questionnaires 102 observation 105 Participant Diary/Logs 105 Quantitative Job Analysis techniques 105 electronic Job Analysis Methods 106 writing JoB desCriPtions 108 Diversity Counts 108 Job identification 109 Job summary 109 relationships 109 responsibilities and Duties 109 xiv Contents trends sHaPing Hr: Digital and social Media 112 Know your eMPloyMent law: Writing Job Descriptions that Comply with the ADA 112 standards of Performance and Working Conditions 113 iMProving PerForManCe: Hr tools For line Managers and sMall Businesses: Using o*net 113 o*net 114 writing JoB sPeCiFiCations 116 specifications for trained versus Untrained Personnel 116 specifications Based on Judgment 117 Job specifications Based on statistical Analysis 117 the Job-requirements Matrix 117 eMPloyee engageMent guide For Managers 118 using CoMPetenCies Models 118 iMProving PerForManCe: tHe strategiC Context: Daimler Alabama example 119 How to Write Competencies statements 119 CHaPter seCtion suMMaries 120 disCussion Questions 121 individual and grouP aCtivities 121 exPeriential exerCise 122 aPPliCation Case: tHe Flood 122 Continuing Case: Carter Cleaning CoMPany 123 translating strategy into Hr PoliCies and PraCtiCes Case: iMProving PerForManCe at tHe Hotel Paris 123 Key terMs 124 endnotes 124 5 Personnel Planning and recruiting 126 introduCtion 128 worKForCe Planning and ForeCasting 128 strategy and Workforce Planning 129 iMProving PerForManCe: tHe strategiC Context: four seasons 129 forecasting Personnel needs (Labor Demand) 130 forecasting the supply of inside Candidates 132 forecasting the supply of outside Candidates 133 Predictive Workforce Monitoring 134 iMProving PerForManCe: Hr as a ProFit Center: Predicting Labor needs 134 Matching Projected Labor supply and Labor Demand 134 succession Planning 134 wHy eFFeCtive reCruiting is iMPortant 135 the recruiting Yield Pyramid 136 Know your eMPloyMent law: recruiting employees 136 internal sourCes oF Candidates 137 finding internal Candidates 137 eMPloyee engageMent guide For Managers 138 Promotion from Within 138 outside sourCes oF Candidates 138 informal recruiting and the Hidden Job Market 138 recruiting via the internet 139 Improving Performance Through HRIS: Using Applicant tracking 139 trends sHaPing Hr: science in talent Management 140 trends sHaPing Hr: Digital and social Media 141 Advertising 142 employment Agencies 142 recruitment Process outsourcers 144  Contents xv temporary Workers and Alternative staffing 144 Know your eMPloyMent law: Contract employees 145 trends sHaPing Hr: the new extended Workforce 146 offshoring and outsourcing Jobs 146 executive recruiters 147 iMProving PerForManCe: Hr tools For line Managers and sMall Businesses: recruiting 101 148 referrals and Walk-ins 149 on-Demand recruiting services 149 College recruiting 149 telecommuters 150 Military Personnel 150 iMProving PerForManCe: Hr as a ProFit Center: Cutting recruitment Costs 151 reCruiting a More diverse worKForCe 151 recruiting Women 151 recruiting single Parents 152 older Workers 152 Diversity Counts 153 recruiting Minorities 153 the Disabled 153 develoPing and using aPPliCation ForMs 154 Purpose of Application forms 154 Application Guidelines 154 Know your eMPloyMent law: Application forms and eeo Law 155 Using Application forms to Predict Job Performance 156 Mandatory Arbitration 156 CHaPter seCtion suMMaries 157 disCussion Questions 157 individual and grouP aCtivities 158 exPeriential exerCise 158 aPPliCation Case: Finding PeoPle wHo are Passionate aBout wHat tHey do 159 Continuing Case: Carter Cleaning CoMPany 159 translating strategy into Hr PoliCies and PraCtiCes Case: iMProving PerForManCe at tHe Hotel Paris 160 Key terMs 161 endnotes 161 6 employee testing and selection 165 wHy eMPloyee seleCtion is iMPortant 167 tHe BasiCs oF testing and seleCting eMPloyees 167 reliability 167 Validity 168 trends sHaPing Hr: Digital and social Media 169 evidence-Based Hr: How to Validate a test 170 Bias 172 Utility Analysis 172 iMProving PerForManCe: Hr as a ProFit Center: Using tests to Cut Costs and Boost Profits 172 Validity Generalization 173 Know your eMPloyMent law: testing and equal employment opportunity 173 test takers’ individual rights and test security 173 Diversity Counts: Gender issues in testing 174 How Do employers Use tests at Work? 174 tyPes oF tests 175 tests of Cognitive Abilities 175 xvi Contents tests of Motor and Physical Abilities 175 Measuring Personality and interests 176 iMProving PerForManCe: Hr PraCtiCes around tHe gloBe: testing for Assignments Abroad 176 Achievement tests 177 Improving Performance Through HRIS: Computerization and online testing 177 iMProving PerForManCe: tHe strategiC Context: Crowdsourcing at Google 178 worK saMPles and siMulations 178 Using Work sampling for employee selection 178 situational Judgment tests 179 Management Assessment Centers 179 situational testing and Video-Based situational testing 180 the Miniature Job training and evaluation Approach 181 realistic Job Previews 181 Choosing a selection Method 181 iMProving PerForManCe: Hr tools For line Managers and sMall Businesses: employee testing and selection 182 BaCKground investigations and otHer seleCtion MetHods 183 Why Perform Background investigations and reference Checks? 183 Know your eMPloyMent law: Giving references 184 How to Check a Candidate’s Background 184 trends sHaPing Hr: Digital and social Media 186 Using Preemployment information services 186 Making the Background Check More Valuable 187 the Polygraph and Honesty testing 188 testing for Honesty: Practical Guidelines 189 Graphology 189 “Human Lie Detectors” 190 Physical exams 190 substance Abuse screening 190 Drug testing Legal issues 191 Complying with immigration Law 191 CHaPter seCtion suMMaries 192 disCussion Questions 193 individual and grouP aCtivities 193 exPeriential exerCise 193 aPPliCation Case: tHe insider 194 Continuing Case: Carter Cleaning CoMPany 194 translating strategy into Hr PoliCies and PraCtiCes Case: iMProving PerForManCe at tHe Hotel Paris 195 Key terMs 196 endnotes 196 7 interviewing Candidates 201 BasiC tyPes oF interviews 203 structured Versus Unstructured interviews 203 interview Content (What types of Questions to Ask) 204 How should We Conduct the interview? 