Appendix: Calculating Turnover and Absenteeism 93Employee Turnover Rates 93 Computing the Turnover Rate 93Determining the Costs of Turnover 94 Employee Absenteeism Rates 94 Computing Abs
Trang 2PART Human Resource Management in Perspective
Chapter 1 The Challenge of Human Resources Management 2
Why Study Human Resources Management? 4 Competitive Challenges and Human Resources Management 5
Challenge 1: Competing, Recruiting, and Staffing Globally 5Challenge 2: Embracing New Technology 7
Highlights in HRM 1: A Guide to HR Internet Sites 8 Highlights in HRM 2: Automation of Talent Management Functions 11Challenge 3: Managing Change 12
Challenge 4: Managing Talent, or Human Capital 13Challenge 5: Responding to the Market 15
Challenge 6: Containing Costs 17
Demographic and Employee Concerns 22 Demographic Changes 22
Highlights in HRM 3: Social Issues in HRM 23
Cultural Changes 28
Highlights in HRM 4: Why Diversity? 30
The Partnership of Line Managers and HR Departments 31 Responsibilities of the Human Resources Manager 32 Competencies of the Human Resources Manager 33
Highlights in HRM 5: SHRM Code of Ethical and Professional Standards in Human Resource Management 35
Role of the Line Manager 38 Summary 39
Key Terms 40 Discussion Questions 41 HRM Experience: Balancing Competitive Challenges and Employee Concerns 41
vii
Trang 3Notes and References 45
Chapter 2 Strategy and Human Resources Planning 48
Strategic Planning and Human Resources 50
Strategic Planning and HR Planning: Linking the Processes 51
Step One: Mission, Vision, and Values 51
Step Two: Environmental Analysis 53
Competitive Environment 53
Step Three: Internal Analysis 57
The Three Cs: Culture, Capabilities, and Composition 57
Forecasting: A Critical Element of Planning 61
Highlights in HRM 1: HR Planning and Strategy Questions to Ask Business Managers 64
Assessing a Firm's Human Capital Readiness: Gap Analysis 67
Highlights in HRM 2: Succession-Planning Checklist 68
Step Four: Formulating Strategy 70
Corporate Strategy 70
Business Strategy 72
Highlights in HRM 3: Key HR Activities Associated with Merger or Acquisition Phases 73
Functional Strategy: Ensuring Alignment 75
Step Five: Strategy Implementation 76
Taking Action: Reconciling Supply and Demand 77
Step Six: Evaluation and Assessment 79
Evaluation and Assessment Issues 79
Highlights in HRM 4: Ten Measures of Human Capital 80
Measuring a Firm's Strategic Alignment 81
Ensuring Strategic Flexibility for the Future 82
Trang 4Appendix: Calculating Turnover and Absenteeism 93
Employee Turnover Rates 93
Computing the Turnover Rate 93Determining the Costs of Turnover 94
Employee Absenteeism Rates 94
Computing Absenteeism Rates 94Highlights in HRM 5: Costs Associated with the Turnover
of One Computer Programmer 95Comparing Absenteeism Data 96Costs of Absenteeism 96Absenteeism and HR Planning 96
Notes and References 97
Meeting Human Resources Requirements
Chapter 3 Equal Employment Opportunity and Human Resources Management 98
Historical Perspective of EEO Legislation 101
Changing National Values 101Economic Disparity 102Early Legal Developments 102
Government Regulation of Equal Employment Opportunity 102
Major Federal Laws 103Highlights in HRM 1: Test Your Knowledge of Equal Employment Opportunity Law 104
Other Federal Laws and Executive Orders 114Fair Employment Practice Laws 115
Other Equal Employment Opportunity Issues 116
Sexual Harassment 116
Highlights in HRM 2: Questions Used in Auditing Sexual Harassment 118
Trang 5Highlights in HRM 3: Basic Components of an Effective Sexual Harassment Policy 119
Sexual Orientation 120
Immigration Reform and Control 120
Uniform Guidelines on Employee Selection Procedures 121
Enforcing Equal Employment Opportunity Legislation 124
The Equal Employment Opportunity Commission 124
Record-Keeping and Posting Requirements 125
Highlights in HRM 4: 2007 EEO-1 Survey 127
Processing Discrimination Charges 128
Highlights in HRM 5: EEOC Poster 129
Highlights in HRM 6: EEOC Guidelines on Retaliation 131
