FUNDAMENTALS OF FUNCTIONS. APPLICATIONS. SKILL DEVELOPMENT. ROBERT N. LUSSIER Springfield College

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1 FUNDAMENTALS OF HUMAN RESOURCE MANAGEMENT FUNCTIONS. APPLICATIONS. SKILL DEVELOPMENT ROBERT N. LUSSIER Springfield College JOHN R. HENDON University of Arkansas at Little Rock (DSAGE Los Angeles London ( New Delhi Singapore Washington DC

2 *" Detailed Contents Preface Acknowledgments About the Authors PARTI 21stCENTURY HUMAN RESOURCE MANAGEMENT STRATEGIG xv xix xxi FLANNING AND LEGAL ISSUES 1 Chapter 1. The New Human Resource Management Process 2 Why Study Human Resource Management (HRM)? 4 21 st Century HRM 6 HRM Then and Now 6 HRM Challenges 7 Critical Dependent Variables 8 Technology and Knowledge 8 Labor Demographics 9 Disciplines Within HRM 10 The Legal Environment: EEO and Diversity Management 10 Staffing 10 Training and Development 10 Employee Relations 11 Labor and Industrial Relations 11 Compensation and Benefits 11 Safety and Security 11 Ethics and Sustainability 11 HRM Responsibilities 13 Line Versus Staff Management 14 Major HR Responsibilities of HR Staff and Line Management 15 HRM Skills Technical Skills Human Relations Skills Conceptual and Design Skills Business Skills HRM Careers Society for Human Resource Management (SHRM) Other HR Organizations Professional Liability Practitioner's Model for HRM The Model Trends and Issues in HRM Creating an Engaged Workforce Reverse Discrimination Rulings Continue to Evolve Chapter Summary Key Terms Review Communication Skills Case 1-1 Ba-Zynga! Zynga Faces Trouble in Farmville Skill Builders Chapter 2. Strategy-Driven Human Resource Management Strategy and Strategie Flanning in the 21 st Century: The Organization and the Environment 29 The External Environment 31 Strategy 33 What Is Strategy? 34 Visions, Missions, and Objectives 35

3 TypesofStrategies How Strategy Affects HRM How HRM Promotes Strategy Structure 39 Basics of Organizational Structure 39 How Does Structure Affect Employee Behavior? 40 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 for HRM A Brief on Data Analytics HR Analytics Desired Outcomes Human Resource Information Systems (HRIS) What Are HRIS? How Do HRIS Assist in Making Decisions? Measurement Tools for Strategie HRM Economic Value Added (EVA) Return on Investment (ROI) Trends and Issues in HRM Everything Old Is New Again: Managing Data for HRM Decision Making Continuing Globalization Increases the Need for Strategie and HRM Flanning Chapter Summary Key Terms Review Communication Skills Gase 2-1 Strategy-Driven HR Management: Netflix, A Behind-The-Scenes Look At Delivering Entertainment Skill Builders Chapter 3. The Legal Environment and Diversity Management The Legal Environment for HRM: Protecting Your Organization I A User's Guide to Managing People: The OUCH Test 6 Objective Uniform in Application 5 Consistent in Effect 5, Has Job Relatedness Major Employment Laws 5!. Equal Pay Act of Title VII of the Civil Rights Act of 1964 (CRA) 60 Age Discrimination in Employment Act of 1967 (ADEA) 62 Vietnam EraVeterans Readjustment Assistance Act of 1974 (VEVRAA) 62 Pregnancy Discrimination Act of 1978 (PDA) 62 Americans with Disabilities Act of 1990 (ADA), as Amended in Civil Rights Act of Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) 64 Veterans Benefits Improvement Act of 2004 (VBIA) 65 Title II of the Genetic Information Nondiscrimination Act of 2008 (GINA) 65 Lilly Ledbetter Fair Pay Act of 2009 (LLFPA) 65 Equal Employment Opportunity Commission (EEOC) 66 What Does the EEOC Do? 66 Employee Rights Under the EEOC 66 Employer Rights and Prohibitions 66 EEO, Affirmative Action, and Diversity: What's the Difference? 67 Affirmative Action (AA) 68 Diversity in the Workforce 69 Sexual Harassment: A Special Type of Discrimination 70 Types of Sexual Harassment 70 What Constitutes Sexual Harassment? 72 Reducing Organizational Risk From Sexual Harassment Lawsuits 73 Religious Discrimination 73 Trends and Issues in HRM 74 Federal Agencies Are Becoming More Activist in Pursuing Discrimination Claims 74 The ADA and the ADA Amendments Act (ADAAA) 74 & 5t

