BRIEF TABLE OF CONTENTS
P A RT ONE
Human Resource Management and the Environment
1 Strategic Human Resource Manage ment in a Changing Environment
2 The Role of Globalization in HR Policy and Practice
3 The Legal Environment of HRM: Equal Employment Opportunity
P A RT TWO
Acquiring Human Resource Capability
4
Work Analysis and Design
5 Human Resource Planning and Recruitment
6 Personnel Selection
P A R T THREE
Developing Human Resource Capability
7 Performance Management and Appraisal
8 Training and Development
9 Career Development
P A RT FOUR
Compensating and Managing Human Resources
10 Compensation: Base Pay and Fringe Benefits
1 I Pay for Performance
12 Managing the Employment Relationship
13 Labor Relations and Collective Bargaining
14 Employee Health and Safety
vii
TABLE OF
CONTENTS
PART
Preface iv
Human Resource Management
and the Environment 1
1 Strategic Human Resource Management in a
Changing Environment 2
Overview 2
Objectives 3
What Is Human Resource Management? 4
HRM and Corporate Performance 4
Discrepancies between Academic Research and
HRM Practice 5
The Activities of Human Resource Management 6
Trends Enhancing the Importance of HRM 8
Trend 1: The Increased Globalization of the
Economy 8
Trend 2: Technological Changes, Challenges,
and Opportunities 9
Trend 3: The Need to Be Flexible in Response
to Changing Business Environments 10
Trend 4: Increase in Litigation Related to HRM 11
Trend 5: Changing Characteristics of the
Workforce II
The Importance of HRM Measurement in Strategy
Execution 12
Competitive Advantage 15
Customer Value 15
Customer Value and Corporate Social
Responsibility (CSR) 16
Maintaining Uniqueness 17
Sources of Uniqueness 17
Summary 19
Discussion Questions 19
2 The Role of Globalization in HR Policy and
Practice 20
Overview 20
Objectives 22 viii
How Do Companies Engage in International
Commerce? 22
Exporting Work 24
Summary 25
International Business Strategies 25
What Influences the Type of International
Strategy a Firm Will Choose? 26
Domestic versus International HR 27
International HR Strategies 29
What Influences the Choice of
IHRM Strategy? 30
International Business Assignments 30
Global Leadership and Challenges 32
Summary 35
Discussion Questions 36
3 The Legal Environment of HRM: Equal
Employment Opportunity 37
Overview 37
Objectives 38
Equal Employment Opportunity Law 39
What Is Employment Discrimination? 39
What Are the Major Sources of
EEO Redress? 39
Title VII of the Civil Rights Act of 1964 43
What Is the EEOC? 43
What Is Not Prohibited by Title VII? 46 How
Do You File a Title VII Lawsuit? 46 What
Legal Steps Are Followed in a Title VII
Case? 46
What Constitutes Sexual Harassment under
Title VII? 50
What Is the Employer's Liability in Sexual
Harassment Cases? 50
What Is Affirmative Action? 51
What Is the Legal Status of Affirmative
Action? 53
What Is Required before a Company Embarks on
a Voluntary Affirmative Action/Diversity
Program? 54
Is Affirmative Action Still Necessary? 54
Table of Contents
The Age Discrimination in Employment Act of
1967, Amended in 1978 and 1986 55 What Is
Required to Establish Prima Facie
Evidence of Age Discrimination? 55
Can Employers Claim Age as a Bona Fide
Occupational Qualification (BFOQ)? 55
The Americans with Disabilities Act of
1990 (ADA) 56
What Is Legal and Illegal under ADA? 56
Pregnancy Discrimination Act of 1978 59
Are Expatriates Covered by Federal EEO Laws
When They Are Assigned to Countries Other
than the United States? 59
What Are Employee Rights When Working for
Multinational Employers? 59
Future Trends in EEO 62
Alternative Dispute Resolution: An Employer
Reaction to Increased Litigation 62 Summary
65
One Implication of Increased Litigation: Better
HRM Practices 65
Discussion Questions 66
Acquiring Human Resource
Capability 67
II
4 Work Analysis and Design 68
Overview 68
Objectives 69
What Is Work Analysis? 69
WhatAre the Major Goals for Work Analysis? 70
