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Human Resource Management Fourteenth Edi

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Human
Resource
Management
Fourteenth Edition
Global Edition
GARY DESSLER
Florida International University
PEARSON
Boston Columbus Indianapolis New York San Francisco Upper Saddle River
Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto
Delhi Mexico City Säo Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo
CONTEN TS
Preface 28
PART ONE
1
INTRODUCTION
34
Introduction to Human Resource Management
34
WHAT IS HUMAN RESOURCE MANAGEMENT, AND WHY IS IT IMPORTANT? 36
What Is Human Resource Management? 36
Why Is Human Resource Management Important to All Managers? 36
Line and Staff Aspects of Human Resource Management 38
Line Managers' Human Resource Duties 38
Human Resource Manager'; Duties 39
Organizing the Human Resource Departments Responsibilities 39
Cooperative Line and Staff HR Management: An Example 41
THE TRENDS SHARING HUMAN RESOURCE MANAGEMENT 41
Tecbnological Advances 42
Improving Performance Through HRIS: The HR Portal 42
Globalization and Competition Trends 42
Indebtedness ("Leverage") and Deregulation 42
Trends in the Nature of Work 43
• IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: Improving a Bank s
Customer Service 44
Demographic and Workforce Trends 44
Economic Challenges and Trends 45
THE NEW HUMAN RESOURCE MANAGER 46
They Focus More on Strategie, Big-Picture Issues 46
They Focus on Improving Performance 46
They Measure HR Performance and Results 47
They Use Evidence-Based Human Resource Management 47
They Add Value 48
They Use New Ways to Provide HR Services 48
They Take a Talent Management Approach to Managing Human Resources 48
They Manage Employee Engagement 48
They Manage Ethics 48
They Understand Their Human Resource Philosophy 49
They Have New Competencies 49
THE HUMAN RESOURCE MANAGER S COMPETENCIES 49
HRCI Certification 50
The HRCI Knowledge Base 50
THE PLAN OF THIS BOOK 51
The Basic Themes and Features 51
CHAPTER CONTENTS OVERVIEW 51
Part 1: Introduction 51
Part 2: Recruitment, Placement, and Talent Management 51
Part 3: Training and Development 52
Part 4: Compensation 52
Part 5: Enrichment Topics in Human Resource Management 52
The Topics Are Interrelated 52
CHAPTER SECTION SUMMARIES 52
DISCUSSION QUESTIONS 53
INDIVIDUAL AND GROUP ACTIVITIES 53
ß
10 CONTENTS
EXPERIENTIAL EXERCISE 54
VIDEO CASE: VIDEO TITLE: HUMAN RESOURCE MANAGEMENT (PATAGONIA) 54
APPLICATION CASE: JACK NELSON S PROBLEM 55
CONTINUING CASE: CARTER CLEANING COMPANY 55
KEY TERMS 56
ENDNOTES 56
2
Equal Opportunity and the Law
58
EQUAL OPPORTUNITY LAWS ENACTED FROM 1964 TO 1991 60
Title VII of the 1964 Civil Rights Act 60
Executive Orders 60
Equal Pay Act of 1963 60
Age Discrimination in Employment Act of 1967 61
Vocational Rehabilitation Act of 1973 61
Pregnancy Discrimination Act of 1978 61
Federal Agency Guidelines 61
Early Court Decisions Regarding Equal Employment Opportunity 61
THE LAWS ENACTED FROM 1991 TO THE PRESENT 62
The Civil Rights Act of 1991 62
The Americans with Disabilities Act 63
Uniformed Services Employment and Reemployment Rights Act 65
Genetic Information Nondiscrimination Act of 2008 (GlNA) 65
State and Local Equal Employment Opportunity Laws 65
• IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE 65
In Summary: Religious and Other Types of Discrimination 65
Sexual Harassment 66
Social Media and HR 69
OEFENSES AGAINST DISCRIMINATION ALLEGATIONS 69
The Central Role of Adverse Impact 69
Bona Fide Occupational Qualification 72
Business Necessity 72
• KNOW YOUR EMPLOYMENT LAW: Examples of What You Can and Cannot Do 73
THE EEOC ENFORCEMENT PROCESS 75
Voluntary Mediation 77
Mandatory Arbitration of Discrimination Claims 77
DIVERSITY MANAGEMENT 78
Potential Threats to Diversity 78
Some Diversity Benefits 79
Diversity Counts 79
Managing Diversity 79
Implementing the Affirmative Action Program 80
Reverse Discrimination 81
• IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS
AND ENTREPRENEURS 82
CHARTER SECTION SUMMARIES 83
DISCUSSION QUESTIONS 84
INDIVIDUAL AND GROUP ACTIVITIES 84
EXPERIENTIAL EXERCISE 84
VIDEO CASE: VIDEO TITLE: EQUAL EMPLOYMENT (UPS) 85
APPLICATION CASE: THE EMIRATIZATION OF HRM PRACTICES AT A PETROLEUM COMPANY 85
CONTINUING CASE: CARTER CLEANING COMPANY 86
KEY TERMS 87
ENDNOTES 87
3
Human Resource Management Strategy and Analysis
THE STRATEGIC MANAGEMENT PROCESS 94
The Management Flanning Process 94
Strategie Flanning 95
92
CONTENTS 11
Improving Performance Through HRIS: Using Computerized Business
Flanning Software 98
TYPES OF STRATEGIES 98
Corporate Strategy 98
Competitive Strategy 99
Functional Strategy 99
Managers' Roles in Strategie Flanning 99
STRATEGIC HUMAN RESOURCE MANAGEMENT 100
What Is Strategie Human Resource Management? 100
• IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE 100
Human Resource Strategies in Action 101
Diversity Counts: Longo Builds Its Strategy on Diversity 102
Translating Strategy into Human Resource Policies and Practices: An Example 102
Strategie Human Resource Management Tools 103
HR METRICS AND BENCHMARKING 105
Types of Metrics 105
