Bit ly 247careers

Instructors: Your time is valuable. We’re here for you!

For use in: Blackboard, Canvas, Brightspace by Desire2Learn (D2L), and Moodle

SAGE COURSEPACKS: OUR CONTENT TAILORED TO YOUR LMS

We make it easy to import our quality instructor and student content into your school’s learning management system (LMS).

• NO NEW SYSTEM to learn

• INTUITIVE AND SIMPLE to use

• Allows you to CUSTOMIZE COURSE CONTENT to meet your students’ needs

• A variety of high-quality assessment questions and multimedia ASSIGNMENTS TO SELECT FROM

• NO REQUIRED ACCESS CODES

CONTACT YOUR SAGE SALES REPRESENTATIVE TO LEARN MORE: sagepub.com/findmyrep

FOR THE USE OF STRAYER UNIVERSITY STUDENTS AND FACULTY ONLY. NOT FOR DISTRIBUTION, SALE, OR REPRINTING.

ANY AND ALL UNAUTHORIZED USE IS STRICTLY PROHIBITED. Copyright © 2019 by SAGE Publications, Inc.

• NEW HRM IN ACTION VIDEOS PROVIDE SCENARIOS in which students decide what to do when faced with common HR challenges.

• Includes short, auto-graded quizzes that DIRECTLY FEED YOUR LMS GRADEBOOK with the SAGE coursepack

• Premium content is ADA COMPLIANT WITH TRANSCRIPTS

• Comprehensive media guide helps you QUICKLY SELECT MEANINGFUL VIDEO tied to your course objectives

SAGE Premium Video

BOOST COMPREHENSION. BOLSTER ANALYSIS.

FOR THE USE OF STRAYER UNIVERSITY STUDENTS AND FACULTY ONLY. NOT FOR DISTRIBUTION, SALE, OR REPRINTING.

ANY AND ALL UNAUTHORIZED USE IS STRICTLY PROHIBITED. Copyright © 2019 by SAGE Publications, Inc.

A COMPLETE LEARNING PACKAGE

The Hallmark Features

Human Resource Management helps

students develop the skills they need to

effectively recruit, select, train, and develop

talent. The Third Edition has been extensively

updated with new cases, new coverage

of trends, and the latest SHRM 2016

Curriculum Guidebook content areas.

• MORE THAN 210 INDIVIDUAL CONTENT REQUIREMENTS FROM THE 2016 SHRM CURRICULUM GUIDEBOOK provide students with an easy-reference source for

in-depth knowledge required of today’s

HR managers.

• SKILL-BUILDING EXERCISES encourage students to experience human resources

by practicing decision-making, working in

teams, and participating in role-plays.

• TRENDS AND ISSUES IN HRM SECTIONS in each chapter highlight the latest

developments in the HR field, including

trends related to data analytics; social

media; and working in diverse, global

organizations.

FOR THE USE OF STRAYER UNIVERSITY STUDENTS AND FACULTY ONLY. NOT FOR DISTRIBUTION, SALE, OR REPRINTING.

ANY AND ALL UNAUTHORIZED USE IS STRICTLY PROHIBITED. Copyright © 2019 by SAGE Publications, Inc.

Sara Miller McCune founded SAGE Publishing in 1965 to support the dissemination of usable knowledge and educate a global community. SAGE publishes more than 1000 journals and over 800 new books each year, spanning a wide range of subject areas. Our growing selection of library products includes archives, data, case studies and video. SAGE remains majority owned by our founder and after her lifetime will become owned by a charitable trust that secures the company’s continued independence.

Los Angeles | London | New Delhi | Singapore | Washington DC | Melbourne

FOR THE USE OF STRAYER UNIVERSITY STUDENTS AND FACULTY ONLY. NOT FOR DISTRIBUTION, SALE, OR REPRINTING.

ANY AND ALL UNAUTHORIZED USE IS STRICTLY PROHIBITED. Copyright © 2019 by SAGE Publications, Inc.

FOR THE USE OF STRAYER UNIVERSITY STUDENTS AND FACULTY ONLY. NOT FOR DISTRIBUTION, SALE, OR REPRINTING.

ANY AND ALL UNAUTHORIZED USE IS STRICTLY PROHIBITED. Copyright © 2019 by SAGE Publications, Inc.

