BRIEF TABLE OF CONTENTS
P A RT ONE
Human Resource Management and the Environment
1 Strategic Human Resource Manage ment in a Changing Environment
2 The Role of Globalization in HR Policy and Practice
3 The Legal Environment of HRM: Equal Employment Opportunity
P A RT TWO
Acquiring Human Resource Capability
4 Work Analysis and Design
5 Human Resource Planning and Recruitment
6 Personnel Selection
P A R T THREE
Developing Human Resource Capability
7 Performance Management and Appraisal
8 Training and Development
9 Career Development
P A RT FOUR
Compensating and Managing Human Resources
10 Compensation: Base Pay and Fringe Benefits
1 I Pay for Performance
12 Managing the Employment Relationship
13 Labor Relations and Collective Bargaining
14 Employee Health and Safety
vii
TABLE OF
CONTENTS
PART Preface iv How Do Companies Engage in International
Commerce? 22
Exporting Work 24
Human Resource Management Summary 25
International Business Strategies 25
and the Environment 1
What Influences the Type of International
Strategy a Firm Will Choose? 26
1 Strategic Human Resource Management in a Domestic versus International HR 27
Changing Environment 2 International HR Strategies 29
What Influences the Choice of
Overview 2
Objectives 3 IHRM Strategy? 30
What Is Human Resource Management? 4 International Business Assignments 30
HRM and Corporate Performance 4 Global Leadership and Challenges 32
Discrepancies between Academic Research and Summary 35
HRM Practice 5 Discussion Questions 36
The Activities of Human Resource Management 6
Trends Enhancing the Importance of HRM 8
Trend 1: The Increased Globalization of the 3 The Legal Environment of HRM: Equal
Economy 8 Employment Opportunity 37
Trend 2: Technological Changes, Challenges,
and Opportunities 9 Overview 37
Trend 3: The Need to Be Flexible in Response Objectives 38
to Changing Business Environments 10 Equal Employment Opportunity Law 39
Trend 4: Increase in Litigation Related to HRM 11 What Is Employment Discrimination? 39
What Are the Major Sources of
Trend 5: Changing Characteristics of the
EEO Redress? 39
Workforce II
Title VII of the Civil Rights Act of 1964 43
The Importance of HRM Measurement in Strategy
What Is the EEOC? 43
Execution 12
Competitive Advantage 15 What Is Not Prohibited by Title VII? 46 How
Customer Value 15 Do You File a Title VII Lawsuit? 46 What
Customer Value and Corporate Social Legal Steps Are Followed in a Title VII
Case? 46
Responsibility (CSR) 16
What Constitutes Sexual Harassment under
Maintaining Uniqueness 17 Title VII? 50
Sources of Uniqueness 17 What Is the Employer's Liability in Sexual
Summary 19
Harassment Cases? 50
Discussion Questions 19
What Is Affirmative Action? 51
What Is the Legal Status of Affirmative
Action? 53
2 The Role of Globalization in HR Policy and What Is Required before a Company Embarks on
Practice 20 a Voluntary Affirmative Action/Diversity
Overview 20 Program? 54
Is Affirmative Action Still Necessary? 54
Objectives 22 viii
Table of Contents ix
The Age Discrimination in Employment Act of Autonomous Work Groups (AWG) or Self-Managing
1967, Amended in 1978 and 1986 55 What Is Teams 96
Required to Establish Prima Facie Suggestions for Using AWGs or Self : Managing
Evidence of Age Discrimination? 55 Work Teams 97
Can Employers Claim Age as a Bona Fide The Effectiveness of AWGs or Self-Managing
Occupational Qualification (BFOQ)? 55 Work Teams 97
The Americans with Disabilities Act of Is There Bias and Inaccuracy in Work Analysis
1990 (ADA) 56 Data? 97
What Is Legal and Illegal under ADA? 56 How Do You Choose the Best Work Analysis
Pregnancy Discrimination Act of 1978 59 Method? 98
Are Expatriates Covered by Federal EEO Laws Summary 98
When They Are Assigned to Countries Other Discussion Questions 99
than the United States? 59
What Are Employee Rights When Working for
Multinational Employers? 59 5 Human Resource Planning and Recruitment 100
