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									TABLE                    OF         C ONTENTS
Preface iv                                              2 The Role of Globalization in HR Policy and
                                                          Practice 24
  P A R T
                                                          Overview 24
       I         Human Resource
                 Management and the
                                                          Objectives 26
                                                          How Do Companies Engage in International
                 Environment 1                               Commerce? 26
                                                             Exporting Work 29
 1 Strategic Human Resource Management in a                  Summary 30
   Changing Environment 2                                 International Business Strategies 31
                                                             What Influences the Type of International
       Overview 2                                               Strategy a Firm Will Choose? 31
       Objectives 3                                       Domestic versus International HR 32
       What Is Human Resource Management? 4               International HR Strategies 35
          HRM and Corporate Performance 4                    What Influences the Choice of
       Discrepancies between Academic Research and              IHRM Strategy? 36
          HRM Practice 5                                  International Business Assignments 37
       The Activities of Human Resource                   Global Leadership and Challenges 39
          Management 7                                    Summary 43
       Trends Enhancing the Importance of HRM 9           Discussion Questions 44
          Trend 1: The Increased Globalization of the
             Economy 10
          Trend 2: Technological Changes,
             Challenges, and Opportunities 11           3 The Legal Environment of HRM: Equal
          Trend 3: The Need to Be Flexible in             Employment Opportunity 45
             Response                                     Overview 45
             to Changing Business Environments 12         Objectives 46
          Trend 4: Increase in Litigation Related to      Equal Employment Opportunity Law 47
             HRM 13                                          What Is Employment Discrimination? 47
          Trend 5: Changing Characteristics of the           What Are the Major Sources of
             Workforce 14                                       EEO Redress? 50
       The Importance of HRM Measurement in               Title VII of the Civil Rights Act of 1964 54
          Strategy Execution 15                              What Is the EEOC? 54
       Competitive Advantage 18                              What Is Not Prohibited by Title VII? 54
          Customer Value 18                                  How Do You File a Title VII Lawsuit? 56
          Customer Value and Corporate Social                What Legal Steps Are Followed in a Title VII
             Responsibility (CSR) 19                            Case? 56
          Maintaining Uniqueness 21                          What Constitutes Sexual Harassment under
          Sources of Uniqueness 21                              Title VII? 59
       Summary 23                                            What Is the Employer’s Liability in Sexual
       Discussion Questions 23                                  Harassment Cases? 60
                                                             What Is Affirmative Action? 63
                                                             What Is the Legal Status of Affirmative
                                                                Action? 63
                                                                          Table of Contents       ix

     What Is Required before a Company                What Are the Dimensions on Which Work
        Embarks on a Voluntary Affirmative                Analysis May Vary? 90
        Action/Diversity Program? 64               What Are the Most Useful
     Is Affirmative Action Still Necessary? 64         Formal Approaches to Work Analysis
  The Age Discrimination in Employment Act of         Methods? 97
     1967, Amended in 1978 and 1986 65                Position Analysis Questionnaire (PAQ) 97
     What Is Required to Establish Prima Facie        Management Position Description
        Evidence of Age Discrimination? 65               Questionnaire (MPDQ) 98
     Can Employers Claim Age as a Bona Fide           Competency Modeling 104
        Occupational Qualification (BFOQ)? 66          O*NET 106
  The Americans with Disabilities Act of              Critical Incident Technique (CIT) 107
     1990 (ADA) 66                                    Job Compatibility Questionnaire (JCQ) 107
     What Is Legal and Illegal under ADA? 69          The Job Diagnostic Survey (JDS) 108
  Pregnancy Discrimination Act of 1978 69             Multimethod Job Design Questionnaire
  Are Expatriates Covered by Federal EEO Laws            (MJDQ) 109
     When They Are Assigned to Countries Other        What Is Strategic Job Analysis? 109
     than the United States? 72                       What Is Work Process Mapping? 110
     What Are Employee Rights When Working         Autonomous Work Groups (AWG) or Self-
        for Multinational Employers? 74               Managing Teams 112
  Future Trends in EEO 75                             Suggestions for Using AWGs or Self-
     Alternative Dispute Resolution: An                  Managing Work Teams 112
        Employer Reaction to Increased                The Effectiveness of AWGs or Self-
        Litigation 75                                    Managing Work Teams 112
  Summary 76                                       Is There Bias and Inaccuracy in Work Analysis
     One Implication of Increased Litigation:         Data? 113
        Better HRM Practices 76                    How Do You Choose the Best Work Analysis
  Discussion Questions 77                             Method? 113
                                                   Summary 114
                                                   Discussion Questions 115