SAGE PUBLISHING: OUR STORY

We believe in creating fresh, cutting-edge content that helps you prepare your students to make an impact in today’s ever-changing business world. Founded in 1965 by 24-year-old entrepreneur Sara Miller McCune, SAGE continues its legacy of equipping instructors with the tools and resources necessary to develop the next generation of business leaders.

• We invest in the right authors who distill the best available research into practical applications

• We offer intuitive digital solutions at student-friendly prices • We remain permanently independent and fiercely committed to quality,

innovation, and learning.

Publishing

FOR THE USE OF STRAYER UNIVERSITY STUDENTS AND FACULTY ONLY. NOT FOR DISTRIBUTION, SALE, OR REPRINTING.

ANY AND ALL UNAUTHORIZED USE IS STRICTLY PROHIBITED. Copyright © 2019 by SAGE Publications, Inc.

ROBERT N. LUSSIER Springfield College

JOHN R. HENDON University of Arkansas at Little Rock

FOR THE USE OF STRAYER UNIVERSITY STUDENTS AND FACULTY ONLY. NOT FOR DISTRIBUTION, SALE, OR REPRINTING.

ANY AND ALL UNAUTHORIZED USE IS STRICTLY PROHIBITED. Copyright © 2019 by SAGE Publications, Inc.

Copyright © 2019 by SAGE Publications, Inc.

All rights reserved. No part of this book may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from the publisher.

Library of Congress Cataloging-in-Publication Data

Names: Lussier, Robert N., author. | Hendon, John R., author. Title: Human resource management : functions, applications, and skill development / Robert N. Lussier, Springfield College, USA, John Hendon. Description: Third Edition. | Thousand Oaks : SAGE Publications, [2018] | Revised edition of the authors’ Human resource management, [2016] | Includes bibliographical references and index. Identifiers: LCCN 2017038956 | ISBN 9781506360348 (pbk. : alk. paper) Subjects: LCSH: Personnel management. Classification: LCC HF5549 .L825 2018 | DDC 658.3—dc23 LC record available at https://lccn.loc.gov/2017038956

This book is printed on acid-free paper.

17 18 19 10 9 8 7 6 5 4 3 2 1

FOR INFORMATION:

SAGE Publications, Inc.

2455 Teller Road

Thousand Oaks, California 91320

E-mail: order@sagepub.com

SAGE Publications Ltd.

1 Oliver’s Yard

55 City Road

London EC1Y 1SP

United Kingdom

SAGE Publications India Pvt. Ltd.

B 1/I 1 Mohan Cooperative Industrial Area

Mathura Road, New Delhi 110 044

India

SAGE Publications Asia-Pacific Pte. Ltd.

3 Church Street

#10-04 Samsung Hub

Singapore 049483

Acquisitions Editor: Maggie Stanley

Editorial Assistant: Alissa Nance

Content Development Editor: Lauren Holmes

Production Editor: Tracy Buyan

Copy Editors: Ellen Howard, Kim Husband

Typesetter: Hurix Systems Pvt. Ltd.

Proofreader: Tricia Currie-Knight

Indexer: Wendy Allex

Cover & Interior Designer: Gail Buschman

Marketing Manager: Amy Lammers

FOR THE USE OF STRAYER UNIVERSITY STUDENTS AND FACULTY ONLY. NOT FOR DISTRIBUTION, SALE, OR REPRINTING.

ANY AND ALL UNAUTHORIZED USE IS STRICTLY PROHIBITED. Copyright © 2019 by SAGE Publications, Inc.

https://lccn.loc.gov/2017038956

Brief Contents Preface xix Acknowledgments xxvii About the Authors xxviii

PART I • 21ST CENTURY HUMAN RESOURCE MANAGEMENT STRATEGIC PLANNING AND LEGAL ISSUES 1

1. The New Human Resource Management Process 2

2. Strategy-Driven Human Resource Management 38

3. The Legal Environment and Diversity Management 74

PART II • STAFFING 113 4. Workforce Planning: Job Analysis, Design, and Employment Forecasting 114