Preventing Discrimination Charges 132
Diversity Management: Affirmative Action 133
Establishing Affirmative Action Programs 133
Highlights in HRM 7: Basic Steps in Developing an Effective Affirmative Action Program 134
Managing Diversity: Affirmative Action 135
Summary 137
Key Terms 138
Discussion Questions 138
HRM Experience: Sexual Harassment: A Frank Discussion 139
Case Study 1: Building a Stealth Fighter with Virtual Teams 140
Case Study 2: Empty Cubicles: How Would You Manage
the Vacancy? 141
Appendix: Determining Adverse Impact 143
Notes and References 144
Chapter 4 Job Analysis, Employee Involvement, and Flexible Work Schedules 148
Relationship of Job Requirements and HRM Functions 150
Trang 6Writing Clear and Specific Job Descriptions 161 ,
Job Design 162
Behavioral Concerns 162Highlights in HRM 2: Empowered Employees Achieve Results 165Industrial Engineering Considerations 166
Ergonomic Considerations 167Designing Work for Group/Team Contributions 168Flexible Work Schedules 174
Highlights in HRM 3: How to Request a Flexible Work Schedule 175
Summary 179 Key Terms 180 Discussion Questions 180 HRM Experience: Establishing Ground Rules for Team Success 180 Case Study 1: Human Resources Planning at Donna Karan
International 182 Case Study 2: Moen's Recruiting Faucet 183 Notes and References 184
Chapter 5 Expanding the Talent Pool: Recruitment and Careers 186
Recruiting Talent Externally 188
Highlights in HRM 1: Marriott's Recruitment PrinciplesOutside Sources for Recruitment 190
The Global Labor Market 198Improving the Effectiveness of External Recruitment 198
Recruiting Talent Internally 200
189
Trang 7Xii Contents
Advantages and Limitations of Recruiting from Within 201Methods for Identifying Qualified Candidates 202
Career Management: Developing Talent over Time 205
The Goal: Matching Individual and Organizational Needs 206Identifying Career Opportunities and Requirements 207Highlights in HRM 2: Career Path of Jeffrey Immelt, CEO, General Electric 210
Career Development Initiatives 214
Developing a Diverse Talent Pool 220
Recruiting and Developing Women 221Eliminating Women's Barriers to Advancement 221Glass Ceiling Audits 223
Preparing Women for Management 223Accommodating Families 224
Recruiting and Developing Minorities 224Providing Minority Internships 225Advancing Minorities to Management 225Highlights in HRM'3: Diversity Recruitment That Works 226
Other Important Talent Concerns 227
Recruiting the Disabled 227Less Publicized Disadvantages 229Highlights in HRM 4: Resources and Tips for Hiring and Retaining Employees with Disabilities 229
Employing the Older Workforce 231Employing Dual Career Couples 232
Summary 233 Key Terms 234 Discussion Questions 234 HRM Experience: Career Management 235 Case Study 1: Nike: Hiring Gets Off on the Right Foot 235 Case Study 2: Small Companies Need Diversity Too 237 Notes and References 238
Appendix: Personal Career Development 241
Developing Personal Skills and Competencies 241 Choosing a Career 241
Highlights in HRM 5: Career Competencies at Caterpillar 242
Trang 8Use of Available Resources 242
Accuracy of Self-Evaluation 243
The Significance of Interest Inventories 243
Highlights in HRM 6: Campbell Interest and Skill Survey: Individual Profile 244
Evaluating Long-Term Employment Opportunities 246
Choosing an Employer 246
Questions to Ask Yourself Before You Accept a Job Offer 247
Becoming an Entrepreneur 247
Keeping a Career in Perspective 248
Developing Off-the-Job Interests 248
Balancing Marital and/or Family Life 249
Planning for Retirement 249
Key Term 250
Notes and References 250
Chapter 6 Employee Selection 252
Matching People and Jobs 254
Person-Job Fit: Beginning with Job Analysis 255
Person-Organization Fit 255
The Selection Process 255
Obtaining Reliable and Valid Information 256
Sources of Information about Job Candidates 259
Nature of Employment Tests 271
Highlights in HRM 2: Best Practices for Employee Testing
and Selection 272