  II       Acquiring Human Resource
           Capability 79
                                                 5 Human Resource Planning and Recruitment
                                                   Overview 116
4 Work Analysis and Design 80
                                                   Objectives 117
  Overview 80                                      Effective Human Resource Planning 117
  Objectives 81                                       Step One: Environmental Scanning 117
  What Is Work Analysis? 81                           Step Two: Labor Demand Forecast 123
    What Are the Major Goals for Work                 Step Three: Labor Supply Forecast 126
       Analysis? 83                                   Step Four: Gap Analysis 128
    Do We Really Need All the Specificity in           Step Five: Action Programming 132
       Formal Job Analysis? 83                        Step Six: Control and Evaluation 133
    What Is the Legal Significance of Work          The Recruitment Function: Putting HRP
       Analysis? 84                                   into Action 133
    What Are the Major Work Analysis                  Recruitment, Other HR Activities, and
       Products? 84                                      Organizational Attractiveness 133
    What Are the Major Methods of Work                The Three Essential Steps for Recruitment
       Analysis? 89                                      Planning 135
x         Table of Contents

         The Two Sources of Recruiting: Internal and         What Is the Validity of Personality Tests?
            External 137                                        175
         Advantages and Disadvantages of Internal            Approaches to the Prediction of Particular
            and External Recruitment 137                        Criteria 176
         External Recruitment Sources 140                    How Do You Establish a Testing Program?
         What Method of Recruiting Is Most                      179
            Effective? 148                                Drug Testing 179
         Two Philosophies of Recruiting: Flypaper            Is Testing an Invasion of Privacy? 180
            versus Matching 152                           Performance Testing/Work Samples 180
         Understanding the Recruits 153                      What Is an Assessment Center? 182
         Human Resource Planning and Recruitment             How Are Assessments Done? 184
            for Multinational Corporations 153               What Is the Validity and Adverse Impact of
      Summary 156                                               Assessment Centers and Other
      Discussion Questions 157                                  Performance Tests? 185
                                                             Performance Appraisals/Competency
                                                                Assessment 185
    6 Personnel Selection 158
                                                          Interviews 186
      Overview 158                                           What Factors Affect the Employment
      Objectives 159                                            Interview? 186
      Selection Methods: Are They Effective? 160             What Is the Validity of Employment
         What Is Reliability? 160                               Interviews? 188
         What Is Validity? 162                               How Do We Improve the Validity of
         What Is Utility? 163                                   Interviews? 189
      Application Blanks and Biographical Data 163           What Are Major Types of Interviews? 191
         A Discrepancy between Research and Practice:     Combining Data from Various Selection
            The Use of Application and Biographical          Methods 192
            Data 164                                      Personnel Selection for Overseas Assignments
         How Do You Derive WAB or BIB or                     194
            Accomplishment Record Weights? 165            Selection in Other Countries 197
      Reference Checks and Background Checks              The Bottom Line on Staffing 198
         165                                              Summary 199
         What Are the Legal Implications of Doing         Discussion Questions 200
            Background Checks on Job Candidates?
      Personnel Testing 166                             P A R T
         What Is a Cognitive Ability Test? 167
         What Are Tests of Specific Ability? 168
         Are There Racial Differences in Test            III        Developing Human
                                                                    Resource Capability 201
            Performance? 168
         Why Do Minorities Score Lower than Whites
                                                        7 Performance Management and Appraisal
            on Cognitive Ability Tests? 170
         How Do Organizations Deal with Race
            Differences on Cognitive Ability Tests?       Overview 202
            170                                           Objectives 203
         What Is Personality/Motivation/                  How Do We Define Performance and Why Do
            Dispositional Testing? 172                      We Measure It? 203
                                                            What Are the Uses of Performance Data?
                                                                             Table of Contents    xi

