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Contents

Preface xii

Part 1 Human Resource Management and the Environment 1

Chapter 1 Strategic Human Resource Management in a Changing Environment 3

Objectives 3

Overview 3

What Is Human Resource Management? 6

HRM and Corporate Performance 6

Discrepancies Between Academic Research

and HRM Practice 8

The Domains of Human Resource Management 10

Trends Enhancing the Importance of HRM 12

Trend 1: The Increased Globalization of the Economy 13

Trend 2: Technological Changes, Challenges, and Opportunities 15

Trend 3: Increase in Litigation and Regulation Related to HRM 16

Trend 4: Changing Characteristics of the Workforce 18

Summary of Trend Effects 19

The Importance of HRM Measurement in Strategy

Execution 21

The Workforce Scorecard 21

Competitive Advantage 25

Customer Value 25

Customer Value and Corporate Social Responsibility (CSR) 25

The Worker’s Rights Consortium 26

Maintaining Uniqueness 28

Sources of Uniqueness 28

Summary 30

Discussion Questions 30

Chapter 2 The Role of Globalization in HR Policy and Practice 33

Objectives 33

Overview 33

Foreign Direct Investment 34

How Do Companies Engage in International

Commerce? 36

Exporting Work 39 Summary 40

What Influences the Decision to Invest in a Particular

International Market? 40

Domestic versus International HRM 41

International HRM Strategies 46

What Influences the Choice of IHRM Strategy? 47 International Business Assignments 48

Goals of International Business Assignments 48

Challenges of International Business Assignments 49

Recent Trends in Overseas Assignments 52

Global Leadership Challenges 53

Summary 56


Chapter 3 The Legal Environment of HRM: Equal Employment Opportunity 59

Objectives 59

Overview 59

Equal Employment Opportunity Law 61

What Is Employment Discrimination? 62

What Are the Major Sources of EEO Redress? 62

How Do You File a Discrimination Lawsuit? 66

Title VII of the Civil Rights Act of 1964 68

What Is Not Prohibited by Title VII? 69

What Legal Steps Are Followed in a Title VII Case? 69

What Constitutes Sexual Harassment under Title VII? 76

What Is the Employer’s Liability in Harassment Cases? 77

What Is Affirmative Action? 80

What Is the Legal Status of Affirmative Action? 81

What Is Required before a Company Embarks on a Voluntary Affirmative Action/Diversity Program? 82

Is Affirmative Action Still Necessary? 82

The Age Discrimination in Employment

Act of 1967, Amended in 1978 and 1986 83

What Is Required to Establish Prima Facie Evidence of Age Discrimination? 83

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.Can Employers Claim Age as a Bona Fide

Occupational Qualification (BFOQ)? 84

The Americans with Disabilities Act of 1990 (ADA)