5. Recruiting Job Candidates 154

6. Selecting New Employees 184

PART III • DEVELOPING AND MANAGING 223 7. Learning and Development 224

8. Performance Management and Appraisal 262

9. Rights and Employee Management 302

10. Employee and Labor Relations 342

PART IV • COMPENSATING 385 11. Compensation Management 386

12. Incentive Pay 424

13. Employee Benefits 462

PART V • PROTECTING AND EXPANDING ORGANIZATIONAL REACH 507 14. Workplace Safety, Health, and Security 508

15. Organizational Ethics, Sustainability, and Social Responsibility 540

16. Global Issues for Human Resource Managers 572

Appendix: SHRM 2016 Curriculum Guidebook 605 Glossary 615 Notes 621 Name Index 649 Company Index 651 Subject Index 655

FOR THE USE OF STRAYER UNIVERSITY STUDENTS AND FACULTY ONLY. NOT FOR DISTRIBUTION, SALE, OR REPRINTING.

ANY AND ALL UNAUTHORIZED USE IS STRICTLY PROHIBITED. Copyright © 2019 by SAGE Publications, Inc.

Detailed Contents Preface xix Acknowledgments xxvii About the Authors xxviii

PART I • 21ST CENTURY HUMAN RESOURCE MANAGEMENT STRATEGIC PLANNING AND LEGAL ISSUES

1. The New Human Resource Management Process 2

Practitioner’s Perspective 3

Why Study Human Resource Management (HRM)? 4

HRM Past and Present 6 HRM in the Past 6 Present View of HRM 7 Technology’s Effect on Efficiency 8

The Changing World of HRM 9 New HRM Challenges 9 Labor Demographics 9 Knowledge Workers and the Pace of Change 10

Understanding HR’s Critical Factors 11 Critical Dependent Variables 11 The Importance of Strategic HRM 12 The Influence of Social Media 13

HRM Skills 14 Technical Skills 14 Interpersonal Skills 14 Conceptual and Design Skills 15 Business Skills 15

Line Managers’ HRM Responsibilities 16 Line Versus Staff Management 16 Major HR Responsibilities of Line Management 16

HR Managers’ Responsibilities: Disciplines Within HRM 17 The Legal Environment: EEO and Diversity

Management 18 Staffing 18 Training and Development 19 Employee Relations 19 Labor and Industrial Relations 19

Compensation and Benefits 19 Safety and Security 21 Ethics and Sustainability 22

Resources for HRM Careers 23 Society for Human Resource Management

(SHRM) 23 Other HR Organizations 24 Professional Liability 24

Practitioner’s Model for HRM 25 The Model 25 Sections of the Model 26

Trends and Issues in HRM 28 Employee Engagement Improves Productivity 28 HRM and Organizational Agility 28

Chapter Summary 30 Key Terms 32 Key Terms Review 32 Communication Skills 33 Case 1-1 Ba-Zynga! Zynga Faces Trouble

in FarmVille 33 Case 1-2 Fracturing the Labor Market—Employment

in the Oil Services Industry 34 Skill Builder 1-1 Getting to Know You 35 Skill Builder 1-2 Comparing HR Management

Skills and HR Responsibilities 35

2. Strategy-Driven Human Resource Management 38

Practitioner’s Perspective 39

Strategy and Strategic Planning: The Organization and the Environment 40 The External Environment 41

Strategic Vision and Mission 44 What Is Strategy? 45 Visions and Missions 46

Strategy Types and Analysis 47 Types of Strategies 47 How Strategy Affects HRM 48 Strategic Analysis 49 Designing a Strategy 51 How HR Promotes Strategy 53

JO NA

TH AN

N AC

KS TR

AN D/

AF P/

Ge tty

Im ag

es

© iS

to ck

ph ot

o.c om

/s an

jer i

FOR THE USE OF STRAYER UNIVERSITY STUDENTS AND FACULTY ONLY. NOT FOR DISTRIBUTION, SALE, OR REPRINTING.

ANY AND ALL UNAUTHORIZED USE IS STRICTLY PROHIBITED. Copyright © 2019 by SAGE Publications, Inc.

