CONTENTS€¦ · Corporate-level strategy, 38 Business-level strategies, 39 ... 52 Shared Services,...

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Preface, xxv Acknowledgments, xxxi About the Authors, xxxiii Part 1 Understanding HRM 1 The Dynamic Environment of HRM 1 Learning Outcomes, 1 Introduction, 2 Globalization, 2 Global Businesses, 2 Cultural Environments, 3 Technology, 4 Working with Technology, 5 Technology and HR, 5 Staffing, 6 Training and Development, 6 Ethics and Employee Rights, 6 Compensation, 6 Communication, 7 Telecommuters, 7 Competitiveness, 7 Ethical Issues in HRM: Invasion of Privacy?, 7 Legal Compliance, 8 Workforce Composition Trends, 8 Workforce Age, 8 More Demographic Shifts, 10 Is There a Shortage of Skilled Labor?, 11 Diversity Topics: Valuing a Diverse Workplace, 11 Diversity and Inclusion, 12 Diversity and Work–Life Balance, 13 CONTENTS iii COPYRIGHTED MATERIAL

Transcript of CONTENTS€¦ · Corporate-level strategy, 38 Business-level strategies, 39 ... 52 Shared Services,...

Page 1: CONTENTS€¦ · Corporate-level strategy, 38 Business-level strategies, 39 ... 52 Shared Services, 52 HRM in a Small Business, 53 HRM in a Global Environment, 53 Summary, 54 Key

Preface, xxv

Acknowledgments, xxxi

About the Authors, xxxiii

Part 1 Understanding HRM

1 The Dynamic Environment of HRM 1

Learning Outcomes, 1 Introduction, 2 Globalization, 2

Global Businesses, 2 Cultural Environments, 3

Technology, 4 Working with Technology, 5 Technology and HR, 5

Staffing, 6 Training and Development, 6 Ethics and Employee Rights, 6 Compensation, 6 Communication, 7 Telecommuters, 7 Competitiveness, 7

Ethical Issues in HRM: Invasion of Privacy?, 7 Legal Compliance, 8 Workforce Composition Trends, 8

Workforce Age, 8 More Demographic Shifts, 10 Is There a Shortage of Skilled Labor?, 11 Diversity Topics: Valuing a Diverse Workplace, 11

Diversity and Inclusion, 12 Diversity and Work–Life Balance, 13

CONTENTS

iii

COPYRIG

HTED M

ATERIAL

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Labor Costs, 14Downsizing, 14Diversity Topics: Glass Ceiling Still a Barrier for Women Globally, 14Contingent Workforce, 15

Part-time employees, 15Temporary employees, 15Contract workers, 15

Issues Contingent Workers Create for HRM, 15Where Do They Fit?, 16Pay and Benefits Conflicts, 16Correctly Classifying Employees, 16

Offshoring, 17Continuous Improvement Programs, 17

Work Process Engineering, 19How HRM Can Support Improvement Programs, 19

Employee Involvement, 20How Organizations Involve Employees, 20Employee Involvement Implications for HRM, 20

Other HRM Challenges, 20Economy, 21Mergers, 21Labor Unions, 21Ethical Issues in HRM: Guidelines for Acting Ethically, 22Ethics, 22Sustainability, 24Ethical Issues in HRM: Everyday Ethics, 24

Summary, 25Key Terms, 26HRM Workshop, 26

Reviewing Important Concepts, 26Evaluating Alternatives, 27Research and Communication Skills, 27Making a Difference, 27Case Application 1‐A: Grower’s Choice, 28Case Application 1‐B: A War for Talent, 29

2 Functions and Strategy 31

Learning Outcomes, 31Introduction, 32Evolution of Management, 32

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Functions of Management, 34Planning, 34Organizing, 34Leading, 34Controlling, 34

The Role of HR in the Strategic Management Process, 35Strategic Analysis, 36

Mission, 36Core Values and Culture, 37Analyze the Environment, 37Strategy Formulation, 38