206 trends sHaPing Hr: Digital and social Media 207 iMProving PerForManCe: tHe strategiC Context: Urban outfitters 208 Avoiding errors that Can Undermine an interview’s Usefulness 208 first impressions (snap Judgments) 209 not Clarifying What the Job requires 209 Candidate-order (Contrast) error and Pressure to Hire 209 nonverbal Behavior and impression Management 210 effect of Personal Characteristics: Attractiveness, Gender, race 210  Contents xvii Diversity Counts: Applicant Disability and the employment interview 211 iMProving PerForManCe: Hr PraCtiCes around tHe gloBe: selection Practices Abroad 211 interviewer Behavior 212 How to design and ConduCt an eFFeCtive interview 212 Designing a structured situational interview 212 iMProving PerForManCe: Hr tools For line Managers and sMall Businesses: How to Conduct an effective interview 213 Profiles and employee interviews 216 eMPloyee engageMent guide For Managers 217 Building engagement: A total selection Program 217 the toyota Way 217 trends sHaPing Hr: science in talent Management 218 develoPing and extending tHe JoB oFFer 219 CHaPter seCtion suMMaries 220 disCussion Questions 220 individual and grouP aCtivities 221 exPeriential exerCise 221 aPPliCation Case: tHe out-oF-Control interview 222 Continuing Case: Carter Cleaning CoMPany 223 translating strategy into Hr PoliCies and PraCtiCes Case: iMProving PerForManCe at tHe Hotel Paris 223 Key terMs 224 endnotes 224 aPPendix 1 For CHaPter 7 struCtured interview guide 227 aPPendix 2 For CHaPter 7 interview guide For interviewees 230 Part tHree training and develoPMent 231 8 training and developing employees 231 orienting and onBoarding new eMPloyees 233 the Purposes of employee orientation/onboarding 233 the orientation Process 233 eMPloyee engageMent guide For Managers: onBoarding at toyota 234 overview oF tHe training ProCess 235 Know your eMPloyMent law: training and the Law 235 Aligning strategy and training 235 iMProving PerForManCe: tHe strategiC Context: the training Program that turned Macy’s around 236 the ADDie five-step training Process 236 Conducting the training needs Analysis 236 Designing the training Program 239 Developing the Program 242 trends sHaPing Hr: Digital and social Media 242 iMPleMenting tHe training PrograM 243 on-the-Job training 243 Apprenticeship training 243 informal Learning 245 Job instruction training 245 Lectures 245 Programmed Learning 246 Behavior Modeling 246 Audiovisual-Based training 246 Vestibule training 247 electronic Performance support systems (ePss) 247 Videoconferencing 247 xviii Contents Computer-Based training (CBt) 247 simulated Learning and Gaming 247 Lifelong and Literacy training techniques 248 iMProving PerForManCe: Hr PraCtiCes around tHe gloBe: Diversity training at ABC Virtual Communications, inc. 248 team training 249 internet-Based training 249 the Virtual Classroom 250 trends sHaPing Hr: Digital and social Media 250 iMProving PerForManCe: Hr tools For line Managers and sMall Businesses: Creating Your own training Program 251 iMPleMenting ManageMent develoPMent PrograMs 252 strategy’s role in Management Development 252 succession Planning 252 Improving Performance Through HRIS: succession systems 253 Candidate Assessment and the 9-Box Grid 253 Managerial on-the-Job training and rotation 254 iMProving PerForManCe: Hr PraCtiCes around tHe gloBe: Global Job rotation 254 off-the-Job Management training and Development techniques 255 Leadership Development at Ge 257 trends sHaPing Hr: Customized talent Management through Differential Development Assignments 257 Managing organizational CHange PrograMs 258 Lewin’s Change Process 258 Using organizational Development 259 evaluating tHe training eFFort 260 Designing the study 260 training effects to Measure 261 CHaPter seCtion suMMaries 263 disCussion Questions 264 individual and grouP aCtivities 264 exPeriential exerCise 265 aPPliCation Case: reinventing tHe wHeel at aPex door CoMPany 265 Continuing Case: Carter Cleaning CoMPany 265 translating strategy into Hr PoliCies and PraCtiCes Case: iMProving PerForManCe at tHe Hotel Paris 266 Key terMs 267 endnotes 268 9 Performance Management and appraisal 272 BasiCs oF PerForManCe aPPraisal 274 the Performance Appraisal Process 274 Why Appraise Performance? 274 Defining the employee’s Goals and Performance standards 275 iMProving PerForManCe: Hr as a ProFit Center: setting Performance Goals at Ball Corporation 275 iMProving PerForManCe: Hr tools For line Managers and sMall Businesses: How to set effective Goals 275 Who should Do the Appraising? 276 teCHniQues For aPPraising PerForManCe 278 Graphic rating scale Method 278 Alternation ranking Method 278 Paired Comparison Method 278 forced Distribution Method 280 Critical incident Method 280 narrative forms 282  Contents xix Behaviorally Anchored rating scales 283 Mixed standard scales 285 Management by objectives 285 Computerized and Web-Based Performance Appraisal 286 electronic Performance Monitoring 286 Conversation Days 287 Appraisal in Practice: Using Multiple Methods 287 trends sHaPing Hr: Customized talent Management 287 iMProving PerForManCe: tHe strategiC Context: trW’s new Global Performance Appraisal/Management system 288 dealing witH rater error aPPraisal ProBleMs 288 Potential rating Problems 288 Diversity Counts: the Problem of Bias 290 the need for fairness 290 Know your eMPloyMent law: Appraising Performance 291 Managing tHe aPPraisal interview 292 How to Conduct the Appraisal interview 292 How to Handle a Defensive subordinate 293 How to Criticize a subordinate 293 How to Handle a formal Written Warning 294 eMPloyee engageMent guide For Managers 295 Use the Appraisal interview to Build engagement 295 PerForManCe ManageMent 296 total Quality Management and Performance Appraisal 296 What is Performance Management? 296 trends sHaPing Hr: Digital and social Media 297 iMProving PerForManCe: Hr PraCtiCes around tHe gloBe: Performance Management at General Dynamics Armament systems (GDAs) 298 the Manager’s role in Performance Management 299 CHaPter seCtion suMMaries 299 disCussion Questions 300 individual and grouP aCtivities 300 exPeriential exerCise 300 aPPliCation Case: aPPraising tHe seCretaries at sweetwater u 301 Continuing Case: Carter Cleaning CoMPany 302 translating strategy into Hr PoliCies and PraCtiCes Case: iMProving PerForManCe at tHe Hotel Paris 302 Key terMs 303 endnotes 303 10 Managing Careers and retention 307 Career ManageMent 309 Careers today 309 the Psychological Contract 309 the employee’s role in Career Management 310 the employer’s role in Career Management 311 employer Career Management Methods 311 Improving Performance Through HRIS: integrating talent Management and Career and succession Planning 312 Diversity Counts: toward Career success 313 the Manager as Mentor and Coach 313 iMProving PerForManCe: tHe strategiC Context 314 eMPloyee engageMent guide For Managers 314 Career Management 314 Commitment-oriented Career Development efforts 315 iMProving PerForManCe: Hr PraCtiCes around tHe gloBe: Career Development at Medtronic 315 xx Contents Managing eMPloyee