Amended in 2008 84

What Is Legal And Illegal under ADA? 87

Genetic Information Nondiscrimination Act (GINA) 88

Pregnancy Discrimination Act of 1978 89

Are Expatriates Covered by Federal EEO Laws

When They Are Assigned to Countries Other Than

the United States? 90

What Are Employee Rights When Working for Multinational Employers? 92

Future Trends in EEO 93

Alternative Dispute Resolution: An Employer Reaction to Increased Litigation 93

Summary 94

One Implication of Increased Litigation: Better HRM Practices 94


Part 2 Acquiring Human Resource Capability 97

Chapter 4 Work Analysis and Design 99

Objectives 99

Overview 99

What Is Work Analysis? 101

What Are the Major Goals for Work Analysis? 103

Do We Really Need All the Specificity in Formal Job Analysis? 103

What Is the Legal Significance of Work Analysis? 104

What Are the Major Work Analysis Products? 105

What Are the Major Methods of Work Analysis? 108

What Are the Dimensions on Which Work Analysis May Vary? 110

What Are the Most Useful Formal Approaches

to Work Analysis? 112

Position Analysis Questionnaire (PAQ) 112

Management Position Description Questionnaire (MPDQ) 116

Competency Modeling 116

O*NET 121

Critical Incident Technique (CIT) 123

Personality-Based Job Analysis 127

Fleishman Job-Analysis Survey (F-JAS) 127

Job Compatibility Questionnaire (JCQ) 128

Work Analysis for Job Design 129

What Is Strategic Job Analysis? 132

Autonomous Work Groups (AWG) or Self-Managing

Teams 133

Suggestions for Using AWGS or Self-Managing Work Teams 134

The Effectiveness of AWGS or Self-Managing Work Teams 134

Rating Source Matters: Potential Biases in Work

Analysis Data 134

How Do You Choose the Best Work Analysis

Method? 135

Summary 136


Chapter 5 Human Resource Planning and Recruitment 139

Objectives 139

Overview 139

Effective Human Resource Planning 141

Step One: Environmental Scanning 142

The Worker Adjustment and Retraining Notification Act (WARN) 143

Step Two: Labor Demand Forecast 149

Step Three: Labor Supply Forecast 151

Step Four: Gap Analysis 154

Step Five: Action Programming 159

Step Six: Control and Evaluation 159

The Recruitment Function: Putting HRP

into Action 160

Recruitment, Other HR Activities, and Organizational Attractiveness 160

The Three Essential Steps for Recruitment Planning 162

The Two Sources of Recruiting: Internal and External 164

Advantages and Disadvantages of Internal and External Recruiting 164

External Recruitment Sources 166

What Methods of Recruiting Are Most Effective? 175

Two Philosophies of Recruiting: Flypaper versus Matching 179

Understanding the Recruits 180

Human Resource Planning and Recruitment for Multinational Corporations 181

Summary 183


Chapter 6 Personnel Selection 185

Objectives 185

Overview 185

Selection Methods: Are They Effective? 187

What Is Reliability? 187

What Is Validity? 188

What Is Utility? 191

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Application Blanks and Biographical Data 191

A Discrepancy between Research and Practice: The Use of Application Blanks and Biographical Data 192

How Do You Derive WAB or BIB or Accomplishment Record Weights? 193

Reference Checks and Background Checks 194

What Is the Validity of Reference Checks? 195

What Are the Legal Implications of Doing Background Checks and Reference Checks on Job Candidates? 195

Personnel Testing 196

What Is a Cognitive (or General Mental) Ability Test? 196

What Are Tests of Specific Mental Abilities? 198

Are There Racial Differences in Test Performance? 199

Why Do Minorities Score Lower than Whites on GMA Tests? 200

How Do Organizations Deal with Race Differences on Cognitive Ability Tests? 200

What Are Physical or Psychomotor Tests? 201

What Is Personality/Motivational/Dispositional Testing? 202

What Is the Validity of Personality Tests? 206

Approaches to the Prediction of Particular Criteria 208

How Do You Establish a Testing Program? 212

Drug Testing 212

Is Some Testing an Invasion of Privacy? 213

Performance Testing/Work Samples 214

What Is an Assessment Center? 215

How Are Assessments Done? 217

What Is the Validity and Adverse Impact of Assessment Centers and Other Performance Tests? 218

Performance Appraisals/Competency Assessment 218

Interviews 219

What Factors Affect the Employment Interview? 220

What Is the Validity of Employment Interviews? 221

How Can We Improve the Validity of Interviews? 223

What Are Major Types of Interviews? 224

The “Bottom Line” on Interview Validity 226

Combining Data from Various Selection

Methods 226

What Is Individual Assessment? 228

Personnel Selection for Overseas Assignments 228

Weights for Expatriate Selection 231

Selection in Other Countries 232

The Bottom Line on Staffing 232

Summary 233


Part 3 Developing Human Resource Capability 237

Chapter 7 Performance Management and Appraisal 239

Objectives 239

Overview 239

How Do We Define Performance and Why Do We

Measure It? 241

What Are the Uses of Performance Data? 243

Legal Issues Associated with Performance

Appraisals 245

Designing an Appraisal System 246

Measurement Content 246

Categories of Performance Outcomes 247

The Measurement Process 248

Control of Rating Errors and Biases 255

Rater Training 260

Defining the Rater 262

Defining the “Ratee” 263

Rating the Unit on Performance 263

The Productivity Measurement and Enhancement System (ProMES) 264

Benchmarking—Gauging internal practices to external standards 268

Administrative Characteristics 269

Methods of Delivering Performance Feedback 270

Summary 271


Chapter 8 Training and Development 273

Objectives 273

Overview 273

Defining Training and Development 275

Extent of Training and Development 276

A Systems View of Training 277

Discrepancies between Research and Practice 278

Needs Assessment 279

Organizational Analysis 280

Job Analysis 281

Person Analysis 281

Techniques for Collecting Needs Assessment Data 282

Deriving Instructional Objectives 282

Development of the Training Program 283

Designing a Learning Environment for Training 283

Preconditions of Learning 283

Conditions of the Learning Environment 285

Using Learning Principles to Develop Training Materials 287

Transfer of Training 287

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.Choosing Methods for the Training Program 288