Structure 53 Basics of Organizational Structure 54 How Does Structure Affect Employee Behavior? 56 How Does Structure Affect HRM? 56

Organizational Culture 56 What Is Organizational Culture? 56 How Culture Controls Employee Behavior in

Organizations 58 Social Media and Culture Management 58

An Introduction to Data Analytics and HR Technology 59 A Brief on Data Analytics 60 HR Technology 60 Desired Outcomes 61

Human Resource Management Systems (HRMS) 61 What Are HRMS? 61 How Do HRMS Assist in Making Decisions? 62

Measurement Tools for Strategic HRM 62 Economic Value Added (EVA) 62 Return on Investment (ROI) 62 Balanced Scorecard (BSC) 63 HR Scorecard 63

Trends and Issues in HRM 64 Structure, Culture, and Technology

Are Misaligned 64 Continuing Globalization Increases the Need for

Strategic HRM Planning 64 Chapter Summary 66 Key Terms 67 Key Terms Review 67 Communication Skills 68 Case 2-1 Catalya Hats: Pulling a Rabbit out of the

Hat or Coming up Empty Handed? 68 Case 2-2 Strategy-Driven HR Management:

Netflix, A Behind-the-Scenes Look at Delivering Entertainment 69

Skill Builder 2-1 Writing Objectives 70 Skill Builder 2-2 Strategic Planning at Your College 71

3. The Legal Environment and Diversity Management 74

Practitioner’s Perspective 75

The Legal Environment for HRM and a User’s Guide to Managing People 76 Protecting Your Organization 76 The OUCH Test 77 Objective 77 Uniform in Application 77

Consistent in Effect 78 Has Job Relatedness 79

Major Employment Laws 79 Equal Pay Act of 1963 (EPA) 79 Title VII of the Civil Rights Act of

1964 (CRA) 80 Age Discrimination in Employment Act of 1967

(ADEA) 84 Vietnam Era Veterans Readjustment Assistance

Act of 1974 (VEVRAA) 84 Pregnancy Discrimination Act

of 1978 (PDA) 84 Americans with Disabilities Act of 1990 (ADA), as

Amended in 2008 85 Civil Rights Act of 1991 87 Uniformed Services Employment and Reemployment

Rights Act of 1994 (USERRA) 88 Veterans Benefits Improvement

Act of 2004 (VBIA) 88 Title II of the Genetic Information Nondiscrimination

Act of 2008 (GINA) 89 Lilly Ledbetter Fair Pay Act of 2009 (LLFPA) 89 Immigration Laws Relating to Employment and

Equal Opportunity 89 Reminder: State and Local EEO Laws May Be

Different 91

Equal Employment Opportunity Commission (EEOC) 91 What Does the EEOC Do? 91 Employee Rights Under the EEOC 92 Employer Rights and Prohibitions 92

EEO, Affirmative Action, and Diversity: What’s the Difference? 93 Affirmative Action (AA) 94 The Office of Federal Contract Compliance

Programs (OFCCP) 95 Diversity in the Workforce 95

Sexual Harassment: A Special Type of Discrimination 99 Types of Sexual Harassment 99 What Constitutes Sexual Harassment? 99 Reducing Organizational Risk From Sexual

Harassment Lawsuits 100

Religious Discrimination 102

Trends and Issues in HRM 102 Technology May Create New Dangers in Equal

Opportunity and Diversity Management 103 Sexual Orientation and Gender Identity

Discrimination 103 Chapter Summary 105 Key Terms 106 Key Terms Review 106 Communication Skills 107 Case 3-1 You Can’t Get There From Here:

Uber Slow on Diversity 108 Case 3-2 When Religion Is on the Agenda 109 Skill Builder 3-1 The Four-Fifths Rule 110 Skill Builder 3-2 Diversity Training 110

© iS

to ck

ph ot

o.c om

/Y ur

i_ Ar

cu rs

FOR THE USE OF STRAYER UNIVERSITY STUDENTS AND FACULTY ONLY. NOT FOR DISTRIBUTION, SALE, OR REPRINTING.

ANY AND ALL UNAUTHORIZED USE IS STRICTLY PROHIBITED. Copyright © 2019 by SAGE Publications, Inc.

