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Visual Preface
Front Matter
Brief Contents
Detailed Contents
Media Library
Preface
Acknowledgments
About the Author
Part I 21st Century Human Resource Management Strategic Planning and Legal Issues
1 The New Human Resource Management Process
Media Library
Why Study Human Resource Management (HRM)?
HRM Past and Present
The Changing World of HRM
Understanding HR’s Critical Factors
HRM Skills
Line Managers’ HRM Responsibilities
HR Managers’ Responsibilities: Disciplines Within HRM
Resources for HRM Careers
Practitioner’s Model for HRM
Trends and Issues in HRM
2 Strategy-Driven Human Resource Management
Media Library
Strategy and Strategic Planning: The Organization and the Environment
Strategic Vision and Mission
Strategy Types and Analysis
Structure
Organizational Culture
An Introduction to Data Analytics and HR Technology
Human Resource Management Systems (HRMS)
Measurement Tools for Strategic HRM
Trends and Issues in HRM
3 The Legal Environment and Diversity Management
Media Library
The Legal Environment for HRM and a User’s Guide to Managing People
Major Employment Laws
Equal Employment Opportunity Commission (EEOC)
EEO, Affirmative Action, and Diversity: What’s the Difference?
Sexual Harassment: A Special Type of Discrimination
Religious Discrimination
Trends and Issues in HRM
Part II Staffing
4 Workforce Planning: Job Analysis, Design, and Employment Forecasting
Media Library
Workforce Planning: Workflow Analysis
Job Analysis
Job Design/Redesign
Designing Motivational Jobs
HR Forecasting
Reconciling Internal Labor Supply and Demand
Trends and Issues in HRM
5 Recruiting Job Candidates
Media Library
The Recruiting Process
Organizational Recruiting Considerations
Internal or External Recruiting?
Challenges and Constraints in Recruiting
Evaluation of Recruiting Programs
Trends and Issues in HRM
6 Selecting New Employees
Media Library
The Selection Process
Looking for “Fit”
Uniform Guidelines on Employee Selection Procedures
Applications and Preliminary Screening
Testing and Legal Issues
Selection Interviews
Background Checks
Selecting the Candidate and Offering the Job
Trends and Issues in HRM
Part III Developing and Managing
7 Learning and Development
Media Library
The Need for Training and Development
The Training Process and Needs Assessment
Learning and Shaping Behavior
Design and Delivery of Training
Assessing Training
Talent Management and Development
Trends and Issues in HRM
8 Performance Management and Appraisal
Media Library
Performance Management Systems
Why Do We Conduct Performance Appraisals?
What Do We Assess?
How Do We Use Appraisal Methods and Forms?
Who Should Assess Performance?
Performance Appraisal Problems
Debriefing the Appraisal
Trends and Issues in HRM
9 Rights and Employee Management
Media Library
Commonly Accepted Employee Rights
Management Rights
Coaching, Counseling, and Discipline
Leadership and Management
Teams and Organizational Change
Trends and Issues in HRM
10 Employee and Labor Relations
Media Library
Labor Relations: A Function of Trust and Communication
Job Satisfaction
Legal Issues in Labor Relations
Unions and Labor Rights
Management Rights and Decertification Elections
Managing Conflict
Negotiations
Trends and Issues in HRM
Part IV Compensating
11 Compensation Management
Media Library
Compensation Management
Compensation Strategy
Legal and Fairness Issues in Compensation
Pay Equity, Comparable Worth, and Other Legal Issues
Job Evaluation
Developing a Pay System
Pay Structure
Trends and Issues in HRM
12 Incentive Pay
Media Library
Incentive Compensation
Individual or Group-Based Incentives?
Options for Individual Incentives
Options for Group Incentives
Failures and Challenges in Creating Incentive Pay Systems
Guidelines for Creating Motivational Incentive Systems
Executive Compensation
Trends and Issues in HRM
13 Employee Benefits
Media Library
The Strategic Value of Benefits Programs
Old Age, Survivors, and Disability Insurance (OASDI)
Other Statutory Benefits
Voluntary Benefits
Administration and Communication of Benefits
Trends and Issues in HRM
Part V Protecting and Expanding Organizational Reach
14 Workplace Safety, Health, and Security
Media Library
Workplace Safety and OSHA
Employee Health
Stress
Workplace Security
Trends and Issues in HRM
15 Organizational Ethics, Sustainability, and Social Responsibility
Media Library
Ethical Organizations
Ethical Approaches
Creating and Maintaining Ethical Organizations
Just Because It’s Legal Doesn’t Mean It’s Ethical!
Corporate Social Responsibility (CSR)
Levels of Corporate Social Responsibility
Sustainability
Trends and Issues in HRM
16 Global Issues for Human Resource Managers
Media Library
Globalization of Business and HRM
Legal, Ethical, and Cultural Issues
Global Staffing
Developing and Managing Global Human Resources
Compensating Your Global Workforce
Trends and Issues in HRM
Appendix: SHRM 2016 Curriculum Guidebook
Glossary
Notes
Name Index
Company Index
Index
p.i
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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.
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REQUIREMENTS FROM THE 2016 SHRM
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p.iv
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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.
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p.ix
Brief Contents
Preface Acknowledgments About the Authors
PART I • 21ST CENTURY HUMAN RESOURCE MANAGEMENT STRATEGIC PLANNING AND LEGAL ISSUES
1. The New Human Resource Management Process
2. Strategy-Driven Human Resource Management
3. The Legal Environment and Diversity Management
PART II • STAFFING
4. Workforce Planning: Job Analysis, Design, and Employment Forecasting
5. Recruiting Job Candidates
6. Selecting New Employees
PART III • DEVELOPING AND MANAGING
7. Learning and Development
8. Performance Management and Appraisal
9. Rights and Employee Management
10. Employee and Labor Relations
PART IV • COMPENSATING
11. Compensation Management
12. Incentive Pay
13. Employee Benefits
PART V • PROTECTING AND EXPANDING ORGANIZATIONAL REACH
14. Workplace Safety, Health, and Security
15. Organizational Ethics, Sustainability, and Social Responsibility
16. Global Issues for Human Resource Managers
Appendix: SHRM 2016 Curriculum Guidebook Glossary Notes Name Index
Company Index Subject Index
p.x
Detailed Contents
Preface Acknowledgments About the Authors
PART I • 21ST CENTURY HUMAN RESOURCE MANAGEMENT STRATEGIC PLANNING AND LEGAL ISSUES
JONATHAN NACKSTRAND/AFP/Getty Images
1. The New Human Resource Management Process
Practitioner’s Perspective
Why Study Human Resource Management (HRM)?
HRM Past and Present
HRM in the Past
Present View of HRM
Technology’s Effect on Efficiency
The Changing World of HRM
New HRM Challenges
Labor Demographics
Knowledge Workers and the Pace of Change
Understanding HR’s Critical Factors
Critical Dependent Variables
The Importance of Strategic HRM
The Influence of Social Media
HRM Skills
Technical Skills
Interpersonal Skills
Conceptual and Design Skills
Business Skills
Line Managers’ HRM Responsibilities
Line Versus Staff Management
Major HR Responsibilities of Line Management
HR Managers’ Responsibilities: Disciplines Within HRM
The Legal Environment: EEO and Diversity Management
Staffing
Training and Development
Employee Relations
Labor and Industrial Relations
Compensation and Benefits
Safety and Security
Ethics and Sustainability
Resources for HRM Careers
Society for Human Resource Management (SHRM)
Other HR Organizations
Professional Liability
Practitioner’s Model for HRM
The Model
Sections of the Model
Trends and Issues in HRM
Employee Engagement Improves Productivity
HRM and Organizational Agility
Chapter Summary
Key Terms
Key Terms Review
Communication Skills
Case 1-1 Ba-Zynga! Zynga Faces Trouble in FarmVille
Case 1-2 Fracturing the Labor Market—Employment in the Oil Services Industry
Skill Builder 1-1 Getting to Know You
Skill Builder 1-2 Comparing HR Management Skills and HR Responsibilities
©iStockphoto.com/sanjeri
2. Strategy-Driven Human Resource Management
Practitioner’s Perspective
Strategy and Strategic Planning: The Organization and the Environment
The External Environment
Strategic Vision and Mission
What Is Strategy?
Visions and Missions
Strategy Types and Analysis
Types of Strategies
How Strategy Affects HRM
Strategic Analysis
Designing a Strategy
How HR Promotes Strategy
p.xi
Structure
Basics of Organizational Structure
How Does Structure Affect Employee Behavior?
How Does Structure Affect HRM?
Organizational Culture
What Is Organizational Culture?
How Culture Controls Employee Behavior in Organizations
Social Media and Culture Management
An Introduction to Data Analytics and HR Technology
A Brief on Data Analytics
HR Technology
Desired Outcomes
Human Resource Management Systems (HRMS)
What Are HRMS?
How Do HRMS Assist in Making Decisions?
Measurement Tools for Strategic HRM
Economic Value Added (EVA)
Return on Investment (ROI)
Balanced Scorecard (BSC)
HR Scorecard
Trends and Issues in HRM
Structure, Culture, and Technology Are Misaligned
Continuing Globalization Increases the Need for Strategic HRM Planning
Chapter Summary
Key Terms
Key Terms Review
Communication Skills
Case 2-1 Catalya Hats: Pulling a Rabbit out of the Hat or Coming up Empty Handed?
Case 2-2 Strategy-Driven HR Management: Netflix, A Behind-the-Scenes Look at Delivering Entertainment
Skill Builder 2-1 Writing Objectives
Skill Builder 2-2 Strategic Planning at Your College
©iStockphoto.com/Yuri_Arcurs
3. The Legal Environment and Diversity Management
Practitioner’s Perspective
The Legal Environment for HRM and a User’s Guide to Managing People
Protecting Your Organization
The OUCH Test
Objective
Uniform in Application
Consistent in Effect
Has Job Relatedness
Major Employment Laws
Equal Pay Act of 1963 (EPA)
Title VII of the Civil Rights Act of 1964 (CRA)
Age Discrimination in Employment Act of 1967 (ADEA)
Vietnam Era Veterans Readjustment Assistance Act of 1974 (VEVRAA)
Pregnancy Discrimination Act of 1978 (PDA)
Americans with Disabilities Act of 1990 (ADA), as Amended in 2008
Civil Rights Act of 1991
Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA)
Veterans Benefits Improvement Act of 2004 (VBIA)
Title II of the Genetic Information Nondiscrimination Act of 2008 (GINA)
Lilly Ledbetter Fair Pay Act of 2009 (LLFPA)
Immigration Laws Relating to Employment and Equal Opportunity
Reminder: State and Local EEO Laws May Be Different
Equal Employment Opportunity Commission (EEOC)
What Does the EEOC Do?
Employee Rights Under the EEOC
Employer Rights and Prohibitions
EEO, Affirmative Action, and Diversity: What’s the Difference?
Affirmative Action (AA)
The Office of Federal Contract Compliance Programs (OFCCP)
Diversity in the Workforce
Sexual Harassment: A Special Type of Discrimination
Types of Sexual Harassment
What Constitutes Sexual Harassment?
Reducing Organizational Risk From Sexual Harassment Lawsuits
Religious Discrimination
Trends and Issues in HRM
Technology May Create New Dangers in Equal Opportunity and Diversity Management
Sexual Orientation and Gender Identity Discrimination
Chapter Summary
Key Terms
Key Terms Review
Communication Skills
Case 3-1 You Can’t Get There From Here: Uber Slow on Diversity
Case 3-2 When Religion Is on the Agenda
Skill Builder 3-1 The Four-Fifths Rule
Skill Builder 3-2 Diversity Training
p.xii
PART II • STAFFING
SANDY HUFFAKER/AFP/Getty Images
4. Workforce Planning: Job Analysis, Design, and Employment Forecasting
Practitioner’s Perspective
Workforce Planning: Workflow Analysis
Organizational Output
Tasks and Inputs
Job Analysis
Why Do We Need to Analyze Jobs?
Databases
Job Analysis Methods
Do We Really Have “Jobs” Anymore?
Task or Competency Based?
Outcomes: Job Description and Job Specification
Job Design/Redesign
Organizational Structure and Job Design
Approaches to Job Design and Redesign
The Job Characteristics Model (JCM)
Applying the Job Characteristics Model (JCM)
Designing Motivational Jobs
Job Simplification
Job Expansion
Work Teams
Flexible Job Design
Job Design Is Country Specific
HR Forecasting
Forecasting Methods
Measuring Absenteeism and Turnover
Succession Planning
Reconciling Internal Labor Supply and Demand
Options for a Labor Surplus
Options for a Labor Shortage
Trends and Issues in HRM
Gig Work and the Agile Workforce
Automation at Work
Chapter Summary
Key Terms
Key Terms Review
Communication Skills
Case 4-1 Walmart’s Everyday Hiring Strategy: Fueling Future Consumer Demand With Passion and Talent
Case 4-2 Gauging Employment at Honeywell
Skill Builder 4-1 Job Analysis
Skill Builder 4-2 Job Characteristics Model (JCM)
Skill Builder 4-3 O*Net
©iStockphoto.com/YinYang
5. Recruiting Job Candidates
Practitioner’s Perspective
The Recruiting Process
Defining the Process
External Forces Acting on Recruiting Efforts
Organizational Recruiting Considerations
What Policies to Set
When to Recruit
Alternatives to Recruitment
Reach of the Recruiting Effort
Social Media and the Technology Recruiting Revolution
Internal or External Recruiting?
Internal Recruiting
External Recruiting
Challenges and Constraints in Recruiting
Budgetary Constraints
Policy Constraints and Organizational Image
The Recruiter–Candidate Interaction
Job Characteristics and the Realistic Job Preview (RJP)
Evaluation of Recruiting Programs
Yield Ratio
Cost per Hire
Time Required to Hire
New Hire Turnover
New Hire Performance
Trends and Issues in HRM
Millennial Versus Generation Z: Aren’t They All the Same?
Look for Grit, Not Just Talent
Chapter Summary
Key Terms
Key Terms Review
Communication Skills
Case 5-1 Here a GM, There a GM, Everywhere a GM (or So They Thought!)
Case 5-2 Trying to Build When Nobody Wants to Work
Skill Builder 5-1 Online Job Search
Skill Builder 5-2 Résumé
p.xiii
©iStockphoto.com/Tsyhun
6. Selecting New Employees
Practitioner’s Perspective
The Selection Process
The Importance of the Selection Process
Steps in the Selection Process
Looking for “Fit”
Personality-Job Fit
Ability-Job Fit
Person-Organization Fit
Uniform Guidelines on Employee Selection Procedures
What Qualifies as an Employment Test?
Valid and Reliable Measures
Applications and Preliminary Screening
Applications and Résumés
Pre-Employment Inquiries
State and Local Laws Vary!
Testing and Legal Issues
The EEOC and Employment Testing
Polygraph Testing
Genetic Testing
Written Testing
Physical Testing
To Test or Not to Test
Selection Interviews
Interviewing
Types of Interviews and Questions
Preparing for the Interview
Conducting the Interview
Background Checks
Credit Checks
Criminal Background Checks
Reference Checks
Social Media and Web Searches
Selecting the Candidate and Offering the Job
Problems to Avoid During the Selection Process
Hiring
Trends and Issues in HRM
Federal Regulation Limits Selection Testing
The Global Workforce and Immigration
Chapter Summary
Key Terms
Key Terms Review
Communication Skills
Case 6-1 A Kink in Links of London’s Selection Process
Case 6-2 Not Getting Face Time at Facebook—and Getting the Last Laugh!
Skill Builder 6-1 Interview Questions for Use When Hiring a Professor to Teach This Course
Skill Builder 6-2 Interviewing
PART III • DEVELOPING AND MANAGING
©iStockphoto.com/alvarez
7. Learning and Development
Practitioner’s Perspective
The Need for Training and Development
Training and Development
When Is Training Needed?
The Training Process and Needs Assessment
Steps in the Training Process
Needs Assessment
Challenges to the Training Process
Employee Readiness
Learning and Shaping Behavior
Learning
Learning Theories
Shaping Behavior
Learning Styles
Design and Delivery of Training
On-the-Job Training (OJT)
Classroom Training
Distance or E-Learning
Simulations
Assessing Training
Assessment Methods
Choosing Assessment Methods
Measuring Training Success
Talent Management and Development
Careers
Why Career Development?
Common Methods of Employee Development
A Model of Career Development Consequences
Trends and Issues in HRM
Gamification—A Phoenix Rising?