Informational Methods 291

Social Media Technologies for Learning 293

Experiential Methods 293

Evaluation 300

Barriers to Training Evaluation 300

Types of Criteria 301

Assessing the Costs and Benefits of Training 305

Designs for Evaluating Training 307

Benchmarking Training Efforts 308

Planning for Training Effectiveness in

Organizations 309

Special Training Programs 310

Training For Generational Transitions 310

Employee Orientation Programs and Onboarding 310

Training for Teams 312

Diversity Awareness Training 313

Sexual Harassment Training 314

Cross-Cultural Training and Training for International Assignments 315

Summary 317


Chapter 9 Career Development 321

Objectives 321

Overview 321

Definitions 322

Implications of Workplace Changes for Individuals

and Organizations 324

What Should Individuals Do? 324

What Should Organizations Do? 324

Importance of Understanding Career Development 325

Designing Career Development Systems 327

Benefits of Career Development Systems 328Components of Career Development Systems 329

Self-Assessment Tools 330

Individual Counseling 331

Information Services 332

Organizational Assessment Programs 334

Developmental Programs 337

Career Programs for Special Target Groups 339

Fast-Track Employees 339

Outplacement Programs 339

Entrenched Employees 341

Supervisors and Career Counseling 342

Executive Coaching 342

Programs for Women, Minorities, and Employees with Disabilities 343

Programs for New Employees (Early-Career Issues) 344

Programs for Late Career and Retirement 344

Programs to Improve Work–Family Balance 345

Repatriates 349

Summary 351


Part 4 Compensating and Managing Human Resources 353

Chapter 10 Compensation: Base Pay and Fringe Benefits 355

Objectives 355

Overview 355

Five Objectives for Effective Compensation 359

Cash Compensation: Base Pay 360

The Traditional Approach to Compensation 362

What Is Internal Equity? 362

Job Evaluation Methods 362

What Is External Equity? 365

Current Trends in Salary Administration 368

Government Influence on Compensation Issues 369

The Lilly Ledbetter Fair Pay Act 374

Pay Equity or Comparable Worth Policy 374

Paycheck Fairness Act 375

Other Compliance Issues 376

Fringe Compensation: Employee

Benefits 377

Categories of Employee Benefits 378

Communicating the Benefits Program 388

International Compensation 389

Compensation in Offshore Operations 389

Compensation for Offshore Managers and Key Professionals 390

Base Salary 391

Foreign Service Premiums 391

Allowances 392

Expatriate Benefits 392

Summary 393


Chapter 11 Rewarding Performance 397

Objectives 397

Overview 397

Does PFP Work? 400

What Are the Determinants of Effective Reward

Systems? 401

What Are the Main Problems with PFP

Programs? 404

What Are the Legal Implications of PFP? 406

Contents

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Downsizing and Layoffs 460

Retirement 462

Summary 464


Chapter 13 Labor Relations and Collective Bargaining 467

Objectives 467

Overview 467

Why Do Workers Join Unions? 470

The Legal Environment of Labor Relations 471

National Labor Relations Act (NLRA) 472

The Taft-Hartley Act 473

Other Important Labor Laws 473

How Do Workers Form Unions? 475

Union Organizing Efforts 476

The Effects of Unions 477

Unions and High Performance Work Practices 479

Unions and Quality of Worklife Issues 479

Union Effects on Worker Satisfaction 480

Unions and HRM 480

Collective Bargaining 480

The Labor Contract 481

Issues in Collective Bargaining 481

Types of Bargaining 482

Conducting Labor Contract Negotiations 483

The Union’s Economic Power in Collective Bargaining 485

The Employer’s Power in Collective Bargaining 486

Administration of the Labor Contract 487

Current and Future U.S. Trends in Labor Relations 491

Union Membership 491

Public-Sector Union Membership 492

Mergers and Acquisitions 493

Retraining Provisions 493

Employee Benefits 493

A Proposal to Reinvent U.S. Trade Unionism 493

International Issues 494

U.S. Managers and Unions 495

Global Collective Bargaining and Productivity 497

Summary 498


Chapter 14 Employee Health and Safety 501

Objectives 501

Overview 501

Common Workplace Injuries and Diseases 505

Distracted Driving 505

Legal Issues Related to Health and Safety 506

Workers’ Compensation 507

Fraudulent Claims 508

How Do You Select a PFP System? 406

Who Should Be Included in a PFP System? 407

How Will Performance Be Measured? 407

What Are the Rewards in an Incentive System? 407

A Discrepancy between Research and Practice 408

Should You Use Individual, Group, or Company-Level PFP? 408

When Should Team-Based PFP Be Used? 409

Individual PFP Plans: Merit Pay and Incentive

Systems 410

What Are Merit Pay Plans? 410

What Is Incentive pay? 412

What Are Sales Incentive Plans? 414

What Are Bonuses? 415

What Are Group Incentive Plans? 415

What Is Profit Sharing? 416

What Is Gainsharing? 417

What Are Employee Stock Option Plans? 420

Managerial and Executive Incentive Pay 421

Are There Documented Negative Consequences to Widening Pay Dispersion? 422

Should You Use Short- or Long-Term Measures of Performance? 422

What about the Corporate Board Room? 423

How Do Companies Keep Entrepreneurs and Promote

Intrapreneurs? 424

What Are the Managerial Implications for PFP

Programs? 424

Summary 425


Chapter 12 Managing the Employment Relationship 429

Objectives 429

Overview 429

Introduction 430

Organizational Justice 430

Ethics Programs 432

Organizational Entry 433

Employment Status 433

Flexible Work Arrangements 434

Realistic Job Previews 436

Socialization and Orientation 437

The Ongoing Relationship 438

External Forces: Law 439

Internal Forces: Employee Surveys 445

Internal Forces: Employee Handbooks 448

Violations of Policy/Discipline 451

Grievances 453

Organizational Exit 456

Termination 456

Resignation/Voluntary Turnover 457

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. 7-C Allegations of Age and Race Discrimination