turnover and retention 316 iMProving PerForManCe: Hr as a ProFit Center: turnover and Performance 316 Managing Voluntary turnover 317 A Comprehensive Approach to retaining employees 317 trends sHaPing Hr: Digital and social Media 318 Job Withdrawal 319 eMPloyee liFe-CyCle Career ManageMent 319 Making Promotion Decisions 320 Know your eMPloyMent law: establish Clear Guidelines for Managing Promotions 320 Diversity Counts: the Gender Gap 321 Managing transfers 322 Managing retirements 322 Managing disMissals 324 Grounds for Dismissal 324 Know your eMPloyMent law: termination at Will 325 Avoiding Wrongful Discharge suits 326 security Measures 326 supervisor Liability 327 the exit Process and termination interview 327 Layoffs and the Plant Closing Law 328 Adjusting to Downsizings and Mergers 329 CHaPter seCtion suMMaries 330 disCussion Questions 330 individual and grouP aCtivities 331 exPeriential exerCise 332 aPPliCation Case: google reaCts 332 Continuing Case: Carter Cleaning CoMPany 332 translating strategy into Hr PoliCies and PraCtiCes Case: iMProving PerForManCe at tHe Hotel Paris 333 Key terMs 334 endnotes 334 aPPendix For CHaPter 10 Managing your Career and Finding a JoB 337 Part Four CoMPensation 344 11 establishing strategic Pay Plans 344 BasiC FaCtors in deterMining Pay rates 346 Aligning total rewards with strategy 346 equity and its impact on Pay rates 346 Legal Considerations in Compensation 347 Know your eMPloyMent law: the Workday 348 Know your eMPloyMent law: the independent Contractor 350 Union influences on Compensation Decisions 352 Pay Policies 352 iMProving PerForManCe: tHe strategiC Context: Wegmans food Markets 353 iMProving PerForManCe: Hr PraCtiCes around tHe gloBe: Compensating expatriate employees 354 JoB evaluation MetHods 354 Compensable factors 354 Preparing for the Job evaluation 355 Job evaluation Methods: ranking 356 Job evaluation Methods: Job Classification 357 Job evaluation Methods: Point Method 358  Contents xxi Computerized Job evaluations 358 How to Create a MarKet-CoMPetitive Pay Plan 359 1. Choose Benchmark Jobs 359 2. select Compensable factors 359 3. Assign Weights to Compensable factors 360 4. Convert Percentages to Points for each factor 360 5. Define each factor’s Degrees 361 6. Determine for each factor its factor Degrees’ Points 361 7. review Job Descriptions and Job specifications 361 8. evaluate the Jobs 362 9. Draw the Current (internal) Wage Curve 363 10. Conduct a Market Analysis: salary surveys 363 11. Draw the Market (external) Wage Curve 364 12. Compare and Adjust Current and Market Wage rates for Jobs 365 13. Develop Pay Grades 366 14. establish rate ranges 367 15. Address remaining Jobs 368 16. Correct out-of-Line rates 368 iMProving PerForManCe: Hr tools For line Managers and sMall Businesses: Developing a Workable Pay Plan 368 PriCing Managerial and ProFessional JoBs 369 What Determines executive Pay? 369 Compensating executives 370 Compensating Professional employees 370 Improving Performance Through HRIS: Payroll Administration 371 ConteMPorary toPiCs in CoMPensation 371 Competency-Based Pay 372 iMProving PerForManCe: Hr PraCtiCes around tHe gloBe: JLG’s skill-Based Pay Program 372 Broadbanding 373 Comparable Worth 374 Diversity Counts: the Pay Gap 375 Board oversight of executive Pay 375 eMPloyee engageMent guide For Managers 376 total rewards Programs 376 trends sHaPing Hr: Digital and social Media 376 total rewards and employee engagement 376 CHaPter seCtion suMMaries 377 disCussion Questions 378 individual and grouP aCtivities 378 exPeriential exerCise 379 aPPliCation Case: salary ineQuities at astrazeneCa 379 Continuing Case: Carter Cleaning CoMPany 379 translating strategy into Hr PoliCies and PraCtiCes Case: iMProving PerForManCe at tHe Hotel Paris 380 Key terMs 381 endnotes 381 12 Pay for Performance and Financial incentives 385 Money’s role in Motivation 387 incentive Pay terminology 387 Linking strategy, Performance, and incentive Pay 387 Motivation and incentives 387 Know your eMPloyMent law: employee incentives and the Law 389 individual eMPloyee inCentive and reCognition PrograMs 389 Piecework 389 Merit Pay as an incentive 390 xxii Contents incentives for Professional employees 391 nonfinancial and recognition-Based Awards 392 trends sHaPing Hr: Digital and social Media 392 iMProving PerForManCe: Hr tools For line Managers and sMall Businesses 393 Job Design 394 iMProving PerForManCe: tHe strategiC Context: the fast-food Chain 394 inCentives For salesPeoPle 395 salary Plan 395 Commission Plan 395 Combination Plan 396 Maximizing sales results 396 sales incentives in Action 397 trends sHaPing Hr: Digital and social Media 397 inCentives For Managers and exeCutives 397 strategy and the executive’s Long-term and total rewards Package 398 short-term incentives and the Annual Bonus 398 iMProving PerForManCe: Hr PraCtiCes around tHe gloBe 401 some other executive incentives 402 teaM and organization-wide inCentive Plans 402 How to Design team incentives 403 evidence-Based Hr: inequities that Undercut team incentives 404 Profit-sharing Plans 404 scanlon Plans 404 other Gainsharing Plans 405 At-risk Pay Plans 405 employee stock ownership Plans 406 incentive Plans in Practice: nucor 406 eMPloyee engageMent guide For Managers 407 incentives and engagement 407 CHaPter seCtion suMMaries 407 disCussion Questions 408 individual and grouP aCtivities 408 exPeriential exerCise 409 aPPliCation Case: inserting tHe teaM ConCePt into CoMPensation—or not 409 Continuing Case: Carter Cleaning CoMPany 410 translating strategy into Hr PoliCies and PraCtiCes Case: iMProving PerForManCe at tHe Hotel Paris 411 Key terMs 412 endnotes 412 13 Benefits and services 416 introduCtion: tHe BeneFits PiCture today 418 Policy issues 418 Pay For tiMe not worKed 419 Unemployment insurance 419 Vacations and Holidays 419 Know your eMPloyMent law: some Legal Aspects of Vacations and Holidays 421 sick Leave 421 iMProving PerForManCe: Hr as a ProFit Center: Controlling sick Leave 421 Leaves and the family and Medical Leave Act 422 Know your eMPloyMent law: fMLA Guidelines 422 severance Pay 423 supplemental Unemployment Benefits 424 insuranCe BeneFits 424 Workers’ Compensation 424  Contents xxiii Hospitalization, Health, and Disability insurance 425 Know your eMPloyMent law: Patient Protection and Affordable Care Act of 2010 426 trends in employer Health-Care Cost Control 428 iMProving PerForManCe: Hr as a ProFit Center: the Doctor is on the Phone 430 Long-term Care 430 Life insurance 430 Benefits for Part-time and Contingent Workers 431 retireMent BeneFits 431 social security 431 Pension Plans 431 Know your eMPloyMent law: Pension Planning and the Law 433 