  Legal Issues Associated with Performance               Assessing the Costs and Benefits of Training
     Appraisals 207                                         255
  Designing an Appraisal System 207                      Designs for Evaluating Training 256
     Measurement Content 208                             Benchmarking Training Efforts 257
     The Measurement Process 209                      Planning for Training Effectiveness in
     Control of Rating Errors 216                        Organizations 258
     Defining the Rater 220                            Special Training Programs 258
     Defining the “Ratee” 222                             Employee Orientation Programs 258
     Administrative Characteristics 223                  Training for Teams 260
     Methods of Delivering Performance                   Information-Technology Training 261
       Feedback 224                                      Diversity Awareness Training 261
  Summary 225                                            Sexual Harassment Training 262
  Discussion Questions 225                               Creativity Training 262
                                                         Training for International Assignments 263
                                                      Summary 265
8 Training and Development 226
                                                      Discussion Questions 267
  Overview 226
  Objectives 227
                                                    9 Career Development 269
  Defining Training and Development 228
  Extent of Training and Development 228              Overview 269
  A Systems View of Training 230                      Objectives 270
     Discrepancies between Research                   Definitions 270
        and Practice 231                              Implications of Workplace Changes for
  Needs Assessment 231                                  Individuals and Organizations 271
     Organizational Analysis 232                        What Should Individuals Do? 271
     Job Analysis 233                                   What Should Organizations Do? 272
     Person Analysis 233                              Importance of Understanding Career
     Techniques for Collecting Needs Assessment         Development 273
        Data 234                                      Designing Career Development Systems 275
     Deriving Instructional Objectives 234              Benefits of Career Development Systems
  Development of the Training Program 235                   275
     Designing a Learning Environment for             Components of Career Development Systems
        Training 235                                    277
     Preconditions of Learning 235                      Self-Assessment Tools 278
     Conditions of the Learning Environment             Individual Counseling 278
        237                                             Information Services 279
     Using Learning Principles to Develop               Organizational Assessment Programs 281
        Training Materials 239                          Developmental Programs 283
     Transfer of Training 239                         Career Programs for Special Target Groups
     Choosing Methods for the Training                  284
        Program 240                                     Fast-Track Employees 284
     Informational Methods 241                          Outplacement Programs 285
     Experiential Methods 244                           Entrenched Employees 286
  Evaluation 250                                        Supervisors and Career Counseling 286
     Types of Criteria 250                              Executive Coaching 287
     The Effectiveness of Organizational Training       Programs for Women, Minorities, and
        254                                                 Employees with Disabilities 287
xii        Table of Contents

         Programs for New Employees (Early-Career   11 Pay for Performance 331
           Issues) 288
                                                       Overview 331
         Programs for Late Career and Retirement
                                                       Objectives 332
                                                       Does PFP Work? 333
         Programs to Assist Employed Spouses and
                                                       What Are the Determinants of Effective
           Parents 289
                                                          PFP Systems? 334
         Career Development Issues with Teams 293
                                                       What Are the Main Problems with
         Repatriates 293
                                                          PFP Programs? 336
      Summary 295
                                                       What Are the Legal Implications of PFP? 338
      Discussion Questions 296
                                                       How Do You Select a PFP System? 338
                                                          Who Should Be Included in a
                                                             PFP System? 338
  P A R T                                                 What Are the Rewards in a PFP System?
      IV         Compensating and
                 Managing Human
                                                          A Discrepancy between Research and
                                                             Practice 340
                 Resources 297                            Should You Use Individual, Group, or
                                                             Company-Level PFP? 340
10 Compensation: Base Pay and Fringe Benefits              When Should Team-Based PFP Be Used?
   298                                                       341
                                                       Individual PFP Plans: Merit Pay and Incentive
      Overview 298                                        Systems 341
      Objectives 301                                      What Are Merit Pay Plans? 342
      Cash Compensation: Base Pay 301                     What Is Incentive Pay? 343
      The Traditional Approach to Compensation            What Are Sales Incentive Plans? 345
         303                                              What Are Bonuses? 346
         What Is Internal Equity? 303                  What Are Group Incentive Plans? 346
         Job Evaluation Methods 303                       What Is Profit Sharing? 347
         What Is External Equity? 306                     What Is Gain Sharing? 348
         Current Trends in Salary Administration          What Are Employee Stock Option Plans?
            309                                              350
         Government Influence on Compensation           Managerial and Executive Incentive Pay 351
            Issues 311                                    Are There Documented Negative
         Pay Equity or Comparable Worth Policy               Consequences to Widening Pay
            313                                              Dispersion? 352
         Other Compliance Issues 315                      Should You Use Short- or Long-Term
      Fringe Compensation: Employee Benefits 316              Measures of Performance? 353
         Categories of Employee Benefits 317               What about the Corporate Board Room?
      Communicating the Benefits Program 324                  How Should Directors Be Paid? 354
      International Compensation 325                   How Do Companies Keep Entrepreneurs and
         Base Salary 327                                  Promote Intrapreneurs? 354
         Foreign Service Premiums 327                  What Are the Managerial Implications for
         Allowances 327                                   PFP Programs? 354
         Benefits 328                                   Summary 355
      Summary 329                                      Discussion Questions 356
      Discussion Questions 329
                                                                           Table of Contents   xiii

