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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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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

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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

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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

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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

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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.

p.xxi

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.