4 Chapter Summary 75 Key T erms Review 76 Communication Skills 78 Case 3-1 English-Only: One Hotel's Dilemma 78 Skill Builders 79 Chapter Summary 106 Key Terms Review 108 Communication Skills 108 Case 4-1 Gauging Employment at Honeywell 109 Skill Builders 110 PART II STAFFING 83 Chapter 4. Matching Emplöyees and Jobs: Job Anaiysis and Design 84 Employee and Job Matching 85 Workflow Anaiysis 86 Organizational Output 86 Tasksandlnputs 86 Job Anaiysis 87 Why Do We Need to Analyze Jobs? 88 Databases 88 Job Anaiysis Methods 89 Outcomes: Job Description and Job Specification 91 Job Design/Redesign 91 Organizational Structure and Job Design 91 Approaches to Job Design and Redesign 92 The Job Characteristics Model (JCM) 94 Designing Motivational Jobs 96 Job Simplification 96 Job Expansion 96 Job Design for Flexibility 97 HR Forecasting 98 Forecasting Methods 99 Reconciling Internal Labor Supply and Demand 101 Options for a Labor Surplus 102 Options for a Labor Shortage 104 Trends and Issues in HRM 105 0*Netasa Tool for Job Anaiysis 105 Workflows and Job Design for Sustainability 106 Chapter 5. Recruiting Job Candidates The Recruiting 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 Recruiting Internal or External Recruiting? Internal Recruiting External Recruiting Challenges and Constraints in Recruiting Budgetary Constraints Policy Constraints and Organizational Image Job Characteristics and the Realistic Job Preview (RJP) The Recruiter-Candidate Interaction Evaluation of Recruiting Programs Yield Ratio Cost per Hire Time Required to Hire New Hire Turnover New Hire Performance Trends and Issues in HRM Talent Wars Global Knowledge Workers as an On-Demand Workforce Chapter Summary Key Terms Review Communication Skills Case 5-1 LINKEDIN: How Does the World's Largest Professional Network Network? 129 Skill Builders 130

5 Communication Skills 157 Gase 6-1 Not Gelting Face Time at Facebook-and Getting the Last Laugh! 158 Skill Builders 15 Chapter 6. Selecting New Employees 134 The Selection Process 135 The Importance of the Selection Process 136 Steps in the Selection Process 137 PART III DEVELOPING AND MANAGING W Looking for "Fit" 137 Personality-Job Fit 137 Ability-Job Fit 138 Person-Organization Fit 139 Uniform Guidelines on Employee Selection Procedures 139 What Qualifies as an Employment Test? 139 Valid and Reliable Measures 139 Applications and Preliminary Screening 141 Applications and Resumes 141 Pre-employment Inquiries 141 Testing and Legal Issues 143 The EEOC and Employment Testing 143 Polygraph and Genetic Testing 143 Written Testing 144 Physical Testing 145 Selection Interviews 147 Interviewing 147 Types of Interviews and Questions 147 Preparing for and Conducting the Interview 150 Background Checks 150 Credit Checks 150 Criminal Background Checks 151 Reference Checks 152 Web Searches 152 Selecting the Candidate and Offering the Job 153 Hiring 154 Trends and Issues in HRM 154 Selection With a Global Workforce 154 HRIS and the Selection Process 155 Chapter Summary 155 Key Terms Review 157 Chapter 7. Training, Learning, Talent Management, and Development 2 The Need for Training and Development 3 Training and Development 4 When Is T raining Needed? 4 The Training Process and Needs Assessment 6 Steps in the Training Process 6 Needs Assessment 7 Employee Readiness 7 Learning and Shaping Behavior 8 Learning 8 Operant Conditioning and Reinforcement 8 Shaping Behavior 9 Design and Delivery of Training 1 71 On-the-Job Training (OJT) 173 Classroom Training 174 Distance or E-Learning 1 74 Assessing Training 175 Assessment Methods 175 Choosing Assessment Methods 176 Talent Management and Development 177 Careers 177 Common Methods of Employee Development 177 A Model of Career Development Consequences 178 Trends and Issues in HRM 181 The Gamification of Training and Development 181 Outsourcing Employee Training and Development 181 Chapter Summary 182 Key Terms Review 183

Communication Skills 183 Case 7-1 Google Search: Building the Program that Writes the Code to Find Female Talent 184 Skill Builders 185 Chapter 8.