Future Trends in EEO 62
Overview 100
Alternative Dispute Resolution: An Employer
Reaction to Increased Litigation 62 Summary Objectives 101
65 Effective Human Resource Planning 101
One Implication of Increased Litigation: Better Step One: Environmental Scanning 101
HRM Practices 65 Step Two: Labor Demand Forecast 106
Discussion Questions 66 Step Three: Labor Supply Forecast 109
Step Four: Gap Analysis 111
Step Five: Action Programming 114
Step Six: Control and Evaluation 114
The Recruitment Function: Putting HRP
Acquiring Human Resource into Action 115
Capability 67 Recruitment, Other HR Activities, and
II
Organizational Attractiveness 115
The Three Essential Steps for Recruitment
4 Work Analysis and Design 68 Planning I16
The Two Sources of Recruiting: Internal and
Overview 68
External 118
Objectives 69 Advantages and Disadvantages of Internal and
What Is Work Analysis? 69 External Recruiting 118
WhatAre the Major Goals for Work Analysis? 70 External Recruitment Sources 119
Do We Really Need All the Specificity in Formal What Method of Recruiting Is Most
Job Analysis? 71 Effective? 127
What Is the Legal Significance of Work Two Philosophies of Recruiting: Flypaper versus
Analysis? 71 Matching 130
What Are the Major Work Analysis Products? 72 Understanding the Recruits 131
What Are the Major Methods of Work Analysis? 75 Human Resource Planning and Recruitment
What Are the Dimensions on Which Work for Multinational Corporations 131 Summary
Analvsis May Vary? 75 134
What Are the Most Useful Work Analysis
Discussion Questions 134
Methods? 78
Position Analysis Questionnaire (PAQ) 78
Management Position Description Questionnaire 6 Personnel Selection 135
(MPDQ) 82
Competency Modeling 82 Overview 135
O*NET 86 Objectives 135
Critical Incident Technique (CIT) 88 Selection Methods: Are They Effective? 1 37
Job Compatibility Questionnaire (JCQ) 92 What Is Reliability? 137
The Job Diagnostic Survey (JDS) 93 What Is Validity? 137
Multimethod Job Design Questionnaire What Is Utility? 139
(MJDQ) 94 Application Blanks and Biographical Data 1 39
What Is Strategic Job Analysis? 94 A Discrepancy between Research and Practice: The
What Is Work Process Mapping? 95 Use of Application and Biographical Data 140
x Table of Contents
How Do You Derive WAB or BIB or How Do We Define Performance and Why Do We
Accomplishment Record Weights? 141 Measure It? 173
Reference Checks and Background Checks 141 What Are the Uses of Performance Data? 175
What Are the Legal Implications of Doing Legal Issues Associated with Performance
Background Checks on Job Candidates? 141 Appraisals 175
Personnel Testing 142 Designing an Appraisal System 177
What Is a Cognitive Ability Test? 142 Measurement Content 177
WhatAre Tests of Specific Ability? 143 The Measurement Process 178
Are There Racial Differences in Test Control of Rating Errors 183
Performance? 143 Defining the Rater 187
Why Do Minorities Score Lower than Whites on Defining the "Ratee" 188
Cognitive Ability Tests? 144 Administrative Characteristics 190
How Do Organizations Deal with Race Methods of Delivering Performance
Differences on Cognitive Ability Tests? 145 Feedback 190
What Is Personality/Motivation/Dispositional Summary 191
Testing? 145 Discussion Questions 191
What Is the Validity of Personality Tests? 149
Approaches to the Prediction of Particular
8 Training and Development 192
Criteria 150
How Do You Establish a Testing Program? 152 Overview 192
Drug Testing 152 Objectives 193
Defining Training and Development 193
Performance Extent of Training and Development 194
Is Testing an Invasion of Privacy? 153
What Is an Assessment Center? 154 A Systems View of Training 195
Testing/Work Samples 153
How Are Assessments Done? 154 Discrepancies between Research
What Is the Validity and Adverse Impact of' and Practice 196
Assessment Centers and Other Performance Needs Assessment 197