The Corporate Learning Imperative
Chapter Summary
Key Terms
Key Terms Review
Communication Skills
p.xiv
Case 7-1 Doing Crunches at Nestlé: Continuous Improvement of Human Assets
Case 7-2 Google Search: Building the Program That Writes the Code to Find Female Talent
Skill Builder 7-1 The Training Process
Skill Builder 7-2 Career Development
©iStockphoto.com/Bill Oxford
8. Performance Management and Appraisal
Practitioner’s Perspective
Performance Management Systems
Performance Management Versus Performance Appraisal
Is It Time to Delete the Annual Appraisal Process?
Performance Appraisals
Accurate Performance Measures
Why Do We Conduct Performance Appraisals?
Communication (Informing)
Decision Making (Evaluating)
Motivation (Engaging)
Evaluating and Motivating = Development
What Do We Assess?
Trait Appraisals
Behavioral Appraisals
Results Appraisals
Which Option Is Best?
How Do We Use Appraisal Methods and Forms?
Critical Incidents Method
Management by Objectives (MBO) Method
Narrative Method or Form
Graphic Rating Scale Form
Behaviorally Anchored Rating Scale (BARS) Form
Ranking Method
Which Option Is Best?
Who Should Assess Performance?
Supervisor
Peers
Subordinates
Self
Customers
360-Degree Evaluations
Whom Do We Choose?
Performance Appraisal Problems
Common Problems Within the Performance Appraisal Process
Avoiding Performance Appraisal Problems
Debriefing the Appraisal
The Evaluative Performance Appraisal Interview
The Developmental Performance Appraisal Interview
Trends and Issues in HRM
Building Engagement Through Performance Management
Technology: Electronic Performance Monitoring
Chapter Summary
Key Terms
Key Terms Review
Communication Skills
Case 8-1 Not Spilling the Beans at Jelly Belly: Developing a More Accurate Performance Appraisal System
Case 8-2 Amazon.com: Selling Employee Performance With Organization and Leadership Review
Self-Assessment and Skill Builder 8-1 Peer and Self-Assessments
Skill Builder 8-2 Debriefing the Appraisal
©iStockphoto.com/vgajic
9. Rights and Employee Management
Practitioner’s Perspective
Commonly Accepted Employee Rights
Rights and Privileges
Right of Free Consent
Right to Due Process
Right to Life and Safety
Right of Freedom of Conscience (Limited)
Right to Privacy (Limited)
Right to Free Speech (Limited)
Management Rights
Codes of Conduct
Data and Device Policies
Workplace Monitoring
Employment-at-Will
Orientation (Probationary) Periods
Drug Testing
Coaching, Counseling, and Discipline
Coaching
Counseling
Disciplining
Terminating
Coaching, Counseling, and Discipline May Differ Globally
Leadership and Management
Leadership
p.xv
Situational Management
Teams and Organizational Change
Building Effective Work Teams
Managing the Change Process
Overcoming Resistance to Change
Trends and Issues in HRM
Good Feedback Makes a Good Manager
Social Media and the Web Continue to Create Managerial Nightmares
Chapter Summary
Key Terms
Key Terms Review
Communication Skills
Case 9-1 Balancing Rights and Privileges
Case 9-2 Off-Duty Misconduct
Skill Builder 9-1 Coaching
Skill Builder 9-2 Disciplining
Skill Builder 9-3 Situational Management
Skill Builder 9-4 Developing a Habit
©iStockphoto.com/Jacob Wackerhausen
10. Employee and Labor Relations
Practitioner’s Perspective
Labor Relations: A Function of Trust and Communication
Trust and Communication
Sending Messages
Receiving Messages
Job Satisfaction
Job Satisfaction/Dissatisfaction and Performance
Measuring Job Satisfaction
Determinants of Job Satisfaction
Legal Issues in Labor Relations
The Railway Labor Act (RLA) of 1926
The National Labor Relations Act (NLRA) of 1935 (Wagner Act)
The Labor Management Relations Act (LMRA) of 1947 (Taft-Hartley Act)
The Labor Management Reporting and Disclosure Act of 1959 (Landrum-Griffin Act or LMRDA)
The Worker Adjustment and Retraining Notification Act of 1988 (WARN Act)
Labor Laws Vary Significantly From Country to Country
Other Legal Issues in Labor Relations
Unions and Labor Rights
Union Organizing
Labor Relations and Collective Bargaining
Grievances
Management Rights and Decertification Elections
Limiting Union Organizing Efforts
Lockouts and Replacement Workers
Decertification Elections
Managing Conflict
Conflict
Conflict Management Styles
Initiating Conflict Resolution
Negotiations
The Negotiation Process
Planning the Negotiation
Negotiate
Alternative Dispute Resolution: Mediation and Arbitration
Trends and Issues in HRM
The NLRB Is Redefining the Employer/Employee Relationship
Are Union Avoidance or Suppression Policies Ethical?
Chapter Summary
Key Terms
Key Terms Review
Communication Skills
Case 10-1 Willful Violation, or a Problem That Can Be Corrected?
Case 10-2 Constructive Discharge and Reinstatement of Strikers
Skill Builder 10-1 Conflict Resolution
Skill Builder 10-2 Negotiating
PART IV • COMPENSATING
©iStockphoto.com/xavierarnau
11. Compensation Management
Practitioner’s Perspective
Compensation Management
The Compensation System
Motivation and Compensation Planning
Compensation Strategy
Ability to Pay
What Types of Compensation?
Pay for Performance or Pay for Longevity?
Skill-Based or Competency-Based Pay?
At, Above, or Below the Market?
p.xvi
Wage Compression
Pay Secrecy
Legal and Fairness Issues in Compensation
Fair Labor Standards Act of 1938 (Amended)
Pay Equity, Comparable Worth, and Other Legal Issues
Comparable Worth
Other Legal Issues
Job Evaluation
Job-Ranking Method
Point-Factor Method
Factor Comparison Method
Developing a Pay System
Job Structure and Pay Levels
Pay Structure
Stacking Pay Levels and Evaluating
Delayering and Broadbanding
Trends and Issues in HRM
Designation of Independent Contractors Continues to Be an Issue
The Stubborn Gender–Wage Gap: Can It Be Fixed?
Chapter Summary
Key Terms
Key Terms Review
Communication Skills
Case 11-1 Discounting Everything but Compensation at Costco
Case 11-2 Employee Red-Lining at CVS: The Have and the Have Not
Skill Builder 11-1 Job Evaluation
Skill Builder 11-2 Product Market Competition Limits
©iStockphoto.com/Sproetniek
12. Incentive Pay
Practitioner’s Perspective
Incentive Compensation
Why Do We Use Incentive Pay?
Individual or Group-Based Incentives?
Individual Incentives
Group Incentives
Options for Individual Incentives
Bonus
Commissions
Merit Pay
Piecework Plans
Standard Hour Plans
Giving Praise and Other Nonmonetary Incentives
Options for Group Incentives
Profit-Sharing Plans
Gainsharing Plans
Employee Stock Ownership Plan (ESOP)
Stock Options and Stock Purchasing Plans
Failures and Challenges in Creating Incentive Pay Systems
Why Do Incentive Pay Systems Fail?
Challenges to Incentive Pay Systems
Guidelines for Creating Motivational Incentive Systems
Executive Compensation
Too Much or Just Enough?
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
Executive Incentives
Short-Term Versus Long-Term
The Goal of Executive Compensation
Trends and Issues in HRM
Does Incentive Pay Actually Improve Performance?
Comprehensive Pay and Incentive Programs Aren’t Just for Highly Skilled Employees
Chapter Summary
Key Terms
Key Terms Review
Communication Skills
Case 12-1 Best Buy or Best Scam? Trying to Get Commission Results on So-Called Noncommission Pay
Case 12-2 Barclays Bonus Bank: Robbing Peter to Pay Paul
Skill Builder 12-1 Calculating Individual Incentives
Skill Builder 12-2 Developing a Compensation Plan With an Incentive
Skill Builder 12-3 Giving Praise
©iStockphoto.com/Yagi-Studio
13. Employee Benefits
Practitioner’s Perspective
The Strategic Value of Benefits Programs
Why Are Benefits Continuing to Grow as a Portion of Overall Compensation?
Considerations in Providing Benefits Programs
Old Age, Survivors, and Disability Insurance (OASDI)
Social Security and Medicare
p.xvii
Other Statutory Benefits
Workers’ Compensation
Unemployment Insurance
Family and Medical Leave Act of 1993 (FMLA)
The Patient Protection and Affordable Care Act of 2010 (ACA)
Statutory Requirements When Providing Certain Voluntary Benefits
Voluntary Benefits
Group Health Insurance
Retirement Benefits
Paid Time Off
Other Employee Insurance Coverage
Employee Services
Administration and Communication of Benefits
Flexible Benefit (Cafeteria) Plans
Communicate Value to Employees
Trends and Issues in HRM
Benefits for “Domestic Partners”
Personalization of Health Care
Chapter Summary
Key Terms
Key Terms Review
Communication Skills
Case 13-1 It Is Not Just About the Bling Anymore: Benefits and Perks—the Competitive Edge in Employee Recruitment
Case 13-2 Google Searches SAS for the Business Solution to How to Create an Award-Winning Culture
Skill Builder 13-1 Developing Flexible Employee Benefit Plans
Skill Builder 13-2 Selecting Flexible Employee Benefit Plans
PART V • PROTECTING AND EXPANDING ORGANIZATIONAL REACH
©iStockphoto.com/tzahiV
14. Workplace Safety, Health, and Security
Practitioner’s Perspective
Workplace Safety and OSHA
The Occupational Safety and Health Act (OSH Act)
The Occupational Safety and Health Administration (OSHA)
National Institute of Occupational Safety and Health (NIOSH)
Federal Notice Posting Requirements
Employee Health
Work–Life Balance
Employee Assistance Programs (EAPs) and Employee Wellness Programs (EWPs)
Ergonomics and Musculoskeletal Disorders (MSDs)
Safety and Health Management and Training
Stress
Functional and Dysfunctional Stress
Causes of Job Stress
Stress Management
The Stress Tug-of-War
Workplace Security
Cyber Security
Workplace Violence
Social Media for Workplace Safety and Security
Employee Selection and Screening
General Security Policies, Including Business Continuity and Recovery
Trends and Issues in HRM
OSHA Limits Postaccident Drug Testing
eDocAmerica: Health and Wellness Online
Chapter Summary
Key Terms
Key Terms Review
Communication Skills
Case 14-1 Handling the Unhealthy Employee
Case 14-2 You Are Not Hurt? Good—You’re Fired!
Skill Builder 14-1 Developing a Stress Management Plan
Skill Builder 14-2 Safety, Health, and Security
©iStockphoto.com/deimagine
15. Organizational Ethics, Sustainability, and Social Responsibility
Practitioner’s Perspective
Ethical Organizations
Ethics in Business
Ethics Defined
Contributing Factors to Unethical Behavior
Justification of Unethical Behavior
Ethical Approaches
General Guides to Ethical Decision Making
Codes of Ethics
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Creating and Maintaining Ethical Organizations
Authority
Responsibility
Accountability
Just Because It’s Legal Doesn’t Mean It’s Ethical!
Facing Ethical Questions
Corporate Social Responsibility (CSR)
CSR Defined
Stakeholders and CSR
Levels of Corporate Social Responsibility
Where You Stand Depends on Where You Sit
Sustainability
HR and Organizational Sustainability
Sustainability Training
The Sustainable Organization
Trends and Issues in HRM
Sustainability-Based Benefits
Does Diversity Training Work?
Chapter Summary
Key Terms
Key Terms Review
Communication Skills
Case 15-1 CEO Compensation: Do They Deserve Rock Star Pay?
Case 15-2 Microsoft, Nokia, and the Finnish Government: A Promise Made, a Promise Broken?
Skill Builder 15-1 Ethics and Whistle-Blowing
Skill Builder 15-2 Code of Ethics and Corporate Social Responsibility
©iStockphoto.com/simonkr
16. Global Issues for Human Resource Managers
Practitioner’s Perspective
Globalization of Business and HRM
Reasons for Business Globalization
Ethnocentrism Is Out and “Made in America” Is Blurred
Stages of Corporate Globalization
Is HRM Different in Global Firms?
Legal, Ethical, and Cultural Issues
International Laws
US Law
International Ethics
National Culture
Global Staffing
Skills and Traits for Global Managers
Staffing Choice: Home-, Host-, or Third-Country Employees
Outsourcing as an Alternative to International Expansion
Developing and Managing Global Human Resources
Recruiting and Selection
Expatriate Training and Preparation
Repatriation After Foreign Assignments
Compensating Your Global Workforce
Pay
Incentives in Global Firms
Benefit Programs Around the World
Trends and Issues in HRM
Globalization of Business Continues as a Trend!
Chapter Summary
Key Terms
Key Terms Review
Communication Skills
Case 16-1 Sand by Saya: The Challenges of a Small Business Going Global
Case 16-2 The Great Singapore Sale at Jurong Point: Finding and Retaining Bargain Employees
Skill Builder 16-1 The Global HRM Environment
Skill Builder 16-2 Cultural Diversity Awareness
Skill Builder 16-3 The Most Important Things I Got From This Course Appendix: SHRM 2016 Curriculum Guidebook Glossary Notes Name Index Company Index Subject Index
Licensed Video HRM in Action
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Media Library
Chapter 1. The New Human Resource Management Process
PREMIUM VIDEO
HRM in Action
Line Managers
LICENSED VIDEO
Importance of HRM
HR Trends
Chapter 2. Strategy-Driven Human Resource Management
PREMIUM VIDEO
HRM in Action
Organizational Culture
LICENSED VIDEO
HR Strategy
HR Strategy Skills
Chapter 3. The Legal Environment and Diversity Management
PREMIUM VIDEO
HRM in Action
The OUCH Test
LICENSED VIDEO
Gender Discrimination
Pregnancy Discrimination
Chapter 4. Workforce Planning: Job Analysis, Design, and Employment Forecasting
PREMIUM VIDEO
HRM in Action
Motivational Job Design
LICENSED VIDEO
Job Design
Job Embeddedness
Chapter 5. Recruiting Job Candidates
PREMIUM VIDEO
HRM in Action
Recruiting Job Candidates
LICENSED VIDEO
Challenges in Recruiting
Constraints in Recruiting
Chapter 6. Selecting New Employees
PREMIUM VIDEO
HRM in Action
Interviewing Job Candidates
LICENSED VIDEO
Steps in the Selection Process
Chapter 7. Learning and Development
PREMIUM VIDEO
HRM in Action
Training Employees
LICENSED VIDEO
Evaluating Training Programs
Chapter 8. Performance Management and Appraisal
PREMIUM VIDEO
HRM in Action
Performance Apprasial
LICENSED VIDEO
What Do We Assess?
Chapter 9. Rights and Employee Management
PREMIUM VIDEO
HRM in Action
Disciplining an Employee
LICENSED VIDEO
Employee Rights
Chapter 10. Employee and Labor Relations
PREMIUM VIDEO
HRM in Action
The No Tips Rule
LICENSED VIDEO
Importance of Unions
Unions and the Global Economy
Chapter 11. Compensation Management
PREMIUM VIDEO
HRM in Action
Compensation Management
LICENSED VIDEO
Boosting Wages
Employee Wages
Chapter 12. Incentive Pay
PREMIUM VIDEO
HRM in Action
Incentive Pay
LICENSED VIDEO
Pay for Performance
Bonuses
Chapter 13. Employee Benefits
PREMIUM VIDEO
HRM in Action
Employee Benefits
LICENSED VIDEO
Employee Benefits
Health Benefits
Chapter 14. Workplace Safety, Health, and Security
PREMIUM VIDEO
HRM in Action
Employee Wellness Programs
LICENSED VIDEO
Workplace Stress
Workplace Violence
Chapter 15. Organizational Ethics, Sustainability, and Social Responsibility
PREMIUM VIDEO
HRM in Action
Organizational Ethics
LICENSED VIDEO
Corporate Social Responsibility
Chapter 16. Global Issues for Human Resource Managers
PREMIUM VIDEO
HRM in Action
Culture Shock
LICENSED VIDEO
Hofstede’s Cultural Framework
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Preface
In his book Power Tools, John Nirenberg asks, “Why are so many well-intended students learning so much and yet able to apply so little in their personal and professional lives?” The world of business and human resource management (HRM) has changed, and so should how it is taught. Increasing numbers of students want more than lectures to gain an understanding of the concepts of HRM. They want their courses to be relevant and to show them how to apply what they learn, and they want to develop skills they can use in their everyday life and at work. It’s not enough to learn about HRM; they want to learn how to be HR managers. This is why we wrote the book. After reviewing and using a variety of HRM books for more than a decade, we didn’t find any that (1) could be easily read and understood by students and (2) effectively taught students how to be HR managers. We wrote this text out of our desire to prepare students to be successful HR managers. As the subtitle states, this book not only presents the important HRM concepts and functions but also takes students to the next level by actually teaching them to apply the concepts through critical thinking and to develop HRM skills they can use in their personal and professional lives.
