f- ^ ^ ^ tC^L X
Human ResourceManagement
R. WAYNE MONDY, SPHR
in collaboration with
JUDY BANDY MONDYMcNeese State University
Prentice HallBoston Columbus Indianapolis New York San Francisco Upper Saddle River
Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal TorontoDelhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo
XXIIPreface
Acknowledgments xxv
Strategic Human Resource Management:An Overview 3
Chapter Objectives 2HRM in Action: Not HR Branding, Employer
Branding 3Human Resource Management 4Human Resource Management Functions 5
Staffing 5
• Trends if Innovations: Measuring Quality of Hire inToday's Environment 6
Human Resource Development 6Compensation 7 /Safety and Health 7Employee and Labor Relations 7Human Resource Research 8Interrelationships of HRM Functions 8
Dynamic Human Resource Management Environment 8Legal Considerations 8Labor Market 9Society 9Unions 10Shareholders 10Competition 10Customers 10Technology 10Economy 11Unanticipated Events 11
How Human Resource Management Is Practiced in theReal World 11
HR's Changing Strategic Role: Who Performs theHuman Resource Management Tasks? 11
Human Resource Manager 12HR Outsourcing 12HR Shared Service Centers 13
Professional Employer Organizations(Employee Leasing) 13
Line Managers 14HR as a Strategic Partner 14A Strategic HR Example 16A Strategic HR Audit 16Human Capital Metrics 17Human Resource Designations 18Evolution of Human Resource Management: Moving
into Strategic HR 18Evolving HR Organizations 19Scope of This Book 20• A Global Perspective: Cultural Differences in
Global HR 22SUMMARY 23
KEY TERMS 24
QUESTIONS FOR REVIEW 24
HRM INCIDENT 1: HR AFTER A DISASTER 24
HRM INCIDENT 2: DOWNSIZING 25
NOTES 25
PART TWO: ETHICAL, SOCIAL,AND LEGAL CONSIDERATIONS 28
Business Ethics and Corporate SocialResponsibility 29
Chapter Objectives 28HRM in Action: Going Strategic with Corporate Social
Responsibility 29Ethics 30A Model of Ethics 31 ,Legislating Ethics 32• Ethical Dilemma: A Selection Quandary 33Code of Ethics 34Human Resource Ethics 3 5Ethics Training 36Professionalization of Human Resource Management 3 7
Society for Human Resource Management 38Human Resource Certification Institute 38
VI CONTENTS
American Society for Training andD evelopment 3 8
WorldatWork 38
Corporate Social Responsibility 39
• Trends if Innovations: Bayer Corporation: A Quality
Example of Corporate Social Responsibility 40
Stakeholder Analysis and the Social Contract 40
Obligations to Individuals 42
Obligations to Other Organizations 42
Obligations to Government 43
Obligations to Society in General 43Implementing a Corporate Social Responsibility
Program 43
• A Global Perspective: MultinationalWhistle-blowing 44
SUMMARY 46
KEY TERMS 47
QUESTIONS FOR REVIEW 47
HRM INCIDENT 1: AN ETHICAL FLAW 47
HRM INCIDENT 2: "YOU CAN'T FIRE ME" 47
NOTES 48
Workforce Diversity, Equal EmploymentOpportunity, and Affirmative Action 51
Chapter Objectives 50
HRM in Action: Paternity Leave for Dad 51
Projected Future Diverse Workforce 52
Diversity and Diversity Management 53
Components of the Diverse Workforce 54
Single Parents and Working Mothers 54
Women in Business 54
Mothers Returning to the Workforce 55
Dual-Career Family 55
Workers of Color 56
Older Workers 56
People with Disabilities 57
Immigrants 57
Young Persons with Limited Education or Skills 57
Equal Employment Opportunity: An Overview 58
Laws Affecting Equal Employment Opportunity 58
Civil Rights Act of 1866 58
Equal Pay Act of 1963 59