PART II • STAFFING

4. Workforce Planning: Job Analysis, Design, and Employment Forecasting 114

Practitioner’s Perspective 115

Workforce Planning: Workflow Analysis 116 Organizational Output 117 Tasks and Inputs 117

Job Analysis 118 Why Do We Need to Analyze Jobs? 118 Databases 119 Job Analysis Methods 120 Do We Really Have “Jobs” Anymore? 123 Task or Competency Based? 124 Outcomes: Job Description and

Job Specification 124

Job Design/Redesign 126 Organizational Structure and Job Design 126 Approaches to Job Design and Redesign 126 The Job Characteristics Model (JCM) 128 Applying the Job Characteristics

Model (JCM) 130

Designing Motivational Jobs 131 Job Simplification 131 Job Expansion 131 Work Teams 132 Flexible Job Design 133 Job Design Is Country Specific 134

HR Forecasting 135 Forecasting Methods 135 Measuring Absenteeism and Turnover 138 Succession Planning 138

Reconciling Internal Labor Supply and Demand 139 Options for a Labor Surplus 139 Options for a Labor Shortage 142

Trends and Issues in HRM 145 Gig Work and the Agile Workforce 145 Automation at Work 146

Chapter Summary 147 Key Terms 149 Key Terms Review 149 Communication Skills 149 Case 4-1 Walmart’s Everyday Hiring Strategy:

Fueling Future Consumer Demand With Passion and Talent 150

Case 4-2 Gauging Employment at Honeywell 151

Skill Builder 4-1 Job Analysis 152 Skill Builder 4-2 Job Characteristics Model (JCM) 152 Skill Builder 4-3 O*Net 153

5. Recruiting Job Candidates 154

Practitioner’s Perspective 155

The Recruiting Process 155 Defining the Process 156 External Forces Acting on Recruiting Efforts 157

Organizational Recruiting Considerations 158 What Policies to Set 159 When to Recruit 159 Alternatives to Recruitment 159 Reach of the Recruiting Effort 160 Social Media and the Technology Recruiting

Revolution 160

Internal or External Recruiting? 162 Internal Recruiting 162 External Recruiting 164

Challenges and Constraints in Recruiting 168 Budgetary Constraints 169 Policy Constraints and Organizational

Image 169 The Recruiter–Candidate Interaction 170 Job Characteristics and the Realistic

Job Preview (RJP) 171

Evaluation of Recruiting Programs 172 Yield Ratio 172 Cost per Hire 173 Time Required to Hire 173 New Hire Turnover 173 New Hire Performance 173

Trends and Issues in HRM 174 Millennial Versus Generation Z: Aren’t

They All the Same? 174 Look for Grit, Not Just Talent 175

Chapter Summary 177 Key Terms 178 Key Terms Review 178 Communication Skills 178 Case 5-1 Here a GM, There a GM, Everywhere a

GM (or So They Thought!) 178 Case 5-2 Trying to Build When Nobody Wants to

Work 179 Skill Builder 5-1 Online Job Search 181 Skill Builder 5-2 Résumé 181

SA ND

Y HU

FF AK

ER /A

FP /G

et ty

Im

ag es

© iS

to ck

ph ot

o.c om

/Y in

Ya ng

FOR THE USE OF STRAYER UNIVERSITY STUDENTS AND FACULTY ONLY. NOT FOR DISTRIBUTION, SALE, OR REPRINTING.

ANY AND ALL UNAUTHORIZED USE IS STRICTLY PROHIBITED. Copyright © 2019 by SAGE Publications, Inc.

6. Selecting New Employees 184

Practitioner’s Perspective 185

The Selection Process 186 The Importance of the Selection Process 186 Steps in the Selection Process 187

Looking for “Fit” 189 Personality-Job Fit 189 Ability-Job Fit 189 Person-Organization Fit 190

Uniform Guidelines on Employee Selection Procedures 190 What Qualifies as an Employment Test? 190 Valid and Reliable Measures 191

Applications and Preliminary Screening 192 Applications and Résumés 193 Pre-Employment Inquiries 194 State and Local Laws Vary! 195

Testing and Legal Issues 195 The EEOC and Employment Testing 195 Polygraph Testing 196 Genetic Testing 197 Written Testing 197 Physical Testing 199 To Test or Not to Test 202

Selection Interviews 203 Interviewing 204 Types of Interviews and Questions 204 Preparing for the Interview 206 Conducting the Interview 207

Background Checks 208 Credit Checks 208 Criminal Background Checks 210 Reference Checks 210 Social Media and Web Searches 211