MARKET AND COURSE
This book is for undergraduate and graduate-level courses in human resource management (HRM) including personnel management. It is appropriate for a first course in an HRM major, as well as required and elective courses found in business schools. This textbook is also appropriate for HRM courses taught in other disciplines such as education and psychology, particularly industrial psychology and organizational psychology. The level of the text assumes no prior background in business or HRM. This book is an excellent choice for online and hybrid courses in HRM (and earlier editions have been used in online HRM courses for nearly a decade).
LEARNING BY DOING: A PRACTICAL APPROACH
I (Lussier) started writing management textbooks in 1988—prior to the calls by the Association to Advance Collegiate Schools of Business (AACSB) for skill development—to help professors teach their students how to apply concepts and develop management skills. Pfeffer and Sutton (The Knowledge Doing Gap, 2000) concluded that the most important insight from their research is that knowledge that is actually implemented is much more likely to be acquired from learning by doing, than from learning by reading, listening, or thinking. We designed this book to give students the opportunity to “learn by doing” with the following approaches:
• A practical “how-to-manage” approach that is strategy driven.
• The only HR text where every primary content area identified as required for undergraduate students listed in the Society of Human Resource Management (SHRM) 2016 Curriculum Guidebook is specifically identified in the text where the material is covered (over 210 items). In addition, many of the secondary and graduate students only items are also identified as they occur in the text.
• Six types of high-quality application materials use the concepts to develop critical-thinking skills.
• Four types of high-quality, skill-builder exercises help to actually develop HR management skills
that can be utilized in students’ professional and personal lives.
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• A comprehensive video package reinforces HRM-related abilities and skills.
• An approach that meets the preferred learning styles of today’s students.
A NEW GENERATION OF LEARNERS
Today’s students, “Millennials” and the early students of the next generation or “Gen Z,” succeed when they are fully engaged in learning on multiple levels; traditional methods of teaching do not always meet their needs. They are used to, and in fact demand, instant opportunities to learn and interact with material that they are interested in. Our text is flexible enough to accompany lecture-based teaching, and it also offers a wide range of engaging activities that accommodate a variety of contemporary learning styles. Many of the specific learning preferences of today’s students have been addressed in the book’s overall approach, organization, and distinctive features:
• Active Learning
A desire for active learning is addressed with a large variety of activities and skill-building tools.
• Practical Approaches
A desire for application and skills in personal and professional realms is addressed by a variety of features throughout the text. Immediate application and ongoing self-assessment are found in the Work Application prompts and self-assessment tools. Organization tools such as checklists, summaries, and “how to” instructions are integrated throughout, for example, the marginal references to SHRM curriculum guidelines.
• Accessible Content
Chunking of content into easily digested segments helps students to organize study time. Visual learning preferences are accommodated in colorful exhibits, models, and figures throughout the text, along with an ancillary package that includes visual learning options. Internet learning preferences are recognized in a robust Web-based package that includes video and interactive features for students.
A THREE-PRONGED APPROACH
We have created a comprehensive textbook intended to develop the full range of HRM competencies. As the title of this book implies, we provide a balanced, three-pronged approach to the curriculum.
Concepts/Functions
The following features are provided to support the first step in the three-pronged approach.
HRM functions. Chapter 1 presents eight major HRM functions identified by SHRM with questions that need to be answered. The book is structured around the eight functions in five parts; see the table of contents for details. These functions are emphasized in order to show students the depth of knowledge that is required of an HR manager today.
Pedagogical aids. Each chapter includes Learning Objectives, a Chapter Summary, Key Terms, and Key Terms Review Questions.
SHRM’s Required Content, as well as many Secondary and Graduate-Only HR Content Areas from the most recent SHRM Human Resource Curriculum: Guidebook and Templates for Undergraduate and Graduate Programs (SHRM, 2016), are annotated for easy reference where they appear in each
chapter of the text. A margin note identifies the Curriculum Guide topic being covered, and a reference number links to an appendix covering all “Required Content” for undergraduate HR programs in the SHRM Curriculum Guide. Every primary Content Area and Subtopic identified in the SHRM Curriculum Guidebook is at least introduced within the text, and most are covered in significant depth.
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Applications
The following features are provided to support the second step in the three-pronged approach.
Opening Vignettes, titled Practitioner’s Perspective, illustrate how a real-life Human Resources manager currently employed by the state of Arkansas works within the various HRM functions in her daily activities.
Organizational examples of HRM concepts and functions appear throughout the book.
Work Applications incorporate open-ended questions that require students to explain how the HRM concepts apply to their own work experience. Student experience can be present, past, summer, full- time, part-time employment, or volunteer work.
Applying the Concept features ask the student to determine the most appropriate HRM concept to be used in a specific short example.
Cases: at the end of each chapter are two cases illustrating how specific organizations use the HRM functions. Critical-thinking questions challenge the students to identify and apply the chapter concepts that are illustrated in each case. Several longer and more comprehensive cases are also available to the instructor on the website, either for testing material or to allow students to apply what they have learned over a significant part of the course.
Skill Development
The following features are provided to support the third step in the three-pronged approach.
Self-Assessments help students gain personal knowledge of how they will complete the HRM functions in the real world. All information for completing and scoring is contained within the text.
Communication Skills at the end of each chapter include questions for class discussion, presentations, and/or written assignments to develop critical-thinking communication skills; they are based on HR Content Areas.
Behavior Modeling showing step-by-step actions to follow when implementing HRM functions, such as how to conduct a job interview, performance appraisals, and coaching and disciplining, are presented throughout the text.
Skill Development Exercises teach skills that can be used in students’ personal and professional lives. Many of the competitor exercises tend to be discussion-oriented exercises that don’t actually develop a skill that can be used immediately on the job.
NEW TO THE THIRD EDITION
General Updates
• The chapters have been completely updated with nearly 80% new references in this edition to strengthen the text.
• All chapters in this third edition have been updated according to the SHRM 2016 Curriculum Guidebook. As in the second edition, all required undergraduate guidelines are included in the text as well as many secondary and graduate guidelines.
• There is one new end-of-chapter case in each of the 16 chapters. The retained cases have been updated.
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• There are changes to all of the Applying the Concept box questions and answers in this edition.
• Several examples using today’s best companies are introduced in this new edition of the text.
• Premium Ethical Dilemma videos located in the interactive eBook challenge students to practice their managerial reasoning and HR decision-making skills.
Chapter 1
• There are two new Applying the Concept boxes, each with five questions, making a total of 4 Application boxes with 30 examples to apply the text concepts.
• There are two new Work Application Questions, for a total of 11.
• New cases studies.
Chapter 2
• Data analytics has been added as a new key term, and outsourcing and sustainability have been removed.
• A new section on data analytics for HRM and desired outcomes has been added.
• The section on HRIS has been moved to earlier in the chapter.
• Two new trends and issues in HRM have been added on managing data for HRM decision-making and increased strategic use of social media for HRM planning.
• A second case has been added on strategy-driven HR management at Netflix.
Chapter 3
• Information on the ADA and the ADAAA Amendment has been included.
• The discussion on the EEOC has been expanded.
• Updated information on recent Affirmative Action rulings in federal courts has been added.
• A new trend in HRM has been added on federal agencies becoming more activist in pursuing discrimination claims.
Chapter 4
• An additional major option available for the job analysis process has been added: subject matter expert panels.
• The mnemonic tool to help remember resource inputs has been updated to include machines, added to material, manpower, and money.
• There are now examples of job analysis questionnaires included in this chapter as well.
• There is also more information about job specifications, as well as independent contractors.
• The discussion on labor surplus as it pertains to early retirement has been expanded.
• Three new trends in HRM have been added, on O*Net as a job analysis tool, competency models in job analysis, and sustainability.
• A second case has been added on company culture at Honeywell.
Chapter 5
• Updated information on external forces acting on recruiting efforts, including the Affordable Care Act, has been added.
• There is a new section on social media recruiting.
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• New issues in HRM have been added on talent wars and on-demand workforces.
• A second case has been added on recruiting and LinkedIn.
Chapter 6
• Fitness for duty test has been added as a new key term.
• There is now information about state laws as they pertain to job applications and preliminary screenings in this chapter.
• A new section on social media’s role in job selection and Web searches has been added as well.
• Exhibit 6-2 features an updated list of pre-employment inquiries.
• There is now more information on medical marijuana as it pertains to employee drug testing.
• A new discussion on fitness-for-duty testing as an alternative to drug testing has been added.
• There is a new section on behavior-based interview questions.
• A new trend in HRM has been added on perceived cultural fit and selection.
• A second case has been added on selecting new employees.
Chapter 7
• A greater emphasis on the need for job training and development has been incorporated into this chapter.
• Training design and delivery have been combined into a single section.
• There is a new section on measuring training success.
• New trends and issues in HRM have been added on the gamification of training and development, and social media for learning.
• A second case on Google and their Made with Code project has been added.
Chapter 8
• The chapter introduction has been revised.
• Information on the American National Standards Institute has been added.
• The section discussing the value of peer reviews has been expanded.
• There are new sections on frame-of-reference training and continuous appraisals.
• New information on Electronic Performance Monitoring (EPM) has been added as well.
• A new case on performance appraisal at Amazon has been added.
Chapter 9
• This chapter’s title has been changed from Rights and Employee Development to Rights and Employee Management.
• A new learning object has been introduced: Briefly discuss the stages of the change process.
• New sections on data and device policies; coaching, counseling, and discipline; and leadership, management, and change have been added.
• A new issue in HRM has been added on Google Glass and other privacy issues.
• A second case on off-duty misconduct has been added to this chapter as well.
Chapter 10
• New research on job satisfaction has been incorporated into this chapter.
• There is new data on union membership and new information on union bargaining.
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• A new trend in HRM has been added on non-union worker protection and the NLRB.
• A second case on constructive discharge and the reinstatement of strikers has been added to this chapter as well.
Chapter 11
• New research about compensation as it pertains to job satisfaction has been included in this chapter.
• New information on pay secrecy has been incorporated as well.
• There is a new discussion about Seattle’s minimum wage hike.
• Exhibit 11-3 has been updated with a new list of FLSA exemptions.
• Exhibit 11-4 has been updated with new duties tests for general employee exemptions.
• A new trend in HRM on independent contractors has been added as well.
• A second case on compensation management at CVS has been added.
Chapter 12
• The section on recognition has been updated in this chapter.
• There is also new information on motivational incentives.
• A new issue for HRM has been added on the ethics of executive compensation.
• A second case on incentive pay at Barclays has been added as well.
Chapter 13
• The chapter-opening section on the strategic value of benefits programs has been updated for this edition.
• New data about the Patient Protection and Affordable Care Act has been added.
• There is a new section on the general provisions of ERISA.
• New trends and issues for HRM have been added on new information about domestic partnership and benefits, and a new section on the personalization of health care.
• A second case on employee benefits at SAS has been added as well.
Chapter 14
• New information about OSHA, including employer and employee rights and responsibilities under the act, has been added.
• The Department of Labor posting requirements have been updated.
• There is a new section on social media for workplace safety and security.
• New trends and issues in HRM have been added on employee wellness and bullying in the workplace.
• The key term Material Safety Data Sheets is now Safety Data Sheets.
• A second case on workplace safety at Nike has been added to this chapter.
Chapter 15
• The importance of ethics in business and the cost of unethical behavior is highlighted.
• New information on how incentives can contribute to unethical behavior is provided.
• New coverage warning against the slippery slope that is escalating unethical behavior is included.
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• There is expanded coverage on general guides to ethical decision making.
• Updated examples include Volkswagen, Wells Fargo, Walmart, Costco, American Express, Patagonia, and Southwest Airlines.
• The importance of authority, responsibility, and accountability in creating and maintaining ethical organizations is expanded upon.
• Social entrepreneurs, hybrid organizations, B Corps, and CSR reporting are newly covered.
• Coverage of sustainability-based benefits has been updated.
• A new case on the ethics of CEO compensation has been added.
Chapter 16
• The global mindset and the importance of understanding cultural values and beliefs are expanded upon.
• Brexit and the Trans-Pacific Partnership are newly discussed.
• New, expanded coverage of expatriates is included.
• The local-plus approach to compensating a global workforce is introduced.
• Significantly revised coverage of the continuing effects of globalization on the field of HR is provided.
• A new case is presented on Sand by Saya, a small business based in New York that has international manufactures and customers.
ANCILLARIES
SAGE edge offers a robust online environment featuring an impressive array of tools and resources for review, study, and further exploration, keeping both instructors and students on the cutting edge of teaching and learning.
SAGE edge for Students provides a personalized approach to help students accomplish their coursework goals in an easy-to-use learning environment.
• Mobile-friendly eFlashcards strengthen understanding of key terms and concepts
• Mobile-friendly practice quizzes allow for independent assessment by students of their mastery of course material
• Learning objectives reinforce the most important material
• Multimedia resources facilitate further exploration of topics
SAGE coursepacks for Instructors makes it easy to import our quality content into your school’s LMS.
Don’t use an LMS platform? No problem, you can still access many of the online resources for your text via SAGE edge at edge.sagepub.com/lussierhrm3e.
SAGE coursepacks include:
• Our content delivered directly into your LMS
• Intuitive, simple format that makes it easy to integrate the material into your course with minimal effort
• Pedagogically robust assessment tools that foster review, practice, and critical thinking, and offer a more complete way to measure student engagement, including:
○ Diagnostic chapter pretests and posttests that identify opportunities for improvement, track student progress, and ensure mastery of key learning objectives
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○ Test banks built on Bloom’s Taxonomy that provide a diverse range of test items with ExamView test generation
○ Activity and quiz options that allow you to choose only the assignments and tests you want ○ Instructions on how to use and integrate the comprehensive assessments and resources
provided
• Chapter-specific discussion questions to help launch engaging classroom interaction while reinforcing important content
• Assignable SAGE Premium Video (available via the free interactive eBook version, linked through SAGE coursepacks) that is tied to learning objectives, curated, and produced exclusively for this text to bring concepts to life and appeal to different learning styles, featuring:
○ Corresponding multimedia assessment options that automatically feed to your gradebook ○ Comprehensive, downloadable, easy-to-use Media Guide in the Coursepack for every video
resource, listing the chapter to which the video content is tied, matching learning objective(s), a helpful description of the video content, and assessment questions
○ Management in Action videos illuminate how key concepts function in work settings.
• Video resources that bring concepts to life, are tied to learning objectives, and make learning easier
• Editable, chapter-specific PowerPoint® slides that offer flexibility when creating multimedia lectures so you don’t have to start from scratch but can customize to your exact needs
• Sample course syllabi with suggested models for customizing your course in a way that is perfect for you
• Integrated links to the FREE interactive eBook that make it easy for your students to maximize their study time with this anywhere, anytime mobile-friendly version of the text. It also offers access to more digital tools and resources, including SAGE Premium Video
• All tables and figures from the textbook
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Acknowledgments
We would like to thank our team at SAGE Publications, which helped bring this book to fruition. Our first executive editor, Lisa Cuevas Shaw, who brought us to SAGE, and editor Patricia Quinlin have shepherded the development of Human Resource Management from its inception. Our current editor, Maggie Stanley, as well as Neda Dallal, Katie Ancheta, and Alissa Nance, provided additional assistance and support. We are grateful to Gail Buschman for a cover and interior design that sets this book apart. During the production process, Tracy Buyan provided professionalism and valuable support. Amy Lammers lent her marketing experience and skills to promoting the book.
We would like to acknowledge our colleagues at SHRM who provided organizational resources to ensure that Human Resource Management—in particular the 2016 SHRM Human Resource Curriculum—is the textbook of choice for future HR practitioners. We would also like to recognize Cindy Wright of the Department of Human Services for Arkansas for her vital contribution of chapter- opening vignettes, which feature her personal insight and experience as an HR professional. Excellent case material has been provided by Can Guler, Komal Thakker, and Herbert Sherman of the Department of Management Sciences, School of Business Brooklyn Campus, Long Island University; and by Robert Wayland, University of Arkansas at Little Rock.