Tide VII of the Civil Rights Act of 1964,Amended 1972 60
Age Discrimination in Employment Act of 1967,Amended in 1978 and 1986 62
Age Can Actually Be a Bona Fide OccupationalQualification 63
Rehabilitation Act of 1973 63
Pregnancy Discrimination Act of 1978 64
Immigration Reform and Control Actof 1986 64
Illegal Immigration Reform and ImmigrantResponsibility Actofl996 65
Americans with Disabilities Act of 1990 65
Civil Rights Act of 1991 66
Uniformed Services Employment and
Reemployment Rights Act of 1994 67
Veterans' Benefits Improvement Act of 2004 67
State and Local Laws 67Significant U.S. Supreme Court Decisions Affecting
Equal Employment Opportunity 68
Griggs v Duke Power Company 68
• Ethical Dilemma: What Was the RealMessage? 68
Albermarle Paper Company v Moody 69
Phillips v Martin Marietta Corporation 69
Espinoza v Farah Manufacturing Company 69
Dothard v Rawlingson 69
American Tobacco Company v Patterson 10O'Connor v Consolidated Coin Caterers
Corp. 70
Significant U.S. Supreme Court Decisions AffectingAffirmative Action 70
University of California Regents v Bakke 11
Adarand Constructors v Pena 11
Grutter v Bollinger 11
Gratz v Bollinqer 11o
Equal Employment Opportunity Commission 71Uniform Guidelines on Employee Selection
Procedures 73
Concept of Disparate Treatment 73
Concept of Adverse Impact 74
Additional Guidelines on Employment SelectionProcedures 75
Guidelines on Sexual Harassment 75
Guidelines on Discrimination Because ofNational Origin 77
• Trends & Innovations: Family ResponsibilitiesDiscrimination 18
Guidelines on Discrimination Because ofReligion 79
Affirmative Action: Executive Order 11246, as Amendedby Executive Order 11375 79
Affirmative Action Programs 80
• A Global Perspective: Global Equal EmploymentOpportunity 82
CONTENTS v i i
SUMMARY 84
KEY TERMS 85
QUESTIONS FOR REVIEW 85
HRM INCIDENT 1:1 FEEL GREAT 86
HRM INCIDENT 2: SO, WHAT'S AFFIRMATIVE ACTION? 86
NOTES 87
PART THREE: STAFFING 90
Job Analysis, Strategic Planning,and Human Resource Planning 91
Chapter Objectives 90HRM in Action: Social Networking: Getting to Know
Each Other 91Job Analysis: A Basic Human Resource Management
Tool 92Reasons for Conducting Job Analysis 93
Staffing 93Training and Development 93Performance Appraisal 94Compensation 94Safety and Health 94
Employee and Labor Relations 94Legal Considerations 95 ;
Types of Job Analysis Information 95Job Analysis Methods 96
Questionnaires 96Observation 96Interviews 96Employee Recording 96Combination of Methods 97
Conducting Job Analysis 98Job Description 98
Job Identification 98Date of the Job Analysis 99Job Summary 99Duties Performed 99Job Specification 100
Timeliness of Job Analysis 101Job Analysis for Team Members 101Job Analysis and the Law 102• Trends if Innovations: Talent Management 103Strategic Planning Process 104
Mission Determination 104
Environmental Assessment 105Objective Setting 105
Strategy Setting 105Strategy Implementation 106
Strategic Human Resource Planning 106Forecasting Human Resource Requirements 108
Zero-Base Forecasting 108Bottom-Up Approach 108Relationship between Volume of Sales and Number
of Workers Required 108Simulation Models 109
Forecasting Human Resource Availability 109Use of HR Databases 110Shortage of Workers Forecasted 110
Innovative Recruiting 110
Compensation Incentives 111Training Programs 111Different Selection Standards 111
• Ethical Dilemma: Which "Thinker"Should Go? Ill
Surplus of Employees Forecasted 112Restricted Hiring 112Reduced Hours 112Early Retirement 112