Corporate-level strategy, 38Business-level strategies, 39Functional strategies, 39

Strategy Implementation, 40Evaluating Results, 41Diversity Topics: Politics, Profits, and Diversity, 42

The HRM Functions, 43Staffing Function, 43Training and Development Function, 44Motivation Function, 45Maintenance Function, 46

Structure of the HR Department, 46Employment, 47Training and Development, 47Compensation and Benefits, 47Employee Relations, 48

Talent Management, 48Tips for Success: HRM Certification, 50Is a Career in HR for Me?, 50

HR Trends and Opportunities, 51People Analytics, 51Outsourcing HR Functions, 52Professional Employer Organization, 52Shared Services, 52HRM in a Small Business, 53

HRM in a Global Environment, 53Summary, 54Key Terms, 55HRM Workshop, 56

Reviewing Important Concepts, 56Evaluating Alternatives, 56

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Research and Communication Skills, 56Making a Difference, 57Case Application 2‐A: Seeds of Change at Grower’s Choice, 57Case Application 2‐B: HR at Mattress Firm Springs into Action, 58

3 Human Resource Planning and Job Analysis 59

Learning Outcomes, 59Introduction, 60

Tips for Success: Where the Jobs Are, 61Linking Organizational Strategy to Human Resource Planning, 61

Assessing Current Human Resources, 61Succession Planning, 62

Determining the Demand for Labor, 62Examining the Internal Labor Supply, 63Ethical Issues in HRM: Shades of Green, 64Where Will New Workers Come From?, 65Matching Labor Demand and Supply, 65

The Job Analysis Process, 67Step by Step, 67Sources of Information, 68

Observation method, 68Individual interview method, 68Group interview method, 68Structured questionnaire method, 68Technical conference method, 68Diary method, 68

Structured Job Analysis Techniques, 68O*NET and the Department of Labor, 69Position Analysis Questionnaire, 70

Job Descriptions, 70Maintaining Job Descriptions, 72Job Evaluation, 73

Job Design, Creating Better Jobs, 73Job Enlargement, 74Job Enrichment, 74

Flexible Work Schedules, 75Compressed Schedules, 76Flex Time, 76Job Sharing, 76

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Telecommuting, 76Contemporary Connections: All hands On Deck! Telecommuting in Transition, 77Job Design and Teams, 77

Summary, 78Key Terms, 79HRM Workshop, 80

Reviewing Important Concepts, 80Evaluating Alternatives, 80Research and Communication Skills, 80Making a Difference, 81Case Application 3‐A: Talent Management is Tough to Deliver, 81Case Application 3‐B: Turnover and Morale Problems at TSA, 82

Part 2 Legal and Ethical Context of HRM

4 Equal Employment Opportunity 83

Learning Outcomes, 83Introduction, 84

The Importance of the Civil Rights Act of 1964, 84Race and Color Discrimination, 85Religious Discrimination, 85National Origin Discrimination, 86Sex-Based Discrimination, 87Ethical Issue: Guess What the Court Said!, 88Retaliation, 88Exceptions That Are Permitted, 89

Business necessity, 89Bona fide occupational qualifications, 89Seniority systems, 90

The Civil Rights Act of 1991, 90Laws Affecting Discriminatory Practices, 91

Equal Employment Opportunity Act (EEOA), 91Relevant Executive Orders, 91Age Discrimination in Employment Act of 1967, 92Equal Pay Act, 93Pregnancy Discrimination, 93The Americans with Disabilities Act of 1990 and the ADA Amendments Act of 2008, 94The Family and Medical Leave Act of 1993 (FMLA), 96

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Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA), 98Genetic Information Nondiscrimination Act (GINA) of 2008, 98

Selected Relevant Supreme Court Cases, 99Cases Concerning Discrimination, 99Cases Concerning Reverse Discrimination, 99

Preventing Discriminatory Practices, 101Uniform Guidelines on Employee Selection Procedures, 101Determining Potential Discriminatory Practices, 102