Classification of Employment Tests 272
Trang 9Guidelines for Employment Interviewers 283
Diversity Management: Are Your Questions Legal? 286
Highlights in HRM 5: Appropriate and Inappropriate Interview Questions 287
Reaching a Selection Decision 288
Summarizing Information about Applicants 288
HRM Experience: Designing Selection Criteria and Methods 294
Case Study 1: Tapping Unused Resources in Lean Times 295
Case Study 2: Kodak Gets the Picture in Executive
Education 297
Notes and References 299
Chapter 7 Training and Development 304
The Scope of Training 306
Investments in Training 306
A Systems Approach to Training 307
Phase 1: Conducting the Needs Assessment 308
Trang 10Contents XV
Principles of Learning 316
Characteristics of Instructors 319
Phase 3: Implementing the Training Program 320
Training Methods for Nonmanagerial Employees 320
Methods for Management Development 328
Phase 4: Evaluating the Training Program 333
Criterion 1: Reactions 333
Criterion 2: Learning 334
Criterion 3: Behavior 334
Criterion 4: Results, or Return on Investment (ROI) 335
Highlights in HRM 3: Calculating Training ROI: Examples 336
Highlights in HRM 4: Benchmarking HR Training 337
Special Topics in Training and Development 338
Orientation Training 338
Basic Skills Training 339
Highlights in HRM 5: Checklist for Orienting New Employees 340
Team Training and Cross-Training 341
HRM Experience: Training and Learning Principles 349
Case Study 1: UPS Delivers the Goods 350
Case Study 2: Preparing a Career Development Plan 351
Case Study 3: Kodak Gets the Picture in Executive
Education 352
Notes and References 355
Chapter 8 Appraising and Improving Performance 360
Performance Appraisal Programs 362
The Purposes of Performance Appraisal 363
Why Appraisal Programs Sometimes Fail 364
Developing an Effective Appraisal Program 366
What Are the Performance Standards? 367
Trang 11XVI Contents
PART
Are You Complying with the Law? 369Who Should Appraise Performance? 370Putting It All Together: 360-Degree Appraisal 374Training Appraisers 376
Highlights in HRM 1: Supervisor's Checklist for the Performance Appraisal 379
Performance Appraisal Methods 379
Trait Methods 380Highlights in HRM 2: Graphic Rating Scale with Provision for Comments 381
Highlights in HRM 3: Example of a Mixed-Standard ScaleBehavioral Methods 383
Highlights in HRM 4: BARS and BOS Examples 385Results Methods 386
Highlights in HRM 5: Personal Scorecard 389Which Performance Appraisal Method to Use? 390
Appraisal Interviews 391
Three Types of Appraisal Interviews 391Conducting the Appraisal Interview 392Improving Performance 395
Summary 398 Key Terms 399 Discussion Questions 400 HRM Experience: Performance Diagnosis 401 Case Study 1: Goodyear Ends Ratings System Ahead of Discrimination Suit 402
Strategic Compensation Planning 412
Linking Compensation to Organizational Objectives 413The Pay-for-Performance Standard 414
The Bases for Compensation 418
Determining Compensation—The Wage Mix 418
Internal Factors 419
404
Trang 12Contents XVli
Highlights in HRM 1: Comparison of Compensation Strategies 421
External Factors 422
Job Evaluation Systems 423
Job Ranking System 424
Job Classification System 424
Point System 424
Highlights in HRM 2: Point Values for Job Factors of the American
Association of Industrial Management 426
Work Valuation 426
Highlights in HRM 3: Description of Education Factor and Degrees of the
American Association of Industrial Management 427
Job Evaluation for Management Positions 428
The Compensation Structure 428
Wage and Salary Surveys 428
Highlights in HRM 4: Bureau of Labor Statistics National
Government Regulation of Compensation 435
Highlights in HRM 5: Minimum Wage Laws in the States 436
Davis-Bacon Act of 1931 437
Walsh-Healy Act of 1936 437
Fair Labor Standards Act of 1938 (as Amended) 437
Highlights in HRM 6: The Federal Wage Poster 439
Significant Compensation Issues 441
The Issue of Equal Pay for Comparable Worth 442
The Issue of Low Salary Budgets 442