Tests? 157 Organizational Analysis 197
Performance Appraisals/Competency Job Analysis 197
Assessment 157 Interviews 157 Person Analysis 197
What Factors Affect the Employment Techniques . for Collecting Needs Assessment
Interviews? 158 Data 199
What Is the Validity of Employment Deriving Instructional Objectives 199
Inten'iew? 159 Development of the Training Program 200 Designing
How Do We Improve the Validity of
a Learning Environment for
Interviews? 160
Training 200
What Are Major Types of Interviews? 161
Combining Data from Various Selection Preconditions of Learning 200
Methods 163 Conditions of the Learning Environment 201
Personnel Selection for Overseas Assignments 164 Using Learning Principles to Develop Training
Selection in Other Countries 166 Materials 203
The Bottom Line on Staffing 168 Transfer of Training 203
Summary 168 Choosing Methods for the Training
Discussion Questions 169 Program 204
Informational Methods 206
Experiential Methods 207
Evaluation 212
Types of Criteria 212
Effectiveness of Organizational Training 2/6
Assessing the Costs and Benefits of Training 216
Designs for Evaluating Training 217
P ART
Benchmarking Training Efforts 218
Planning for Training Effectiveness in
Developing Human Resource Organizations 218
Capability 171 Special Training Programs 218
Employee Orientation Programs 218
Training , for Teams 220
7 Performance Management and Appraisal 172
Overview 172
Objectives 173
Table of Contents xi
Information-Technology Training 221 The Traditional Approach to Compensation 255
Diversitv° Awareness Training 221 What Is Internal Equity? 255
Sexual Harassment Training 222 Job Evaluation Methods 255
Creativity Training 222 What Is External Equity? 259
Training for International Assignments 222 Current Trends in Salary Administration 261
Summary 224 Government Influence on Compensation
Discussion Questions 226 Issues 263
Pay Equity or Comparable Worth Policy 265
Other Compliance Issues 266
9 Career Development 227 Fringe Compensation: Employee Benefits 267
Overview 227 Five Categories of Employee Benefits 268
Objectives 227 Communicating the Benefits Program 273
Definitions 228 International Compensation 274
Implications of Workplace Changes for Individuals Base Salary 275
and Organizations 229 Foreign Service Premiums 275
Allowances 276
What Should Individuals Do? 229
Benefits 276
What Should Organizations Do? 230
Summary 277
Importance of Understanding Career
Discussion Questions 277
Development 230
Designing Career Development Systems 231
Benefits of Career Development Systems 231 11 Pay for Performance 278
Components of Career Development Systems 233
Overview 278
Self-Assessment Tools 234
Objectives 279
Individual Counseling 235
Does PFP Work? 280
Information Services 235
What Are the Determinants of Effective
Organizational Assessment Programs 237
PFP Systems? 281
Developmental Programs 239 What Are the Main Problems with
Career Programs for Special Target Groups 240 PFP Programs? 283
Fast-Track Employees 240
What Are the Legal Implications of PFP? 284
Outplacement Programs 240
Entrenched Employees 241 How Do You Select a PFP System? 284 Who
Should Be Included in a
Supervisors and Career Counseling 242
PFP System? 284
Executive Coaching 242
What Are the Rewards in a PFP System? 285 A
Programs for Women, Minorities, and Employees
Discrepancy between Research and Practice
with Disabilities 242
285
Programs for New Employees (Early-Career
Should You Use Individual, Group, or
Issues) 243
Company-Level PFP? 286
Programs for Late Career and Retirement 243 When Should Team-Based PFP Be Used? 286
Programs to Assist Employed Spouses and Individual PFP Plans: Merit Pay and Incentive
Parents 244 Systems 287
Career Development Issues with Teams 246 What Are Merit Pay Plans? 287
Repatriates 247 What Is Incentive Pay? 288
Summary 248 What Are Sales Incentive Plans? 290