Selecting the Candidate and Offering the Job 213 Problems to Avoid During the Selection Process 213 Hiring 213

Trends and Issues in HRM 214 Federal Regulation Limits Selection

Testing 214 The Global Workforce and Immigration 215

Chapter Summary 216 Key Terms 217 Key Terms Review 218 Communication Skills 218 Case 6-1 A Kink in Links of London’s Selection

Process 218

Case 6-2 Not Getting Face Time at Facebook—and Getting the Last Laugh! 220

Skill Builder 6-1 Interview Questions for Use When Hiring a Professor to Teach This Course 221

Skill Builder 6-2 Interviewing 221

PART III • DEVELOPING AND MANAGING

7. Learning and Development 224

Practitioner’s Perspective 225

The Need for Training and Development 226 Training and Development 226 When Is Training Needed? 227

The Training Process and Needs Assessment 229 Steps in the Training Process 229 Needs Assessment 230 Challenges to the Training Process 231 Employee Readiness 232

Learning and Shaping Behavior 233 Learning 233 Learning Theories 233 Shaping Behavior 235 Learning Styles 237

Design and Delivery of Training 239 On-the-Job Training (OJT) 239 Classroom Training 241 Distance or E-Learning 242 Simulations 243

Assessing Training 243 Assessment Methods 244 Choosing Assessment Methods 245 Measuring Training Success 246

Talent Management and Development 247 Careers 247 Why Career Development? 248 Common Methods of Employee Development 249 A Model of Career Development

Consequences 251

Trends and Issues in HRM 254 Gamification—A Phoenix Rising? 254 The Corporate Learning Imperative 254

Chapter Summary 256 Key Terms 257 Key Terms Review 257 Communication Skills 257

© iSt

oc kp

ho to

.co m

/T sy

hu n

© iSt

oc kp

ho to

.co m

/a lva

re z

FOR THE USE OF STRAYER UNIVERSITY STUDENTS AND FACULTY ONLY. NOT FOR DISTRIBUTION, SALE, OR REPRINTING.

ANY AND ALL UNAUTHORIZED USE IS STRICTLY PROHIBITED. Copyright © 2019 by SAGE Publications, Inc.

Case 7-1 Doing Crunches at Nestlé: Continuous Improvement of Human Assets 258

Case 7-2 Google Search: Building the Program That Writes the Code to Find Female Talent 259

Skill Builder 7-1 The Training Process 260 Skill Builder 7-2 Career Development 261

8. Performance Management and Appraisal 262

Practitioner’s Perspective 263

Performance Management Systems 263 Performance Management Versus Performance

Appraisal 264 Is It Time to Delete the Annual Appraisal

Process? 265 Performance Appraisals 266 Accurate Performance Measures 267

Why Do We Conduct Performance Appraisals? 269 Communication (Informing) 269 Decision Making (Evaluating) 270 Motivation (Engaging) 270 Evaluating and Motivating = Development 270

What Do We Assess? 272 Trait Appraisals 272 Behavioral Appraisals 273 Results Appraisals 274 Which Option Is Best? 275

How Do We Use Appraisal Methods and Forms? 276 Critical Incidents Method 276 Management by Objectives (MBO) Method 277 Narrative Method or Form 278 Graphic Rating Scale Form 278 Behaviorally Anchored Rating Scale

(BARS) Form 279 Ranking Method 280 Which Option Is Best? 281

Who Should Assess Performance? 281 Supervisor 282 Peers 282 Subordinates 283 Self 284 Customers 284 360-Degree Evaluations 285 Whom Do We Choose? 285

Performance Appraisal Problems 286 Common Problems Within the Performance

Appraisal Process 286 Avoiding Performance Appraisal Problems 288

Debriefing the Appraisal 290 The Evaluative Performance Appraisal Interview 290 The Developmental Performance Appraisal

Interview 291

Trends and Issues in HRM 292 Building Engagement Through Performance

Management 292 Technology: Electronic Performance Monitoring 293

Chapter Summary 295 Key Terms 296 Key Terms Review 296 Communication Skills 296 Case 8-1 Not Spilling the Beans at Jelly Belly:

Developing a More Accurate Performance Appraisal System 297

Case 8-2 Amazon.com: Selling Employee Performance With Organization and Leadership Review 298