against Ford Motor Company 571

7-D Performance Appraisal Characteristics

Questionnaire * 572

8-A Workplace Diversity Training 572

8-B Sexual Harassment Training * 573

9-A Careers and Corporate Social

Responsibility 574

9-B O*NET Skills Search 574

10-A Defending Corporate Executive Pay 576

10-B Illegal Pay Discrimination, Bad Pay Policy,

or Both? 578

10-C Legal or Illegal Compensation Plan? 579

10-D Is Café Espresso in Compliance with the Fair

Labor Standards Act (FLSA)? 579

11-A The Case for and against Pay-for-Performance

Systems 580

11-B The Prediction of Rating Error * 581

11-C Can We (and Should We) Apply the Lincoln

Electric Method? 581

11-D Should Teacher Pay Be Tied to Student Test

Scores? 582

12-A Employment-at-Will 583

12-B Developing Organizational Policy

and a Code of Ethics 584

13-A Unionizing FedEx 584

13-B Do You Support the “Protecting Jobs

from Government Interference Act”? 585

14-A Can Health and Safety Behavior Be

Predicted? * 586

14-B The Measurement of Stress

at Work * 587

Appendix B Chapter Exercises 589

1.1 An Interview with an HRM Specialist * 589

1.2 An Assessment of Customer Satisfaction

and the Relationship to HRM Activities 589

1.3 Human Resource Issues at Valley National

Bank 603

2.1 International HR Strategies: The Derivation

of Policy 613

2.2 Going Global with Marriott Corporation** 617

2.3 International Assignment Problems at XYZ

Corporation* 617

3.1 Zimpfer v. Palm Beach County 623

3.2 Goebel et al. v. Frank Clothiers 631

3.3 A Case of Illegal Sexual Harassment?* 635

3.4 Reverse Discrimination or Legal Affirmative

Action? 639

3.5 Joseph Garcia v. Hooters, Cameron v. LaVeille Maison 647

3.6 Hiring a Bank Teller* 651

4.1 Writing a Position Description 655

The Occupational Safety and Health Administration Act 509

Programs to Reduce Accidents at Work 523

Selective Hiring 524

Safety Training 524

Teamwork, Supervision, and Decentralized Decision Making 526

Incentive Systems 526

Safety Rules 527

Contemporary Issues Related to Health

and Safety 527

AIDS and the Workplace 527

Drugs in the Workplace 529

Smoking and the Workplace 532

Violence in the Workplace 533

Video Display Terminals 539

Repetitive Strain Injuries (RSI) 539

Occupational Stress 541

Employee Assistance Programs 546

Employee Wellness or Fitness Programs 548

Summary 549


Recommended Internet Sites 551

Appendix A Critical Thinking Applications 553

1-A What Do You Know about HRM? * 553

1-B Corporate Social Responsibility and Human

Resource Management * 553

1-C Resolution: Close Down the Human Resources

Department 554

2-A What Is the Origin of Your University

Apparel? 555

2-B International HR: How about a Cuppa? 557

3-A Are Dreadlocks Protected under Title VII? 558

3-B Allegations of Religious Discrimination 558

4-A Can PAS Defend Its Test in Court? 559

4-B What to Do with Job Diagnostic Survey

Results * 561

5-A Freeman et al. v. the New Oxford Fire Department 561

5-B Hi, I’m in Bangalore (but I Can’t Say So) 565

5-C Is Wal-Mart Guilty of Gender