Discussion Questions 249 What Are Bonuses? 290
What Are Group Incentive Plans? 291
What Is Profit Sharing? 291
What Is Gain Sharing? 292
What Are Employee Stock Option Plans? 294
Managerial and Executive Incentive Pay 295
P AR T Compensating and Managing Are There Documented Negative Consequences
Human Resources 251 to Widening Pay Dispersion? 296
Should You Use Short- or Long-Term Measures
10 Compensation: Base Pay and Fringe of Performance? 296
What about the Corporate Board Room? How
Benefits 252
Should Directors Be Paid? 297
Overview 252
Objectives 255
Cash Compensation: Base Pay 255
xii Table of Contents
How Do Companies Keep Entrepreneurs and Current and Future U.S. Trends in
Promote Intrapreneurs? 297 Labor Relations 343
What Are the Managerial Implications for Union Membership 343
PFP Programs? 297 Public-Sector Union Membership 344
Summary 298 Mergers and Acquisitions 345
Discussion Questions 299 Retraining Provisions 345
Employee Benefits 345
12 Managing the Employment Relationship 300 A Proposal to Reinvent U.S. Trade Unionism 345
International Issues 346
Overview 300 U.S. Managers and Unions 346
Objectives 301 Global Collective Bargaining and
Introduction 301 Productivity 348
Organizational Justice 301 Summary 349
Ethics Programs 302 Discussion Questions 349
Organizational Entry 303
Employment Status 303
Flexible Work Arrangements 303
Realistic Job Previews 304 14 Employee Health and Safety 350
Socialization and Orientation 305
Overview 350
The Ongoing Relationship 306
Objectives 351
External Forces: Law 307
Common Workplace Injuries and Diseases 352
Internal Forces: Employee Surveys 310 Legal Issues Related to Health and Safety 353
Internal Forces: Employee Handbooks 311 Workers' Compensation 353
Violations of Policy/Discipline 315 The Occupational Safety and Health
Grievances 316 Administration Act 355
Organizational Exit 317 Programs to Reduce Accidents at Work 365
Termination 318 Selective Hiring 366
Resignation/Voluntary Turnover 319 Safety Training 366
Downsizing and Layoffs 322 Teamwork, Supervision, and Decentralized
Retirement 323 Decision Making 368
Summary 324 Discussion Incentive Systems 368
Questions 325 Safety Rules 368
Contemporary Issues Related to Health
13 Labor Relations and Collective Bargaining 326 and Safety 369
AIDS and the Workplace 369
Overview 326 Drugs in the Workplace 370
Objectives 327 Smoking in the Workplace 372
Why Do Workers Join Unions? 327 Violence in the Workplace 373
The Legal Environment of Labor Relations 329 Video Display Terminals 377
National Labor Relations Act (NLRA) 329 The Repetitive Strain Injuries (RSI) 377
Taft-Hartley Act 330 Occupational Stress 379
Other Important Labor Laws 331 Employee Assistance Programs 383 Employee
How Do Workers Form Unions? 331 Wellness or Fitness Programs 384 Summary
The Effects of Unions 333 385
Unions and Quality of Worklife Issues 334 Discussion Questions 386
Union Effects on Worker Satisfaction 335
Unions and HRM 335
Collective Bargaining 335 Appendix A Critical Thinking Applications 388
The Labor Contract 335 1-A What Do You Know about HRM? 388
1-B Corporate Social Responsibility and Human
Issues in Collective Bargaining 336
Resources Management? 389
Types of Bargaining 336
Conducting Labor Contract Negotiations 337
1-C Resolution: Close Down the Human Resources
The Union 's Economic Power in Collective Department 391
Bargaining 339 2-A What Is the Origin of Your University
The Employer ' s Power in Collective Apparel? 392
Bargaining 339 2-B International HR: How about a Cuppa? 393
Administration of the Labor Contract 340 3-A Are Dreadlocks Protected under Title VII? 394
3-B Allegations of Religious Discrimination 395 4-
A Can PAS Defend Its Test in Court? 396
Table of Contents xiii
4-B What to Do with Job Diagnostic Survey 4.2 The Use of the Critical Incident Technique to
Results 397 Analyze the Job of University Professor 506 4. 3