Pensions and early retirement 433 Improving Performance Through HRIS: online Benefits Management systems 434 trends sHaPing Hr: Digital and social Media 434 Personal serviCes and FaMily-Friendly BeneFits 435 Personal services 435 family-friendly (Work–Life) Benefits 436 other Personal services Benefits 437 Diversity Counts 437 iMProving PerForManCe: tHe strategiC Context 437 executive Perquisites 438 FlexiBle BeneFits PrograMs 438 the Cafeteria Approach 438 iMProving PerForManCe: Hr tools For line Managers and sMall Businesses: Benefits and employee Leasing 439 flexible Work schedules 440 eMPloyee engageMent guide For Managers 441 Costco’s Compensation Plan 441 CHaPter seCtion suMMaries 441 disCussion Questions 442 individual and grouP aCtivities 442 exPeriential exerCise 443 aPPliCation Case: striKing For BeneFits 443 Continuing Case: Carter Cleaning CoMPany 443 translating strategy into Hr PoliCies and PraCtiCes Case: iMProving PerForManCe at tHe Hotel Paris 444 Key terMs 445 endnotes 445 Part Five enriCHMent toPiCs in HuMan resourCe ManageMent 449 14 Building Positive employee relations 449 wHat is eMPloyee relations? 451 eMPloyee relations PrograMs For Building and Maintaining Positive eMPloyee relations 451 ensuring fair treatment 451 iMProving PerForManCe: tHe strategiC Context: A new Hr strategy at the foxconn Plant in shenzhen, China 453 Bullying and Victimization 453 improving employee relations through Communications Programs 454 Develop employee recognition/relations Programs 454 Use employee involvement Programs 455 trends sHaPing Hr: Digital and social Media 455 xxiv Contents iMProving PerForManCe: Hr as a ProFit Center: the Cost-effective suggestion system 456 tHe etHiCal organization 456 ethics and employee rights 457 What shapes ethical Behavior at Work? 458 the Person (What Makes Bad Apples?) 458 Which ethical situations Make for ethically Dangerous situations (Bad Cases)? 458 What Are the “Bad Barrels”?—the outside factors that Mold ethical Choices 458 How Managers Can Create More ethical environments 459 How Human resource Managers Can Create More ethical environments 459 iMProving PerForManCe: Hr tools For line Managers and sMall Businesses: small Business ethics 460 Know your eMPloyMent law: electronic Monitoring 462 trends sHaPing Hr: Digital and social Media 463 Managing eMPloyee disCiPline 464 the three Pillars of fair Discipline 464 Diversity Counts 465 How to Discipline an employee 465 Discipline Without Punishment 466 eMPloyee engageMent guide For Managers 467 How Companies Become “Best Companies to Work for” 467 the “Best Companies to Work for” 467 sAs: Great Benefits, trust, and Work-Life Balance 467 Google: Happiness and People Analytics 468 fedex: Guaranteed fair treatment 468 A “Best Company” Human resource Philosophy? 469 CHaPter seCtion suMMaries 470 disCussion Questions 471 individual and grouP aCtivities 471 exPeriential exerCise 472 aPPliCation Case: enron, etHiCs, and organizational Culture 472 Continuing Case: Carter Cleaning CoMPany 473 translating strategy into Hr PoliCies and PraCtiCes Case: iMProving PerForManCe at tHe Hotel Paris 473 Key terMs 475 etHiCs Quiz answers 475 endnotes 475 15 labor relations and Collective Bargaining 479 tHe laBor MoveMent 481 iMProving PerForManCe: tHe strategiC Context: the “Anti-Walmart’s” revenues 481 Why Do Workers organize? 481 employee engagement and Unionization 482 What Do Unions Want? 482 the AfL-Cio and the seiU 483 unions and tHe law 484 Period of strong encouragement: the norris-LaGuardia (1932) and national Labor relations (or Wagner) Acts (1935) 484 Period of Modified encouragement Coupled with regulation: the taft-Hartley Act (1947) 485 Unfair Union Labor Practices 486 tHe union drive and eleCtion 487 step 1. initial Contact 487 step 2. obtaining Authorization Cards 488 step 3. Hold a Hearing 489 step 4. the Campaign 490  Contents xxv step 5. the election 490 How to Lose an nLrB election 491 evidence-Based Hr: What to expect the Union to Do to Win the election 492 the supervisor’s role 492 Know your eMPloyMent law: rules regarding Literature and solicitation 493 Decertification elections: ousting the Union 493 iMProving PerForManCe: Hr PraCtiCes around tHe gloBe: france Comes to the Workers’ Aid 493 tHe ColleCtive Bargaining ProCess 494 What is Collective Bargaining? 494 What is Good faith? 494 the negotiating team 495 Costing the Contract 495 Bargaining items 495 Building negotiating skills 496 Bargaining Hints 496 impasses, Mediation, and strikes 497 trends sHaPing Hr: Digital and social Media 500 the Contract Agreement 500 dealing witH disPutes and grievanCes 501 sources of Grievances 501 the Grievance Procedure 501 Guidelines for Handling Grievances 502 iMProving PerForManCe: Hr tools For line Managers and sMall Businesses: How to Handle a Grievance situation 503 tHe union MoveMent today and toMorrow 503 What Are Unions Doing About it? 504 Cooperative Clauses 505 iMProving PerForManCe: Hr around tHe gloBe: Labor-Management Cooperation and Works Councils in America 506 CHaPter seCtion suMMaries 506 disCussion Questions 507 individual and grouP aCtivities 507 exPeriential exerCise 508 aPPliCation Case: negotiating witH tHe writers guild oF aMeriCa 508 Continuing Case: Carter Cleaning CoMPany 509 translating strategy into Hr PoliCies and PraCtiCes Case: iMProving PerForManCe at tHe Hotel Paris 509 Key terMs 510 endnotes 510 16 safety, Health, and risk Management 513 introduCtion: saFety and tHe Manager 515 Why safety is important 515 iMProving PerForManCe: Hr as a ProFit Center: improving safety Boosts Profits 515 Management’s role in safety 515 iMProving PerForMaCe: tHe strategiC Context: Deepwater Horizon 516 the supervisor’s role in Accident Prevention 516 Manager’s BrieFing on oCCuPational saFety law 516 osHA standards and record Keeping 517 inspections and Citations 518 responsibilities and rights of employers and employees 520 iMProving PerForManCe: Hr tools For line Managers and sMall Businesses: free on-site safety and Health services 521 xxvi Contents trends sHaPing Hr: Digital and social Media 522 wHat Causes aCCidents? 523 What Causes Unsafe Conditions? 