Thanks to the following reviewers who participated throughout all stages of the book’s development:
Pamela J. Acuff, Creighton University
Jacqueline H. Bull, Immaculata University
Marie Halvorsen-Ganepola, University of Notre Dame
Kevin J. Hurt, Columbus State University
Richard H. Jonsen, Eastern University
Zsuzsanna Kispál-Vitai, University of Pécs
George G. Klemic, Lewis University
Erin E. Makarius, University of Akron
Lisa J. O’Hara, Pennsylvania State University
Christopher R. Pels, Marist College
Teresa Helmlinger Ratcliff, North Carolina State University
C. Justice Tillman, Baruch College—City University of New York
Thomas R. Tudor, University of Arkansas at Little Rock
Christina Ziogas, University of Huddersfield
We are also grateful to the instructors who have developed digital resources to accompany this book:
Carl Blencke, University of Central Florida
Gundars Kaupins, Boise State University
Suzanne Kitchen, West Virginia University
Loren Kuzuhara, University of Wisconsin
Cadence Madreperl
Eva Mika, Loyola University Chicago
Christopher R. Pels, Marist College
Molly Pepper, Gonzaga University
Lou Sabina, Stetson University
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About the Authors
Robert N. Lussier is a professor of management at Springfield College. Through teaching management courses for more than 25 years, he has developed innovative and widely adopted methods for applying concepts and developing skills that can be used both personally and professionally. A prolific writer, Dr. Lussier has more than 444 publications to his credit, including Management 7e (SAGE), Human Relations 11e (McGraw-Hill), and Leadership 6e (Cengage), and has published in top tier academic journals. Over 1 million people globally have used his textbooks, earning him an unsurpassed national and international reputation as an author and keynote speaker. Dr. Lussier is the founder of Publish Don’t Perish (www.publishdonotperish) and through contact, his Publish Don’t Perish: The Top Secrets to Get Published book, and keynote presentations/workshops have helped hundreds of institutions and individuals in 80 countries get published. His presentations inspire comments like: “Bob explains complex business topics in an easy-to-understand language while keeping his audience engaged and spell-bound” (Dr. Raj V. Mahto, professor, University of New Mexico). He holds a bachelor of science in business administration from Salem State College, master’s degrees in education and business from Suffolk University, and a doctorate in management from the University of New Haven. He served as founding director of Israel Programs and has taught courses in Israel.
John R. Hendon is a seven-time entrepreneur and former director of operations for a $60 million company. He brought his experience and interests to the classroom full time in 1994 and has been a Management Department faculty member at the University of Arkansas at Little Rock for over 20 years. A nationally recognized HRM subject matter expert and an active member of the Society for Human Resource Management, he teaches in the areas of human resources management, strategy, family business, and organizational management, and researches in a number of areas in the management field, specializing in entrepreneurial research. John is the president of “The VMP Group,” an Arkansas-based business consulting firm. John’s company consults with a variety of businesses on human resources, family business, strategic planning, organizational design, and leadership. He has provided professional assistance in the start-up and operation of dozens of Arkansas- and California- based businesses and non-profits, government agencies, and utilities. John holds an MBA degree from San Diego State University and a B.S. in Education from the University of Central Arkansas. You can reach him any time at jrhendon@gmail.com.
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http://www.publishdonotperish
mailto:jrhendon@gmail.com
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©iStockphoto.com/Rawpixel
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Part I 21st Century Human Resource Management Strategic Planning and Legal Issues
1 The New Human Resource Management Process
2 Strategy-Driven Human Resource Management
3 The Legal Environment and Diversity Management
PRACTITIONER’S MODEL
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JONATHAN NACKSTRAND/AFP/Getty Images
1 The New Human Resource ManagementProcess Media Library
CHAPTER 1 Media Library
PREMIUM VIDEO
HRM in Action
Line Managers
LICENSED VIDEO
Importance of HRM
HR Trends
LEARNING OBJECTIVES
After studying this chapter, you should be able to do the following:
1-1. Identify the difference between the traditional view of human resource management (HRM) and the present view. PAGE 6
1-2. Identify the major challenges that HR managers face in a modern organization; note especially where we are not doing well. PAGE 9
1-3. Identify and briefly describe the four critical dependent variables that managers must control in order to compete in a 21st century organization. PAGE 11
1-4. Describe the four major HRM skill sets. PAGE 14 1-5. Discuss the line manager’s six HRM responsibilities. PAGE 16 1-6. Identify and briefly describe the eight major HRM discipline areas. PAGE 17 1-7. List some of the major resources for HRM careers. PAGE 23 1-8. Explain the five parts of the practitioner’s model for HRM and how the model applies to this
book. PAGE 25
1-9. Describe how employee engagement affects productivity. PAGE 28
CHAPTER OUTLINE Why Study Human Resource Management (HRM)?
HRM Past and Present
HRM in the Past
Present View of HRM
Technology’s Effect on Efficiency
The Changing World of HRM
New HRM Challenges
Labor Demographics
Knowledge Workers and the Pace of Change
Understanding HR’s Critical Factors
Critical Dependent Variables
The Importance of Strategic HRM
The Influence of Social Media
HRM Skills
Technical Skills
Interpersonal Skills
Conceptual and Design Skills
Business Skills
Line Managers’ HRM Responsibilities
Line Versus Staff Management
Major HR Responsibilities of Line Management
HR Managers’ Responsibilities: Disciplines Within HRM
The Legal Environment: EEO and Diversity Management
Staffing
Training and Development
Employee Relations
Labor and Industrial Relations
Compensation and Benefits
Safety and Security
Ethics and Sustainability
Resources for HRM Careers
Society for Human Resource Management (SHRM)
Other HR Organizations
Professional Liability
Practitioner’s Model for HRM
The Model
Sections of the Model
Trends and Issues in HRM
Employee Engagement Improves Productivity
HRM and Organizational Agility
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Practitioner’s Perspective Cindy reflected on the current state of the HR field: Choice and change—two things you can rely on today! No longer merely concerned with hiring, firing, and record keeping, the average human resources department (HR) increasingly partners with the strategic planners in the executive suite, thanks to HR-based education and certifications. HR certification is available through HRCI with PHR, SPHR, and GPHR designations, and SHRM also offers its own program of certification with SHRM-CP and SHRM-SCP.
My professional progress began with membership in HR organizations. First, I became a SHRM student member, which provided access to SHRM’s website—which was in turn valuable for research while I was a student. I still use it frequently. Next, my involvement spread to the local HR association. The chapter meetings provided excellent opportunities for education through the monthly programs, as well as for networking and swapping “best practices” with my colleagues.
My involvement inspired me to become certified as a professional. But beyond that, I have found
SHRM HR CONTENT See Appendix: SHRM 2016 Curriculum Guidebook for the complete list
that those who invest in certification tend to become more involved in their profession and, by extension, more successful.
I invite you to join me as we explore the field of human resource management (HRM). Chapter 1 gives an overview of HRM as a profession.
Cindy Wright, PHR, came late to the human resources profession, and perhaps that explains some of her passion for the field. Wright graduated summa cum laude with a Business Administration degree, HR emphasis. She was recognized as “Outstanding Graduate” by the Human Resources Management department. After employment as a benefits administrator for seven thousand telecommunications retirees, then as an HR generalist for a gas well drilling company of 500 employees, Wright is now working in personnel management for the Department of Human Services in the Division of Behavior Health Services. Besides membership in the profession’s national organization—the Society for Human Resource Management (SHRM), Wright has been active in the local affiliated chapter—the Central Arkansas Human Resources Association (CAHRA). Wright served as vice president of administration for the chapter’s board as well as chair of the College Relation Committee. She was recognized by her peers with the “Rising Star” award for her work in creating a student chapter membership and was involved in the initial efforts to create satellite CAHRA chapters. Wright’s mission is to provide assistance to others interested in entering into and advancing within the human resources profession.
A. Employee and Labor Relations (required)
4. Employee engagement
5. Employee involvement
6. Employee retention
20. Attendance
B. Employment Law (required)
21. Professional liability
C. Ethics (required)
8. Codes of ethics
D. HR’s Role in Organizations (required)
1. Generally . . . discuss HR’s role with regard to each of the individual HR disciplines . . . .
J. Strategic HR (required)
5. Sustainability/corporate social responsibility
6. Internal consulting (required—graduate students only)
9. Ethics
11. Organizational effectiveness
O. Globalization (required—graduate students only)
8. Global labor markets
Q. Organizational Development (required—graduate students only)
5. Improving organizational effectiveness
6. Knowledge management
9. Ongoing performance and productivity initiatives
10. Organizational effectiveness
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• Take a quiz to find out what you’ve learned.
• Review key terms with eFlashcards.
• Watch videos that enhance chapter content.
p.4
WHY STUDY HUMAN RESOURCE MANAGEMENT (HRM)?
It’s natural to think, “What can I get from this book?” or “What’s in it for me?” These are important
questions,1 and the answers to them should be based on evidence.2 Success in our professional and
personal lives is about creating relationships,3 and students generally understand the importance of
relationships.4 The better you can work with people, the more successful you will be in your personal and professional lives—whether as an employee, a line manager, or a human resource manager. And that’s what this book is all about.
p.5
There is strong evidence that today’s students want courses to be applied and have practical
relevance.5 Organizations also want their new managers to have the ability to apply knowledge.6 The role of modern managers also continues to change, requiring today’s organizational leaders to deal
with increasingly dynamic and complex environments.7 This brings us to the focus of this book; we designed it to be the most relevant “how to” book ever written on managing others in organizations. As indicated by the subtitle, Functions, Applications, and Skill Development, this book uses a three- pronged approach, with these objectives:
• To teach you the important functions and concepts of HRM
• To develop your ability to apply HRM functions and concepts through critical thinking
• To develop your HRM skills in your personal and professional lives
We offer some unique features to further each of these three objectives, as summarized in Exhibit 1-1.
Human resource issues are emerging as some of the most prominent concerns for business owners and
managers.8 You’ve probably heard buzzwords floating around about managers—and particularly human resource managers—needing to be more strategic, business focused, customer focused, and
generally more in tune with the overall operational success of the organization.9 So what is happening in today’s business environment that might cause human resource managers to rethink their way of doing business? A key item that is causing this process of rethinking management is the fact that there
https://edge.sagepub.com/lussierhrm3e
SHRM
A:5
Employee Involvement
SHRM
A:4
Employee Engagement
is much greater competition and an external environment that requires a much greater rate of
change.10 That creates an absolute requirement to be more adaptable and productive as an
organization.11 As a result, human resource managers as well as operational managers have been forced to think in more strategic terms about how their organization can win against their competitors by utilizing their human resources.12
One simple fact is that in the 21st century organization, human resources (HR)—the people within an organization—are one of the primary means of creating a competitive advantage for the organization, because management of human resources affects company
performance.13 This is because most organizations of comparable size and scope within the same industry generally have access to the same material and facilities-based resources that any other organization within the industry may have. This being the case, it’s very difficult to create a competitive advantage based on material, facility, or other tangible or economic resources. What this frequently
leaves is people as the organization’s most valuable asset.14 If the organization can manage its human resources more successfully than its competitors do, if it can get its employees involved in working toward the day-to-day success of the organization, and if it can get them to stay with the organization, then it has a much greater chance of being successful—with the term successful defined in this case as
being more productive and more profitable than the competition.15 Managers are responsible for
getting the job done through employees,16 so the organization’s human resources are nearly always its most valuable resource. If we can get our employees fully engaged, we can make better decisions,
increase employee trust and loyalty, and improve productivity.17 (As you can see, there is a SHRM Guide box next to this section. We will explain them later in this chapter in the section titled “Society for Human Resource Management.”)
Exhibit 1-1 FEATURES OF THIS BOOK’S THREE-PRONGED APPROACH
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While employee job satisfaction can be an important aspect of employee engagement, the overall concept of employee engagement is much larger. It is a combination of job satisfaction, ability, and a willingness to perform for the organization at a high level and over an extended period of time. Google is an example of an organization that is taking the concept of employee engagement very seriously. Google’s “Project Oxygen” was one attempt to analyze what makes a better boss and use that information to train
managers to be more consistent and interactive.18 This training is designed to create greater employee satisfaction and engagement, for very practical reasons. According to HR Magazine, companies that fall into “the top 10% on employee engagement beat their competition by 72% in earnings per share
during 2007–08.”19 A 2009 study showed that companies with high levels of satisfaction and
WORK APPLICATION 1-1 How can this course help you in your personal and professional lives? What are your goals, or what do you want to get out of this course?
LO 1-1
Identify the difference between the traditional view of human resource management and the present view.
engagement outperformed those with less engaged employees in return on investment (ROI),
operating income, growth rate, and long-term company valuation.20
In this text, we define engaged employees as those who understand what they need to do to add value to the organization and are satisfied enough with the organization and their roles within it to be willing to do whatever is necessary to see to it that the organization succeeds. This book will teach you how to operate successfully within your organizations and compete productively in a 21st century organization—as an employee, HR manager, or any other type of manager—to get your employees engaged and get the results necessary to succeed against tough competitors in the new century. We will focus on HR management, but the principles within this text apply to any form of management. The bottom line is that if you learn these skills and apply them successfully in your role as any type of
manager, you will get your employees engaged and improve productivity.21 That is what will get you noticed by senior management and allow you to move up the organizational ladder. So let’s get started!
HRM PAST AND PRESENT
Management of the organization’s human resources has probably changed more in the past 15–20 years than in the entire history of organized companies. Technology and the ability to analyze large data sets have disrupted every industry and the way every
company does, or should do, things—from operating processes to marketing to human resources.22
Let’s do a quick introduction to technology in Human Resource Management. Because of the importance of technological change, we will also continue to explore the effects of technology in HRM as we look at strategy in Chapter 2 and in subsequent chapters throughout this book.
HRM in the Past
Back in the dark ages, around the mid-1970s—when there weren’t even any computers available to most managers!—the human resource manager (we usually called them personnel managers then) was considered to be an easy management job. HR managers were expected to be only paper pushers who could keep all of the personnel files straight. They maintained organizational records, but they had very little to do with the management of the organization’s business processes.
In this environment, most HR departments provided limited services to the organization—keeping track of job applicants, maintaining employee paperwork, and filing annual performance evaluations.
p.7
In these organizations, the HR department was considered to be a cost center, a division or department within the organization that brings in no revenue or profit for the organization. It only costs money for the organization to run this function. As you can easily see, we don’t want many (or any) cost centers in an organization if we can help it. We need revenue centers instead. Revenue centers are divisions or departments that generate monetary returns for the organization. Where cost centers eat up available funds, revenue centers provide funds for the organization to operate in the future. HRM departments are not able to generate revenue directly because of their tasking within the organization, but they can generate significant revenue and profit in an indirect fashion.
SHRM
Q:9
Ongoing Performance and Productivity Initiatives
SHRM
Q:5, Q:10, J:11
Improving Organizational Effectiveness; Organizational Effectiveness
Present View of HRM
The old workplace in which managers simply told employees what to do is gone. In today’s
organization, you will most likely work in a team,23 perform lots of quantitative analysis on business data, and share in decision making and other management tasks. Modern organizations also expect significantly greater productivity than occurred in their historical counterparts.
PRODUCTIVITY CENTERS. Welcome to the new normal and the productivity center. A productivity center is a revenue center that enhances profitability of the organization through enhancing the productivity of the people within the organization. So, why does a modern organization worry so much about HRM? Today’s HR managers are no longer running an organizational cost center. Their function, along with that of all other managers within the organization, is to improve organizational revenues and profits—to be a profit center. But how does HR create revenue and profits for the organization? They do it by enhancing the productivity of the people within the organization. Productivity is the amount of output that an organization gets per unit of input, with human input usually expressed in terms of units of time.
We must be more competitive in today’s business environment if we are to survive for the long term. As managers, we have to do things that will improve the productivity of the people who work for us and our organization, so we create productivity centers. But, how can we become more productive? Productivity is the end result of two components that managers work to create and improve within the organization:
• Effectiveness—a function of getting the job done whenever and however it must be done. It answers the question, “Did we do the right things?”
• Efficiency—a function of how many organizational resources we used in getting the job done. It answers the question, “Did we do things right?”