Downsizing 112Negative Aspects of Downsizing 113Outplacement 113
Succession Planning 114Disaster Planning 114Human Resource Information Systems 116Manager Self-Service '117Employee Self-Service 118Job Design Concepts 118
Job Enrichment 118Job Enlargement 119Reengineering 119
• A Global Perspective: India Getting the Job Done,but Differently 120
SUMMARY 121
KEY TERMS 123
QUESTIONS FOR REVIEW 123
HRM INCIDENT 1: A DEGREE FOR METER READERS 123
HRM INCIDENT 2; STRATEGIC HR? 124
NOTES 124
Recruitment 127Chapter Objectives 126HRM in Action: Using the CEO in the Recruitment
Process 127
vi i i CONTENTS
Recruitment Defined 128Alternatives to Recruitment 128
Outsourcing 129Contingent Workers 129Professional Employer Organizations
(Employee Leasing) 129
Overtime 130External Environment of Recruitment 130
Labor Market Conditions 130Legal Considerations 130
Promotion Policies 131Recruitment Process 132Internal Recruitment Methods 133
Job Posting and Job Bidding 134Employee Referrals 134
• Trends & Innovations: Twittering for theBest Recruit 135
External Recruitment Sources 136High Schools and Vocational Schools 136Community Colleges 136Colleges and Universities 137Competitors in the Labor Market 137Former Employees 137
• Ethical Dilemma: Unfair Advantage? 131Unemployed 138Military Personnel 138Self-Employed Workers 138Ex-Offenders 138
Online Recruitment Methods 139Internet Recruiter 140Virtual Job Fair 140Corporate Career Web Sites 140Jobs domain 140Weblogs (blogs for short) 140General-Purpose Job Board 141NACElink Network 141Niche Sites 141Contract Workers' Sites 142Hourly Workers' Job Sites 143
Traditional External Recruitment Methods 143Media Advertising 143Employment Agencies 144Recruiters 144Job Fairs 145Internships 145Executive Search Firms 145Professional Associations 146
Unsolicited Applicants 146Open Houses 146Event Recruiting 147Sign-on Bonuses 147Competitive Games 147
Going Paperless at Continental Airlines 148Tailoring Recruitment Methods to Sources 149
• A Global Perspective: U.S. Firms inVietnam 150
SUMMARY 151
KEY TERMS 151
QUESTIONS FOR REVIEW 152
HRM INCIDENT 1: A PROBLEM AD? 152
HRM INCIDENT 2:1 AM QUALIFIED, WHY NOT ME? 152
NOTES 153
Selection 157Chapter Objectives 156HRM in Action: Putting the Interviewee under
Pressure: The Stress Interview 157Significance of Employee Selection 158Environmental Factors Affecting the Selection
Process 159Other HR Functions 159Legal Considerations 159Speed of Decision Making 159Organizational Hierarchy 159Applicant Pool 159Type of Organization 160Probationary Period 160
Selection Process 160Preliminary Interview 161Review of Applications 162Review of Resumes 163Sending Resumes via the Internet 165
• Ethical Dilemma: Employee SelectionCriteria? 165
Selection Tests: Advantages and PotentialProblems 167
Advantages of Selection Tests 167Potential Problems of Selection Tests 168
Characteristics of Properly Designed SelectionTests 168
Standardization 168Objectivity 169Norms 169Reliability 169Validity (Job-Relatedness) 169
CONTENTS i x
Types of Validation Tests 170Criterion-Related Validity 170Content Validity 170Construct Validity 170
Types of Employment Tests 170Cognitive Aptitude Tests 170Psychomotor Abilities Tests 170Job-Knowledge Tests 171Work-Sample Tests 171Vocational Interest Tests 171Personality Tests 171
Unique Forms of Testing 172Genetic Testing 172Graphoanalysis (Handwriting Analysis) 172Polygraph Tests 173