523 What Causes Unsafe Acts? 524 How to Prevent aCCidents 524 reducing Unsafe Conditions 524 Diversity Counts: Protecting Vulnerable Workers 528 reducing Unsafe Acts 529 reducing Unsafe Acts through screening 529 reducing Unsafe Acts through training 529 Improving Performance Through HRIS: online safety training 530 reducing Unsafe Acts through Posters, incentives, and Positive reinforcement 530 iMProving PerForManCe: Hr as a ProFit Center: Using Positive reinforcement 530 reducing Unsafe Acts by fostering a Culture of safety 532 reducing Unsafe Acts by Creating a supportive environment 532 reducing Unsafe Acts by establishing a safety Policy 532 reducing Unsafe Acts by setting specific Loss Control Goals 532 reducing Unsafe Acts through Behavior-Based and safety Awareness Programs 532 reducing Unsafe Acts through employee Participation 532 trends sHaPing Hr: Digital and social Media 533 Conducting safety and Health Audits and inspections 533 eMPloyee engageMent guide For Managers 534 Milliken & Company—World-Class safety through employee engagement 534 involvement-Based employee engagement 534 worKPlaCe HealtH Hazards: ProBleMs and reMedies 535 Chemicals and industrial Hygiene 535 iMProving PerForManCe: Hr PraCtiCes around tHe gloBe: safety at saudi Petrol Chemical 535 Know your eMPloyMent law: Hazard Communication 537 Asbestos exposure at Work and Air Quality 537 Alcoholism and substance Abuse 537 stress, Burnout, and Depression 539 solving Computer-related ergonomic Problems 540 repetitive Motion Disorders 541 infectious Diseases 541 Workplace smoking 541 oCCuPational seCurity and risK ManageMent 542 enterprise risk Management 542 Preventing and Dealing with Violence at Work 542 securing the facility 544 Company security and employee Privacy 545 Business Continuity and emergency Plans 546 trends sHaPing Hr: Digital and social Media 546 twitter notifications 546 terrorism 546 CHaPter seCtion suMMaries 547 disCussion Questions 547 individual and grouP aCtivities 548 exPeriential exerCise 548 aPPliCation Case: tHe new saFety and HealtH PrograM 552 Continuing Case: Carter Cleaning CoMPany 553 translating strategy into Hr PoliCies and PraCtiCes Case: iMProving PerForManCe at tHe Hotel Paris 553 Key terMs 554 endnotes 554  Contents xxvii 17 Managing global Human resources 559 tHe Manager’s gloBal CHallenge 561 What is international Human resource Management? 561 adaPting HuMan resourCe aCtivities to interCountry diFFerenCes 561 Cultural factors 562 economic systems 563 Hr Abroad example: the european Union 563 Hr Abroad example: China 564 iMProving PerForManCe: Hr PraCtiCes around tHe gloBe: Comparing small Businesses, Hr Practices in the United states and China 565 staFFing tHe gloBal organization 565 international staffing: Home or Local? 566 iMProving PerForManCe: Hr as a ProFit Center: reducing expatriate Costs 567 trends sHaPing Hr: Digital and social Media 567 Management Values and international staffing Policy 568 ethics and Codes of Conduct 568 selecting international Managers 569 Diversity Counts: sending Women Managers Abroad 570 Avoiding early expatriate returns 570 iMProving PerForManCe: Hr tools For line Managers and sMall Businesses: some Practical solutions to the expatriate Challenge 571 training and Maintaining eMPloyees aBroad 571 orienting and training employees on international Assignment 571 Performance Appraisal of international Managers 572 Compensating Managers Abroad 573 Union relations Abroad 575 terrorism, safety, and Global Hr 575 iMProving PerForManCe: Hr PraCtiCes around tHe gloBe: Business travel 576 repatriation: Problems and solutions 576 eMPloyee engageMent guide For Managers 577 engagement Around the Globe 577 Managing Hr loCally: How to Put into PraCtiCe a gloBal HR SyStem 577 iMProving PerForManCe: tHe strategiC Context: Hitachi 578 Developing a More effective Global Hr system 579 Making the Global Hr system More Acceptable 579 implementing the Global Hr system 579 CHaPter seCtion suMMaries 580 disCussion Questions 581 individual and grouP aCtivities 581 exPeriential exerCise 581 aPPliCation Case: “Boss, i tHinK we Have a ProBleM” 582 Continuing Case: Carter Cleaning CoMPany 582 translating strategy into Hr PoliCies and PraCtiCes Case: iMProving PerForManCe at tHe Hotel Paris 583 Key terMs 584 endnotes 584 18 Managing Human resources in small and entrepreneurial Firms 588 tHe sMall Business CHallenge 590 How small Business Human resource Management is Different 590 xxviii Contents Diversity Counts: necessity and the entrepreneur 591 Why HrM is important to small Businesses 591 using internet and governMent tools to suPPort tHe Hr eFFort 591 Complying with employment Laws 592 employment Planning and recruiting 593 trends sHaPing Hr: Digital and social Media 593 employment selection 594 employment training 596 employment Appraisal and Compensation 596 employment safety and Health 596 leveraging sMall size witH FaMiliarity, FlexiBility, Fairness, and InfoRmalIty 597 simple, informal employee selection Procedures 597 iMProving PerForManCe: Hr tools For line Managers and sMall Businesses: A streamlined interviewing Process 597 flexibility in training 598 flexibility in Benefits and rewards 598 fairness and the family Business 600 using ProFessional eMPloyer organizations 600 How Do Peos Work? 600 Why Use a Peo? 601 Caveats 601 Managing Hr systeMs, ProCedures, and PaPerworK 602 introduction 602 iMProving PerForManCe: tHe strategiC Context: City Garage 602 Basic Components of Manual Hr systems 603 Automating individual Hr tasks 604 Human resource information systems (Hris) 604 improved transaction Processing 604 online self-Processing 605 improved reporting Capability 605 Hr system integration 605 Hris Vendors 605 trends sHaPing Hr: Digital and social Media 605 CHaPter seCtion suMMaries 606 disCussion Questions 606 individual and grouP aCtivities 606 exPeriential exerCise 607 aPPliCation Case: netFlix BreaKs tHe rules 607 Continuing Case: Carter Cleaning CoMPany 608 translating strategy into Hr PoliCies and PraCtiCes Case: iMProving PerForManCe at tHe Hotel Paris 608 endnotes 609 aPPendiCes aPPendix a HrCi PHr® and sPHr® Certification Body of Knowledge 612 aPPendix B about the society for Human resource Management (sHrM) Body of Competency and KnowledgetM Model and Certification exams 618 aPPendix C Comprehensive Cases 630 glossary 646 name/organization index 655 subject index 667  PreFaCe Human Resource Management, 15th edition, provides students in human resource management courses and practicing managers with a full and practical introduc- tion to modern human resource management concepts and techniques in a highly readable form. With employers increasingly shifting HR tasks to managers and employees, I feel even more strongly than I did when I wrote the first edition that all managers—not just HR managers—need a strong foundation in human resource management concepts and techniques to do their jobs. You will there- fore find an emphasis here on practical material you need to perform your day- to-day management responsibilities, even if you never spend one day as a human resource manager. Things are changing fast in human resource management, and as this book makes clear we are