Both of these are important, but most of the time, we are focused on efficiency.24 Our people allow us to be more efficient as an organization if they are used, and motivated, in the correct manner. This course is about how to make our people more efficient.
Companies around the world are taking this need for efficiency very seriously, and new technologies and new ways of working are helping companies improve their efficiency. Chief Human Resource Officers (CHRO) are concerned about employee engagement and productivity, and especially about
improving efficiency in their respective organizations,25 and companies have learned that they need
some of their best managers in the HRM job.26 In addition to improving efficiency, some fairly new research has shown that among Fortune 500 firms, having a senior HR manager in the “C-suite”— meaning having a CHRO in addition to having a chief operations officer (COO), a chief finance officer
(CFO), and so on—increased profitability by 105% over peer companies that did not have a CHRO!27
Recall that efficiency is a function of how many organizational resources we use up in order to get the job done. It doesn’t matter what kind of resources we are talking about. We use up material, monetary, and facility resources doing our jobs. But do we use up human resources? Well, not literally, though we can burn them out and thus make them useless if we subject them to intolerable working conditions. But we do use up their time. This is the value that we have in our people—their time. We physically use up monetary resources, facility resources, and material resources, but we use up the time available from our people.
©iStockphoto.com/BraunS
WORK APPLICATION 1-2 Recall your most recent job. Did you work in a traditional cost center, a revenue center, or a productivity center? Briefly describe the firm and department and what made it a cost, revenue, or productivity center.
p.8
HR management deals primarily with improving the efficiency of the people within our organization. If our people are inefficient over long periods of time, our organization will fail. If we don’t use our people efficiently, we’re ultimately going to be forced out of business by somebody who is better at using those resources than we are. So the primary reason we’re worried about HR management within an organization is to improve the efficiency of our human beings.
So how do we make our people more efficient? We can’t really directly affect the performance of individuals within the organization. We can’t force employees to act in a certain way all of the time within the organization; and while we have the ability to punish them when they don’t do what we need them to do, we don’t have the ability to directly control all of their actions. So as managers for the organization, we have to do things that will have an indirect effect on our people’s productivity—their efficiency and effectiveness. And we do have certain things within our control as managers that can cause our people to do things that we need them to do.
Technology’s Effect on Efficiency
Senior HR Managers have learned that one way to improve efficiency of their workers is through use of technology. Old ways of doing work have become too slow in almost all cases—with competitors constantly innovating processes, and customers and employees demanding that we use technology tools to speed up both work and
feedback on the work that is done.28 Using technology allows us to gather, analyze and manage large amounts of data much more quickly than we have ever been able to do before. This in turn allows managers—including HR managers—to find commonalities in the data that can help them create new and more efficient processes. One example will help show what we are talking about:
Sysco, a food service company with more than 50,000 employees, was able to identify “what actions by management will have the greatest impact on the business” through the use of survey data. Using some of this information, they were able to improve retention for their delivery associates from 65% to 85%, which in turn saved the company about “$50 million in hiring and
training costs for new associates.”29
1-1 APPLYING THE CONCEPT
HRM Past and Present View
Identify each statement as being a present or past HRM view.
a. Past view of HRM
LO 1-2
Identify the major challenges that HR managers face in a modern organization; note especially where we are not doing well.
b. Present view of HRM
____ 1. The organization uses productivity centers.
____ 2. The organization focuses on answering the question, “Did we do the right things?”
____ 3. The organization uses cost centers.
____ 5. The organization uses revenue centers.
____ 4. The organization focuses on answering the question, “Did we do things right?”
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THE CHANGING WORLD OF HRM
Now let’s look at some of the issues facing today’s HR managers, including new HRM challenges, the competencies that will be required in order to do the job, and some demographic factors that we need to be aware of in a tight labor market.
New HRM Challenges
What types of issues are today’s corporate executives concerned with? A recent SHRM survey of HR and non-HR executives asked what challenges they think will be most significant over the next 10
years. Here is a brief review of what they said.30
The three biggest challenges according to HR executives:
1. Maintaining high levels of employee engagement
2. Developing next generation organization leaders
3. Maintaining competitive compensation and benefits offerings
The biggest challenges according to non-HR executives were very similar:
1. Developing next generation organizational leaders
2. Managing the loss of key workers and their skill sets
3. Maintaining competitive benefits and compensation offerings
The HR competencies that will be the most critical: 31
1. Business acumen: ability to understand and apply information to contribute to the organization’s strategic plan
2. Organizational leadership and navigation: ability to direct and contribute to initiatives and processes within the organization
3. Critical evaluation: ability to interpret information to make business decisions and recommendations
4. HR expertise: ability to apply the principles and practices of HRM to contribute to the success of the business
Reviewing these challenges, HRM has been reasonably good at identifying and meeting some of them, while others have gone without significant attention to date in most companies. We have pursued
©iStockphoto.com/Erikona
Today’s technology improves the effectiveness
and efficiency of HR managers, leading to higher
levels of productivity throughout the organization.
SHRM
Q:6
Knowledge Management
better selection and retention strategies for a number of years, and we have recently become much better at identifying future leaders and managing organizational relationships, culture, and structure.
Where we have still not done as well—at least in most organizations—is in business acumen, especially in quantitative areas dealing with metrics and data analytics. The ability to analyze large data sets
allows HRMs to work toward overcoming another of their challenges—creating strategic agility.32 We will introduce you to some basic HR metrics as we go through this text so that you have a working understanding of how they might be used in each functional area of HRM.
Labor Demographics
We face significant demographic changes in the labor force that will be available to our companies over the next 20 years. “Businesses no longer have a “typical” worker—diversity in terms of gender,
ethnicity and religion abounds within organizations.”33 Aging of the workforce, skills shortages, and many other factors affect the ability of HR to provide the organization with the right numbers and types of employees. Let’s quickly review a few of these issues.
p.10
Companies in developed countries are seeing a reduction in the number and quality of potential skilled employees, as well as greater gender, ethnic, and age diversity than at any time in the
past.34 The lack of skilled workers for increasingly complex jobs is considered to be a
major, ongoing problem.35 Partly as a result of this shortage of skilled labor, we are seeing more older employees with high-level skill sets remain in the workforce. So as a manager in a 21st century organization, your workforce will look
much older than it has historically.36
Your organization will soon look more culturally diverse—even compared to today. The growth in immigrant workers will be substantial. Hispanic workers (of all nationalities) alone are predicted to be approximately 20% of the workforce in 2024, but today, they compose only about 16.3% of the workforce. Asian workers are expected to move up from about 5.6% now to about 6.6% of the workforce in 2024. But the gender mix will stay fairly close to what it is today. The percentage of women in the workforce has stabilized at about 47%–48%.
All of this means that managers of a 21st century organization will need to be more culturally aware and able to deal with individuals with significantly different work ethics, cultural norms, and even languages.
Knowledge Workers and the Pace of Change
In the Information Age, we see a new kind of worker. Knowledge workers are workers who “use their head more than their hands” and who gather and interpret information to improve a product or process for their organizations. In essence, knowledge workers manage knowledge for the firm.
One of the most critical issues that HR managers face is the fact that technology is outpacing our ability to use it. Computers get faster and faster, but the human beings who have to use them don’t.
LO 1-3
Identify and briefly describe the four critical dependent variables that managers must control in order to compete in a 21st century organization.
SHRM
O:8
Global Labor Markets
This means that if the people in the organization can figure out ways to take advantage of the technology better and quicker than our competitors can, then we can create a sustainable competitive advantage. Notice, that we didn’t say create better technology—that wouldn’t give us a sustainable advantage since our competitors could just copy the technology and improve it once we designed it. We must continually figure out ways to use the technology more successfully through hiring and training better and more capable employees—our human resources. If we do this, then as the technology changes, our people will continually figure out ways to take advantage of it before our competitors’ people do. This ability within our people is the thing that creates a continuing advantage over competitors who either don’t have people with numerous and varied knowledge and skills, or don’t have people who want to assist the organization because they are not engaged and not satisfied.
Knowledge is precious in an organization. There is a continuous shortage of knowledge workers, and the United States is not alone. In most countries of the world, the news is the same—too few knowledge workers and too many knowledge jobs open and waiting for them. In fact, in one recent
study, 38% of worldwide employers reported difficulty in filling jobs.37 This means that for the foreseeable future, we will have a shortage of knowledge workers on a global scale.
So each HR manager is going to be competing with every other HR manager in the world for the pool of knowledge workers. If the organization has a reputation as a difficult place to work, will they succeed in getting knowledge workers to come to work for the organization when those workers have so many other opportunities? That would be very unlikely! Only if the organization manages its human resources successfully and maintains a reasonable working environment will it have any chance of filling most of the jobs that it has available.
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UNDERSTANDING HR’S CRITICAL FACTORS
While there are many factors in successfully managing the organization’s human resources, a few stand out in today’s business world. Management of people is necessarily different from managing money or other material resources because people have free will and can do things in any way they see fit. So HR managers and all other leaders in organizations need to learn how to indirectly control their human resources, where to lead the people resources of the company, and what tools are becoming more important in creating advantage for one business over another. Let’s review these three issues next.
Critical Dependent Variables
Before we go any further in this text, let’s look at some of the things that managers tell us they must control to compete in today’s business environment, but that they can’t directly manipulate because people have free will. These items are called dependent variables because they can be affected only through indirect means. We don’t have the ability to directly manipulate them. We have to control some other variable—called an independent variable because we can independently (directly) control it—to affect these items in any meaningful way.
Every time that we survey managers in any industry or any department about managing others, they bring up the following issues as being among the most important and most difficult things that they
deal with:38
1. Productivity—previously defined
SHRM
A:6
Employee Retention
SHRM
A:20
Attendance
2. Employee engagement—previously defined
3. Turnover—permanent loss of workers from the organization. When people quit, it is considered voluntary turnover, while when people are fired, it is involuntary turnover.
4. Absenteeism—temporary absence of employees from the workplace
Note that all of these issues deal with people—not computers, not buildings, not finances. Also, managers have no direct control over these things. They only affect these items through indirect actions. In other words, we can’t force an employee come to work and thus avoid absenteeism, nor can we force an employee to be happy with their work. We have to create conditions in which the employee is willing to or even wants to come to work and in which they can enjoy their job. We can and should do this through employment practices that the employee perceives as fair and reasonable, such as providing acceptable pay for the tasks performed by the employee. We have already introduced you to productivity and employee engagement, but let’s take a moment for a more detailed look at absenteeism and turnover.
Turnover is the permanent loss of workers from the organization. Does turnover cost the organization?
Absolutely!39 There is strong and “growing recognition that collective turnover can have important consequences for organizational productivity,
performance, and—potentially—competitive advantage.”40 What specific issues are associated with turnover? Well, first is the cost of the paperwork associated with the departing employees; and if they left involuntarily, we may have increases in our unemployment insurance payments and might even have some potential security issues. Next, there is finding someone else to do the job, which incurs job analysis costs, recruiting costs, and selection costs (we will talk about all of these later). Once we hire someone new, we have orientation and other training costs, costs associated with getting the new worker up to speed on their job (something we call a learning curve), and the costs associated with them just not knowing our way of doing business (every company has a unique culture, and not knowing how to act within that culture can cause problems). So again, because we have many costs associated with turnover in the organization, we want to minimize turnover.
On the other hand, absenteeism is the failure of an employee to report to the workplace as scheduled. So what’s the problem with that? If employees don’t come to work, we don’t have to pay them, right? Well, some of them anyway—but not when we give paid sick leave or when they are “exempt” employees (we will talk about exemptions in Chapter 11). So why do managers
worry about absenteeism? Well, for one thing, it does cost the organization money41—not necessarily directly, but indirectly. On an annual basis, absenteeism costs in the United States went from an
estimated $30 billion in 198442 to about $225 billion per year in 2015.43 And even if we don’t have to pay employees when they are absent from work, we still have to maintain benefits like health insurance. We also likely lose productivity from other employees because of having to do the missing employee’s work and not being able to do their normal job; that costs us money, too. In addition, if some of our workers are frequently absent, it causes lower job satisfaction in others who have to continually “take up the slack” for their absent coworker. And there are other issues as well. So, we can quickly see that even though we don’t have to pay some of our workers if they don’t come to work, absenteeism still costs the organization money.
p.12
Note that our four dependent variables are interrelated. Absenteeism is costly, is often due to a lack of
employee engagement, and leads to lower productivity.44 People tend to leave their jobs (turnover) when they aren’t engaged with their work; and while they are being replaced and sometimes after,
productivity goes down.45
WORK APPLICATION 1-3 How would you rate your level of productivity, employee engagement, turnover, and absenteeism on your current job or a past job?
So now we can see the importance of these four big issues that managers can’t directly control. The bottom line is this:
As managers, we always need to be doing things that will improve productivity and employee engagement and that will reduce absenteeism and turnover. These items are critical. Everything in HRM revolves around these four things.
The Importance of Strategic HRM
Strategy and strategic planning look at our organization and environment—both today and in the expected future—and determine what we as an organization want to do to meet the requirements of that expected future. We work to predict what this future state will look like and then plan for that eventuality.
Only in the last 30–40 years has HR management really gone from reactive to proactive in nature. Instead of waiting for someone to quit and then going out and finding a replacement, HR managers are now actively seeking out talent for their
organizations.46 Good HR managers are constantly looking at processes within the organization and, if there is something going wrong, figuring out how to assist the line management team in fixing the problem—whether it is a training problem, a motivation problem, or any other people-oriented problem. The function of HR has been redesigned to enhance the other (line) functions of the business.
1-2 APPLYING THE CONCEPT
Critical Dependent HRM Variables
Identify each statement by its variable.
a. productivity
b. employee engagement
c. turnover
d. absenteeism
____ 6. I got tired of the poor management, so I left for a betterjob.
____ 7. Most of us don’t really like management, so we do only enough work to stay out of any trouble with the boss.
____ 8. I’m fed up with management continuing to lay off employees and expecting the rest of us to do their workto maintain production quotas.
____ 9. I’m a good worker. You aren’t really going to fire me areyou?
____ 10. Of course I take all my sick days; if I don’t I’ll lose them.
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SUSTAINABLE COMPETITIVE ADVANTAGE. Why has HRM been redesigned? To make our organizations more competitive and to create sustainable competitive advantages. This is the basis of strategic HRM.47
Strategy and strategic planning deal with the concept of creating sustainable competitive
WORK APPLICATION 1-4 Recall your most recent job. What is the firm’s competitive advantage, and how would you rate its sustainability?
advantage, a capability that creates value for customers that rivals can’t copy quickly or easily and that allows the organization to differentiate its products or services from those of competitors.
Can we gain an advantage from our buildings, our physical facilities, or our equipment? Can we create machinery that our competitors can’t create or imitate? Do we have access to computers that they don’t have access to? Of course not—not in most cases anyway. It is very rare that we can create any real technological advantage over any significant period of time, even if our technology is proprietary. If we create a technological advantage in today’s business environment, it’s usually overcome, or at least closely matched, fairly quickly. So where within the organization can we create sustainable competitive advantage? The only place we can consistently create advantage that our rivals can’t quickly match is through the successful use of our human resources—getting them to be more productive and more engaged with the
organization than are our rivals’ human resources.48 If we can create an organization where people want to come to work and where they are therefore more productive, less likely to leave, less likely to be absent, and more creative and innovative—then guess who wins? We win, you lose, you die. It’s that simple.
The Influence of Social Media
The last factor we will discuss here is the emergence of social media as a major tool for the workplace. Almost everyone today is familiar with social media in their personal life—Facebook, Instagram, Snapchat and LinkedIn are just a few of the many social media platforms. However, many of you probably don’t know how much social media platforms have changed the way work is done in HR and other parts of the organization. Let’s quickly review some of the common areas where social media is put to use. We will also discuss more about social media as we go through the remainder of the book.
• Recruiting and selection. The recruiting process in many companies has almost been taken over by social media. Recruiters scour social media platforms like LinkedIn for talented individuals whose
profile fits a job the recruiter is attempting to fill.49 On the other side of the process, many candidates use social media to check out the potential employer, connect with existing employees of the company, and review the company’s social media tools that they will have available if they choose to join its workforce.
Selection may be supported by Skype interviewing, where the candidate can personally interact with members of the company at little or no cost to either party. Other social media sites like Facebook and LinkedIn are frequently scoured (as long as the state or country where the selection is taking place allows such reviews) as part of the background checks done on candidates to help the company make a
selection that fits with the organizational culture.50 These checks are again of little or no cost to the company.