Adverse impact, 102Adverse (disparate) treatment, 102The 4/5ths rule, 102Restricted policy, 103Geographical comparisons, 103McDonnell-Douglas test, 104Affirmative action plans, 104

Enforcing Equal Opportunity Employment, 104The Role of the EEOC, 105Contemporary Connection: EEOC Reaches Out to Young Workers, 106Office of Federal Contract Compliance Program (OFCCP), 107

Sexual Harassment, 107Two Types of Sexual Harassment, 107Protecting Employees from Sexual Harassment, 108Ethical Issues in HRM: How Bad Does It Have to Be?, 110

Current Issues in Equal Employment, 110Comparable Worth and Equal Pay Issues, 111Sexual Orientation, 112English-Only Laws and Policies, 112Appearance and Weight Discrimination, 113Ethical Issues in HRM: English-Only Rules, 113

HRM in a Global Environment, 114China, 114Canada, 114India, 114Australia, 115Germany, 115

Summary, 115Key Terms, 117HRM Workshop, 117

Reviewing Important Concepts, 117Evaluating Alternatives, 118

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Research and Communication Skills, 118Making a Difference, 119Case Application 4‐A: The Best of Intentions, 119Case Application 4‐B: Prehire Assessments Miss the Target, 120

5 Employee Rights and Discipline 122

Learning Outcomes, 122Introduction, 123Employee Records and Related Laws, 123

Employee Records, 123The Privacy Act, 124

The Fair Credit Reporting Act, 124The Drug-Free Workplace Act, 125The Polygraph Protection Act, 125

The Worker Adjustment and Retraining Notification Act, 125Social Media Use, 126

Employee Rights, 126Social Media Policies, 127Contemporary Connection: They’re Using It on Their Phones Anyway . . ., 128

Current Issues Regarding Employee Rights, 128Drug Testing, 128Contemporary Connection: Why Organizations Conduct Drug Tests, 129Honesty and Integrity Tests, 129Whistle-Blowing, 130Workplace Romance, 130Off-Duty Behavior, 131

Workplace Monitoring, 131Why Employers Monitor, 131Monitoring Policies, 132

The Employment-at-Will Doctrine, 132Exceptions to the Doctrine: Wrongful Discharge, 133

Contractual relationship, 133Implied employment contract, 133Statutory considerations, 133Public policy violation, 134Breach of good faith, 134Constructive discharge, 134

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Discipline and Employee Rights, 134What Is Discipline?, 134Ethical Issue: If It Isn’t Harassment, What Is It?, 135Factors to Consider When Disciplining, 135Disciplinary Guidelines, 136The Hot-Stove Rule, 137Progressive Discipline, 138

Written verbal warning, 138Written warning, 139Suspension, 139Performance improvement plans, 140Disciplinary meetings, 140

Tips for Success: Are You Part of the Problem?, 142Dismissing or Firing Employees, the Final Option, 142Employee Relations in a Global Environment, 144Summary, 144Key Terms, 146HRM Workshop, 146

Reviewing Important Concepts, 146Evaluating Alternatives, 146Research and Communication Skills, 146Making a Difference, 147Case Application 5‐A: Accountants with a License to Carry More Than Just a Briefcase, 147Case Application 5‐B: Enormous Settlement with Fired Manager Provides Lessons for Chipotle, 148

Part 3 Talent Acquisition

6 Recruiting 150

Learning Outcomes, 150Introduction, 151Effective Recruiting, 151

Employment Branding, 151Recruiting Challenges, 152

Too Many or Too Few Applicants, 152Organization Image, 152Tips for Success: Best Practices for Hiring a Diverse Workforce, 153Job Attractiveness, 153Internal Organizational Policies, 154Recruiting Costs, 154

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Inadequate Technology, 154Diversity Topics: Job Advertisements and EEO, 155

Internal Recruiting Sources, 155Employee Referrals and Recommendations, 156Tips for Success: Writing Job Postings that Get Results, 157

External Recruiting Sources, 157Advertisements, 158Employment Agencies, 158

Public and State Agencies, 158Private Agencies, 159Management Consulting Firms, 159