6 Communication Skills 183 Case 7-1 Google Search: Building the Program that Writes the Code to Find Female Talent 184 Skill Builders 185 Chapter 8. Performance Management andappraisal 188 Performance Management Systems 190 Performance Management Versus Performance Appraisal 190 The Performance Appraisal Process 191 Accurate Performance Measures 192 Why Do We Conduct Performance Appraisals? 193 Communication (Informing) 193 Decision Making (Evaluating) 194 Motivation (Engaging) 194 What Do We Assess? 194 T rait Appraisals 194 Behavioral Appraisals 195 Results Appraisals 195 How Do We Use Appraisal Methods and Forms? 196 Critical Incidents Method 197 Management by Objectives (MBO) Method 197 Narrative Method or Form 198 Graphic Rating Scale Form 198 Behaviorally Anchored Rating Scale (BARS) Form 198 Ranking Method 199 Which Option Is Best? 199 Who Should Assess Performance? 200 Supervisor 200 Peers 201 Subordinates 201 Seif 202 Customers Degree Evaluations 202 Performance Appraisal Problems 203 Common Problems Within the Performance Appraisal Process 203 Avoiding Performance Appraisal Process Problems 205 Debriefing the Appraisal 206 The Evaluative Performance Appraisal Interview 206 The Developmental Performance Appraisal Interview 207 Trends and Issues in HRM 208 Is It Time to Do Continuous Appraisals? 208 Competency-Based Performance Management 208 Chapter Summary 209 Key T erms Review 210 Communication Skills 211 Case 8-1 Amazon.com: Selling Employee Performance With Organization and Leadership Review 211 Skill Builders 212 Chapter 9. Employee Rights and Labor Relations 2 Managing and Leading Your Workforce 218 Trust and Communication 218 Job Satisfaction 220 Measuring Job Satisfaction 220 Determinants of Job Satisfaction 221 Commonly Accepted Employee Rights 223 Right of Free Consent 223 Right to Due Process 224 Right to Life and Safety 224 Right of Freedom of Conscience (Limited) 224 Right to Privacy (Limited) 224 Right to Free Speech (Limited) 224 Management Rights 225 Codes of Conduct 225 Employment-at-Will 225 Coaching, Counseling, and Discipline 226 Coaching 226 Counseling 226 Disciplining 227

Legal Issues in Labor Relations 231 The Railway Labor Act (RLA) of 1926 231 The National Labor Relations Act (NLRA) of 1935 (Wagner Act) 232 The Labor Management Relations Act (LMRA) of 1947

7 Legal Issues in Labor Relations 231 The Railway Labor Act (RLA) of The National Labor Relations Act (NLRA) of 1935 (Wagner Act) 232 The Labor Management Relations Act (LMRA) of 1947 (Taft-Hartley Act) 233 The Worker Adjustment and Retraining Notification Act of 1988 (WARN Act) 234 Unions and Labor Rights 234 Union Organizing 234 Labor Relations and Collective Bargaining 235 Grievances 236 Decertification Elections 236 Trends and Issues in HRM 236 Facebook, Twitter, Work: Are They Out of Control? 237 Nonunion Worker Protection and the NLRB 237 Chapter Summary 238 Key Terms Review 239 Communication Skills 240 Gase 9-1 Off-Duty Misconduct 240 Skill Builders 241 Job Evaluation 258 External Method 258 Job Ranking Method 259 Point-Factor Method 259 Factor Comparison Method 259 Developing a Pay System 260 Job Structure and Pay Levels 260 Pay Structure 263 Trends and Issues in HRM 267 A Shrft From Base Pay to Variable Pay 267 The Technology of Compensation 267 Chapter Summary 268 Key Terms Review 269 Communication Skills 270 Case 10-1 Employee Red-Lining at CVS: The Have and the Have Not 270 Skill Builders 271 PART IV COMPENSATIO 245 Chapter 10. Compensation Management 246 Compensation Management 247 The Compensation System 248 Motivation and Compensation Flanning 249 Organizational Philosophy 251 AbilitytoPay 251 What Types of Compensation? 251 Pay for Performance or Pay for Longevity? 252 Skill-Based or Competency-Based Pay? 252 At, Above, or Below the Market? 252 Wage Compression 252 Pay Secrecy 253 Legal and Fairness Issues in Compensation 253 Fair Labor Standards Act of 1938 (Amended) 253 Pay Equity and Comparable Worth 257 Other Legal Issues 258 Chapter 11. Employee Incentives and Benefits 274 The Value of Incentives and Benefits 275 Individual Incentives 275 Advantages and Disadvantages of Individual Incentives 276 Individual Incentive Options 276 Group Incentives 278 Advantages and Disadvantages of Group Incentives 278 Group Incentive Options 278 Executive Compensation 281 The Dodd-Frank Wall Street Reform and Consumer Protection Act of Executive Incentives 282 Statutory Benefits 283 Social Security and Medicare 283 Workers' Compensation 283 Unemployment Insurance 284 Family and Medical Leave Act of 1993 (FMLA) 284 The Patient Protection and Affordable Care Act of 2010 (ACA) 285