Improving Performance Through HRIS: Tracking Applicant Metrics
for Improved Talent Management 105
Benchmarking and Needs Analysis 105
Strategy and Strategy-Based Metrics 106
Improving Performance Through HRIS: Workforce/Talent Analytics 107
What Are HR Audits? 108
Evidence-Based HR and the Scientific Way of Döing Things 108
• IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS
AND ENTREPRENEURS 109
HIGH-PERFORMANCE WORK SYSTEMS 109
High-Performance Human Resource Policies and Practices 110
CHARTER SECTION SUMMARIES 111
DISCUSSION QUESTIONS 112
INDIVIDUAL AND GROUP ACTIVITIES 112
EXPERIENTIAL EXERCISE 112
VIDEO CASE: VIDEO TITLE: STRATEGIC MANAGEMENT (JOIE DE VIVRE HOSPITALITY) 113
APPLICATION CASE: SIEMENS BUILDS A STRATEGY ORIENTED HR SYSTEM 113
CONTINUING CASE: CARTER CLEANING COMPANY 114
TRANSLATING STRATEGY INTO HR POLICIES AND PRACTICES CASE: IMPROVING
PERFORMANCE AT THE HOTEL PARIS 114
KEY TERMS 116
ENDNOTES 116
PART TWO
4
RECRUITMENT, PLACEMENT, AND TALENT
MANAGEMENT 118
Job Analysis and the Talent Management Process
118
THE TALENT MANAGEMENT PROCESS 120
Improving Performance Through HRIS: Talent Management Software 121
THE BASICS OF JOB ANALYSIS 121
Uses of Job Analysis Information 122
Conducting a Job Analysis 122
• IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: Boosting Productivity Through
Work Redesign 123
METHODS FOR COLLECT!NG JOB ANALYSIS INFORMATION 125
The Interview 125
Questionnaires 126
Observation 129
Participant Diary/Logs 129
Quantitative Job Analysis Techniques 129
Electronic Job Analysis Methods 131
WRITING JOB DESCRIPTIONS 133
Diversity Counts 133
Job Identification 134
JobSummary 134
Relationships 134
Responsibilities and Duties 134
• KNOW YOUR EMPLOYMENT LAW: Writing Job Descriptions That Comply
with the ADA 137
Standards of Performance and Working Conditions 138
• IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS
AND ENTREPRENEURS: Using 0*NET 138
Social Media and HR 141
WRITING JOB SPECIFICATIONS 141
Specifications for Trained versus Untrained Personnel 141
Specifications Based on Judgment 141
Job Specifications Based on Statistical Analysis 142
The Job Requirements Matrix 143
USING MODELS AND PROFILES IN TALENT MANAGEMENT 143
• IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE: Daimler
Alabama Example 144
A Closer Look at Competencies 145
How to Write Competencies Statements 145
CHAPTER SECTION SUMMARIES 146
DISCUSSION QUESTIONS 147
INDIVIDUAL AND GROUP ACTIVITIES 147
EXPERIENTIAL EXERCISE 148
VIDEO CASE: VIDEO TITLE: TALENT MANAGEMENT (THE WEATHER CHANNEL) 148
APPLICATION CASE: RECRUITING IN EUROPE 148
CONTINUING CASE: CARTER CLEANING COMPANY 149
TRANSLATING STRATEGY INTO HR POLICIES AND PRACTICES CASE: IMPROVING
PERFORMANCE AT THE HOTEL PARIS 149
KEY TERMS 150
ENDNOTES 150
Personnel Flanning and Recruiting
152
INTRODUCTION 154
WORKFORCE FLANNING AND FORECASTING 154
Improving Performance Through HRIS: Workforce Flanning 154
Strategy and Workforce Flanning 155
Forecasting Personnel Needs (Labor Demand) 155
Improving Performance Through HRIS 157
Forecasting the Supply of Inside Candidates 158
Forecasting the Supply of Outside Candidates 159
Predictive Workforce Monitoring's Role in Talent Management 159
• IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE: Predicting
Labor Needs 160
Developing an Action Plan to Match Projected Labor Supply and Labor Demand 160
Succession Flanning 160
Improving Performance Through HRIS: Succession Systems 161
WHY EFFECTIVE RECRUITING IS IMPORTANT 161
The Recruiting Yield Pyramid 161
• KNOW YOUR EMPLOYMENT LAW: Preemployment Activities 162
Organizing How You Recruit 162
INTERNAL SOURCES OF CANDIDATES 162
Finding Internal Candidates 163
CONTENTS 13
OUTSIDE SOURCES OF CANDIDATES 163
Informal Recruiting and the Hidden Job Market 163
Recruiting via the Internet 163
Social Media and HR 164
Improving Performance Through HRIS: Using Applicant Tracking 165
Advertising 166
Employment Agencies 167
Temporary Workers and Alternative Staffing 169
• KNOW YOUR EMPLOYMENT LAW: Contract Employees 170
Offshoring and Outsourcing Jobs 170
Executive Recruiters 171
• IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS
AND ENTREPRENEURS: Recruiting 101 172
Referrals and Walk-Ins 172
On-Demand Recruiting Services 173
College Recruiting 173
Telecommuters 174
Military Personnel 174
Evidence-Based HR: Measuring Recruiting Effectiveness and Reducing Recruitment
Costs 174
• IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: Cutting Recruitment Costs 175
RECRUITING A MORE DIVERSE WORKFORCE 176
Recruiting Women 176
Recruiting Single Parents 176
Older Workers 176
Diversity Counts 177
Recruiting Minorities 177
The Disabled 178
DEVELOPING AND USING APPLICATION FORMS 178
Purpose of Application Forms 178
• IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS
AND ENTREPRENEURS: Application Guidelines 178
• KNOW YOUR EMPLOYMENT LAW: Application Forms and EEO Law 179
Using Application Forms to Predict Job Performance 180
• KNOW YOUR EMPLOYMENT LAW: Mandatory Arbitration 180
CHAPTER SECTION SUMMARIES 181
DISCUSSION QUESTIONS 181
INDIVIDUAL AND GROUP ACTIVITIES 182
EXPERIENTIAL EXERCISE 182