Do We Really Need All the Specificity in Formal
Job Analysis? 71
What Is the Legal Significance of Work
Analysis? 71
What Are the Major Work Analysis Products? 72
What Are the Major Methods of Work Analysis? 75
What Are the Dimensions on Which Work
Analvsis May Vary? 75
What Are the Most Useful Work Analysis
Methods? 78
Position Analysis Questionnaire (PAQ) 78
Management Position Description Questionnaire
(MPDQ) 82
Competency Modeling 82
O*NET 86
Critical Incident Technique (CIT) 88
Job Compatibility Questionnaire (JCQ) 92
The Job Diagnostic Survey (JDS) 93
Multimethod Job Design Questionnaire
(MJDQ) 94
What Is Strategic Job Analysis? 94
What Is Work Process Mapping? 95
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Autonomous Work Groups (AWG) or Self-Managing
Teams 96
Suggestions for Using AWGs or Self : Managing
Work Teams 97
The Effectiveness of AWGs or Self-Managing
Work Teams 97
Is There Bias and Inaccuracy in Work Analysis
Data? 97
How Do You Choose the Best Work Analysis
Method? 98
Summary 98
Discussion Questions 99
5 Human Resource Planning and Recruitment 100
Overview 100
Objectives 101
Effective Human Resource Planning 101
Step One: Environmental Scanning 101
Step Two: Labor Demand Forecast 106
Step Three: Labor Supply Forecast 109
Step Four: Gap Analysis 111
Step Five: Action Programming 114
Step Six: Control and Evaluation 114
The Recruitment Function: Putting HRP
into Action 115
Recruitment, Other HR Activities, and
Organizational Attractiveness 115
The Three Essential Steps for Recruitment
Planning I16
The Two Sources of Recruiting: Internal and
External 118
Advantages and Disadvantages of Internal and
External Recruiting 118
External Recruitment Sources 119
What Method of Recruiting Is Most
Effective? 127
Two Philosophies of Recruiting: Flypaper versus
Matching 130
Understanding the Recruits 131
Human Resource Planning and Recruitment
for Multinational Corporations 131 Summary
134
Discussion Questions 134
6 Personnel Selection 135
Overview 135
Objectives 135
Selection Methods: Are They Effective? 1 37
What Is Reliability? 137
What Is Validity? 137
What Is Utility? 139
Application Blanks and Biographical Data 1 39
A Discrepancy between Research and Practice: The
Use of Application and Biographical Data 140
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x
How Do You Derive WAB or BIB or
Accomplishment Record Weights? 141
Reference Checks and Background Checks 141
What Are the Legal Implications of Doing
Background Checks on Job Candidates? 141
Personnel Testing 142
What Is a Cognitive Ability Test? 142
WhatAre Tests of Specific Ability? 143
Are There Racial Differences in Test
Performance? 143
Why Do Minorities Score Lower than Whites on
Cognitive Ability Tests? 144
How Do Organizations Deal with Race
Differences on Cognitive Ability Tests? 145
What Is Personality/Motivation/Dispositional
Testing? 145
What Is the Validity of Personality Tests? 149
Approaches to the Prediction of Particular
Criteria 150
How Do You Establish a Testing Program? 152
Drug Testing 152
Performance
Is Testing an Invasion of Privacy? 153
What Is an Assessment Center? 154
Testing/Work Samples 153
How Are Assessments Done? 154
What Is the Validity and Adverse Impact of'
Assessment Centers and Other Performance
Tests? 157
Performance Appraisals/Competency
Assessment 157 Interviews 157
What Factors Affect the Employment
Interviews? 158
What Is the Validity of Employment
Inten'iew? 159
How Do We Improve the Validity of
Interviews? 160
What Are Major Types of Interviews? 161
Combining Data from Various Selection
Methods 163
Personnel Selection for Overseas Assignments 164
Selection in Other Countries 166
The Bottom Line on Staffing 168
Summary 168
Discussion Questions 169
P ART
Developing Human Resource
Capability 171
7 Performance Management and Appraisal 172
Overview 172
Objectives 173
How Do We Define Performance and Why Do We
Measure It? 173
What Are the Uses of Performance Data? 175