today on the cusp of what is really the New Human Resource Management. For example, Accenture estimates that social media tools like LinkedIn will soon produce up to 80% of new recruits.1 Cloud computing and intuitive user interfaces let managers monitor goal attainment and give real-time performance feedback continuously and interactively, rather than once or twice per year.2 Mobile applications enable HR capabilities ranging from employee location monitoring to checking digital identities at time clocks. Websites like Knack and True Office help employers add gaming features to training, per- formance appraisal, and recruiting. Data mining and talent analytics revolu- tionized how employers such as Google and Xerox identify competencies and recruit and select job candidates.3 As we’ll see with real examples throughout this book, tools like these are doing more than changing how employers recruit, select, appraise, train, and pay employees—they’re also changing who “does” HR. In the New Human Resource Management, digital devices and social media are shifting more HR tasks from central human resource departments to employees and line manag- ers: For instance, easily finding and vetting capable candidates through social media already let many line managers bypass HR to find their own recruits.4 Changes like these give the line managers more human resource management responsibilities. And they mean that many human resource managers can refocus their efforts from day-to-day activities like interviewing candidates to broader, strategic efforts, such as formulating plans for boosting employee performance and engagement. CHanges and new Features You’ll therefore find six important changes for this edition: New Trends Shaping HR Features Many employers are living the future of HR management today. To bring this New Human Resource Management to life, just about every chapter has one or more Trends Shaping HR features, each focusing on Digital and Social 1 Accenture, “Top Trends That Will Reshape the Future of HR: The Future of HR,” www. accenture.com/us-en/insight-future-of-hr.aspx, accessed March 6, 2015. 2 https://go.oracle.com/LP=3174?elqCampaignId=6310&src1=ad:pas:go:dg:tal&src2=wwmk1405 4343mpp012&SC=sckw=WWMK14054343MPP012, accessed April 4, 2015. 3 Josh Bersin, “Big Data in Human Resources: Talent Analytics (People Analytics) Comes of Age,” www.forbes.com/sites/joshbersin/2013/02/17/bigdata-in-human-resources-talent-analytics- comes-of-age/, accessed March 29, 2015. 4 Accenture, “Top Trends That Will Reshape the Future of HR.” xxix xxx PrefACe Media, Customized Talent Management, Science in Talent Management, or The Extended Workforce. Here are some examples from the book: TRENDS SHAPING HR: Customized Talent Management There has always been some customizing of appraisals. For example, rating a sales- person based on whether she attained her sales goals assumes she had her own cus- TRENDS SHAPING HR: Digital and Social Media tomized goals to meet. Digital and social media tools and the new human resource management. Today, some employers are customizing their appraisal in other ways. For ex- Digital and social media tools are changing how people look for jobs, and how com- ample, it is increasingly common for companies to adapt their appraisals to how panies recruit, retain, pay, and train employees. In doing so, they’ve transformed critical the employees are to the company’s strategic success—their “mission-critical” the practice of human resource management, and created, in a sense, a new human employees. For example, GE prioritizes jobs and focuses on what it calls its employee resource management. Here are some examples. “game changers.”53 Unilever includes 15% of employees per management level in its high-potential list each year.54 Shell China appoints “career stewards” to meet regularly with “emerging leaders.”55 McKinsey & Co. recommends limiting the “high TRENDS SHAPING HR: Science in Talent Management TRENDS SHAPING HR: The New Extended Workforce Most employers use tools like job boards to produce large numbers of recruits, and Many employers today build their staff wholly or in part around an extended work- then use ATS and screening systems to cut those numbers down. Google’s “People force consisting, for instance, of freelance programmers, designers, or marketers. Operations” (HR) group is more scientific. When their research showed that tools like Freelancer community websites enable such employers to recruit the right freelance job boards weren’t cost-effective for them, they created their own in-house recruiting team based on the freelancer’s reputation and work product. For example, Elance. firm. This in-house team uses a proprietary candidate database called gHire. Google’s com (see www.elance.com/) reports its members’ skills assessments, and lists detailed recruiters continually expand and winnow this candidate list, by searching social net- project work experience, making it easier for prospective employers to decide who to working and other sites, by searching who’s working where, and by reaching out to hire. Similarly, the TopCoder.com (see www.topcoder.com/how-it-works/) program- prospective hires and maintaining dialogues with them, sometimes for years. These ming community site enables employers to identify top programmers based on the in-house recruiters produce hand-picked candidates and account for about half of reputations they earned within the community. New hiring sites like these may have a Google’s yearly hires.73 big impact on HR. Some employers may well use them to democratize HR, by letting their line managers recruit and hire new employees directly. New The Strategic Context Features As employers devolve more HR tasks to supervisors and employees and use per- formance management systems to link employees’ actions to the company’s goals, supervisors and employees need a “line of sight” that shows them how their HR actions impact the company’s goals. I’ve therefore added to this edition The Strategic Context features. Integrated with chapter-opening scenarios, these features show how actual managers adjusted their HR actions to produce the employee competen- cies and skills that were needed to achieve the company’s strategic aims. In addition, a Fully Integrated Strategy Case and Strategy Maps again provide the most comprehensive treatment of strategic human resource management in any HR survey text: ✓ Chapter 1 introduces and Chapter 3 presents the concepts and techniques of human resource strategy. ✓ Each chapter starting with Chapter 3 contains a continuing “Hotel Paris” case, written to help make strategic human resource management come alive