VIDEO CASE: VIDEO TITLE: RECRUITING (HAUTELOOK) 182
VIDEO CASE: VIDEO TITLE: PERSONNEL FLANNING AND RECRUITING
(GAWKER MEDIA) 183
APPLICATION CASE: YA KUN KAYA INTERNATIONAL 183
CONTINUING CASE: CARTER CLEANING COMPANY 183
TRANSLATING STRATEGY INTO HR POLICIES AND PRACTICES CASE: IMPROVING
PERFORMANCE AT THE HOTEL PARIS 184
KEY TERMS 184
ENDNOTES 185
Employee Testing and Selection
188
WHY EMPLOYEE SELECTION IS IMPORTANT 190
THE BASICS OF TESTING AND SELECTING EMPLOYEES 190
Reliability 190
Validity 191
Evidence-Based HR: How to Validate a Test 192
14 CONTENTS
Bias 194
Utility Analysis 194
• IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: Using Tests to Cut Costs
and Boost Profits 194
Validity Generalization 195
• KNOW YOUR EMPLOYMENT LAW: Testing and Equal Employment Opportunity 196
Test Takers' Individual Rights and Test Security 196
Diversity Counts: Gender Issues in Testing 196
How Do Employers Use Tests at Work? 197
TYPES OF TESTS 197
Tests of Cognitive Abilities 197
Tests of Motor and Physical Abilities 198
Measuring Personality and Interests 198
Achievement Tests 200
Improving Performance Through HRIS: Computerization, Online Testing, and Data
Analytics 200
WORK SAMPLES AND SIMULATIONS 201
Using Work Sampling for Employee Selection 201
Situational Judgment Tests 202
Management Assessment Centers 202
• IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE: Testing
in China 203
Situational Testing and Video-Based Situational Testing 203
The Miniature Job Training and Evaluation Approach 203
Realistic Job Previews 204
Choosing a Selection Method 204
• IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS
AND ENTREPRENEURS Employee Testing and Selection 205
BACKGROUND INVESTIGATIONS AND OTHER SELECTION METHODS 205
Why Perform Background Investigations and Reference Checks? 205
• KNOW YOUR EMPLOYMENT LAW: Giving References 206
How to Check a Candidate's Background 207
Social Media and HR 207
Using Preemployment Information Services 207
• IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS
AND ENTREPRENEURS: Making the Background Check More Valuable 209
The Polygraph and Honesty Testing 210
• IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS
AND ENTREPRENEURS: Testing for Honesty 211
Graphology 211
"Human Lie Detectors" 211
Physical Exams 211
Substance Abuse Screening 212
• KNOW YOUR EMPLOYMENT LAW Drug Testing 213
Complying with Immigration Law 213
CHAPTER SECTION SUMMARIES 214
DISCUSSION QUESTIONS 215
INDIVIDUAL AND GROUP ACTIVITIES 215
EXPERIENTIAL EXERCISE 215
VIDEO CASE: VIDEO TITLE: EMPLOYEE TESTING AND SELECTION (PATAGONIA) 216
APPLICATION CASE: KPMG RECRUITS 216
CONTINUING CASE: CARTER CLEANING COMPANY 216
TRANSLATING STRATEGY INTO HR POLICIES AND PRACTICES CASE: IMPROVING
PERFORMANCE AT THE HOTEL PARIS 217
KEY TERMS 218
ENDNOTES 218
CONTENTS 15
7
Interviewing Candidates
222
BASIC TYPES OF INTERVIEWS 224
Structured versus Unstructured Interviews 224
Interview Content (What Types of Questions to Ask) 224
How Should We Conduct the Interview? 227
Improving Performance Through HRIS: Web-Based Interviews 228
• IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: Great Western Bank 229
Three Ways to Make the Interview More Useful 230
• KNOW YOUR EMPLOYMENT LAW: Interviewing Candidates 230
ERRORS THAT CAN UNDERMINE AN INTERVIEWS USEFULNESS 230
First Impressions (Snap Judgments) 230
Not Clarifying What the Job Requires 231
Candidate-Order (Contrast) Error and Pressure to Hire 231
Nonverbal Behaviorand Impression Management 231
Effect of Personal Characteristics: Attractiveness, Gender, Race 232
Diversity Counts: Applicant Disability and the Employment Interview 232
• IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE: Selection
Practices Abroad 233
Interviewer Behavior 233
Social Media and HR 234
HOW TO DESIGN AND CONDUCT AN EFFECTIVE INTERVIEW 234
Designing a Structured Situational Interview 234
• IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS
AND ENTREPRENEURS: How to Conduct an Effective Interview 235
Talent Management: Profiles and Employee Interviews 236
DEVELOPING AND EXTENDING THE JOB OFFER 238
CHAPTER SECTION SUMMARIES 239
DISCUSSION QUESTIONS 240
INDIVIDUAL AND GROUP ACTIVITIES 240
EXPERIENTIAL EXERCISE 241
VIDEO CASE: VIDEO TITLE: INTERVIEWING CANDIDATES (ZIPCAR) 241
APPLICATION CASE: NURSE RECRUITMENT AT GULF HOSPITAL 241
CONTINUING CASE: CARTER CLEANING COMPANY 242
TRANSLATING STRATEGY INTO HR POLICIES AND PRACTICES CASE: IMPROVING
PERFORMANCE AT THE HOTEL PARIS 242
KEY TERMS 243
ENDNOTES 243
APPENDIX 1 FOR CHAPTER 7 STRUCTURED INTERVIEW GUIDE 246
APPENDIX 2 FOR CHAPTER 7 INTERVIEW GUIDE FOR INTERVIEWEES 249
PART THREE
8
TRAINING AND DEVELOPMENT
250
Training and Developing Employees
250
ORIENTING AND ONBOARDING NEW EMPLOYEES 252
The Purposes of Employee Orientation/Onboarding 252
The Orientation Process 252
• KNOW YOUR EMPLOYMENT LAW: The Employee Handbook 252
OVERVIEW OF THE TRAINING PROCESS 254
• KNOW YOUR EMPLOYMENT LAW: Training and the Law 254
Aligning Strategy and Training 255
Training and Performance 255
• IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: The Training Program That