Executive Search Firms, 159Schools, Colleges, and Universities, 159Job Fairs, 160Professional Organizations and Veterans’ Groups, 160Unsolicited Applicants, 161Passive Candidates, 161

Online Recruiting, 161Employer Websites, 162Job Boards, 162Social Media, 162Specialized Job Boards, 163Which Source to Use?, 163

Recruitment Alternatives, 164Temporary Help Services, 164Employee Leasing, 164Independent Contractors, 164Tips for Success: Are You Recruiting Material?, 165

Recruiting: A Global Perspective, 166Your Own Job Search, 167

Cover Letters, 167Tips for Success: Breaking into HR, 168Preparing Your Resume, 168Making Social Media Work for You, 169

Summary, 170Key Terms, 171HRM Workshop, 171

Reviewing Important Concepts, 171Evaluating Alternatives, 171Research and Communication Skills, 171Making a Difference, 172

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Case Application 6‐A: Growing Problems at Outdoor Solutions, 172Case Application 6‐B: Honolulu Police Department Reports Missing Cops, 173

7 Foundations of Selection 174

Learning Outcomes, 174Introduction, 175Screening Applicants, 175Application Forms, 177

Legal Issues, 177Tips for Success: Professionalism on the Phone, 178Weighted Application Forms, 178Diversity Topics: Questions to Avoid, 179Online Applications, 180

Preemployment Testing, 180Work Sampling and Performance Simulation Tests, 180Assessment Centers, 180Global Differences in Testing, 181

Interviewing Applicants, 181Interview Formats, 181

One-on-One Interview, 181Panel Interviews, 182

Real HR Encounters: Involving Employees in the Selection Process, 182

Online Interviews, 182Structured Interviews, 183Unstructured Interviews, 183Behavioral Interviews, 183Stress Interviews, 183

What Interviewers Need to Know, 183Tips for Success: Preparing Interview Questions, 184

Preventing Perceptual Errors, 185Impression Management, 185Interviewer Bias, 186Realistic Job Previews, 186

Background Investigations, Medical and Physical Exams, 187Real HR Encounters: Checking References, 189Tips for Success: Too Much Information, 190Medical/Physical Examination, 191

Reliability and Validity in Testing, 191Reliability, 192Validity, 192

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Content Validity, 192Construct Validity, 192Criterion-Related Validity, 192

Validity Analysis, 193Cut Scores and Their Impact on Hiring, 193

The Employment Offer, 196Will the Candidate Accept the Offer?, 196Selection from a Global Perspective, 196

Final Thoughts: Excelling at the Interview, 197Summary, 198Key Terms, 199HRM Workshop, 200

Reviewing Important Concepts, 200Evaluating Alternatives, 200Research and Communication Skills, 200Making a Difference, 201Case Application 7‐A: Western Motors Overhauls the Interview Process, 201Case Application 7‐B: Beauty is Only Skin Deep, 202

Part 4 Training and Development

8 Onboarding, Training, and Developing Employees 203

Learning Outcomes, 203Introduction, 204Onboarding, 204

HRM’s Role in the Onboarding Process, 205Onboarding and Socialization, 206

Socialization strongly influences employee performance, 206Organizational stability also increases through socialization, 206New members suffer from anxiety, 206Socialization needs to be consistent with culture, 207Individuals adjust to new situations in remarkably similar ways, 207

Learning Culture through Socialization, 207Prearrival, 207Encounter, 207Metamorphosis, 208Tips for Success: Orientation Checklist, 208

New Employee Orientation, 209

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Real HR Encounters: HR’s Role in Creating and Sustaining Culture, 209The CEO’s Role in Orientation, 210

It’s All in Here: The Employee Handbook, 210Why Use an Employee Handbook?, 210Diversity Topics: Training, Development, and EEO, 211

Designing Employee Training, 212Analyze, 212Design, 212Develop, 212Implement, 213Evaluation, 213Tips for Success: Becoming a Trainer, 214