12 Managing the Employment Relationship                Conducting Labor Contract Negotiations
   357                                                    401
                                                       The Union’s Economic Power in Collective
   Overview 357
                                                          Bargaining 403
   Objectives 358
                                                       The Employer’s Power in Collective
   Introduction 358
                                                          Bargaining 404
      Organizational Justice 358
                                                       Administration of the Labor Contract 404
      Ethics Programs 359
                                                    Current and Future U.S. Trends in
   Organizational Entry 360
                                                       Labor Relations 408
      Employment Status 360
                                                       Union Membership 408
      Flexible Work Arrangements 361
                                                       Public-Sector Union Membership 410
      Realistic Job Previews 362
                                                       Mergers and Acquisitions 410
      Socialization and Orientation 363
                                                       Retraining Provisions 410
   The Ongoing Relationship 364
                                                       Employee Benefits 411
      External Forces: Law 365
                                                       A Proposal to Reinvent U.S. Trade Unionism
      Internal Forces: Employee Surveys 368
      Internal Forces: Employee Handbooks 371
                                                    International Issues 411
      Violations of Policy/Discipline 375
                                                       U.S. Managers and Unions 413
      Grievances 376
                                                       Global Collective Bargaining and
   Organizational Exit 377
                                                          Productivity 415
      Termination 377
                                                    Summary 415
      Resignation/Voluntary Turnover 380
                                                    Discussion Questions 416
      Downsizing and Layoffs 383
      Retirement 384
   Summary 386                                   14 Employee Health and Safety 417
   Discussion Questions 386                         Overview 417
                                                    Objectives 418
13 Labor Relations and Collective Bargaining        Common Workplace Injuries and Diseases 420
   388                                              Legal Issues Related to Health and Safety 420
                                                       Workers’ Compensation 421
   Overview 388                                        The Occupational Safety and Health
   Objectives 389                                         Administration Act 423
   Why Do Workers Join Unions? 389                  Programs to Reduce Accidents at Work 436
   The Legal Environment of Labor Relations            Selective Hiring 437
     392                                               Safety Training 437
     National Labor Relations Act (NLRA) 392           Teamwork, Supervision, and Decentralized
     The Taft-Hartley Act 393                             Decision Making 439
     Other Important Labor Laws 393                    Incentive Systems 439
   How Do Workers Form Unions? 394                     Safety Rules 440
   The Effects of Unions 396                        Contemporary Issues Related to Health
     Unions and Quality of Worklife Issues 398         and Safety 440
     Union Effects on Worker Satisfaction 398          AIDS and the Workplace 440
     Unions and HRM 399                                Drugs in the Workplace 442
   Collective Bargaining 399                           Smoking in the Workplace 444
     The Labor Contract 400                            Violence in the Workplace 446
     Issues in Collective Bargaining 400               Video Display Terminals 450
     Types of Bargaining 400                           Repetitive Strain Injuries (RSI) 451
xiv       PART I Part Title