Turned Macy's Around 255
The ADDIE Five-Step Training Process 255
Conductinq the Training Needs Analysis 256
16 CONTENTS
Designing the Training Program 258
Developing the Program 260
IMPLEMENTING THE TRAINING PROGRAM 261
On-the-Job Training 261
Apprenticeship Training 262
Informal Learning 262
Job Instruction Training 263
Lectures 263
Programmed Learning 264
Behavior Modeling 264
Audiovisual-Based Training 264
Vestibüle Training 264
Electronic Performance Support Systems (EPSS) 265
Videoconferencing 265
Computer-Based Training (CBT) 265
Simulated Learning 265
Lifelong and Literacy Training Techniques 266
• IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE: Diversity
Training at ABC Virtual Communications, Inc. 266
Team Training 267
Improving Performance Through HRIS 267
The Virtual Classroom 268
Mobile Learning 268
Social Media and HR 269
• IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS
AND ENTREPRENEURS: Creating Your Own Training Program 269
IMPLEMENTING MANAGEMENT DEVELOPMENT PROGRAMS 270
Strategy and Development 270
Candidate Assessment and the 9-Box Grid 270
Managerial On-the-Job Training 271
Off-the-Job Management Training and Development Techniques 271
Leadership Development at GE 273
Talent Management and Differential Development Assignments 273
MANAGING ORGANIZATIONAL CHANCE PROGRAMS 273
WhattoChange 274
Lewin's Change Process 274
Leading Organizational Change 275
Using Organizational Development 276
EVALUATING THE TRAINING EFFORT 277
Designing the Study 277
Training Effects to Measure 278
• IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: Judging Training s Impact 280
CHAPTER SECTION SUMMARIES 280
DISCUSSION QUESTIONS 281
INDIVIDUAL AND GROUP ACTIVITIES 282
EXPERIENTIAL EXERCISE 282
VIDEO CASE: VIDEO TITLE: TRAINING (WILSON LEARNING) 283
VIDEO CASE: VIDEO TITLE: TRAINING AND DEVELOPING EMPLOYEES (WITNESS.ORG) 283
APPLICATION CASE: THE MENTORSHIP PROGRAM AT TVH 283
CONTINUING CASE: CARTER CLEANING COMPANY 284
TRANSLATING STRATEGY INTO HR POLICIES AND PRACTICES CASE:
IMPROVING PERFORMANCE AT THE HOTEL PARIS CASE 284
KEY TERMS 285
ENDNOTES 286
CONTENTS
Performance Management and Appraisal
290
THE BASICS OF PERFORMANCE MANAGEMENT AND APPRAISAL 292
The Performance Appraisal Process 292
WhyAppraise Performance? 292
Performance Management 293
Using Information Technology to Support Performance Management 293
• IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE: Performance
Management at General Dynamics Armament Systems (GDAS) 294
Defining the Employee's Goals and Performance Standards 295
• IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: Setting Performance Goals
at Ball Corporation 295
• IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS
AND ENTREPRENEURS: How to Set Effective Goals 295
Who Should Do the Appraising? 296
Social Media and HR 298
TECHNIQUES FOR APPRAISING PERFORMANCE 298
Graphic Rating Scale Method 299
Alternation Ranking Method 300
Paired Comparison Method 300
Forced Distribution Method 300
Critical Incident Method 302
Narrative Forms 303
Behaviorally Anchored Rating Scales 304
Mixed Standard Scales 304
Management by Objectives 306
Computerized and Web-Based Performance Appraisal 306
Electronic Performance Monitoring 308
Conversation Days 308
Using Multiple Methods 308
• IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE: TRW's New
Global Performance Management System 308
DEALING WITH RATER ERROR APPRAISAL PROBLEMS 309
Potential Rating Problems 309
Diversity Counts: The Problem of Blas 310
Guidelines for Effective Appraisals 310
• KNOW YOUR EMPLOYMENT LAW: Appraising Performance 312
MANAGING THE APPRAISAL INTERVIEW 313
How to Conduct the Appraisal Interview 313
How to Handle a Defensive Subordinate 314
How to Criticize a Subordinate 315
Howto Handle a Formal Written Warning 315
TALENT MANAGEMENT AND EMPLOYEE APPRAISAL 315
Appraising and Actively Managing Employees 315
Segmenting and Actively Managing Employees in Practice 315
CHAPTER SECTION SUMMARIES 316
DISCUSSION QUESTIONS 317
INDIVIDUAL AND GROUP ACTIVITIES 317
EXPERIENTIAL EXERCISE 318
VIDEO CASE: VIDEO TITLE: PERFORMANCE MANAGEMENT (CALIFORNIA
HEALTH FOUNDATION) 318
VIDEO CASE: VIDEO TITLE: APPRAISING (HAUTELOOK) 318
VIDEO CASE: VIDEO TITLE: APPRAISING (THE WEATHER CHANNEL) 318
APPLICATION CASE: APPRAISING THE SECRETARIES AT SWEETWATER U 319
CONTINUING CASE: CARTER CLEANING COMPANY 320
18 CONTENTS
TRANSLATING STRATEGY INTO HR POLICIES AND PRACTICES CASE: IMPROVING
PERFORMANCE AT THE HOTEL PARIS 320
KEY TERMS 321
ENDNOTES 321
10
Managing Employee Retention, Engagement,
and Careers 324
MANAGING EMPLOYEE TURNOVER AND RETENTION 326
• IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: Turnover and Performance 326
Managing Voluntary Turnover 326
Retention Strategie: for Reducing Voluntary Turnover 327
A Comprehensive Approach to Retaining Employees 328
Social Media and HR 329
• IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE: IBM Dodges
an Employee Turnover Problem 329
Talent Management and Employee Retention 329
Job Withdrawal 329
MANAGING EMPLOYEE ENGAGEMENT 330
Employee Engagement and Performance 330
• IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE: Employee