Training Methods, 214On-the-Job Training (OJT), 214Job Rotation, 215Apprenticeships, 215Internships, 215Classroom Lectures, 215E-Learning, 215Simulations, 216

Evaluating Training Effectiveness, 216Kirkpatrick’s Model, 216Contemporary Connection: Training Expenditures, 217Performance-Based Evaluation, 218

Post-Training Performance Method, 218Pre–Post-Training Performance Method, 218Pre–Post-Training Performance with Control Group Method, 218

Employee Development, 218Employee Development Methods, 218

Assistant-to-positions, 219Committee assignments, 219Classes, conferences, and seminars, 219Case studies, decision games, and role plays, 219Adventure training, 220

Organization Development, 220The Change Process, 220

The calm waters metaphor, 221The white-water rapids metaphor, 221

OD Methods, 222The Learning Organization, 223

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International Training and Development Issues, 223Cross-Cultural Training, 224Development, 224

Summary, 225Key Terms, 226HRM Workshop, 226

Reviewing Important Concepts, 226Evaluating Alternatives, 227Research and Communication Skills, 227Making a Difference, 227Case Application 8‐A: Training for Kindness, 227Case Application 8‐B: Mars Is a Sweet Gig, 228

9 Managing Careers 230

Learning Outcomes, 230Introduction, 231Career Development, 231The Organization’s Role in Career Development, 232

Talent Will Be Available When and Where It Is Needed, 232Improved Ability to Attract and Retain Talented Employees, 232Enhanced Diversity, 233Strong Cultures, 233

Managers and Career Development, 233The Employee Role in Career Development, 235Traditional Career Stages, 235

Exploration, 235Establishment, 236Mid-Career, 236Late Career, 237Contemporary Connection: Winners and Losers, 237

Personality Style and Career Fit, 237Holland Vocational Preferences, 238The Schein Anchors, 239Tips for Success: Entrepreneurship: Building Your Own Career, 240The Myers–Briggs Typologies, 240

Taking Responsibility for Building Your Career, 242Summary, 243Key Terms, 244HRM Workshop, 244

Reviewing Important Concepts, 244Evaluating Alternatives, 244Research and Communication Skills, 244

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Making a Difference, 245Case Application 9‐A: Preparing for the Future at Western States, 245Case Application 9‐B: Different Perspectives at Samsung, 246

10 Performance Management 247

Learning Outcomes, 247Introduction, 248Purposes of Performance Management Systems, 248The Appraisal Process, 249

Establish Performance Standards, 249Communicate Expectations, 250Measure Actual Performance, 250Compare Actual Performance with Standards, 251Discuss the Appraisal with the Employee, 251Contemporary Connection: The Feedback Fix, 251Initiate Corrective Action if Necessary, 252

Evaluating Performance with Absolute Standards, 252Critical Incident Appraisal, 252Checklist Appraisal, 253Graphic Rating Scale Appraisal, 253Forced-Choice Appraisal, 254Behaviorally Anchored Rating Scale (BARS), 255

Evaluating Performance with Relative Standards, 256Group-Order Ranking, 256Individual Ranking, 257Paired Comparison, 257Contemporary Connection: Forced Rankings, 258

Using Achieved Outcomes to Evaluate Employees, 258Common Elements in MBO Programs, 259Contemporary Connection: Facts on Performance Evaluations, 259Does MBO Work?, 259

Factors That Can Distort Appraisals, 260Leniency Error, 260Halo Error, 261Similarity Error, 262Low-Appraiser Motivation, 262Central Tendency, 262Inflationary Pressures, 262

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Inappropriate Substitutes for Performance, 263Attribution Theory, 263

Creating More Effective Performance Management Systems, 264Use Behavior-Based Measures, 264Contemporary Connection: The “Anywhere” Performance Appraisal, 265Combine Absolute and Relative Standards, 265Provide Ongoing Feedback, 266Use Multiple Raters, 266