Legal Issues Associated with Performance
Appraisals 175
Designing an Appraisal System 177
Measurement Content 177
The Measurement Process 178
Control of Rating Errors 183
Defining the Rater 187
Defining the "Ratee" 188
Administrative Characteristics 190
Methods of Delivering Performance
Feedback 190
Summary 191
Discussion Questions 191
8 Training and Development 192
Overview 192
Objectives 193
Defining Training and Development 193
Extent of Training and Development 194
A Systems View of Training 195
Discrepancies between Research
and Practice 196
Needs Assessment 197
Organizational Analysis 197
Job Analysis 197
Person Analysis 197
Techniques . for Collecting Needs Assessment
Data 199
Deriving Instructional Objectives 199
Development of the Training Program 200 Designing
a Learning Environment for
Training 200
Preconditions of Learning 200
Conditions of the Learning Environment 201
Using Learning Principles to Develop Training
Materials 203
Transfer of Training 203
Choosing Methods for the Training
Program 204
Informational Methods 206
Experiential Methods 207
Evaluation 212
Types of Criteria 212
Effectiveness of Organizational Training 2/6
Assessing the Costs and Benefits of Training 216
Designs for Evaluating Training 217
Benchmarking Training Efforts 218
Planning for Training Effectiveness in
Organizations 218
Special Training Programs 218
Employee Orientation Programs 218
Training , for Teams 220
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Information-Technology Training 221
Diversitv° Awareness Training 221
Sexual Harassment Training 222
Creativity Training 222
Training for International Assignments 222
Summary 224
Discussion Questions 226
9 Career Development 227
Overview 227
Objectives 227
Definitions 228
Implications of Workplace Changes for Individuals
and Organizations 229
What Should Individuals Do? 229
What Should Organizations Do? 230
Importance of Understanding Career
Development 230
Designing Career Development Systems 231
Benefits of Career Development Systems 231
Components of Career Development Systems 233
Self-Assessment Tools 234
Individual Counseling 235
Information Services 235
Organizational Assessment Programs 237
Developmental Programs 239
Career Programs for Special Target Groups 240
Fast-Track Employees 240
Outplacement Programs 240
Entrenched Employees 241
Supervisors and Career Counseling 242
Executive Coaching 242
Programs for Women, Minorities, and Employees
with Disabilities 242
Programs for New Employees (Early-Career
Issues) 243
Programs for Late Career and Retirement 243
Programs to Assist Employed Spouses and
Parents 244
Career Development Issues with Teams 246
Repatriates 247
Summary 248
Discussion Questions 249
The Traditional Approach to Compensation 255
What Is Internal Equity? 255
Job Evaluation Methods 255
What Is External Equity? 259
Current Trends in Salary Administration 261
Government Influence on Compensation
Issues 263
Pay Equity or Comparable Worth Policy 265
Other Compliance Issues 266
Fringe Compensation: Employee Benefits 267
Five Categories of Employee Benefits 268
Communicating the Benefits Program 273
International Compensation 274
Base Salary 275
Foreign Service Premiums 275
Allowances 276
Benefits 276
Summary 277
Discussion Questions 277
11 Pay for Performance 278
Overview 278
Objectives 279
Does PFP Work? 280
What Are the Determinants of Effective
PFP Systems? 281
What Are the Main Problems with
PFP Programs? 283
What Are the Legal Implications of PFP? 284
How Do You Select a PFP System? 284 Who
Should Be Included in a
PFP System? 284
What Are the Rewards in a PFP System? 285 A
Discrepancy between Research and Practice
285
Should You Use Individual, Group, or
Company-Level PFP? 286
When Should Team-Based PFP Be Used? 286
Individual PFP Plans: Merit Pay and Incentive
Systems 287
What
What
What
What
Are Merit Pay Plans? 287
Is Incentive Pay? 288
Are Sales Incentive Plans? 290
Are Bonuses? 290