for readers. The continuing case shows how this hotel company’s HR director uses that chapter’s human resource management concepts and techniques to create HR policies and practices that produce the employee skills and behaviors the Hotel Paris needs to improve its service and thereby achieve its strategic goals. ✓ An overall strategy map for the Hotel Paris on the book’s inside back cover, and chapter-specific Hotel Paris strategy maps in the accompany- ing MyManagementLab®, help readers understand and follow the strate- gic implications of the hotel’s HR decisions. ✓ “Eiffel Tower” callouts in each chapter draw students’ attention to the Hotel Paris case. New Employee Engagement Guide for Managers Features Employee engagement refers to being psychologically involved in, connected to, and committed to getting one’s jobs done. Trends including intensifying global competition and more millennials in the workforce make employee engagement crucial today (a fact recognized by the new Employee Engagement section in the Society for Human Resource Management’s certification exams). Recent surveys show that about 70% of employees are disengaged at work. I use new Employee Engagement Guide for Managers sections in Chapters 3–17 to show  PrefACe xxxi how managers use human resource activities to improve employee engage- ment. For example, Chapter 3’s guide shows how Kia Motors (UK) improved employee engagement, Chapter 6’s guide shows how Toyota uses a total selection program to improve engagement, and Chapter 14’s guide shows how “Great Companies to Work For” like Google and SAS develop the positive employee relations that help foster employee engagement. New SHRM Coverage Starting in 2015,the Society for Human Resource Management (SHRM) began offering its own competency and knowledge-based testing and certifications for SHRM Certified Professionals and SHRM Senior Certified Professionals, based on its own certification exams.5 The new SHRM exams put new emphases on Employee Engagement and on Employee Relations, two topics that this new 15th edition covers more comprehensively than does any other survey book with which I’m familiar (with the exception of my Fundamentals of Human Resource Management, 4th edition, Pearson 2015). I’ve also summarized separately the SHRM and the HR Certification Institute’s (HRCI’s) knowledge bases in Appendices A and B of this book, (pages 612–629). One covers SHRM’s functional knowledge areas (such as em- ployee relations). The other covers HRCI’s seven main knowledge areas (such as Strategic Business Management and Workforce Planning and Employment). The latter also lists about 91 specific HRCI “Knowledge of” subject areas within these seven main topic areas with which those taking the test should be familiar. You’ll also find throughout this book special Knowledge Base icons starting in Chapter 2 to denote coverage of SHRM and/or HRCI knowledge topics. Revised Chapter 10 (Managing Careers) and Chapter 14 (Building Positive Employee Relations) With the new Employee Engagement Guide for Managers features in most chapters, I revised Chapter 10 (Managing Careers and Retention, formerly Managing Employee Retention, Engagement, and Careers) to focus more on career management practices and employee retention techniques. With SHRM’s new emphasis on employee relations, I also revised Chapter 14 (formerly Ethics, Employee Relations, and Fair Treatment at Work) to more comprehensively address (unique to this book) how real companies build employee relations. New: Sustainability and HRM In a world where sea levels are rising, glaciers are crumbling, and increasing numbers of people view financial inequity as outrageous, more and more people say that businesses can’t just measure “performance” in terms of maximizing profits. This 15th edition contains all-new material on sustainability and on the roles of HR management in implementing companies’ sustainability efforts. MyManageMentlaB suggested aCtivities For the 15th edition, I am excited that Pearson’s MyManagementLab has been integrated fully into the text. The new features are outlined below. Making these assessment activities available online for students to complete before coming to class should give you, the professor, more discussion time during class to review areas that students may be having difficulty with. learn it Students can be assigned the Chapter Warm-Up before coming to class. Assigning these questions ahead of time will hopefully help ensure that students come to class prepared. 5 www.shrm.org/certification/pages/default.aspx#sthash.JRZQeAWR.dpuf, accessed September 8, 2015. xxxii PrefACe watch it Recommends a video clip that can be assigned to students for outside classroom viewing or for in-classroom use. The video I chose for each chapter corresponds to the chapter material and is accompanied by multiple-choice questions that reinforce students’ comprehension of the chapter content. try it Recommends a mini-simulation that can be assigned to students as an outside classroom activity or that can be done in the classroom. As students watch the simulation, they will be asked to make choices based on the simulation scenario. At the end of the simulation, students receive immediate feedback based on their answers. These simulations reinforce the chapter’s concepts, as well as students’ comprehension of those concepts. talk about it These are discussion-type questions that can be assigned as an activity within the classroom. assisted-graded writing Questions These are short essay questions that the students can complete as an assignment and submit to you, the professor, for grading. Features Continued FroM 14tH edition Given the very positive response to the 14th edition and to the continuing challenges that world economies still face, I continued the 14th edition’s emphasis on improving performance, productivity, and profitability in this 15th edition, and kept several features: Improving Performance: features again demonstrate real-world human resource management tools and practices that managers actually use to improve performance. The discussion questions within each of the three boxed Improving Performance features are also in the accompanying MyManagementLab®. These features include: IMPROVING PERFORMANCE: HR as a Profit Center Improving Performance: HR as a Profit Center: contains Turnover and Performance actual examples of how human resource manage- What is the link between turnover and organizational performance? Perhaps surprisingly, the issue isn’t clear (although it would seem obvious that firing an incompetent employee would be a posi- ment practices add value by reducing costs or boosting