Self-Appraisals, 266Peer Evaluations, 266360-Degree Appraisals, 267

Rate Selectively, 267Train Appraisers, 268

The Performance Appraisal Meeting, 269International Performance Appraisal, 270

Who Performs the Evaluation?, 271Tips for Success: Performance Metrics in China, 272

Summary, 272Key Terms, 273HRM Workshop, 273

Reviewing Important Concepts, 273Evaluating Alternatives, 274Research and Communication Skills, 274Making a Difference, 274Case Application 10‐A: Growing Pains at Modern Office Supply, 275Case Problem 10‐B: Candy and Performance Management are Dandy at Jelly Belly, 277

Part 5 Total Rewards

11 Establishing Rewards and Pay Plans 278

Learning Outcomes, 278Introduction, 279Rewarding Employees, 279

Intrinsic versus Extrinsic Rewards, 280Financial versus Nonfinancial Rewards, 280Ethical Issues in HRM: Taking Care of the Employees Who Take Care of the Guests, 281Performance-Based versus Membership-Based Rewards, 282

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Government Regulation of Compensation, 282Fair Labor Standards Act (FLSA), 282Contemporary Connection: The Minimum Wage Debate, 285Other Federal Employment Laws, 286

Walsh–Healy Act, 286The Civil Rights and Equal Pay Acts, 286

External Factors Affecting Compensation, 286Geographic Differences, 286Labor Supply, 287Competition, 287Cost of Living, 287Collective Bargaining, 288

The Pay Structure, 288Job Evaluation, 288

Ranking method, 289Classification method, 289Point method, 289

Establishing the Pay Structure, 290Compensation surveys, 290Wage curves, 290The wage structure, 291

Types of Compensation, 292Base Pay, 292Premium Pay, 292Variable Pay for Individuals, 293Variable Pay for Groups, 295Organization-Wide Incentives, 295

Executive Compensation Programs, 296Salaries of Top Managers, 296Executive Perquisites, 297

International Compensation, 298Base Pay, 298Differentials, 298Incentives, 299Contemporary Connection: Compensation in a Global Environment, 299Assistance Programs, 300

Summary, 300Key Terms, 301HRM Workshop, 301

Reviewing Important Concepts, 301Evaluating Alternatives, 301

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Research and Communication Skills, 302Making a Difference, 302Case Application 11‐A: What Is Fair at Exactitude Manufacturing?, 302Case Application 11‐B: Too Much Information for Google?, 304

12 Employee Benefits 306

Learning Outcomes, 306Introduction, 307Benefits Planning, 307

Strategic Value of Benefits, 307Benefit Planning, 308Communicating Benefits to Employees, 309

Legally Required Benefits, 309Social Security, 310Unemployment Compensation, 310Workers’ Compensation, 311Family and Medical Leave Act, 312Health Insurance Continuation, 312Real HR Encounters: Abusing Worker’s Compensation, 312The HIPAA Requirement, 312Patient Protection and Affordable Care Act, 313

Voluntary Benefits, 313Health Insurance, 315Ethical Issue: Cash or Benefits?, 317Disability Insurance, 317Group Term Life Insurance, 318Other Popular Benefits, 318Offering Choices to Employees, 319Real HR Encounters: Whiteboard Puts a Face on the Cost of Health Insurance, 320

Retirement Benefits, 320Employee Retirement Income Security Act (ERISA), 321Defined Benefit Plans, 322Defined Contribution Plans, 322Ethical Issues in HRM: Pensions in Peril, 322

Money purchase pension plans, 323Profit-sharing plans, 323Individual retirement accounts, 323401(k)s, 324

Contemporary Connection: Leaving It Up to You: Paid Time Off (PTO) Leave, 324

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Leave Benefits, 325Paid Time Off (PTO), 325Vacation and Holiday Leave, 325Ethical Issues in HRM: Making Sick Leave a Required Benefit?, 327Sick Leave, 327

Benefits in a Global Environment, 327Summary, 328Key Terms, 329HRM Workshop, 329

Reviewing Important Concepts, 329Evaluating Alternatives, 330Research and Communication Skills, 330Making a Difference, 331Case Application 12‐A: Trouble at Paradise, 331Case Application 12‐B: Perks and Profits, 331