What Are Group Incentive Plans? 291
What Is Profit Sharing? 291
What Is Gain Sharing? 292
What Are Employee Stock Option Plans? 294
P AR T
Compensating and Managing
Human Resources 251
10 Compensation: Base Pay and Fringe
Benefits 252
Overview 252
Objectives 255
Cash Compensation: Base Pay 255
Managerial and Executive Incentive Pay 295
Are There Documented Negative Consequences
to Widening Pay Dispersion? 296
Should You Use Short- or Long-Term Measures
of Performance? 296
What about the Corporate Board Room? How
Should Directors Be Paid? 297
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Table of Contents
How Do Companies Keep Entrepreneurs and
Promote Intrapreneurs? 297
What Are the Managerial Implications for
PFP Programs? 297
Summary 298
Discussion Questions 299
12 Managing the Employment Relationship 300
Overview
300
Objectives
301
Introduction 301
Organizational Justice 301
Ethics Programs 302
Organizational Entry 303
Employment Status 303
Flexible Work Arrangements 303
Realistic Job Previews 304
Socialization and Orientation 305
The Ongoing Relationship 306
External Forces: Law 307
Internal Forces: Employee Surveys 310
Internal Forces: Employee Handbooks 311
Violations of Policy/Discipline 315
Grievances 316
Organizational Exit 317
Termination 318
Resignation/Voluntary Turnover 319
Downsizing and Layoffs 322
Retirement 323
Summary 324 Discussion
Questions 325
13 Labor Relations and Collective Bargaining 326
Overview 326
Objectives 327
Why Do Workers Join Unions? 327
The Legal Environment of Labor Relations 329
National Labor Relations Act (NLRA) 329 The
Taft-Hartley Act 330
Other Important Labor Laws 331
How Do Workers Form Unions? 331
The Effects of Unions 333
Unions and Quality of Worklife Issues 334
Union Effects on Worker Satisfaction 335
Unions and HRM 335
Collective Bargaining 335
The Labor Contract 335
Issues in Collective Bargaining 336
Types of Bargaining 336
Conducting Labor Contract Negotiations 337
The Union 's Economic Power in Collective
Bargaining 339
The Employer ' s Power in Collective
Bargaining 339
Administration of the Labor Contract 340
Current and Future U.S. Trends in
Labor Relations 343
Union Membership 343
Public-Sector Union Membership 344
Mergers and Acquisitions 345
Retraining Provisions 345
Employee Benefits 345
A Proposal to Reinvent U.S. Trade Unionism 345
International Issues 346
U.S. Managers and Unions 346
Global Collective Bargaining and
Productivity 348
Summary 349
Discussion Questions 349
14 Employee Health and Safety 350
Overview 350
Objectives 351
Common Workplace Injuries and Diseases 352
Legal Issues Related to Health and Safety 353
Workers' Compensation 353
The Occupational Safety and Health
Administration Act 355
Programs to Reduce Accidents at Work 365
Selective Hiring 366
Safety Training 366
Teamwork, Supervision, and Decentralized
Decision Making 368
Incentive Systems 368
Safety Rules 368
Contemporary Issues Related to Health
and Safety 369
AIDS and the Workplace 369
Drugs in the Workplace 370
Smoking in the Workplace 372
Violence in the Workplace 373
Video Display Terminals 377
Repetitive Strain Injuries (RSI) 377
Occupational Stress 379
Employee Assistance Programs 383 Employee
Wellness or Fitness Programs 384 Summary
385
Discussion Questions 386
Appendix A Critical Thinking Applications 388
1-A What Do You Know about HRM? 388
1-B Corporate Social Responsibility and Human
Resources Management? 389
1-C Resolution: Close Down the Human Resources
Department 391
2-A What Is the Origin of Your University
Apparel? 392
2-B International HR: How about a Cuppa? 393
3-A Are Dreadlocks Protected under Title VII? 394
3-B Allegations of Religious Discrimination 395 4A Can PAS Defend Its Test in Court? 396
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4-B What to Do with Job Diagnostic Survey
Results 397
5-A Recruiting on the Internet 407
5-B Hi, I'm in Bangalore (but I Can't Say So) 408
