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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

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

SAGE COURSEPACKS: OUR CONTENT TAILORED TO YOUR LMS

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

• NO NEW SYSTEM to learn

• INTUITIVE AND SIMPLE to use

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

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

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

p.ii

http://sagepub.com/findmyrep
SAGE Premium Video

BOOST COMPREHENSION. BOLSTER ANALYSIS.

• NEW HRM IN ACTION VIDEOS PROVIDE SCENARIOS in which students decide what to do when faced

with common HR challenges.

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

coursepack

• Premium content is ADA COMPLIANT WITH TRANSCRIPTS

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

objectives

p.iii

The

Hallmark Features

A COMPLETE LEARNING PACKAGE

Human Resource Management helps students develop the skills they need to effectively recruit, select, train, and develop talent. The Third Edition has been extensively updated with new cases, new coverage of trends, and the latest SHRM 2016 Curriculum Guidebook content areas.

• MORE THAN 210 INDIVIDUAL CONTENT

REQUIREMENTS FROM THE 2016 SHRM

CURRICULUM GUIDEBOOK provide students

with an easy-reference source for in-depth knowledge required of today’s HR managers.

• SKILL-BUILDING EXERCISES encourage

students to experience human resources by practicing decision-making, working in teams, and participating in role-plays.

• TRENDS AND ISSUES IN HRM SECTIONS in

each chapter highlight the latest developments in the HR field, including trends related to data analytics; social media; and working in diverse, global organizations.

p.iv

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

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

p.v

p.vi

SAGE PUBLISHING: OUR STORY

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

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

• We offer intuitive digital solutions at student-friendly prices

• We remain permanently independent and fiercely committed to quality, innovation, and learning.

p.vii

p.viii

Copyright © 2019 by SAGE Publications, Inc.

All rights reserved. No part of this book may be reproduced or utilized in any form or by any means, electronic or mechanical,

including photocopying, recording, or by any information storage and retrieval system, without permission in writing from the

publisher.

Library of Congress Cataloging-in-Publication Data

Names: Lussier, Robert N., author. | Hendon, John R., author.

Title: Human resource management : functions, applications, and skill

development / Robert N. Lussier, Springfield College, USA, John Hendon.

Description: Third Edition. | Thousand Oaks : SAGE Publications, [2018] |

Revised edition of the authors’ Human resource management, [2016] |

Includes bibliographical references and index.

Identifiers: LCCN 2017038956 | ISBN 9781506360348 (pbk. : alk. paper)

Subjects: LCSH: Personnel management.

Classification: LCC HF5549 .L825 2018 | DDC 658.3—dc23 LC record available at https://lccn.loc.gov/2017038956

This book is printed on acid-free paper.

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

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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

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