The Issue of Wage Rate Compression 442
Summary 444
Key Terms 445
Discussion Questions 445
HRM Experience: Why This Salary? 446
Case Study 1: Pay Decisions at Performance Sports 447
Case Study 2: Mission Possible: A Competency-Based Compensation Program
for BestSource and SCE Federal Credit Unions 448
Notes and References 449
Trang 13XVlii Contents
Chapter 10 Pay-for-Performance: Incentive Rewards 452
Strategic Reasons for Incentive Plans 454
Incentive Plans as Links to Organizational Objectives 454Requirements for a Successful Incentive Plan 456
Setting Performance Measures 457 Administering Incentive Plans 457
Highlights in HRM 1: Setting Performance Measures—The Keys 458
Individual Incentive Plans 459
Piecework 459Standard Hour Plan 460Bonuses 460
Merit Pay 461Lump Sum Merit Pay 462Incentive Awards and Recognition 462Sales Incentives 463
Highlights in HRM 2: Customize Your Noncash Incentive Awards 464
Incentives for Professional Employees 465
The Executive Pay Package 466Executive Compensation: Ethics and Accountability 469Highlights in HRM 3: The "Sweetness" of Executive Perks 470Executive Compensation Reform 470
Group Incentive Plans 471 Team Compensation 471
Gainsharing Incentive Plans 472Highlights in HRM 4: Lessons Learned: Designing Effective Team Incentives 473
Enterprise Incentive Plans 476
Profit Sharing Plans 476 Employee Stock Options Plans 477 Highlights in HRM 5: Employee Stock Option Plans 478
Employee Stock Ownership Plans (ESOPs) 479Advantages of ESOPs 479
Summary 480 Key Terms 481 Discussion Questions 481 HRM Experience: Awarding Salary Increases 482
Trang 14Case Study 1: Pay-for-Performance: The Merit Question 483
Case Study 2: Team-Based Incentive Rewards: It's Not
All Roses 484
Notes and References 485
Chapter 11 Employee Benefits 488
Employee Benefits Programs 490
HRIS and Employee Benefits 490
Requirements for a Sound Benefits Program 491
Communicating Employee Benefits Information 493
Employee Benefits Required by Law 499
Social Security Insurance 499
Unemployment Insurance 500
Workers' Compensation Insurance 501
Consolidated Omnibus Budget Reconciliation Act (COBRA) 501
Family and Medical Leave Act 502
Older Workers Benefit Protection Act 503
Discretionary Major Employee Benefits 503
Health Care Benefits 503
Highlights in HRM 4: 'Your Rights": Another Federally Required Poster 504 Highlights in HRM 5: Employers Methods for Containing Health Care Costs 506
Payment for Time Not Worked 508
Supplemental Unemployment Benefits 509
Life Insurance 509
Long-Term Care Insurance 509
Retirement Programs 510
Pension Plans 511
Employee Services: Creating a Work/Life Setting 514
Employee Assistance Programs 515
Counseling Services 516
Child and Elder Care 516
Other Benefits and Services 517
Trang 15XX Contents
Summary 518 Key Terms 519 HRM Experience: Understanding Employer Benefit Programs 519 Discussion Questions 520
Case Study 1: Using "Sticky" Awards: KFC Does It Right 521 Case Study 2: Adobe's Family-Friendly Benefits: An Unexpected Backlash 522 Notes and References 523
Chapter 12 Promoting Safety and Health 526
Safety and Health: It's the Law 528
Highlights in HRM 1: Test Your Safety Smarts 529OSHA's Coverage 530
OSHA Standards 530Enforcing OSHA Standards 530OSHA Consultation Assistance 532Responsibilities and Rights under OSHA 533Highlights in HRM 2: What Are My Responsibilities under the OSH Act? 534
Right-to-Know Laws 535OSHA's Enforcement Record 536
Promoting a Safe Work Environment 536
Creating a Culture of Safety 537Enforcing Safety Rules 538Investigating and Recording Accidents 539
Creating a Healthy Work Environment 539
Health Hazards and Issues 540Highlights in HRM 3: Job Safety and Health Protection Poster 541
Highlights in HRM 4: Holsum Bakery's Workplace Smoking Policy 543
Workplace Violence 546Building Better Health 549Employee Assistance Programs 551Highlights in HRM 5: Selected Items from Salt River Project's Substance Abuse Policy 554
The Management of Stress 556
What Is Stress? 557