5-C Is Wal-Mart Guilty of Gender Discrimination? 408
6-A What Privacy Do We Have in the Workplace? 41 I
6-B The Measurement of Personality Traits 412
7-A Should We Measure Competencies in Performance
Appraisal? 414
7-B The Role of Mystery Shoppers in Performance
Appraisal 415
7-C Allegations of Age and Race Discrimination
against Ford Motor Company 415
7-D Performance Appraisal Characteristics
Questionnaire 416
8-A Workplace Diversity Training 417
8-B Sexual Harassment Training 418
9-A Careers and Corporate Social Responsibility 421
9-B O*NET Skills Search 421
10-A Defending Corporate Executive Pay 423
10-B Illegal Pay Discrimination, Bad Pay P olicy,
or Both? 424
10-C Legal or Illegal Compensation Plan? 425
11-A The Case for and against Pay-for-Performance
Systems 425
11-B The Prediction of Rating Error 426
I 1-C Can We (and Should We) Apply the Lincoln
Electric Method? 428
1 1-D Should Teacher Pay Be Tied to Student
Scores? 429
12-A Employment-at-Will 429
12-B Developing Organizational Policy and a
Code of Ethics 430
13-A Unionizing FedEx 431
13-B Do You Support Striker Replacement
Legislation? 432
14-A Can Health and Safety Behavior Be Predicted? 4 32
14-B The Measurement of Stress at Work 433
Appendix B Chapter Exercises 436
1.1 An Interview with an HRM Specialist 4 38
1.2 An Assessment of Customer Satisfaction and the
Relationship to HRM Activities 442
1.3 Human Resource Issues at Valley
National Bank 450
2.1 International HR Strategies: The Derivation of
Policy 459
2.2 Going Global with Marriott Corporation 462
3.1 Zimpfer v. Palm Beach County 466
3.2 Goebel et al. v. Frank Clothiers 474
3.3 A Case of Illegal Sexual Harassment? 478 3.4
Reverse Discrimination or Legal Affirmative
Action? 481
3.5 Joseph Garcia v. Hooters, Cameron v. LaVeille
Maison 486
3.6 Hiring a Bank Teller 488
4.1 Writing a Position Description 49 3
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4.2 The Use of the Critical Incident Technique to
Analyze the Job of University Professor 506 4.3
Job Analysis at CompTech 509
5.1 A Turnover Problem at the Fort Lauderdale
Herald 515
5.2 Permalco's Recruiting Challenge 519
5.3 Recruiting at Julia Richter's "Dressed for
Success" 523
5.4 HR Planning at COMPTECH 524
6.1 Should Tenneco Use the Wonderlic Test? 5 32
6.2 Hiring a Plant Manager at Dynamo Industries 5 35
6.3 What Questions Can You Ask in an Interview? 539
7.1 Performance-Appraisal Feedback: A Role-Play
Exercise 545
7.2 The Heartland Greeting Cards Consulting
Problem 548
7.3 Price Waterhouse v. Hopkins 554
7.4 Performance Appraisal at Darby Gas & Light 558
7.5 The Development of a Performance Appraisal
System for Instructors 564
8.1 Conducting a Needs Assessment 570
8.2 Rainyday Insurance Adjusters Company 57 3
8.3 Backwoods Mail Order Company 577
8.4 The Development and Evaluation of a Training
Program for Graduate Student Instructors 580 8.5
Self-Directed Learning Assessment 583
9.1 Attitudes about Older People 586
9.2 Career Development Self-Assessment Exercise 588
9.3 Career Development at TechnoChip Computers 594
10.1 Problems in the Pay System 601
10.2 Should the State Adopt a Pay Equity Policy? 607
10.3 Developing an Employee Benefits Program 61 3
11.1 The Design of a PFP System for Mega
Manufacturing 621
I 1.2 Pay for Performance at Dee's Personalized
Baskets 625
12.1 An Approach to Downsizing 629
12.2 Compududes Considers Arbitration Options for
Employee Disputes 635
12.3 Handling an Employee's Termination 6 38
13.1 Organizing a Union 643
13.2 Unions, Labor Law, and Managerial
Prerogatives 645
13.3 The Baseball Strike: An Example of Collective
Bargaining 649
14.1 The Development of a Company Smoking
Policy 654
14.2 The Development of an Antidrug Policy 655
14.3 The Development of a Health and Safety Policy 656
14.4 The Development of a Threat Management Team
for a Workplace Violence Incident 658
Appendix C Assessment Guidelines for Self, Peer,
and Designated Assessors 662
Endnotes 667
Indexes 704