Online Testing 173Assessment Centers 173Employment Interview 174
Interview Planning 174Content of the Interview 174Candidate's Role and Expectations 175
General Types of Interviews 176Unstructured Interview 176,
Structured Interview 176 /Behavioral Interview 177
Methods of Interviewing 178One-on-One Interview 178Group Interview 178Board (or Panel) Interview 178Multiple Interviews 178Realistic Job Preview 179
Potential Interviewing Problems 179Inappropriate Questions 179Premature Judgments 180Interviewer Domination 180Permitting Non-Job-Related Information 180Contrast Effect 180Lack of Training 180Nonverbal Communication 181
Concluding the Interview 181Pre-Employment Screening: Background
Investigations 181Pre-Employment Screening: Reference Checks 183Continuous Background Checks 183Negligent Hiring 184Negligent Referral 185Selection Decision 185
• Trends if Innovations: Hiring TemporaryExecutives 185
Medical Examination 186Notification of Candidates 186Applicant-Tracking System 187Metrics for Evaluating Recruitment/Selection
Effectiveness 187Turnover Rate 187Recruiting Costs 187Selection Rate 188Acceptance Rate 188Yield Rate 188
Cost/Benefit of Recruitment Sources andMethods 188
Time Required to Hire 188• A Global Perspective: Changing of the Guard: Will
the New Expatriates Step Forward? 189SUMMARY 190
KEY TERMS 192
QUESTIONS FOR REVIEW 192
HRM INCIDENT 1: A MATTER OF PRIORITIES 193
HRM INCIDENT 2: BUT I DIDN'T MEAN TO! 193
NOTES 193
PART FOUR: HUMAN RESOURCEDEVELOPMENT 196
Training and Development 197Chapter Objectives 196HRM in Action: High-Tech Videoconferencing 197Strategic Training and Development 198Factors Influencing Training and Development 199
Top Management Support 199Technological Advances 199
• Ethical Dilemma: Tough Side of Technology 200World Complexity 200Learning Styles 200Other Human Resource Functions 200
Training and Development Process 201
Determine Specific Training and DevelopmentNeeds 201
Establish Specific Training and DevelopmentObjectives 202
Training and Development Methods 202Instructor-Led 203Case Study 203Behavior Modeling 204Role-Playing 204
CONTENTS
Business Games 204In-Basket Training 204On-the-Job Training 204Job Rotation 205Internships 205Apprenticeship Training 205
Training and Development Delivery Systems 205
Corporate Universities 206Colleges and Universities 206Community Colleges 206Online Higher Education 206
Vestibule System 207Video Media 207E-Learning 207Simulators 208
Management Development 208Mentoring and Coaching 209Reverse Mentoring 210
Orientation 210Purposes of Orientation 211Responsibility for and Scheduling of
Orientation 211• Trends & Innovations: Onboarding (Executive
Orientation) 212OrientationatMonster.com 212
Implementing Training and DevelopmentPrograms 213
Metrics for Evaluating Training andDevelopment 213
Participants'Opinions 214Extent of Learning 214Behavioral Change 214Accomplishment of T&D Objectives 214Benchmarking 215
International ISO 9000 Quality Assurance TrainingStandards 215
Business/Government/Education Training Partnership:Workforce Investment Act 215
Organization Development: A Strategic HR Tool 215Survey Feedback 216Quality Circles 216Team Building 217Sensitivity Training 217
• A Global Perspective: Learning to Deal with CulturalDifferences 218
SUMMARY 219
KEY TERMS 220
QUESTIONS FOR REVIEW 220
HRM INCIDENT 1: TRAINING AT KELLER-GLOBE 220
HRM INCIDENT 2: CAREER VERSUS JOB SECURITY? 221
NOTES 221