Statutory Requirements When Providing Certain Voluntary Benefits 285 Voluntary Benefits 287 Paid Time Off 287 Group Health Insurance 288 Retirement Benefits 289 Other Employee Benefits 291 Flexible

8 Statutory Requirements When Providing Certain Voluntary Benefits 285 Voluntary Benefits 287 Paid Time Off 287 Group Health Insurance 288 Retirement Benefits 289 Other Employee Benefits 291 Flexible Benefit (Cafeteria) Plans 291 Trends and Issues in HRM 294 Incentives to Act Unethically? 294 Personalization of Health Care 294 Chapter Summary 295 Key T erms Review 296 Communication Skills 297 Case 11-1 Google Searches SAS for the Business Solution to How to Create an Award-Winning Culture 297 Skill Builders 298 PARTV * PROTECTING AND EXPANDING ORGANIZATIONAL OUTREACH 301 Stress Functional and Dysfunctional Stress Stress Management The Stress Tug-of-War Workplace Security Cyber Security General Security Policies, Including Business Continuity and Recovery Workplace Violence Social Media for Workplace Safety and Security Employee Selection and Screening Trends and Issues in HRM Employee Wellness Bullying in the Workplace Chapter Summary Key Terms Review Communication Skills Case 12-1 Nike: Taking a Run at Fixing Outsourced Worker Safety Skill Builders Chapter 12. Workplace Safety, Health, and Security 302 Workplace Safety and OSHA 303 The Occupational Safety and Health Act (OSH Act) 304 The Occupational Safety and Health Administration (OSHA) 305 What Does OSHA Do? 305 Employerand Employee Rights and Responsibilities Under OSA 305 National Institute of Occupational Safety and Health (NIOSH) 309 Employee Health 310 Employee Assistance Programs (EAPs) and Employee Wellness Programs (EWPs) 310 Ergonomics and Musculoskeletal Disorders (MSDs) 311 Safety and Health Management and Training 311 Chapter 13. Organizational Ethics, Sustainability, and Social Responsibiiity Ethical Organizations Ethics Defined Contributing Factors to Unethical Behavior Ethical Approaches Codes of Ethics Creating and Maintaining Ethical Organizations Corporate Social Responsibiiity (CSR) CSR Defined Stakeholders and CSR Levels of Corporate Social Responsibiiity Sustainability HR and Organizational Sustainability Sustainability Training The Sustainable 21 st Century Organization

9 Trends and Issues in HRM 343 Sustainability-Based Benefits 343 Does Diversity Training Work? 344 Chapter Summary 345 Key T erms Review 346 Communication Skills 346 Gase 13-1 Microsoft, Nokia, and the Finnish Government: A Promise Made, A Promise Bröken? 346 Skill Builders 348 Chapter 14. Global Issues for Human Resource Managers 350 Globalization of Business and HRM 351 Reasons for Business Globalization 352 Is HRM Different in Global Firms? 354 Legal, Ethical, and Cultural Issues 355 International Labor Laws 356 US Law 356 National Culture 357 Global Staffing 359 Skills and Traits for Global Managers 359 Staffing Choice: Home-, Host-, orthird-country Employees 360 Outsourcing as an Alternative to International Expansion 360 Developing and Managing Global Human Resources 361 Recruiting and Selection 362 Expatriate Training and Preparation 362 Repatriation After Foreign Assignments 364 Compensating Your Global Workforce 364 Pay 364 Incentives in Global Firms 365 Benefit Programs Around the World 366 Trendsand Issues in HRM 367 Globalization of Business Is a Trend! 367 The Worldwide Labor Environment 367 Chapter Summary 368 Key Terms Review 369 Communication Skills 370 Gase 14-1 IBM (l've Been Moved) at HSBC: Keeping Compensation Competitive With ECA International 370 Skill Builders 371 Appendix 373 Glossary 383 Notes 389 Index 407

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