         Occupational Stress 453                    8-B Sexual Harassment Training 524
         Employee Assistance Programs 458           9-A Careers and Corporate Social Responsibility
         Employee Wellness or Fitness Programs              529
           459                                      9-B O*NET Skills Search 529
      Summary 461                                  10-A Defending Corporate Executive Pay 531
      Discussion Questions 462                     10-B Illegal Pay Discrimination, Bad Pay Policy,
                                                            or Both? 533
CASE STUDIES          464                          10-C Legal or Illegal Compensation Plan? 533
Case 1: India through the Looking Glass 465        11-A The Case for and against Pay-for-
                                                            Performance Systems 534
Case 2: Managing Overseas 470                      11-B The Prediction of Rating Error 535
Case 3: A Benchmark for Dishonesty 475             11-C Can We (and Should We) Apply the Lincoln
Case 4: The Great Divide 480                                Electric Method? 537
                                                   11-D Should Teacher Pay Be Tied to Student
Case 5: Wring Out the Old 485                               Scores? 538
                                                   12-A Employment-at-Will 539
Appendix A Critical Thinking Applications 490      12-B Developing Organizational Policy and a
1-A What Do You Know about HRM? 490                         Code of Ethics 540
1-B Corporate Social Responsibility and Human      13-A Unionizing FedEx 541
       Resources Management? 491                   13-B Do You Support Striker Replacement
1-C Resolution: Close Down the Human                        Legislation? 542
       Resources Department 493                    14-A Can Health and Safety Behavior Be Predicted?
2-A What Is the Origin of Your University                   543
       Apparel? 494                                14-B The Measurement of Stress at Work 544
2-B International HR: How about a Cuppa? 497
3-A Are Dreadlocks Protected under Title VII?      Appendix B Chapter Exercises 547
       497                                          1.1 An Interview with an HRM Specialist 549
3-B Allegations of Religious Discrimination 498     1.2 An Assessment of Customer Satisfaction and
4-A Can PAS Defend Its Test in Court? 499                  the Relationship to HRM Activities 553
4-B What to Do with Job Diagnostic Survey           1.3 Human Resource Issues at Valley
       Results 501                                         National Bank 561
5-A Recruiting on the Internet 511                  2.1 International HR Strategies: The Derivation
5-B Hi, I’m in Bangalore (but I Can’t Say So)              of Policy 570
       513                                          2.2 Going Global with Marriott Corporation 573
5-C Is Wal-Mart Guilty of Gender Discrimination?    3.1 Zimpfer v. Palm Beach County 577
       513                                          3.2 Goebel et al. v. Frank Clothiers 585
6-A What Privacy Do We Have in the Workplace?       3.3 A Case of Illegal Sexual Harassment? 589
       516                                          3.4 Reverse Discrimination or Legal Affirmative
6-B The Measurement of Personality Traits 517              Action? 592
7-A Should We Measure Competencies in               3.5 Joseph Garcia v. Hooters, Cameron v.
       Performance Appraisal? 520                          LaVeille Maison 597
7-B The Role of Mystery Shoppers in                 3.6 Hiring a Bank Teller 599
       Performance Appraisal 521                    4.1 Writing a Position Description 604
7-C Allegations of Age and Race Discrimination      4.2 The Use of the Critical Incident Technique to
       against Ford Motor Company 522                      Analyze the Job of University Professor
7-D Performance Appraisal Characteristics                  617
       Questionnaire 523                            4.3 Job Analysis at CompTech 620
8-A Workplace Diversity Training 523
                                                                      CHAPTER 1 Chapter Title     xv

5.1 A Turnover Problem at the Fort Lauderdale     10.1 Problems in the Pay System 713
       Herald 626                                 10.2 Should the State Adopt a Pay Equity Policy?
5.2 Permalco’s Recruiting Challenge 630                   719
5.3 Recruiting at Julia Richter’s “Dressed for    10.3 Developing an Employee Benefits Program
       Success” 634                                       725
5.4 HR Planning at COMPTECH 635                   11.1 The Design of a PFP System for Mega
6.1 Should Tenneco Use the Wonderlic Test? 643            Manufacturing 733
6.2 Hiring a Plant Manager at Dynamo Industries   11.2 Pay for Performance at Dee’s Personalized
       646                                                Baskets 737
6.3 What Questions Can You Ask in an Interview?   12.1 An Approach to Downsizing 741
       650                                        12.2 Compududes Considers Arbitration Options
7.1 Performance-Appraisal Feedback: A Role-               for Employee Disputes 747
       Play Exercise 656                          12.3 Handling an Employee’s Termination 750
7.2 The Heartland Greeting Cards Consulting       13.1 Organizing a Union 755
       Problem 659                                13.2 Unions, Labor Law, and Managerial
7.3 Price Waterhouse v. Hopkins 665                       Prerogatives 757
7.4 Performance Appraisal at Darby Gas & Light    13.3 The Baseball Strike: An Example of
       669                                                Collective Bargaining 761
7.5 The Development of a Performance Appraisal    14.1 The Development of a Company Smoking
       System for Instructors 675                         Policy 766
8.1 Conducting a Needs Assessment 681             14.2 The Development of an Antidrug Policy 767
8.2 Rainyday Insurance Adjusters Company 684      14.3 The Development of a Health and Safety Policy
8.3 Backwoods Mail Order Company 688                      768
8.4 The Development and Evaluation of a           14.4 The Development of a Threat Management
       Training Program for Graduate Student              Team for a Workplace Violence Incident
       Instructors 691                                    770
8.5 Self-Directed Learning Assessment 694
9.1 Attitudes about Older People 697              Appendix C Assessment Guidelines for Self,
9.2 Career Development Self-Assessment Exercise      Peer, and Designated Assessors 774
       699                                        Endnotes 779
9.3 Career Development at TechnoChip Computers
       705                                        Indexes 828

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