Appendix Chapter 7: Career Planningand Development 224Job Security versus Career Security 224Career and Career Planning Defined 224Career Planning 225
Career Planning: Self-Assessment 225Using the Web for Self-Assessment Assistance 227Using the Web for Career-Planning
Assistance 228Career Paths and Career Development 228Career Development Methods 229
Manager/Employee Self-Service 229Discussions with Knowledgeable Individuals 229Company Material 230Performance-Appraisal System 230Workshops 230
Career Paths 230Traditional Career Path 230Network Career Path 231Lateral Skill Path 231Dual-Career Path 231Adding Value to Your Career 232Demotion 232Free Agents (Being Your Own Boss) 232
Developing Unique Segments of the Workforce 232Baby Boomers 233
Generation X Employees 233Generation Y Employees 234Generation I (Google Generation) as Future
Employees 234
KEY TERMS 235
NOTES 235
Performance Managementand Appraisal 237
Chapter Objectives 236HRM in Action: Productivity and Emotional
Intelligence 237Performance Management 238Performance Appraisal 239Use of Performance Appraisal 239
Human Resource Planning 239Recruitment and Selection 240Training and Development 240
CONTENTS XI
Career Planning and Development 240Compensation Programs 240Internal Employee Relations 240Assessment of Employee Potential 241
• Trends if Innovations: Performance Management,Appraisal, and Layoffs 241
Performance Appraisal Environmental Factors 242Performance Appraisal Process 242Establish Performance Criteria (Standards) 243
Traits 243Behaviors 244Competencies 244Goal Achievement 244Improvement Potential 245
Responsibility for Appraisal 245Immediate Supervisor 245Subordinates 245Peers and Team Members 246Self-Appraisal 246Customer Appraisal 247
Appraisal Period 247Performance Appraisal Methods 247
360-Degree Feedback Evaluation Method 247Rating Scales Method 248Critical Incident Method 250Essay Method 250Work Standards Method 251Ranking Method 251Forced Distribution Method 251Behaviorally Anchored Rating Scale Method 252Results-Based System 253
Use of Computer Software 253Problems in Performance Appraisal 253
Appraiser Discomfort 253Lack of Objectivity 2 54Halo/Horn 254Leniency/Strictness 254Central Tendency 255
Recent Behavior Bias 255Personal Bias (Stereotyping) 255Manipulating the Evaluation 255Employee Anxiety 256
• Ethical Dilemma: Abdication of Responsibility 256Characteristics of an Effective Appraisal System 257
Job-Related Criteria 257Performance Expectations 257Standardization 257
Trained Appraisers 257Continuous Open Communication 258Conduct Performance Reviews 258Due Process 258
Legal Implications 258Appraisal Interview 259
Scheduling the Interview 259Interview Structure 260Use of Praise and Criticism 260Employees' Role 260Concluding the Interview 261
• A Global Perspective: Two Cultures' Views ofPerformance Appraisal 261
SUMMARY 262
KEY TERMS 263
QUESTIONS FOR REVIEW 263
HRM INCIDENT 1: THESE THINGS ARE A PAIN 263
HRM INCIDENT 2: PERFORMANCE APPRAISAL? 264
NOTES 264
PART FIVE: COMPENSATION 266
Direct Financial Compensation 267Chapter Objectives 266HRM in Action: Outrageous Severance Pay? 267Compensation: An Overview 268Equity in Financial Compensation 269Determinants of Direct Financial Compensation 270Organization as a Determinant of Direct Financial
Compensation 271Compensation Policies 271Organizational Level 272Ability to Pay 272
Labor Market as a Determinant of Direct FinancialCompensation 272
Compensation Surveys 273Expendiency 274Cost of Living 274Labor Unions 274Economy 275Legislation 275