Part 6 Safety and Labor Relations

13 Managing Health and Safety Risks 333

Learning Outcomes, 333Introduction, 334Legal Obligations for Workplace Safety and Health, 334

OSHA, 334OSHA Record-Keeping Requirements, 335Ethical Issues in HRM: Legacy of a Tragedy, 337

OSHA Inspection and Enforcement, 338Inspection Priorities, 338Inspection Process, 340

Inspector’s credentials, 340Opening conference, 340Inspection tour, 340Closing conference, 341

OSHA Penalties, 341Contemporary Connection: OSHA’s Top Ten Violations, 342

Creating Safer Workplaces, 343OSHA Services, 343Management Commitment and Employee Involvement, 343Worksite Analysis, 344Hazard Prevention and Control, 344Contemporary Connection: Industrial Athletes, 345Training for Employees, Supervisors, and Managers, 346

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Health and Safety Issues, 346Distracted Driving, 346Workplace Violence, 347

Who is at risk?, 347How can we prevent it?, 347

Opioid Abuse, 347Bullying, 348Indoor Air Quality, 349Smoke-Free Environments, 349Marijuana, 350Musculoskeletal Disorders, 350

Stress, 351Common Causes of Stress, 351Personal Factors, 352Reducing Stress, 352

International Safety and Health, 353International Health Issues, 353International Safety Issues, 354

Summary, 354Key Terms, 355HRM Workshop, 356

Reviewing Important Concepts, 356Evaluating Alternatives, 356Research and Communication Skills, 356Making a Difference, 356Case Application 13‐A: How Bad Is It?, 357Case Application 13‐B: What Does It Take to Get Some Respect?, 357

14 Understanding Labor Relations and Collective Bargaining 359

Learning Outcomes, 359Introduction, 360Why Employees Join Unions, 360

Higher Wages and Benefits, 361Greater Job Security, 361Influence Over Work Rules, 361Compulsory Membership, 361Dissatisfaction with Management, 363

Laws That Created the Legal Framework for Unions, 363The Wagner Act, 363Contemporary Connection: The Answer Is Blowing in the Wind, 364

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The Taft–Hartley Act, 365Diversity Topics: Unions and EEO, 366

Other Laws Affecting Labor–Management Relations, 366The Railway Labor Act of 1926, 366Landrum-Griffin Act, 367Executive Orders 10988 and 11491, 367Racketeer Influenced and Corrupt Organizations Act (RICO) of 1970, 367Civil Service Reform Act of 1978, 368

Unionizing Employees, 368Preparation, 368Authorization Card Campaign, 369Petition the NLRB, 369NLRB Election, 370Certification, 371Tips for Success: What Managers Need to Know to Keep Out of Trouble, 371

Collective Bargaining, 372Negotiating the Agreement, 372

Preparing to negotiate, 373Negotiating at the bargaining table, 373

Failure to Reach Agreement, 374Strikes versus lockouts, 374

Ethical Issues in HRM: Pressure Tactics, 375Impasse-Resolution Techniques, 375

Contract Administration, 376Communicate Contract Provisions, 376Implement the Contract, 376Grievance Process, 377Monitoring Activities During the Contract Period, 378

Critical Issues for Unions Today, 378Where Have the Members Gone?, 378Labor–Management Cooperation, 378Public Sector Unionization, 379

International Labor Relations, 380Differing Perspectives Toward Labor Relations, 381The European Union, 382China, 382

Summary, 382Key Terms, 384HRM Workshop, 384

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Reviewing Important Concepts, 384Evaluating Alternatives, 384Research and Communication Skills, 385Making a Difference, 385Case Application 14‐A: Managers’ Concerns Spiral as Video Goes Viral, 385Case Application 14‐B: Luxury Charter Jet Pilots Tell Union to Take Off, 386

Endnotes 388

Glossary 411

Index 420 

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