• The onboarding process. Once the person is selected to join the organization, social media can again be used to assist in many steps needed to get the person up to speed and capable of contributing to the company. We can use social media to teach organizational culture; create an FAQ area to answer common questions from new employees; provide mentors or work buddies to support the new employee; and provide commonly required payroll, equal opportunity, safety and other information that can be reviewed at any time. We can create “communities” on the company intranet that can provide the new person with interaction with other employees all over the company. The use of social media to inform and enculturate new members of the organization is really unlimited.
• Training and development. As you will see in Chapter 7, social learning is one of the primary ways that we learn new things. Social media platforms can easily be used to provide training for current jobs,
LO 1-4
Describe the four major HRM skill sets.
or developmental information to employees.51 Many employees today rate the ability to learn and develop their skills for future jobs as more important than pay. Here again, formal mentoring and development communities can help with training and development for the new employee.
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• Performance management. Social media platforms give companies the means for continuous feedback to their employees. Many employees respond better to continuing feedback than to quarterly or annual formal appraisal sessions. Many social media platforms can also provide permanent records of the good, bad, and ugly of each employee’s work. This can be useful if we ultimately have to go through a disciplinary process. You can pretty quickly see that social media is invading almost every area of HRM, so HR managers need a strong understanding of the uses and the dangers of social media. We will continue to point out areas where social media can be helpful and harmful as we go through the remainder of this book.
HRM SKILLS
What skill sets will an HR manager need in order to succeed in their job? All managers require a mix of technical, interpersonal, conceptual and design, and business skills in order to successfully carry out their jobs (see Exhibit 1-2). HR managers are no different, so all leaders
need management skills to improve organizational performance.52 The set of necessary HR skills is similar to the skills needed by other managers; but, of course, it emphasizes people skills more than some other management positions do. The recently promulgated SHRM Competency Model discusses
four basic “competency clusters” that match up well with the following four skill sets.53
Technical Skills
The first skill set that an HR manager must develop to be successful, and also the easiest one to
develop, is the technical skill set.54 Technical skills are defined as the ability to use methods and techniques to perform a task. Being successful as an HR manager requires many skills, including comprehensive knowledge of laws, rules, and regulations relating to HR; computer skills (because everything in HR is now computerized); interviewing skills; training knowledge and skills; understanding of performance appraisal processes; cultural knowledge (so we don’t make culture- related mistakes); and many others. This skill set is part of the SHRM technical expertise competency. We will cover many of these technical skills in the remaining chapters of this book.
Interpersonal Skills
The second major skill set is interpersonal skills, which comprise the ability to understand, communicate, and work well with individuals and groups through developing effective relationships. The resources you need to get the job done are made available through relationships with people both inside the organization (i.e., coworkers and supervisors) and outside the organization (i.e., customers,
suppliers, and others).55
HR managers must have strong people skills. This does not mean that HR managers always have to be gullible or sympathetic to every sob story, but it does mean that they have to be empathetic. Empathy is simply being able to put yourself in another person’s place—to understand not only what he or she is saying but why he or she is communicating that information to you. Empathy involves the ability to consider what the individual is feeling while remaining emotionally detached from the situation.
WORK APPLICATION 1-5 Give examples of how a present orpast boss of yours used each ofthe four HRM skills.
Exhibit 1-2 HRM SKILLS
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Interpersonal skills also involve the ability to work well with others in teams; to persuade others; to mediate and resolve conflicts; to gather information from others; and to jointly analyze, negotiate, and come to a collective decision. This skill set is identified as interpersonal proficiency in the SHRM competency model. We will focus on interpersonal skills throughout this book, and you will have the opportunity to develop your skill set throughout this course.
Conceptual and Design Skills
Conceptual and design skills are another skill set required in a successful HR manager. Such skills help in decision making. Clearly, the decisions you have made over your lifetime have affected you today.
Likewise, leaders’ decisions determine the success or failure of the organization.56 So organizations
are training their people to improve their decision-making skills.57 Conceptual and design skills include the ability to evaluate a situation, identify alternatives, select a reasonable alternative, and make a decision to implement a solution to a problem. This skill set is a critical part of creating and maintaining the ability to lead in an organization.
The conceptual part of this skill set is an ability to understand what is going on in our business processes—the ability to “see the bigger picture” concerning how our department or division and the overall organization operates. It also includes the ability to see if we are getting outside expected process parameters. In other words, are we doing things that we shouldn’t be, or are we not successfully doing things that are necessary for maintaining a high level of productivity?
Design skills are the other part of the equation. This is the skill set that allows us to figure out novel or innovative solutions to problems that we have identified through the use of our conceptual skills. So, one part of this skill set is identification of any problems that exist, and the second part is decision making to solve problems and carrying out (leading) the solution. Learning this skill set is necessary if you are going to become capable in the SHRM leadership proficiency competency.
Business Skills
Finally, SHRM’s business-oriented proficiency competency is a mandatory HRM skill. Like technical skills, business skills are easier to develop than human relations and conceptual and design skills. Business skills are the analytical and quantitative skills—including in-depth knowledge of how the
LO 1-5
Discuss the line manager’s sixHRM responsibilities.
business works and its budgeting and strategic-planning processes—that are necessary for a manager to understand and contribute to the profitability of the organization. HR professionals must have knowledge of the organization and its strategies if they are to contribute strategically. This also means that they must have understanding of the financial, technological, and other facets of the industry and the organization and be able to manipulate large amounts of data using data analytics programs and HR metrics.
1-3 APPLYING THE CONCEPT
HRM Skills
Identify each activity as being one of the following types of HRM skills, and write the letter corresponding to each skill before the activity or activities describing it:
a. technical
b. interpersonal
c. conceptual and design
d. business
____ 11. The HR manager is working on the strategic-planning process.
____ 12. The HR manager is working on determining why more employees have been coming to work late recently.
____ 13. The HR manager is filling out a complex governmentform.
____ 14. The HR manager is talking socially with a few of her staff members.
____ 15. The HR manager is praising a staff member for finishing a job analysis ahead of schedule.
____ 16. The HR manager is assigning projects to various staff members.
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LINE MANAGERS’ HRM RESPONSIBILITIES
What if you are not planning on becoming an HR manager? Why do you need to understand the topics that we are discussing throughout this book? Well, line managers are the first point of contact with most of our employees when they have questions about human resources policies or procedures. As a result, you have to have a basic understanding of the management of your organization’s human resources. You need to be able to answer employee HR questions; and if you don’t follow company HR policies, you can cause legal problems for your firm, get disciplined and fired, and potentially even spend time in jail. So in this section, we explain the difference between line and staff management and line managers’ major HRM responsibilities.
Licensed Video Importance of HRM
HRM in Action Line Managers
Line Versus Staff Management
Line managers are the individuals who create, manage, and maintain the people and organizational processes that create whatever it is that the business sells. Put simply, they are the people who control the actual operations of the organization. A line manager may have direct control over staff employees,
SHRM
J:6
Internal Consulting
WORK APPLICATION 1-6 Give examples of line and staff positions at an organization where you work or have worked.
but a staff manager would not generally have any direct control of line employees.58
HR managers, on the other hand, would generally be staff managers, individuals who advise line managers in some field of expertise. These managers act basically as internal consultants for the company, within their fields of specialized knowledge. As an example, a company accountant or lawyer would usually have staff authority within a manufacturing firm—they would be there to advise the operational managers concerning what is legal or illegal. However, in a law firm, a lawyer would usually be a line manager, because the organization’s end product is knowledge and application of the law. In this case, the lawyer would have the ability to control the organization’s processes to produce their output—a legal briefing, a lawsuit, or a contract agreement for instance.
Major HR Responsibilities of Line Management
What does a line manager need to know about HR management? A lot! Remember that every manager’s primary job is to
manage the resources of the organization, including the human resources.59 The following list shows some of the major items that line managers would need to understand in order to successfully do their job.
LEGAL CONSIDERATIONS. Line managers can inadvertently violate the law if they don’t know what the various employment laws say and what actions are prohibited or required in dealing with employees. Laws that a line manager needs to understand include employment laws, workplace safety and health laws, labor laws, and laws dealing with compensation and benefits.
LABOR COST CONTROLS. What can and can’t line managers do to minimize labor costs? All managers need to know how they can manage labor costs, both from an efficiency standpoint and from the standpoint of understanding the state and federal laws that limit our options for managing our labor resources.
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LEADERSHIP AND MOTIVATION. Obviously, one of the major reasons to have managers is to provide motivation and leadership to employees in our organizations. Managers are worth less than nothing if they don’t improve their workers’ performance and productivity through the use of motivation and leadership.
TRAINING AND DEVELOPMENT. Line managers are generally the first to see a problem with organizational processes. This is frequently an indication that some type of training is needed. Line managers are also the individuals who would debrief most employees on their annual performance appraisals. This is another situation in which a manager might recognize the need for further training of their workforce. Finally, line managers are the people responsible for making changes to organizational processes. As a result of these changes, we frequently need to train our people on the new methods of doing our work.
Line managers are also the people responsible for identifying the talented workers in the organization whom we need to develop so that they can move into higher-level positions when they are needed. The organization needs to have these people “in the pipeline” so that as others leave the company or retire, we have qualified individuals to take their place.
APPRAISAL AND PROMOTION. Line managers should almost always be responsible for the appraisal (also
LO 1-6
Identify and briefly describe the eight major HRM discipline areas.
WORK APPLICATION 1-7 Give examples of HR responsibilities performed by your present boss or a past boss.
SHRM
called evaluation) of the people who work for them as well as for the process of debriefing those individuals on their annual (or more frequent) work evaluations. The line manager should also have a strong voice in who should be eligible for promotions in the organization, since the line manager’s job is to know their people and their capabilities and limitations.
SAFETY AND SECURITY OF EMPLOYEES. Line management has primary responsibility for maintaining the safety and security of the organization’s workforce. They must know federal and state laws concerning occupational safety and health as well as procedures for securing the organization’s workspaces and people from both outsiders and other employees who would want to harm them. Line managers need to monitor the areas under their physical control to minimize the hazards that can occur inside our companies.
So line managers have a lot to do with the human resources in the organization, don’t they? All line managers need to know all of these things and more in order to be successful in their jobs.
HR MANAGERS’ RESPONSIBILITIES: DISCIPLINES WITHIN HRM
But what if you are planning to become an HR manager? HR managers take the lead in the management and maintenance of the organization’s people. It is an exciting field with many different paths that you can take
over the course of your career.60 The field is so broad that you could do something different each year for a 40-year career and never exactly duplicate an earlier job.
So if you have decided that you would like to explore the field of HRM as a career, what kind of jobs could you expect to fill inside your organization? What are your options for a career, and what kinds of specialized training and certification are available for you in the field? Although there are many different jobs in the field, most of them fall into a few categories. Let’s briefly take a look at each of these disciplines or specialties. We will provide the details in later chapters.
Most HR jobs are either generalist jobs, in which the HR employee works in many different areas, or specialist jobs, in which the employee focuses on a specific discipline of HR. What specialties are available? Below is a partial list of some of the major specialist careers that you can get into if you desire. But first, complete the self-assessment to help you better understand your overall interest in HR and which specialties interest you more.
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The Legal Environment: EEO and Diversity Management
Equal employment opportunity (EEO) and diversity management specialists are involved with the management of the organization’s employee-related actions to ensure compliance with equal opportunity laws and regulations as well as organizational affirmative action plans (when such plans are required or desired). Such specialists also have responsibilities related to the management of diverse employee groups within the company. There are many management-level issues in the diversity effort, including intergroup conflict management, creating cohesiveness, combating prejudice, and others. We will discuss some of these issues later in the text.
The HR legal and regulatory environment is critical to every organization today. This is also
D:1
HR’s Role in Organizations
quite likely the area that changes more than any other in HRM. Every court case that deals with the human resource environment inside any organization has the potential to affect every organization because of the results of that case. Even if the court ruling doesn’t change the way a company has to do business, if a federal or state legislature sees that a ruling was unfair, they may change the law at either the federal or state levels, and that affects each organization under their jurisdiction. This is how the Lilly Ledbetter Fair Pay Act (among other laws) was created. The US Supreme Court heard a case dealing with unequal pay and made its ruling based on existing laws. Because the US Congress felt that the ruling was unfair, it enacted a new law to change certain rules on how and when an equal pay complaint can be filed. We will talk a little more about this law in Chapter 3.
So if every court case that deals with equal opportunity, compensation and benefits, harassment, or discrimination in any form has the potential to change the way in which every company does business, then you can quickly see that the HR-related legal environment is an area of critical importance to your company. Therefore, people with strong expertise in HR law are equally critical to the organization. So if you want a job where you really never do the same thing twice, look at becoming an HR legal specialist.
Staffing
Staffing includes all of the things that we need to do to get people interested in working for our company—going through the recruiting process, selecting the best candidates who apply, and getting them settled into their new jobs. This is likely one of the most rewarding areas in HRM. We get to hire people into the organization who want to work for us. However, it is also a highly complex job in which we have to understand the other jobs for which we are hiring, the people who apply to fill those jobs, and the legalities involved with the hiring process. This is the first line of defense for the company. This
area can literally make or break the organization in its ability to be productive.61 If we attract and hire the right types of people with the right attitudes and skills, then the organization will have a good start at being successful. If we hire the wrong types—people who don’t want to work or don’t have the correct skill sets—then the organization will have a very difficult time being successful in the long term.
©iStockphoto.com/Vesnaandjic
Part of the diversity in today’s workforce is people retiring later inlife and working part-time.
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Training and Development
Next, we have the training and development discipline. This is where the education and training function occurs in organizations. A modern organization won’t get very far without constantly training its employees. Research supports the idea that employees who participate in more training and development are less likely to leave the company (i.e., less likely to cause turnover) and less likely to
engage in neglectful behavior.62 We train people for a variety of reasons, from teaching them their basic job to teaching them the things that they will need to move up in the organization as people above them resign or retire. If you enjoy teaching and learning, this might be an area to consider as a career field in HRM. Many HR managers stay in training and development for their entire career, because they like it. They get to interact with many different people within the organization and get to learn about many different parts of the company as they go through the training processes.
As a training and development specialist, you would have responsibility for the training processes within the organization, as well as for the development of curricula and lesson plans and the delivery of training courses. You would also be involved with the development of talent within the company so that employees are trained and ready to move into more senior positions as those positions become vacant.
Employee Relations
This specialty covers a very wide array of items associated with management and employee relations. It involves such things as coaching, conflict resolution, counseling, and disciplining the workforce as needed. It also involves leadership and team-building efforts within the organization. Virtually every organization today operates with at least some teams as part of its structure, and teams create unique problems within the company that employee relations managers must address.
We also measure and evaluate job satisfaction and employee engagement as part of employee relations. HR managers in this function have to keep up with the many and varied laws relating to employee relations, and this specialty also involves the management of employee communication.
Labor and Industrial Relations
The labor and industrial relations specialist works with the laws and regulations that control the organization’s labor-related relationships with their workforce. This is also the area that manages any relationships the organization has with unions. HR managers who work in this area might be involved in union votes, negotiations for union agreements, contract collective bargaining, handling grievances, and other items that affect the union/management relationship within the organization. This area also includes all labor relations activities, even in nonunion businesses. These managers have to maintain a working knowledge of all of the federal labor laws such as the National Labor Relations Act and the Taft-Hartley Act. Again, we will cover this in more detail later.
Compensation and Benefits
A compensation and benefits specialist might find jobs in compensation planning, salary surveys, benefits management, incentive programs, and more. This area deals with how we reward the people who work for us. Rewards come in many styles and types, and the compensation and benefits specialist helps decide the total compensation package that the organization will use to attract and retain the best mix of people with skills that are specifically suited to the organization. Here again, a manager will have to understand the federal and state laws that deal with compensation management within
businesses, including the Fair Labor Standards Act plus EEO and discrimination laws. Compensation management also includes issues such as pay secrecy, comparable worth, and wage compression— topics that we will cover in some detail in later chapters.
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1-1 SELF ASSESSMENT
HR Disciplines
The following are 24 HR activities that you could be involved in. Rate your interest in each specialty with a number (1–7) that represents your interest in the activity.