Job as a Determinant of Direct FinancialCompensation 276
Job Evaluation 276Ranking Method 277Classification Method 277Factor Comparison Method 277
xii CONTENTS
Point Method 278
Point-Method Example 279
Hay Guide Chart-Profile Method (Hay)
Plan 281
Job Pricing 282
Pay Grades 282
Pay Ranges 283
Broadbanding 284
Single-Rate System 284
Adjusting Pay Rates 2 84
Employee as a Determinant of Direct FinancialCompensation 285
Job Performance—Performance-Based
Pay 285
Skills—Skill-Based Pay 286
Compentencies—Competency-Based Pay 287
Seniority 287
Experience 288
Organization Membership 288
Potential 288
Political Influence 288
Luck 288
Team-Based Pay 289
Company-Wide Pay Plans 289
Profit Sharing 290
Gainsharing 290
• Ethical Dilemma: Creative Accounting? 291
Professional Employee Compensation 291
Sales Representative Compensation 292
Contingent Worker Compensation 292
• Trends if Innovations: Are Top Executives
Paid Too Much? 293
Executive Compensation 293
Base Salary 294
Stock Option Plans 294
Short-Term Incentives or Bonuses 294
Performance-Based Pay 295
Executive Benefits (Perquisites) 295
Golden Parachutes 295
• A Global Perspective: China's Compensation
Problems 296
SUMMARY 297
KEY TERMS 298
QUESTIONS FOR REVIEW 298
HRM INCIDENT 1: A MOTIVATED WORKER! 299
HRM INCIDENT 2: THE CONTROVERSIAL JOB 299
NOTES 300
Benefits, Nonfinancial Compensation,and Other Compensation Issues 303
Chapter Objectives 302
HRM in Action: Unique Benefits 303
Benefits (Indirect Financial Compensation) 304
• Ethical Dilemma: A Poor Bid 305
Mandated (Legally Required) Benefits 306
Social Security 306
Unemployment Compensation 306
Workers' Compensation 306
Family and Medical Leave Act 307
Discretionary (Voluntary) Benefits 307
Payment for Time Not Worked 307
Paid Vacations 307
Sick Pay and Paid Time Off 309
Sabbaticals 309
Other Types of Payment for Time NotWorked 309
HealthCare 310
Managed-Care Health Organizations 310
Consumer-Driven Health Care Plans 311
• Trends if Innovations: On-Site Health Care 311
Major Medical Benefits 312
Dental and Vision Care 312
Long-Term Care 312
Life Insurance 313
Retirement Plans 313
Defined Benefit Plans 313
Defined Contribution Plans 313
Cash Balance Plans 314
Disability Protection 314
Employee Stock Option Plans 315
Supplemental Unemployment Benefits 315
Employee Services 315
Relocation Benefits 315
Child Care 316
Educational Assistance 316
Food Services/Subsidized Cafeterias 316
Financial Services 316
Legal Services 317
Scholarships for Dependents 317
Customized Benefit Plans 317
Premium Pay 318
Health Care Legislation 318
Consolidated Omnibus Budget ReconciliationAct 318
CONTENTS xi i i
Health Insurance Portability and AccountabilityAct 319
Employee Retirement Income SecurityAct 319
Older Workers Benefit Protection Act 319Pension Protection Act 320
Communicating Information About the BenefitsPackage 320
Nonfinancial Compensation 320Job Itself as a Nonfinancial Compensation
Factor 321Job Characteristics Theory 322
Skill Variety 322Task Identity 322Task Significance 322Autonomy 322Feedback 323
Job Environment as a Nonfinancial CompensationFactor 323
Sound Policies 323Capable Managers 323Competent Employees 324Congenial Co-workers 324Appropriate Status Symbols 324Working Conditions 324 ,
Workplace Flexibility (Work-Life Balance) 324Flextime 325Compressed Workweek 326Job Sharing 326Examples of Executive Job Sharing 326Two in a Box 327Telecommuting 327Part-Time Work 328
Other Compensation Issues 329Severance Pay 329Comparable Worth 329Pay Secrecy 330Pay Compression 330