Engagement at Rio Tinto 330
Actions That Foster Engagement 331
CA REER MANAGEMENT 332
Careers Terminology 332
Careers Today 332
Psychological Contract 332
The Employee's Role in Career Management 333
The Employer's Role in Career Management 334
Employer Career Management Options 334
The Manager's Role 335
Improving Performance Through HRIS: Integrating Talent Management
and Career and Succession Flanning 337
EM'y.OYEE UFE CYCLE CAREER MANAGEMENT 337
Making Promotion Decisions 337
• KNOW YOUR EMPLOYMENT LAW: Establish Clear Guidelines for Managing
Promotions 338
Practical Considerations 339
Diversity Counts: The Gender Gap 339
Managing Transfers 340
Managing Retirements 340
MANAWNG DISMISSALS 341
Grounds for Dismissal 341
• KNOW YOUR EMPLOYMENT LAW: Termination at Will 342
Avoiding Wrongful Discharge Suits 343
Supervisor Liability 344
The Exit Process and Termination Interview 344
Layoffs and the Plant Closing Law 345
Adjusting to Downsizings and Mergers 346
CHAPTER SECTION SUMMARIES 346
DISCUSSION QUESTIONS 347
INDIVIDUAL AND GROUP ACTIVITIES 347
EXPERIENTIAL EXERCISE 348
VIDEO CASE: VIDEO TITLE: EMPLOYEE ENGAGEMENT (PTC) 348
VIDEO CASE: VIDEO TITLE: EMPLOYEE SEPARATION (GORDON LAW GROUP) 348
APPLICATION CASE: GOELECTRIX 349
CONTINUING CASE: CARTER CLEANING COMPANY 349
CONTENTS 19
TRANSLATING STRATEGY INTO HR POLICIES AND PRACTICES CASE: IMPROVING
PERFORMANCE AT THE HOTEL PARIS 349
KEY TERMS 350
ENDNOTES 350
APPENDIX FOR CHAPTER 10 MANAGING YOUR CAREER AND FINDING A JOB 353
PART FOUR
11
COMPENSATION
360
Estabiishing Strategie Pay Plans 360
BASIC FACTORS IN DETERMINING PAY RATES 362
Aligning Total Rewards with Strategy 362
Equity and Its Impact on Pay Rates 362
Legal Considerations in Compensation 363
• KNOW YOUR EMPLOYMENT LAW: The Workday 364
• KNOW YOUR EMPLOYMENT LAW: The Independent Contractor 366
Union Influences on Compensation Decisions 367
Pay Policies 367
• IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: Wegmans Foods 368
• IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE: Compensating
Expatriate Employees 368
JOB EVALUATION METHODS 369
Compensable Factors 370
Preparing for the Job Evaluation 370
Job Evaluation Methods: Ranking 371
Job Evaluation Methods: Job Classification 372
Job Evaluation Methods: Point Method 372
Computerized Job Evaluation; 373
HOW TO CREATE A MARKET-COMPETITIVE PAY PLAN 373
1. Choose Benchmark Jobs 374
2. Select Compensable Factors 374
3. Assign Weights to Compensable Factors 374
4. Convert Percentages to Points for Each Factor 375
5. Define Each Factor's Degrees 375
6. Determine for Each Factor Its Factor Degrees' Points 375
7. Review Job Descriptions and Job Specifications 375
8. Evaluate the Jobs 376
9. Draw the Current (Internal) Wage Curve 377
10. Conduct a Market Analysis: Salary Surveys 377
11. Draw the Market (External) Wage Curve 378
12. Compare and Adjust Current and Market Wage Rates for Jobs 379
13. Develop Pay Grades 379
14. Establish Rate Ranges 380
15. Address Remaining Jobs 381
16. Correct Out-of-Line Rates 381
• IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS
AND ENTREPRENEURS: Developing a Workable Pay Plan 382
PRICING MANAGERIAL AND PROFESSIONAL JOBS 382
What Determines Executive Pay? 383
Compensating Executives and Managers 383
Compensating Professional Employees 384
Improving Performance Through HRIS: Payroll Administration 384
CONTEMPORARY TOPICS IN COMPENSATION 385
Competency-Based Pay 385
• IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE: JLG's Skill-Based
Pay Program 386
Broadbanding 386
Talent Management and Actively Managing Compensation Allocations 388
Comparable Worth 388
Diveristy Counts: The Pay Gap 388
Board Oversight of Executive Pay 388
Total Rewards, Recognition, and Employee Performance 389
CHAPTER SECTION SUMMARIES 389
DISCUSSION QUESTIONS 390
INDIVIDUAL AND GROUP ACTIVITIES 391
EXPERIENTIAL EXERCISE 391
VIDEO CASE: VIDEO TITLE: FLANNING (TWZ ROLE PLAY) 392
APPLICATION CASE: SALARY INEQUITIES AT ASTRAZENECA 392
CONTINUING CASE: CARTER CLEANING COMPANY 392
TRANSLATING STRATEGY INTO HR POLICIES AND PRACTICES CASE: IMPROVING
PERFORMANCE AT THE HOTEL PARIS 393
KEY TERMS 394
ENDNOTES 394
Pay for Performance and Financial Incentives
398
MONEY'S ROLE IN MOTIVATION 400
Incentive Pay Terminology 400
Linking Strategy, Performance, and Incentive Pay 400
Motivation and Incentives 400
• KNOW YOUR EMPLOYMENT LAW: Employee Incentives and the Law 402
INDIVIDUAL EMPLOYEE INCENTIVE AND RECOGNITION PROGRAMS 402
Piecework 402
Merit Pay as an Incentive 403
Diversity Counts 404
Incentives for Professional Employees 404
Nonfinancial and Recognition-Based Awards 405
Social Media and HR 405
• IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS
AND ENTREPRENEURS 406
Job Design 406
• IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: Can Financial and Nonfinancial
Incentives Boost Performance in a Fast-Food Chain? 406
INCENTIVES FOR SALESPEOPLE 407
Salary Plan 408
Commission Plan 408
Combination Plan 408
Maximizing Sales Results 408
Sales Incentives in Action 409
Improving Performance Through HRIS: How Effective Are Your Incentives? 409