Discrimination? 565

6-A What Privacy Do We Have in the

Workplace? 567

6-B The Measurement of Personality Traits * 569

7-A Should We Measure Competencies

in Performance Appraisal? 570

7-B The Role of Mystery Shoppers

in Performance Appraisal 570

*The test or questionnaire component of these exercises is available

online at the book’s website ( www.mhhe.com/bernardin6e) .

**This exercise is available online at the book’s website ( www.mhhe

.com/bernardin6e) .

Contents

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9.3 Career Development at TechnoChip

Computers * 733

10.1 Problems in the Pay System 741

10.2 Should the State Adopt a Pay Equity

Policy? 747

10.3 Developing an Employee Benefits

Program * 753

11.1 The Design of a PFP System for Mega

Manufacturing** 753

11.2 Pay for Performance at Dee’s Personalized

Baskets 753

12.1 An Approach to Downsizing 757

12.2 Compududes Considers Arbitration Options

for Employee Disputes** 767

12.3 Handling an Employee’s Termination 767

13.1 Organizing a Union 771

13.2 Unions, Labor Law, and Managerial

Prerogatives * 775

13.3 The Baseball Strike: An Example of Collective

Bargaining * 777

14.1 The Development of a Company Antismoking

Policy 777

14.2 The Development of an Antidrug Policy** 779

14.3 The Development of a Health

and Safety Policy 779

14.4 The Development of a Threat Management

Team for a Workplace Violence Incident * 783

Appendix C Assessment Guidelines for Self, Peer, and Designated Assessors** Available online at www.mhhe.com/bernardin6e

Endnotes 785

Name Index 837

Company Index 839

Subject Index 847

4.2 The Use of the Critical Incident Technique

to Analyze the Job of University

Professor * 669

4.3 Job Analysis at CompTech 669

5.1 A Turnover Problem at the Fort Lauderdale Herald 675

5.2 Permalco’s Recruiting Challenge * 679

5.3 Recruiting at Julia Richter’s “Dressed for

Success”** 679

5.4 HR Planning at CompTech 685

6.1 Should Tenneco Use the Wonderlic Test? 687

6.2 Hiring a Plant Manager at Dynamo

Industries 691

6.3 What Questions Can You (and Should You)

Ask in an Interview? * 695

7.1 Performance-Appraisal Feedback:

A Role-Play Exercise 699

7.2 The Heartland Greeting Cards Consulting

Problem * 703

7.3 Exercise 7.3: ProMES Development

at Sports “R” Us 703

7.4 Performance Appraisal at Darby Gas &

Light 709

7.5 The Development of a Performance

Appraisal System for Instructors * 703

8.1 Conducting a Needs Assessment 717

8.2 Rainyday Insurance Adjusters Company 721

8.3 Backwoods Mail Order Company * 725

8.4 The Development and Evaluation of

a Training Program for Graduate Student

Instructors 725

8.5 Self-Directed Learning Assessment * 729

9.1 Attitudes about Older People * 733

9.2 Career Development Self-Assessment

Exercise 733

*The test or questionnaire component of these exercises is available

online at the book’s website ( www.mhhe.com/bernardin6e) .

**This exercise is available online at www.mhhe.com/bernardin6e .

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