• A Global Perspective: Expat Lifestyle Is Not What ItUsed to Be 331
SUMMARY 332
KEY TERMS 333
QUESTIONS FOR REVIEW 333
HRM INCIDENT 1: FLEXTIME 334
HRM INCIDENT 2: A BENEFITS PACKAGE DESIGNEDFOR WHOM? 334
NOTES 335
PART SIX: SAFETY AND HEALTH 338
A Safe and Healthy WorkEnvironment 339
Chapter Obj ectives 338HRM in Action: Dominant Crime of the Twenty-First
Century: Identity Theft 339Nature and Role of Safety and Health 340Occupational Safety and Health Administration 341Safety: The Economic Impact 342Focus of Safety Programs 3 42
Unsafe Employee Actions 343Unsafe Working Conditions 343Developing Safety Programs 343
• Ethical Dilemma: Illegal Dumping 343Accident Investigation 345Evaluation of Safety Programs 345
Repetitive Stress Injuries 347Ergonomics 347
Congress and OSHA 348Ergonomics Payoff 348
Workplace Violence 348Vulnerable Employees 349Legal Consequences of Workplace
Violence 349Individual and Organizational Characteristics to
Monitor 349Preventive Actions 3 50
Domestic Violence 351Nature of Stress 351
Potential Consequences of Stress 352Stressful Jobs 352Organizational Factors 353Personal Factors 353General Environment 3 54
Managing Stress 354Burnout 355• Trends if Innovations: Some Are Paid to Be Healthy;
Some Have to Pay Because They AreUnhealthy 356
Wellness Programs 357Physical Fitness Programs 358Substance Abuse 358
Alcohol Abuse 359Drug Abuse 359
Substance-Abuse-free Workplace 359Implementing a Drug-Testing Program 361
x i v CONTENTS
Employee Assistance Programs 3 62
Smoke-free Workplaces 363
• A Global Perspective: Global Safely Programs 364
SUMMARY 365
KEY TERMS 366
QUESTIONS FOR REVIEW 366
HRM INCIDENT 1 : WHAT A CHANGE! 367
HRM INCIDENT 2: A COMMITMENT TO SAFETY? 367
NOTES 368
PART SEVEN: EMPLOYEE AND LABOR
Labor Unions and CollectiveBargaining 371
Chapter Objectives 370HRM in Action: Change to Win Coalition 371Union Objectives 372Organized Labor's Strategies for a Stronger
Movement 3 72Strategically Located Union Members 373Organizing Several Big Companies at Once 373Pulling the Union Through 373Political Involvement 373Union Salting 374Flooding the Community 3 74Public Awareness Campaigns 374Building Organizing Funds 3 74
• Ethical Dilemma: A Strategic Move 315Organizing through the Card Check 375
Why Employees Join Unions 375Dissatisfaction with Management 375Social Outlet 3 76Opportunity for Leadership 376Forced Unionization 377Peer Pressure 377
Union Structure 377Local Union 377National Union 378American Federation of Labor and Congress of
Industrial Organizations (AFL-CIO) 378Establishing the Collective Bargaining Relationship 379
Signing of Authorization Cards 380Petition for Election 381Election Campaign 381
• Trends & Innovations: The Two-Tier Wage SystemReturns 382
Election and Certification 3 82
Collective Bargaining 382Collective Bargaining Process 383Psychological Aspects of Collective Bargaining 3 84Preparing for Negotiations 3 84Bargaining Issues 387
Recognition 387Management Rights 387Union Security 388Compensation 389Grievance Procedure 3 89Employee Security 389Job-Related Factors 389
Negotiating the Agreement 390Breakdowns in Negotiations 391
Third-Party Intervention 391Union Strategies for Overcoming Negotiation
Breakdowns 392Management Strategies for Overcoming
Negotiating Breakdowns 394Ratifying the Agreement 395Administration of the Agreement 395Collective Bargaining in the Public Sector 396Union Decertification 396