tive).33 The problem is that what might be a positive in individual cases becomes a negative when the employer repeatedly loses employees. One study concludes that all turnover, voluntary or involuntary, revenues. Improving Performance: HR Tools for Line Managers and IMPROVING PERFORMANCE: HR Tools for Line Managers and Small Businesses Small Businesses: explains that many line managers and entre- How to Conduct an Effective Interview preneurs are “on their own” when it comes to human resource You may not have the time or inclination to create a structured situational interview. However, there is still much you can do to make your interviews systematic and productive. management, and describes work sampling tests and other Step 1: First, know the job. Do not start the interview unless you understand the job’s duties and straightforward HR tools that line managers and entrepre- what human skills you’re looking for. Study the job description. Step 2: s tructure the interview. Any structuring is better than none. If pressed for time, you can neurs can create and safely use to improve performance. still do several things to ask more consistent and job-relevant questions, without develop- ing a full-blown structured interview.77 For example:78 Base questions on actual job duties. This will minimize irrelevant questions. Use job knowledge, situational, or behavioral questions. Questions that simply ask for opinions and attitudes, goals and aspirations, and self-descriptions and self-evaluations allow candidates to present themselves in an overly favorable manner or avoid revealing  PrefACe xxxiii Improving Performance: HR Practices Around the Globe: IMPROVING PERFORMANCE: HR Practices around the Globe shows how actual companies around the globe use HR Career Development at Medtronic30 practices to improve their teams’ and companies’ perfor- Medtronic is a global medical technology company with more than 85,000 employees around the world. The company offers a wide range of career planning and development support tools aimed at helping mance, while illustrating the challenges managers face in employees understand their occupational strengths and weaknesses and reach their potential. These tools include customized development plans, self-assessment and feedback tools, mentoring programs, managing internationally. Improving Performance Through HRIS: are embedded features that demonstrate how managers use human resource technology to improve performance. And as in the 14th edition: Know Your Employment Law sections within each chapter discuss the practical implications of the employment laws that apply to that chapter’s topics, such as the laws relating to recruitment (Chapter 5), selection (Chapter 6), training (Chapter 8), and safety (Chapter 16). Diversity Counts features provide practical insights for managing a diverse workforce, for instance, regarding gender bias in selection decisions, bias in per- formance appraisal, and “hidden” gender bias in some bonus plans (Chapter 12). treatment of global Hr and small Business Hr Management While this 15th edition again has two chapters devoted to Global HR and to Small Business HR, you will also find in this new 15th edition Managing HR Around the Globe boxed features throughout the book, and, similarly, HR Tools for Line Managers and Small Businesses boxed features throughout the book. instruCtor resourCes At the Instructor Resource Center (www.pearsonhighered.com/irc), instructors can easily register to gain access to a variety of instructor resources available with this text in downloadable format. If assistance is needed, our dedicated technical support team is ready to help with the media supplements that accompany this text. Visit http://247.pearsoned.com for answers to frequently asked questions and toll-free user support phone numbers. The following supplements are available with this text: Instructor’s Resource Manual Test Bank TestGen® Computerized Test Bank PowerPoint Presentation Additional videos illustrating the most important subject topics are available in MyManagementLab under the Instructor Resources: Business Today. This page intentionally left blank  aCKnowledgMents Everyone involved in creating this book is proud of what we’ve achieved. Human Resource Management is one of the top-selling books in this market, and, as you read this, students and managers around the world are using ver- sions translated into about a dozen languages, including Thai, French, Spanish, Indonesian, Russian, and Chinese. Although I am responsible for Human Resource Management, I want to thank several people for their assistance. They include, first, the faculty who carefully reviewed the 14th edition, and who made many useful and insightful suggestions: John Durboraw, Columbia College Lisa Nieman, Wesleyan University Brooke Sorrells, Virginia College Craig Tunwell, Troy University I am very grateful to Gordon Schmidt (Indiana University/Purdue University Fort Wayne) and Angela Boston (University of Texas) for their hard work on updating and improving the supplements for the 15th edition, and to the MyLabs team of Project Manager Toni Ackley, Gordon Schmidt (Indiana University/Purdue University Fort Wayne), Susan C. Schanne (Eastern Michigan University), and Leslie Carnes, SPHR (Ivy Tech Community College). At Pearson, thank you for the support and dedicated assistance of all involved. I particularly appreciate the insights, suggestions, and personal involvement of Editor-in-Chief Stephanie Wall and Senior Acquisitions Editor Kris Ellis-Levy. Thank you again to my outstanding production team, with whom I’ve worked for many years: Jeff Holcomb, Project Management Team Lead, and Kelly Warsak, my irreplaceable Project Manager. Thanks to Lenny Ann Kucenski, Field Marketing Manager, and the Pearson sales staff, without whose efforts this book would languish on the shelf, and to Sarah Holle, Program Manager, and Lauren Russell, Editorial Assistant. I want to thank everyone at Pearson International for successfully managing Human Resource Management’s internationalization. Development editor Kerri Tomasso was extraordinarily helpful, and thank you to Margaret McConnell at Integra. At home, I want to thank my wife, Claudia, for her support during the many hours I spent working on this edition. My son, Derek, always a source of enormous pride, was very helpful. Lisa, Samantha, and Taylor are always in my thoughts. My parents were always a great source of support and encouragement and would have been very proud to see this book. xxxv This page intentionally left blank PART ONE Introduction 1 Introduction to Human Resource Management Kwanbenz/Shutterstock L