INCENTIVES FOR MANAGERS AND EXECUTIVES 410
Strategy and the Executive': Long-Term and Total Rewards Package 410
Short-Term Incentives and the Annual Bonus 411
Strategie Long-Term Incentives 413
• IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE 413
Some Other Executive Incentives 415
TEAM AND ORGANIZATION-WIDE INCENTIVE PLANS 415
How to Design Team Incentives 415
Evidence-Based HR: Inequities That UndercutTeam Incentives 416
Profit-Sharing Plans 416
Scanion Plans 417
Other Gainsharing Plans 417
CONTENTS 21
At-Risk Pay Plans 418
Employee Stock Ownership Plans 418
Incentive Plans in Practice: Nucor 419
CHAPTER SECTION SUMMARIES 419
DISCUSSION QUESTIONS 420
INDIVIDUAL AND GROUP ACTIVITIES 420
EXPERIENTIAL EXERCISE 420
VIDEO CASE: VIDEO TITLE: MOTIVATION (TWZ ROLE-PLAY) 421
VIDEO CASE: VIDEO TITLE: MOTIVATING EMPLOYEES THROUGH COMPANY CULTURE
(ZAPPOS) 421
APPLICATION CASE: GYC FINANCIAL ADVISORY PTE. LTD. 422
CONTINUING CASE: CARTER CLEANING COMPANY 422
TRANSLATING STRATEGY INTO HR POLICIES AND PRACTICES CASE: IMPROVING
PERFORMANCE AT THE HOTEL PARIS 423
KEY TERMS 424
ENDNOTES 424
Benefits and Services
428
INTRODUCTION: THE BENEFITS PICTURE TODAY 430
Policy Issues 430
PAY FOR TIME NOT WORKED 431
Unemployment Insurance 431
Vacations and Holidays 432
• KNOW YOUR EMPLOYMENT LAW: Some Legal Aspects of Vacations and Holidays 433
Sick Leave 433
Social Media and HR 433
• IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: Controlling Sick Leave 433
Leaves and the Family and Medical Leave Act 434
• KNOW YOUR EMPLOYMENT LAW: FMLA Guidelines 434
Severance Pay 435
Supplemental Unemployment Benefits 437
INSURANCE BENEFITS 437
Workers' Compensation 437
Hospitalization, Health, and Disability Insurance 438
• KNOW YOUR EMPLOYMENT LAW: The Legal Side of Health Benefits 439
Improving Performance: Trends in Employer Health-Care Cost Control 441
• IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: The Doctor Is on the Phone 442
Long-Term Care 443
Life Insurance 443
Benefits for Part-Time and Contingent Workers 443
• IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE: Multinational
Insurance Benefits Risk Pooling 443
RETIREMENT BENEFITS 444
Social Security 444
Pension Plans 444
• KNOW YOUR EMPLOYMENT LAW: Pension Flanning and the Law 445
Pensions and Early Retirement 446
Improving Performance Through HRIS: Online Benefits Management Systems 446
PERSONAL SERVICES AND FAMILY-FRIENDLY BENEFITS 447
Personal Services 447
Family-Friendly (Work-Life) Benefits 448
Other Personal Services Benefits 449
Diversity Counts: Domestic Partner Benefits 449
Executive Perquisites 449
FLEXIBLE BENEFITS PROGRAMS 449
The Cafeteria Approach 450
22 CONTENTS
• IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS
AND ENTREPRENEURS: Benefits and Employee Leasing 451
Flexible Work Schedules 451
• IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE: NES Rentals 451
CHAPTER SECTION SUMMARIES 452
DISCUSSION QUESTIONS 453
INDIVIDUAL AND GROUP ACTIVITIES 453
EXPERIENTIAL EXERCISE 454
VIDEO CASE: VIDEO TITLE: PAY FOR PERFORMANCE AND FINANCIAL
INCENTIVES (JOIE DE VIVRE HOSPITALITY) 454
APPLICATION CASE: STRIKING FOR BENEFITS 454
CONTINUING CASE: CARTER CLEANING COMPANY 455
TRANSLATING STRATEGY INTO HR POLICIES AND PRACTICES CASE: IMPROVING
PERFORMANCE AT THE HOTEL PARIS 455
KEY TERMS 456
ENDNOTES 456
PART FIVE
14
ENRICHMENT TOPICS IN HUMAN RESOURCE
MANAGEMENT 460
Ethics, Employee Relations, and Fair Treatment
at Work 460
BASICS OF ETHICS AND FAIR TREATMENT AT WORK 462
The Meaning of Ethics 462
Ethics and the Law 462
Ethics, Public Policy, and Employee Rights 462
Workplace Unfairness 463
Why Treat Employees Fairly? 463
9 IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE: The Foxconn
Plant in Shenzhen, China 464
Bullying and Victimization 465
WH AT SHAPES ETHtCAL BEHAVIOR AT WORK? 465
The Person (What Makes Bad Apples?) 466
Which Ethical Situations Make for Bad (Ethically Dangerous) Situations? 466
What Are the "Bad Barrels"?—The Outside Factors That Mold Ethical Choices 466
In Summary: Some Guidelines to Keep in Mind When Managing Ethical
Behavior at Work 468
• IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS
AND ENTREPRENEURS: Small Business Ethics 469
USING HUMAN RESOURCE MANAGEMENT TOOLS TO PROMOTE ETHICS
AND FAIR TREATMENT 469
Selection Tools 470
Training Tools 470
Improving Performance Through HRIS: Complying with Sarbanes-Oxley 470
Performance Appraisal Tools 471
Employee Privacy Policies 471
Social Media and HR 472
• KNOW YOUR EMPLOYMENT LAW: Electronic Monitoring 472
• IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: Monitoring and Profits 473
Reward and Disciplinary Systems 473
MANAGING EMPLOYEE DiSCIPLINE 473
The Three Pillars 473
Diversity Counts: Comparing Males and Females in a Discipline Situation 474
• IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS
AND ENTREPRENEURS: Disciplining an Employee 474
CONTENTS 23
MANAGING EMPLOYEE RELATIONS 476
What Is Employee Relation:? 476
Improving and Assessing Employee Relations Through Better Communications 476
Developing Employee Recognition/Relations Programs 477
Creating Employee Involvement Strategies 478