5-A Recruiting on the Internet 407 Job Analysis at CompTech 509
5-B Hi, I'm in Bangalore (but I Can't Say So) 408 5.1 A Turnover Problem at the Fort Lauderdale
5-C Is Wal-Mart Guilty of Gender Discrimination? 408 Herald 515
6-A What Privacy Do We Have in the Workplace? 41 I 5.2 Permalco's Recruiting Challenge 519
5.3 Recruiting at Julia Richter's "Dressed for
6-B The Measurement of Personality Traits 412
Success" 523
7-A Should We Measure Competencies in Performance
Appraisal? 414 5.4 HR Planning at COMPTECH 524
7-B The Role of Mystery Shoppers in Performance 6.1 Should Tenneco Use the Wonderlic Test? 532
Appraisal 415 6.2 Hiring a Plant Manager at Dynamo Industries 5 35
7-C Allegations of Age and Race Discrimination 6.3 What Questions Can You Ask in an Interview? 539
against Ford Motor Company 415 7.1 Performance-Appraisal Feedback: A Role-Play
7-D Performance Appraisal Characteristics Exercise 545
Questionnaire 416 7.2 The Heartland Greeting Cards Consulting
8-A Workplace Diversity Training 417 Problem 548
8-B Sexual Harassment Training 418 7.3 Price Waterhouse v. Hopkins 554
9-A Careers and Corporate Social Responsibility 421 7.4 Performance Appraisal at Darby Gas & Light 558
9-B O*NET Skills Search 421 7.5 The Development of a Performance Appraisal
System for Instructors 564
10-A Defending Corporate Executive Pay 423
8.1 Conducting a Needs Assessment 570
10-B Illegal Pay Discrimination, Bad Pay Policy,
8.2 Rainyday Insurance Adjusters Company 57 3
or Both? 424
8.3 Backwoods Mail Order Company 577
10-C Legal or Illegal Compensation Plan? 425 8.4 The Development and Evaluation of a Training
11-A The Case for and against Pay-for-Performance Program for Graduate Student Instructors 580 8.5
Systems 425 Self-Directed Learning Assessment 583
11-B The Prediction of Rating Error 426 9.1 Attitudes about Older People 586
I 1-C Can We (and Should We) Apply the Lincoln 9.2 Career Development Self-Assessment Exercise 588
Electric Method? 428 9.3 Career Development at TechnoChip Computers 594
1 1-D Should Teacher Pay Be Tied to Student 10.1 Problems in the Pay System 601
Scores? 429 10.2 Should the State Adopt a Pay Equity Policy? 607
12-A Employment-at-Will 429 10.3 Developing an Employee Benefits Program 61 3
12-B Developing Organizational Policy and a 11.1 The Design of a PFP System for Mega
Code of Ethics 430 Manufacturing 621
13-A Unionizing FedEx 431 I 1.2 Pay for Performance at Dee's Personalized
13-B Do You Support Striker Replacement Baskets 625
Legislation? 432 12.1 An Approach to Downsizing 629
14-A Can Health and Safety Behavior Be Predicted? 432 12.2 Compududes Considers Arbitration Options for
14-B The Measurement of Stress at Work 433 Employee Disputes 635
12.3 Handling an Employee's Termination 6 38
13.1 Organizing a Union 643
Appendix B Chapter Exercises 436
1.1 An Interview with an HRM Specialist 4 38 13.2 Unions, Labor Law, and Managerial
1.2 An Assessment of Customer Satisfaction and the Prerogatives 645
13.3 The Baseball Strike: An Example of Collective
Relationship to HRM Activities 442 Bargaining 649
1.3 Human Resource Issues at Valley 14.1 The Development of a Company Smoking
National Bank 450 Policy 654
2.1 International HR Strategies: The Derivation of 14.2 The Development of an Antidrug Policy 655
Policy 459 14.3 The Development of a Health and Safety Policy 656
2.2 Going Global with Marriott Corporation 462 14.4 The Development of a Threat Management Team
3.1 Zimpfer v. Palm Beach County 466 for a Workplace Violence Incident 658
3.2 Goebel et al. v. Frank Clothiers 474
3.3 A Case of Illegal Sexual Harassment? 478 3.4 Appendix C Assessment Guidelines for Self, Peer,
Reverse Discrimination or Legal Affirmative and Designated Assessors 662
Action? 481
3.5 Joseph Garcia v. Hooters, Cameron v. LaVeille Endnotes 667
Maison 486
3.6 Hiring a Bank Teller 488 Indexes 704
4.1 Writing a Position Description 49 3