I’m not really interested in doing this I’m really interested in doing this
1. _____ Working to make sure everyone in the firm is treated fairly
2. _____ Working against discrimination and helping minorities to get hired and promoted
3. _____ Knowing the laws, helping the firm implement laws, and reporting how the firm complies with the HR laws
4. _____ Working to get people to apply for jobs, such as writing advertisements and attending job fairs
5. _____ Interviewing job candidates
6. _____ Orienting new employees to the firm and their jobs
7. _____ Teaching employees how to do their current jobs
8. _____ Developing employees’ general skills so they can progress in the firm
9. _____ Designing curricula and lesson plans for others to teach employees
10. _____ Coaching, counseling, and disciplining employees whose work quality is not up to standards
11. _____ Working with teams and helping resolve conflicts
12. _____ Working to understand and improve the level of job satisfaction throughout the firm
13. _____ Working with union employees
14. _____ Collective bargaining with unions
15. _____ Solving employee complaints
16. _____ Working to determine fair pay for different jobs, including investigating competitors’ pay scales
17. _____ Creating incentives to motivate and reward productive employees
18. _____ Finding good benefits providers, such as lower-cost and higher-quality health insurance providers
19. _____ Making sure that employees don’t get hurt on the job
20. _____ Working to keep employees healthy, such as developing diet and exercise programs
21. _____ Ensuring the security of the facilities and employees, issuing IDs, and keeping employee records confidential
22. _____ Ensuring that employees are ethical, such as developing and enforcing codes of ethics
23. _____ Enforcing ethical standards, such as maintaining methods for employees to confidentially report ethics violations
24. _____ Working to help the organization develop methods to improve efficiency while protecting our environment
Scoring and Interpreting Individual Discipline Results
Place your rating numbers (1–7) below and total the three scores for each discipline. Then rank your totals from 1 to 8 to determine which disciplines interest you most:
Legal Environment: Equal Employment Opportunity (EEO) and Diversity Management
1 _____
2 _____
3 _____
_______ Total (Rank this total: _____ [1–8])
Staffing
4 _____
5 _____
6 _____
_______ Total (Rank this total: _____ [1–8])
Training and Development
7 _____
8 _____
9 _____
_______ Total (Rank this total: _____ [1–8])
Employee Relations
10 _____
11 _____
12 _____
_______ Total (Rank this total: _____ [1–8])
Labor and Industrial Relations
13 _____
14 _____
15 _____
_______ Total (Rank this total: _____ [1–8])
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Compensation and Benefits
16 _____
17 _____
18 _____
_______ Total (Rank this total: _____ [1–8])
Safety and Security
19 _____
20 _____
21 _____
_______ Total (Rank this total: _____ [1–8])
Ethics and Sustainability
22 _____
23 _____
24 _____
_______ Total (Rank this total: _____ [1–8])
The higher your total in each discipline, the greater your interest in that area of HR at this point in time. Of course, your interest levels can change as you learn more about each discipline. You will also be doing self-assessments in all the other chapters that relate to these eight disciplines.
Scoring and Interpreting Total Discipline Results
Now add up your grand total interest score (from all 24 activities) and write it here: ________ Then compare it to the continuum below to gauge your overall level of interest in working in human resources:
The higher your score, the greater is your overall interest in HR―again, at this time only.
You should realize that this self-assessment is designed only to show your current level of interest. It may not predict how much you will enjoy working in any HR discipline in the future. For example, if you get a real job in an area where you gave yourself a low score today, you could end up finding it very interesting. The self-assessments throughout this book are designed to give you a better understanding of your interest and aptitudes at the present time, and they are open to your interpretations. For example, some people tend to rate themselves much lower or higher than others even though they have the same level of interest—so don’t be too concerned about your score. There are no correct answers or scores. Some people with lower scores may actually enjoy the course more than those with higher scores. The purpose of these self-assessments is to help you gain self-knowledge and get you thinking about how the topic of HRM relates to you.
So at this point, you should have a better idea of what the eight HR disciplines are and which areas are of more and less interest to you. But as you read the rest of this chapter and the others and learn more about each discipline, you may change your mind.
In this specialty, you would have a hand in setting pay scales, managing pay of various types, and administering benefits packages. All of the processes within this discipline are designed to help the organization attract and keep the right mix of employees. You would also deal directly with all of the federal and state compensation laws to ensure compliance in organizational pay and benefits procedures.
Safety and Security
SHRM
J:9
Ethics
SHRM
C:8
Codes of Ethics
SHRM
J:5
Sustainability/Corporate SocialResponsibility
We also need to protect our human resources. In the safety and security discipline, a manager might work in the area of occupational safety and/or health to make sure we don’t injure our people or cause them to become sick because of exposure to some substance they work with. This discipline also includes fields such as stress management and employee assistance programs, which help employees cope with the demands of their jobs on a daily basis. And finally, this function works to ensure that employees are secure from physical harm inflicted by other workers, outsiders, or even acts of nature. We have to protect our people if we are going to expect them to do their jobs.
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As a safety and security specialist, the HR manager works to ensure that the work environment is safe for all workers so that on-the-job injuries, illnesses, and other negative events are minimized to the greatest extent possible. You also have responsibility for managing the organization’s plans for securing the workforce, both from being harmed by other people as well as from natural disasters such as earthquakes or tornados. Maintaining the privacy of employees’ confidential HR files is also part of this specialty.
Ethics and Sustainability
In this specialty, you would bear responsibility for seeing to it that the organization acts in an ethical and socially responsible manner. You would work on codes of ethics and also make sure employees live by those codes, such as by maintaining ways in which employees can report violations of ethics (also known as whistle-blowing).
Environmental issues are major social concerns today,63
and sustainable development has become one of the
foremost issues facing the world.64 Sustainability is meeting the needs of today without sacrificing future
generations’ ability to meet their needs.65 All developed societies and a growing number of developing countries expect sustainability, and that includes wanting managers to use resources wisely and responsibly; protect the environment; minimize the amount of air, water, energy, minerals, and other materials used in the final goods we consume; recycle and reuse these goods to the extent possible rather than drawing on nature to replenish them; respect nature’s calm, tranquility, and beauty; and eliminate toxins that harm people in the workplace and in
communities.66 Some companies have historically done a relatively poor job of maintaining the environment in some less developed countries in which they operated. In fact, in many cases, companies decided to operate out of a particular country to minimize their costs associated with conservation and sustainability.
If you take a look at the table of contents as well as the practitioner’s model below, you will realize that this book is organized to discuss the eight areas of HRM listed above. We have gone through the disciplines pretty quickly thus far, but we will deal with each in much more detail as we continue through this text. For right now, just understand that there are many different functions and areas in which an HR manager can work as part of their organization. So, it is pretty much guaranteed that you won’t get bored in your role as a 21st century HR manager if you don’t want to.
©iStockphoto.com/simonkr
Line and staff employees can work more effectively together with today’s technology.
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1-4 APPLYING THE CONCEPT
HRM Disciplines
Identify each HRM discipline and write the letter corresponding to it before the activity involving it:
a. Legal Environment: EEO and Diversity Management
b. Staffing
c. Training and Development
d. Employee Relations
e. Labor and Industrial Relations
f. Compensation and Benefits
g. Safety and Security
h. Ethics and Sustainability
____ 18. The HR manager is writing an ad to recruit a job candidate.
____ 19. The HR manager is investigating an employee complaint of racial discrimination.
____ 20. The HR manager is taking a class in preparation for the exam to become certified as a Professional in Human Resources (PHR).
____ 21. The HR manager is working with an insurance company to try to keep the high cost of health insurance down.
____ 22. The HR manager is replacing the office copier with a more energy-efficient model.
WORK APPLICATION 1-8 Give brief examples of the HR disciplines performed by the HR department (or individuals responsible for HR) where youwork or have worked.
LO 1-7
List some of the major resourcesfor HRM careers.
____ 23. The HR manager is having a new software program installed to protect employee records from theft.
____ 24. The HR manager is working on the new collective bargaining contract with the Teamsters Union.
____ 25. The HR manager is looking for potential new employees at the LinkedIn website.
____ 26. The HR manager is filling out an accident report with a production worker who got hurt on the job.
____ 27. The HR manager is reviewing a company report that compares its wages and salaries to other businesses in the area.
____ 28. The HR manager is giving priority to promoting a member of a minority group to a management position.
____ 29. The HR manager is teaching the new employee how to use the HR software program.
Next, let’s take a look at some of the professional organizations that are out there to help you get where you want to go in HRM.
RESOURCES FOR HRM CAREERS
If you are interested in HRM as a career, there are several professional associations and certification programs associated with HR management that will help you get into these jobs and help you advance more quickly in the future. We’ve listed some of them below, and there are several others within specific HR disciplines that are not discussed here.
Society for Human Resource Management (SHRM)
The Society for Human Resource Management (SHRM) is the largest and most recognized of the HRM advocacy organizations in the United States. According to its website, SHRM is “the world’s
largest HR professional society . . . representing more than 285,000 members in over 165 countries.”67
What does SHRM do? Probably the biggest part of its work is dedicated to (1) advocacy for national HR laws and policies for organizations and (2) training and certification of HR professionals in a number of specialty areas. SHRM also provides its members with a place to network and learn from their peers, plus a vast library of articles and other information on HR management.
SHRM is an outstanding organization that anyone thinking about a career in human resources should consider joining. Student memberships have always been and continue to be very inexpensive, especially considering all that is available to members of the organization. If you are a college or university student, does your school have a student SHRM chapter? If it does, and you are serious about a career in HR—join. If your school doesn’t have a chapter, consider starting one.
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SHRM also provides a curriculum guide for colleges and universities that offer HRM degree programs. The guide identifies specific areas in which SHRM feels students should gain competence as HRM majors. It breaks down curriculum areas into required, secondary, and integrated sections. Because SHRM is such a significant force in each of the HRM fields, we have decided to show you where each of
SHRM
B:21
Professional Liability
WORK APPLICATION 1-9 Are you joining or will you join a professional association, and will you seek certification? Explain why or why not.
the required curriculum areas is covered within this text. In each chapter, you will see notes on the side of the page when a SHRM required topic is discussed. These notes are alphanumerically keyed to the information in the Appendix: SHRM 2016 Curriculum Guidebook. You might want to pay special attention to these side notes if you have plans to become an HR manager.
If you do decide to work toward a goal of becoming an HR manager, you will need to think about taking the SHRM-CP Exam. To get more information about the SHRM-CP Exam and when you are eligible to take it, go to the SHRM website at http://www.shrm.org/assessment/.
Other HR Organizations
In addition to SHRM, there are three organizations that have certification programs that are recognized in many countries around the world. The first one is the Association for Talent Development (ATD). As its name implies, ATD primarily focuses on supporting those who develop the
knowledge and skills of employees in organizations around the world.68 Its major certification is the Certified Professional in Learning and Performance (CPLP). According to the ATD websites, CPLP certification is designed to “Validate your knowledge and skills in the talent development
profession.”69
The Human Resource Certification Institute (HRCI) is the second organization that provides some of
the most respected certifications for HR personnel anywhere in the world.70 The three biggest HRCI certification programs are the PHR, SPHR, and GPHR certifications. PHR stands for Professional in Human Resources, SPHR stands for Senior Professional in Human Resources, and GPHR stands for Global Professional in Human Resources. These certifications are recognized by organizations worldwide as verification of a high level of training.
The other major organization is WorldatWork. Certifications from this organization include Certified Compensation Professional (CCP), Advanced Certified Compensation Professional (ACCP), Certified Benefits Professional (CBP), Global Remuneration Professional (GRP), Work-Life Certified Professional (WLCP), Certified Sales Compensation Professional (CSCP), and Certified Executive Compensation Professional (CECP). As you can quickly see, WorldatWork mainly deals with
compensation, benefits, and performance management programs.71
All of the above certification bodies are quite high in quality within their areas of focus. Each of them has extensive websites (the primary sites are https://www.td.org; https://hrci.org; and http://worldatwork.org). If you are interested in these certifications, take a look as you have time.
Professional Liability
One of the more important things that you need to understand if you are thinking about becoming an HR manager is the issue of professional (personal) liability for the actions that you take on behalf of the organization. It is not a well-known fact that HR managers can be held personally liable for some of the actions that they take as part of their job. For instance, two federal laws—the Fair Labor Standards Act and the Family and Medical Leave Act (which we will discuss in more detail in later chapters)—“have
both been construed by courts to provide for individual liability.”72 Both the organization and managers who have authority to make decisions for the organization can be sued by an employee who feels that their rights under these laws have been violated. This is one of the many reasons why if you plan to manage people, you really want to understand all of the HRM concepts as well as possible. These are only two examples of potential professional liability that an HR manager can incur if they fail
http://www.shrm.org/assessment/
https://www.td.org
https://hrci.org
http://worldatwork.org
LO 1-8
Explain the five parts of thepractitioner’s model for HRMand how the model appliesto thisbook.
to take federal and state laws into account. There are many others, so you need to be aware of the potential for personal liability, and in some cases, you may even need to consider professional liability insurance—for instance, if you are an HRM consultant to outside organizations.
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PRACTITIONER’S MODEL FOR HRM
We have given you a (very) brief history of current HRM practices and what HR management does for the organization. Now we need to get into the particulars of the matter and start talking about some of the detailed information that you will need to know in order to be a successful manager for your organization. How will we do that? We are going to work through what you need to know using a practitioner’s model for HRM, shown in Exhibit 1-3.
Licensed Video HR Trends
The Model
The practitioner’s model is designed to show you how each of the sections of HRM interact and which items you must deal with before you can go on to successfully work on the next section—kind of like building a foundation before you build a house. The model first provides you with knowledge of which organizational functions are critical to ensure that the organization can be viable over the long term— so that it will operate legally and work toward the goals that it has identified as critical to gaining success. Second, the model helps you learn what things the organization needs to do in order to sustain
itself and its human resources over the long term—including identifying and setting up different jobs, finding the right people, and getting them into the organization and ready to work. Next, the model discusses the critical issues in managing those human resources successfully—training, developing them for the future, evaluating and improving their performance, and maintaining a strong relationship between management and employees. Fourth, the model discusses how to maintain your workforce through managing the compensation and benefits provided to your people—including determining fair pay and incentives for work completed, as well as what benefits to provide to workers. Finally we look at some special issues that have become far more important to organizational success: safety and health, ethics and social responsibility, and global issues.
Exhibit 1-3 THE PRACTITIONER’S MODEL FOR HRM END RESULT = ORGANIZATIONAL SUCCESS
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Sections of the Model
Let’s discuss the details of each section of the model separately.
SECTION I: 21ST CENTURY HRM, STRATEGIC PLANNING, AND HR LAWS. You have already begun Section I, where we discuss the modern form of HRM, including the necessity of having strategy-driven HRM and a strong understanding of the basic HR legal environment. This is the basis for everything else that an HR manager will do, so it is the foundation of our diagram. These are the things that are most critical to
the organization’s basic stability and success, because if we don’t get them right, we will probably not be around long enough as an organization to be successful in the sections resting on this one.
Exhibit 1-4 SECTION I: PRACTITIONER’S MODEL FOR HRM
SECTION II: STAFFING. Now that we have a stable organization with some form of direction, we start to look at getting the right people into the right jobs in Section II. This section includes the items that will allow the organization to get its work done successfully over long periods of time. We first look at identifying the jobs that will need to be filled and then work through how to recruit the right numbers and types of people to fill those jobs. Finally, we find out what our options are concerning methods to select the best of those job candidates whom we have recruited. The items in Section II are absolutely necessary for long-term organizational sustainability and success.
Exhibit 1-5 SECTION II: PRACTITIONER’S MODEL FOR HRM
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SECTION III: DEVELOPING AND MANAGING. In the third section, we learn how to manage our people once they have been selected in to the organization. We have to train (and retrain) our people to do jobs that are ever changing in today’s organization; we have to evaluate them in some formal manner so that they know how well they are doing in the eyes of their management; and we have to develop them so that they can fill higher-level positions as we need people to step up into those positions. We sometimes have to coach, counsel, and/or discipline our employees as well, so we need to learn how to do those things so that we can improve motivation when possible; and if we can’t improve motivation or overcome poor work behaviors, we will know how to correctly and humanely separate (i.e., terminate) the individual from the organization. Finally, Section III addresses the role of employee and labor relations, with emphasis on the function of unions within organizations. So Section III shows us how to manage our human resources on a routine basis.
Exhibit 1-6 SECTION III: PRACTITIONER’S MODEL FOR HRM
LO 1-9
Describe how employee engagement affects productivity.