Social Media and HR 478
• IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: The Cost-Effective Suggestion
System 479
CHAPTER SECTION SUMMARIES 479
DISCUSSION QUESTIONS 480
INDIVIDUAL AND GROUP ACTIVITIES 480
EXPERIENTIAL EXERCISE 481
VIDEO CASE: VIDEO TITLE: WHISTLEBLOWER ON THE NSA (ETHICS AND SOCIAL
RESPONSIBILITY OF BUSINESS) 481
APPLICATION CASE: ENRON, ETHICS, AND ORGANIZATIONAL CULTURE 482
CONTINUING CASE: CARTER CLEANING COMPANY 482
TRANSLATING STRATEGY INTO HR POLICIES AND PRACTICES CASE: IMPROVING
PERFORMANCE AT THE HOTEL PARIS 483
KEY TERMS 484
ETHICS QUIZ ANSWERS 484
ENDNOTES 484
Labor Relations and Collective Bargaining
488
THE LABOR MOVEMENT 490
• IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: The "Anti-Walmart" 490
Why Do Workers Organize? 490
What Do Unions Want? 491
The AFL-CIO and the SEIU 491
UNIONS AND THE LAW 492
Period of Strong Encouragement: The Norris-LaGuardia (1932) and National Labor Relations
(or Wagner) Acts (1935) 492
Period of Modified Encouragement Coupled with Regulation: The Taft-Hartley Act (1947) 494
Unfair Union Labor Practices 494
THE UNION DRIVE AND ELECTION 495
Step 1. Initial Contact 495
Step 2. Obtaining Authorization Cards 496
Step 3. Hold a Hearing 497
Step 4. The Campaign 498
Step 5. The Election 498
Howto Lose an NLRB Election 499
Evidence-Based HR: What to Expect the Union to Do to Win the Election 500
The Supervisors Role 500
• KNOW YOUR EMPLOYMENT LAW: Rules Regarding Literature and Solicitation 501
Decertification Elections: Ousting the Union 501
• IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE: France Comes
to the Workers' Aid 502
THE COLLECTIVE BARGAINING PROCESS 502
What Is Collective Bargaining? 502
What Is Good Faith? 502
The Negotiating Team 503
Costing the Contract 503
Bargaining Items 503
Building Negotiating Skills 503
Bargaining Hints 504
Impasses, Mediation, and Strikes 505
24 CONTENTS
Improving Performance Through HRIS: Unions Go High Tech 508
The Contract Agreement 508
DEALING WITH DISPUTES AND GRIEVANCES 508
Sources of Grievances 508
The Grievance Procedure 509
Guidelines for Handling Grievances 510
• IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS
AND ENTREPRENEURS: How to Handle a Grievance Situation 510
Social Media and HR 510
THE UNION MOVEMENT TODAY AND TOMORROW 511
Card Check and Other New Union Tactics 511
Cooperative Clauses 512
CHAPTER SECTION SUMMARIES 513
DISCUSSION QUESTIONS 514
INDIVIDUAL AND GROUP ACTIVITIES 514
EXPERIENTIAL EXERCISE 515
VIDEO CASE: VIDEO TITLE: UNION-MANAGEMENT RELATIONS (UPS) 515
APPLICATION CASE: NEGOTIATING WITH THE WRITERS GUILD OF AMERICA 516
CONTINUING CASE: CARTER CLEANING COMPANY 516
TRANSLATING STRATEGY INTO HR POLICIES AND PRACTICES CASE: IMPROVING
PERFORMANCE AT THE HOTEL PARIS 516
KEY TERMS 517
ENDNOTES 517
16
Employee Safety and Health
520
INTRODUCTION: SAFETY AND THE MANAGER 522
Why Safety Is Important 522
• IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: Improving Safety
Boosts Profits 522
Managemente Role in Safety 522
• IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS
AND ENTREPRENEURS: The Supervisors Role in Accident Prevention 523
MANAGER'S BRSEFING ON OCCUPATIONAL SAFETY LAW 523
OSHA Standards and Record Keeping 523
Inspections and Citations 524
Responsibilities and Rights of Employers and Employees 527
• IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS
AND ENTREPRENEURS: Free On-Site Safety and Health Services 528
WHAT CAUSES ACCIDENTS? 529
What Causes Unsafe Conditions? 529
What Causes Unsafe Acts? 529
HOW TO PREVENT ACCIDENTS 530
Reducing Unsafe Conditions 530
Diversity Counts: Protect!ng Vulnerable Workers 535
Reducing Unsafe Acts 535
Reducing Unsafe Acts Through Screening 536
Reducing Unsafe Acts Through Training 536
Improving Performance Through HRIS: Online Safety Training 536
Reducing Unsafe Acts Through Posters, Incentives, and Positive Reinforcement 536
• IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: Using Positive Reinforcement 537
Reducing Unsafe Acts by Fostering a Culture of Safety 537
Reducing Unsafe Acts by Creating a Supportive Environment 537
Reducing Unsafe Acts by Establishing a Safety Policy 537
Reducing Unsafe Acts by Setting Specific Loss Control Goals 537
Reducing Unsafe Acts Through Behavior-Based and Safety Awareness Programs 538
Reducing Unsafe Acts Through Employee Participation 538
Conducting Safety and Health Audits and Inspections 538
CONTENTS 25
• IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE: Safety at Saudi
Petrol Chemical 539
Controlling Workers' Compensation Costs 540
• IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: Reducing Workers'
Compensation Claims 540
WORKPLACE HEALTH HAZARDS: PROBLEMS AND REMEDIES 540
Chemicals and Industrial Hygiene 540
• KNOW YOUR EMPLOYMENT LAW: Hazard Communication 541
Asbestos Exposure at Work and Air Quality 541
Alcoholism and Substance Abuse 542
Stress, Burnout, and Depression 543
Solving Computer-Related Ergonomie Problems 545
Repetitive Motion Disorders 545
Infectious Diseases 545
Workplace Smoking 546
OCCUPATIONAL SECURITY AND RISK MANAGEMENT 546
Enterprise Risk Management 546