Decertification Procedure 397Management and Decertification 397
Unions Today 398• A Global Perspective: The ICFTU Says Union
Organizing Can Be Dangerous 399
SUMMARY 400
KEY TERMS 401
QUESTIONS FOR REVIEW 402
HRM INCIDENT 1 : BREAK DOWN THE BARRIER 402
HRM INCIDENT 2: YOU ARE OUT OF WHAT? 403
NOTES 403
Appendix Chapter 12: History of Unions in theUnited States 405Labor Movement Before 1930 405Labor Movement After 1930 406
Anti-Injunction Act (Norris-LaGuardia Act),1932 406
National Labor Relations Act (Wagner Act),1935 406
Labor Management Relations Act (Taft-HartleyAct), 1947 408
Labor-Management Reporting and Disclosure Act(Landrum-Griffin Act), 1959 409
KEY TERMS 409
NOTES 409
CONTENTS xv
Internal Employee Relations 411Chapter Objectives 410
HRM in Action: Worker Retention 411
Internal Employee Relations Defined 412
Employment at Will 412
Discipline and Disciplinary Action 414
Disciplinary Action Process 414
Approaches to Disciplinary Action 415
Hot Stove Rule 415
Progressive Disciplinary Action 416
Disciplinary Action without Punishment 417
Problems in the Administration of DisciplinaryAction 418
• Ethical Dilemma: To Fire or Not to Fire 419
Grievance Handling Under a Collective BargainingAgreement 420
Grievance Procedure 420
Arbitration 421
Proof That Disciplinary Action Was Needed 422
Grievance Handling in Union-Free Organizations 422
Ombudspersons 42 3
Alternative Dispute Resolution 423
Termination 424
• Trends & Innovations: Outsourcing Terminations 425
Termination of Employees at Various Levels 42 5
Termination of Nonmanagerial/NonprofessionalEmployees 42 5
Termination of Executives 426
Termination of Middle and Lower-Level Managersand Professionals 427
Termination Software 427
Demotion as an Alternative to Termination 427
Transfers 428
Promotions 42 8
Resignations 429
Analyzing Voluntary Resignations 429
Attitude Surveys: A Means of Retaining Quality
Employees 430
Advance Notice of Resignation 43 0
Retirements 431
• A Global Perspective: Help for Expats: A Buddy
Helps Find the Way 432
SUMMARY 433
KEY TERMS 434
QUESTIONS FOR REVIEW 434
HRM INCIDENT 1: SHOULD HE BE FIRED? 435
HRM INCIDENT 2: TO HECK WITH THEM! 435
NOTES 436
PART EIGHT: OPERATING IN A GLOBALENVIRONMENT 438
Global Human Resource Management 439Chapter Objectives 438
HRM in Action: Global Bribery 43 9
Evolution of Global Business 440
Global Strategic Human Resource Management 442
Global Staffing 442
Types of Global Staff Members 443
Approaches to Global Staffing 443
Selecting Expatriates 444
Background Investigation 445
Hiring Temps in Japan 445
• Trends if Innovations: American Companies Hiring
Foreign-Born Executive 446
Global Human Resource Development 446
Expatriate Training and Development 446
Pre-Move Orientation and Training 447Continual Development: Online Assistance and
Training 447
Repatriation Orientation and Training 447
Global E-learning 448
Global Compensation 449
Compensation for Host-Country Nationals 449
Expatriate Compensation 450
Unique Benefits in Japan 450
Global Safety and Health 450
Global Health Care Legislation 451
Global Employee and Labor Relations 451
Global Legal and Political Factors 452
• Ethical Dilemma: Mordita 453
Virtual Teams in a Global Environment 454
SUMMARY 455
KEY TERMS 456
QUESTIONS FOR REVIEW 456
HRM INCIDENT 1; THE OVERSEAS TRANSFER 456
HRM INCIDENT 2: WAS THERE ENOUGH
PREPARATION? 457
NOTES 457
GLOSSARY 461
NAME INDEX 471
COMPANY INDEX 477
SUBJECT INDEX 480
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