SECTION IV: COMPENSATING. The fourth section will cover the compensation and benefits packages that we work with to keep our people satisfied (or at least not dissatisfied). Both direct compensation, in the form of base pay and incentives, and indirect pay, in the form of worker benefits, provide us with some level of control over what our employees decide to do for the organization (since we cannot directly make them more productive). Section IV shows us how to reward and maintain our workforce, since they are so critical to our ongoing success.
Exhibit 1-7 SECTION IV: PRACTITIONER’S MODEL FOR HRM
SECTION V: PROTECTING AND EXPANDING STAKEHOLDER REACH. The last section’s topics include managing safety and health, providing ethical and social responsibility guidelines to members of the organization, and the globalization issues involved in working in multiple countries and cultures. The area of worker safety and health is critical because the employees of a 21st century organization are almost always the basis of at least some of our competitive advantage over our rivals in any industry, so we need to keep them healthy and happy. In addition to safety and health, two other areas have become far more important since the beginning of the information age in the early 1980s: ethical, sustainable, and socially responsible organizations; and the ability to operate in a global business environment. We wind up the text with these topics.
Exhibit 1-8 SECTION V: PRACTITIONER’S MODEL FOR HRM
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TRENDS AND ISSUES IN HRM
In each chapter of this book, we will discuss some of the most important issues and trends in HRM today. These issues and trends will cover areas such as the use of technology in HRM, social media, ethical issues, HR metrics, and diversity and equal opportunity. For this chapter, we have chosen the following issues: Employee Engagement Improves Productivity, and HRM and Organizational Agility.
Employee Engagement Improves Productivity
Remember that employee engagement is defined as a combination of job satisfaction, ability, and a willingness to perform for the organization at a high level and over an extended period of time. This combination of satisfaction, ability, and willingness is a more critical predictor of company
performance today than ever before.73 Many of our global employees are highly talented and extremely difficult to replace, but lots of them just aren’t being made an integral part of the
WORK APPLICATION 1-10 Explain how an organization motivates employees to beengaged.
organization through the use of management techniques that would cause them to become more interested in both their work and the work of the organization overall.
One Gallup survey recently noted that around 32% of US workers are engaged with their work, and
worldwide it is even worse at a dismal 13% engagement.74 In another survey, Gallup reported that companies with the most engaged workforce had 147% higher earnings per share, better productivity and profitability, and lower absenteeism and turnover than their competitors; so there is certainly
strong reason to work toward a more engaged workforce.75
Many managers and employees think that compensation is the most important item in employee
engagement, but that is simply not the case—at least in most organizations.76 Engaging employees is not an easy task, but we do have some evidence of things that work—at least in some cases. Overall compensation and benefits matter, but they are not enough. So how do we improve engagement? Take a look at the following tips.
Increasing engagement:
1. Give them the right tools—Mobile, social, digital tools that provide immediate information and
feedback.77
2. Create trust—“walk the talk,” as Jack Welch says.78
3. Listen—and then act on the information received. “Not only does a comprehensive approach to listening help an organization pinpoint and quickly address problems, it makes people feel
valued.” 79
4. Employees are more important than clients/customers. Manage and lead the individual employee
—they are individuals!80
5. Treat all employees with respect. This was the number one factor in job satisfaction, and
therefore in employee engagement, in a 2016 SHRM survey.81
Obviously, this is a cursory look at engagement, but we will discuss every one of these issues in more depth as we go through the remainder of the text. For now, just understand the importance of improved employee engagement.
HRM and Organizational Agility
One of the words being used to describe successful organizations in today’s environment is agile. The agile organization not only accepts change and disruption but also thrives in such environments. Because nearly every industry is being disrupted by technology,
agility is becoming a requirement in order to become, or remain, an industry leader.82 How can HRM help the organization become agile?
• Create a digital culture.83 To do this, HR and line managers must become comfortable with mobile and on-demand technology that allows the organization to be more agile and to respond more quickly to outside forces. Introduce HR technology to manage and inform the workforce; make it part of daily operations, and have leadership endorse its use. Digital technology can be used in nearly every area of
HRM,84 including recruiting, selection, organizational safety, training and development, performance management and appraisal, and tracking individual compensation. Organization culture will be discussed more in Chapter 2; but for now, understand that we can design characteristics into the culture that will enhance the ability of all of our employees to adopt, and adapt to, new technology easily and quickly.
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WORK APPLICATION 1-11 Select an organization and describe how it is and/or is not agile.
• Develop the ability not only to survive, but to thrive on change.85, 86 Along with creating a culture that is comfortable with digital technology and tools, the business needs to pay close attention to making people at all levels comfortable with immediate and continuing change. Change will be discussed in more detail in Chapter 9.
• Explore the value of “on-demand” workers. The historical stable, large employee workforce is not
always going to be the most valuable option in an agile organization.87 Working with all types of individual contributors will need to become the norm. Full-time employees need to work seamlessly with consultants, temporary workers, part-timers, and partner organization employees. They will need to be able to create and maintain these relationships as long as necessary, modify them when needed, and cut off their interaction when the relationship no longer adds value. We will discuss options for managing labor in more detail in Chapter 4.
• Review legacy processes and structures for adaptability to the agile workplace. Many companies have internal structures and processes that were designed to improve efficiency, but at the expense of
adaptability.88 When we design standard ways to do work and train people on those procedures, they become ingrained into the company—they are “the way we do things.” Unfortunately, along with being very efficient, they can prevent employees from seeing the value in doing something in a new way using new tools. If the organization is going to be able to become agile, we have to review the company structure and processes to see what can be kept without significant effect on the ability to adapt to new environments and what has to be modified. Organizational structure will also be discussed in Chapter 2.
Let’s wrap-up this chapter by taking a look at what we have accomplished. We started out by showing you how HRM has changed in the past several decades and how it has become much more important to the organization due to continuing demands to increase productivity. We showed you how productivity, employee engagement, turnover, and absenteeism are issues that companies have to deal with but have no direct control over; and we showed you how these factors affect work in organizations. We then identified several skills that you will need to be successful as a 21st century line or HR manager, and we identified the functional areas and the specialties that you can choose from if you decide to pursue a career in HRM. Finally, we gave you a model for success as a practitioner of HR management, and we showed you just a few of the issues that HR managers will face in the coming years.
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DIGITAL RESOURCES
https://edge.sagepub.com/lussierhrm3e
Line Managers*
How to Get a Job in HR
Talent Management as High Performance Practice
Importance of HRM*
The History of HR
Employment Rights Disputes
HR Trends*
Employee Engagement
* premium video only available in the interactive eBook
CHAPTER SUMMARY
1-1. Identify the difference between the traditional view of HRM and the present view. The traditional view holds that human resource management is a cost center, meaning a department or division within an organization that uses up organizational resources but doesn’t create revenues for the company. In the 21st century organization, we view HRM as a productivity center for the company. As a productivity center, HR fulfills a revenue-generating function by providing the organization with the right people in the right place and with the right skills so that organizational productivity can be improved.
1-2. Identify the major challenges that HR managers face in a modern organization; note especially where we are not doing well.
The combined major challenges are:
• Maintaining high levels of employee engagement
• Developing next generation organization leaders
• Maintaining competitive compensation and benefits offerings
• Managing the loss of key workers and their skill sets
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Where we are doing poorly is primarily in the area of business acumen, especially in quantitative areas such as metrics and data analytics.
1-3. Identify and briefly describe the four critical dependent variables that managers must control in order to compete in a 21st century organization.
The four critical variables are productivity, employee engagement, turnover, and absenteeism.
1. Productivity is the amount of output that an organization gets per unit of input, with human input usually expressed in terms of units of time. The two parts of productivity are efficiency and effectiveness.
2. Employee engagement is a combination of job satisfaction, ability, and a willingness to perform for the organization at a high level and over an extended period of time.
3. Turnover is permanent loss of workers from the organization. When people quit, it is considered voluntary turnover, while when people are fired, it is involuntary turnover.
4. Absenteeism is temporary absence of employees from the workplace.
1-4. Describe the four major HRM skill sets. The HRM skill sets include technical skills, interpersonal skills, conceptual and design skills, and business skills. Technical skills include the ability to use methods and techniques to perform a task. Interpersonal skills provide the ability to understand, communicate, and work well with individuals and groups through developing effective relationships. Conceptual and design skills provide the ability to evaluate a situation, identify alternatives, select an alternative, and implement a solution to the problem. Finally, business skills provide analytical and quantitative skills, including the in-depth knowledge of how the business works and of its budgeting and strategic-planning processes that is necessary for a manager to understand and contribute to the profitability of the organization.
1-5. Discuss the line manager’s six HRM responsibilities. Line managers require knowledge of each of the following topics:
• Legal considerations. Line managers must know all of the major employment laws so that they don’t accidentally violate them in their daily interactions with their employees.
• Labor cost controls. Line managers have to understand what they are legally and ethically allowed to do to control labor costs.
• Leadership and motivation. Probably the most significant function of a line manager is that of being a leader and motivator for the people who work for him or her. Managers are worth less than nothing if they don’t improve employee performance.
• Training and development. Line managers are typically the first point of contact to determine whether or not their workforce needs training or development to perform at a high level. They are also the people responsible for making changes to organizational processes. Training in these new processes is typically required to create maximum productivity in our workforce.
• Appraisal and promotion. Line managers are the primary individuals who evaluate subordinates’ work performance, and they should have a strong voice in who should be eligible for promotions in the organization, since their job is to know their people and each of their capabilities and limitations.
• Employee safety and security. Line managers have primary responsibility for the safety and security of the workers in an organization. They have to know the laws that deal with occupational safety and health as well as security procedures to protect their people from individuals who might want to do them harm.
1-6. Identify and briefly describe the eight major HRM discipline areas.
• The legal environment: EEO and diversity management. This discipline deals with equal opportunity laws and regulations as well as management of a diverse workforce.
• Staffing. This discipline manages the processes involved in job analysis, recruiting, and selection into the organization.
• Training and development. This discipline has responsibility for the training processes within the organization, for developing curricula and lesson plans, and for delivery of training courses. It is also involved with development of talent within the company to provide a group of employees who will be able to move into more senior positions that become vacant.
• Employee relations. This area involves the coaching, counseling, and discipline processes, along with employee communication and stress management. It is also typically responsible
for the management of job satisfaction and employee engagement.
• Labor and industrial relations. This discipline works with the laws and regulations that control the organization’s relationships with their workforce. It also works with any union- management contracts, including but not limited to union votes, grievances, contract negotiations, and bargaining with union representatives.
• Compensation and benefits. This discipline works with pay of various types and with benefits packages, all of which are designed to attract and keep the right mix of employees in the organization. It also deals directly with all of the federal and state compensation laws to ensure compliance.
• Safety and security. This discipline works to ensure that the environment on the job is safe for all workers so that on-the-job injuries and illnesses are minimized to the greatest extent possible. It also involves managing the organization’s planning for securing the workforce, both from being harmed by other people and from natural disasters such as earthquakes or tornados.
• Ethics and sustainability. This discipline bears responsibility for seeing to it that the organization acts in an ethical and socially responsible manner, to minimize harm to the environment and its various stakeholders. It involves managing the sustainability efforts in the organization to minimize the organization’s “footprint” on the environment—in other words, to minimize the depletion of worldwide resources caused by the organization’s carrying out its processes.
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1-7. List some of the major resources for HRM careers. The major resource for most HR managers is the Society for Human Resource Management, or SHRM. SHRM maintains information on all of the HR functions that we mentioned in Chapter 1. Other sources for information include ATD (The Association for Talent Development), which focuses on training and developing employees in organizations; and WorldatWork, which primarily focuses on total compensation of the workforce in all types of organizations.
1-8. Explain the five parts of the practitioner’s model for HRM and how the model applies to this book.
The practitioner’s model is designed to show the relationships between each of the functions and disciplines within HRM.
• On the first level are the items that are absolutely critical to the organization if it is going to continue to operate (and stay within federal and state laws while doing so) and be stable and successful for a significant period of time.
• The second level encompasses those things that are required to identify the kinds of jobs that must be filled and then to recruit and select the right types of people into those jobs so the company can maximize productivity over the long term. These are the items that will allow the organization to get its work done successfully over long periods of time.
• As we get into the third tier, we concern ourselves with management of the human resources that we selected in the second level. We have to get them training to do their jobs and allow them to perform those jobs for a period of time. We then have to appraise their performance and, if necessary, correct their behaviors that are not allowing them to reach their maximum potential. We do the latter through the coaching, counseling, and disciplinary processes. As this is occurring, we need to ensure that we maintain positive relationships with our employees so that they remain engaged with the organization and productive. We manage these positive relationships in many ways, from measuring and assessing job satisfaction periodically to managing relationships with union employees.
• In the fourth tier, we look at how to reward and maintain employees. Compensation and benefits can help keep employees satisfied and motivated.
• Finally, in the top tier, we want to make sure that we reward and maintain our workforce to minimize unnecessary turnover and dissatisfaction. We do this through fair and reasonable compensation planning and through the maintenance of a safe and secure workplace.
1-9. Describe how employee engagement affects productivity. Employee satisfaction, ability, and willingness are critical factors to an organization’s success. Compensation and benefits are not enough to improve employee engagement. Employers also need to provide the right tools, create trust, listen and act, and treat employees with respect and as individuals. Employers also need to keep employees engaged to help them better adapt to change, as organizations increasingly need to become agile to navigate new technologies and changing organizational structures.
KEY TERMS
absenteeism 11
business skills 15
conceptual and design skills 15
cost center 7
effectiveness 7
efficiency 7
empathy 14
employee engagement 6
human resources (HR) 5
interpersonal skills 14
knowledge workers 10
line managers 16
productivity 7
productivity center 7
revenue centers 7
Society for Human Resource Management (SHRM) 23
staff managers 16
sustainability 22
sustainable competitive advantage 13
technical skills 14
turnover 11
KEY TERMS REVIEW
Complete each of the following statements using one of this chapter’s key terms:
1. __________ consists of the people within an organization.
2. __________ is a combination of job satisfaction, ability, and a willingness to perform for the organization at a high level and over an extended period of time.
3. __________ is a division or department within an organization that brings in no revenue or profit; in other words, it costs money for the organization to run this function.
4. __________ is a division or department that generates monetary returns for the organization.
5. __________ is a revenue center that enhances the profitability of the organization through enhancing the productivity of the people within the organization.
6. __________ is the amount of output that an organization gets per unit of input, with human input usually expressed in terms of units of time.
7. __________ answers the question, “Did we do the right things?” It is a function of getting the job done whenever and however it must be done.
8. __________ is a function of how many organizational resources we used in getting the job done; it answers the question, “Did we do things right?”
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9. __________ are workers who “use their head more than their hands” to gather and interpret information to improve a product or process for their organizations.
10. __________ is the permanent loss of workers from the organization.
11. __________ is the failure of an employee to report to the workplace as scheduled.
12. __________ is a capability that creates value for customers that rivals can’t copy quickly or easily and that allows the organization to differentiate its products or services from those of competitors.
13. __________ include the ability to use methods and techniques to perform a task.
14. __________ are the ability to understand, communicate, and work well with individuals and groups through developing effective relationships.
15. ___________ is being able to put yourself in another person’s place—to understand not only what they are saying but why they are communicating that information to you.
16. ___________ are made up of the ability to evaluate a situation, identify alternatives, select a reasonable alternative, and make a decision to implement a solution to a problem.
17. __________ are the analytical and quantitative skills, including in-depth knowledge of how the business works and of its budgeting and strategic-planning processes, that are necessary for a manager to understand and contribute to the profitability of the organization.
18. __________ create and manage the organizational processes and the people that create whatever it is that a business sells.
19. __________ are the individuals who advise line management of the firm in their area of expertise.
20. __________ is meeting the needs of today without sacrificing future generations’ ability to meet their needs.
21. __________ is the largest and most recognized of the HRM advocacy organizations in the United States.
COMMUNICATION SKILLS
The following critical-thinking questions can be used for class discussion and/or for written assignments to develop communication skills. Be sure to give complete explanations for all answers.
1. Why is it important for all business majors to take this course in HRM?
2. Are you interested in becoming an HR manager? Why or why not?
3. Do you agree with the statement “Effectively utilizing the human resources within the organization is one of the few ways to create a competitive advantage in a modern business”? Why or why not?
4. Is employee engagement possible in an age when people tend to have very little loyalty to their employers and vice versa? How would you work to increase employee engagement as a manager?
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