Preventing and Dealing with Violence at Work 546
• IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS
AND ENTREPRENEURS: Guidelines for Firing a High-Risk Employee 548
Setting Up a Basic Security Program 548
Basic Prerequisites for a Crime Prevention Plan 549
Company Security and Employee Privacy 549
Business Continuity and Emergency Plans 550
Social Media and HR 550
Terrorism 550
CHAPTER SECTION SUMMARIES 551
DISCUSSION QUESTIONS 551
INDIVIDUAL AND GROUP ACTIVITIES 552
EXPERIENTIAL EXERCISE 552
VIDEO CASE: VIDEO TITLE: SAFETY (CALIFORNIA HEALTH FOUNDATION) 556
VIDEO CASE: VIDEO TITLE: SAFETY (CITY OF LOS ANGELES) 556
APPLICATION CASE: A SAFE AND HEALTHY KITCHEN AT EDMUND CAFä 557
CONTINUING CASE: CARTER CLEANING COMPANY 557
TRANSLATING STRATEGY INTO HR POLICIES AND PRACTICES CASE: IMPROVING
PERFORMANCE AT THE HOTEL PARIS 558
KEY TERMS 559
ENDNOTES 559
Managing Global Human Resources
564
THE MANAGER S GLOBAL CHALLENGE 566
• IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE: Unionizing
Walmart Stores in China 566
What Is International Human Resource Management? 566
ADAPTING HUMAN RESOURCE ACTIVITIES TO INTERCOUNTRY DIFFERENCES 566
How Intercountry Differences Affect Human Resource Management 566
Cultural Factors 567
Economic Systems 568
HR Abroad Example: The European Union 568
HR Abroad Example: China 569
• IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS
AND ENTREPRENEURS: Comparing Small Businesses, HR Practices in the United States
and China 569
STAFFING THE GLOBAL ORGANIZATION 570
International Staffing: Home or Local? 570
• IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: Reducing Expatriate Costs 571
• IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE: What Human
Resource Management Can Do to Facilitate Offshoring Operations 571
Management Values and International Staffing Policy 572
Ethics and Codes of Conduct 573
Selecting International Managers 573
Diversity Counts: Sending Women Managers Abroad 575
Avoiding Early Expatriate Returns 575
• IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS
AND ENTREPRENEURS: Some Practical Solutions to the Expatriate Challenge 576
TRAINING AND MAINTAINING EMPLOYEES ABROAD 576
Orienting and Training Employees on International Assignment 576
Performance Appraisal of International Managers 577
Compensating Managers Abroad 577
Labor Relations Abroad 579
Terrorism, Safety, and Global HR 580
Repatriation: Problems and Solutions 580
Social Media and HR 581
Improving Performance Through HRIS: Taking the HRIS Global 581
MANAGING HR LOCALLY: HOW TO PUT INTO PRACTICE A GLOBAL
HR SYSTEM 581
Developing a More Effective Global HR System 582
Making the Global HR System More Acceptable 582
Implementing the Global HR System 583
CHAPTER SECTION SUMMARIES 583
DISCUSSION QUESTIONS 584
INDIVIDUAL AND GROUP ACTIVITIES 584
EXPERIENTIAL EXERCISE 585
VIDEO CASE: VIDEO TITLE: GLOBAL HR MANAGEMENT (JOBY) 585
APPLICATION CASE: EUROPE—IT S ALL ABOUT PERSPECTIVES 585
CONTINUING CASE: CARTER CLEANING COMPANY 586
TRANSLATING STRATEGY INTO HR POLICIES AND PRACTICES CASE: IMPROVING
PERFORMANCE AT THE HOTEL PARIS 586
KEY TERMS 587
ENDNOTES 587
Managing Human Resources in Small
and Entrepreneurial Firms 590
THE SMALL BUSINESS CHALLENGE 592
How Small Business Human Resource Management Is Different 592
Diversity Counts 593
Why HRM Is Important to Small Businesses 593
• IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: The Dealership 593
USING INTERNET AND GOVERNMENT TOOLS TO SUPPORT THE HR EFFORT 593
Complying with Employment Laws 594
Employment Flanning and Recruiting 595
Social Media and HR 595
Employment Selection 596
Employment Training 597
Employment Appraisal and Compensation 599
Employment Safety and Health 599
LEVERAGING SMALL SIZE WITH FAMILIARITY, FLEXIBILITY,
FAIRNESS, AND INFORMALITY 599
Simple, Informal Employee Selection Procedures 599
CONTENTS
• IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS
AND ENTREPRENEURS: A Streamlined Interviewing Process 599
Flexibility in Training 600
Flexibility in Benefits and Rewards 601
Fairness and the Family Business 602
USING PROFESSIONAL EMPLOYER ORGANIZATION 603
How Do PEOs Work? 603
Why Use a PEO? 603
Caveats 603
MANAGING HR SYSTEMS, PROCEDURES, AND PAPERWORK 604
Introduction 604
Basic Components of Manual HR Systems 604
Automating Individual HR Tasks 605
Human Resource Information Systems (HRIS) 606
Improved Transaction Processing 606
Online Self-Processing 606
Improved Reporting Capability 606
HR System Integration 606
HRIS Vendors 606
HR and Intranets 606
CHAPTER SECTION SUMMARIES 607
DISCUSSION QUESTIONS 607
INDIVIDUAL AND GROUP ACTIVITIES 608
EXPERIENTIAL EXERCISE 608
VIDEO CASE: VIDEO TITLE: MANAGING HUMAN RESOURCES IN ENTREPRENEURIAL
FIRMS (BLACKBIRD GUITARS) 608
APPLICATION CASE: NETFLIX BREAKS THE RULES 608
CONTINUING CASE: CARTER CLEANING COMPANY 609
TRANSLATING STRATEGY INTO HR POLICIES AND PRACTICES CASE: IMPROVING
PERFORMANCE AT THE HOTEL PARIS 609
ENDNOTES 610
APPENDICES
APPENDIX A
PHR® and SPHR® Knowledge Base
APPENDIX B
Comprehensive Cases
621
Glossary 636
Name/Organization Index 644
Subject Index 656
612
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