Human Resources Guidebook 3 rd Edition Steven M. Bragg
Chapter 1 Introduction to Human Resources... 1 Learning Objectives... 1 Introduction... 1 Topic Overview... 1 Human Resources Job Description... 2 The Feedback Role... 3 The Predictive Role... 4 The Human Capital Reallocation Role... 4 The External Role of Human Resources... 4 Human Resources Organizational Positioning... 5 Human Resources Shared Services... 5 Employee Leasing... 6 Chapter Summary... 6 Review Questions... 7 Review Answers... 8 Chapter 2 Human Resources Strategy... 9 Learning Objectives... 9 Introduction... 9 Match to Corporate Strategy... 9 Match to Corporate Culture... 10 Job Rotation Strategy... 10 Contract Workers... 10 Incentives Linkage to Strategy... 11 Top Talent Management... 11 Organizational Structure... 12 Hierarchical Organizational Structure... 12 Decentralized Organizational Structure... 13 Divisional Organizational Structure... 14 Organization Branding... 16 Chapter Summary... 16 Review Questions... 17 Review Answers... 18 Chapter 3 Job Analysis... 19 Learning Objectives... 19 Introduction... 19 The Need for Job Descriptions... 19 Job Analysis... 19 Job Titles... 21 Success Attributes... 22 Job Sculpting... 22 The Employer-Employee Alliance... 22 Job Analysis Frequency... 23 Chapter Summary... 24 Review Questions... 25 Review Answers... 26 Chapter 4 Workforce Planning... 27 Learning Objectives... 27 Introduction... 27 Overview of Workforce Planning... 27 Attrition Planning... 28 Skill Matching... 29
The Overtime Conundrum... 29 Recruiting Time... 30 The Ramp-Up Interval... 30 The Relocation Option... 31 Outsourcing... 31 Technology Innovations... 32 Projects versus Full-Time Employment... 32 Organizational Structure... 33 Training Considerations... 33 Downturn Considerations... 33 Acquisition Considerations... 34 Divestiture Considerations... 34 Workforce Planning Effectiveness... 35 Chapter Summary... 35 Review Questions... 36 Review Answers... 37 Chapter 5 Recruitment... 39 Learning Objectives... 39 Introduction... 39 Recruitment Alternatives... 39 Job Specifications... 39 Recruitment Timing... 40 Recruitment Principles... 40 Recruitment Marketing... 42 Broadcasting... 43 Refining the Broadcasting Concept... 43 Broadcasting for Bulk Hiring... 44 Blind Ads... 44 Newspaper/Magazine Ads... 45 The Search Firm... 45 Internal Hiring... 46 External Hiring... 47 The Part-Time Staffing Option... 48 The Internship Option... 48 College Recruiting... 49 The Return-to-Work Option... 50 Poaching... 50 The Ex-Offender Option... 51 Communications with Applicants... 51 The Recruitment Database... 52 Recruitment Management... 52 The Recruitment Feedback Loop... 53 Chapter Summary... 53 Review Questions... 54 Review Answers... 55 Chapter 6 Applicant Evaluation and Selection... 57 Learning Objectives... 57 Introduction... 57 The Job Application... 57 Résumé Analysis... 58 Telephone Screening... 59 Interview Preparation... 60 Conducting the Interview... 61 Executive Interviews... 63 Tryouts... 64 ii
Applicant Testing... 64 Criteria Analysis... 65 Reference Checks... 66 Additional Searches... 67 Applicant Evaluation... 67 The Job Offer... 69 Speed... 70 Verbal Offer... 70 Offer Deadline... 70 Negotiations... 70 Offer Letter... 70 The Employment Contract... 71 The Rejection Letter... 72 The Feedback Loop... 72 Chapter Summary... 72 Review Questions... 73 Review Answers... 74 Chapter 7 Employee Assimilation... 75 Learning Objectives... 75 Introduction... 75 Prior to First Day... 75 First Day... 76 General Employee Orientation... 76 Departmental Employee Orientation... 77 Employee Manual... 78 Manager Involvement... 79 Periodic Reviews... 79 Chapter Summary... 79 Review Questions... 81 Review Answers... 82 Chapter 8 The Work Environment... 83 Learning Objectives... 83 Introduction... 83 Flexible Work Hours... 83 The Compressed Workweek... 84 Shift Trading... 84 Job Sharing... 84 Working from Home... 84 Snowbird Seasonal Employment... 86 Permanent Part-Time Work... 86 Alternative Location Arrangements... 87 The Workspace... 87 Rule Minimization... 87 Management Training... 88 Employee Recognition... 88 Feedback Loop... 88 Chapter Summary... 89 Review Questions... 90 Review Answers... 91 Chapter 9 Career Development... 93 Learning Objectives... 93 Introduction... 93 The Need for Career Development... 93 The Development Plan... 93 iii
Alternative Career Paths... 94 Mentoring... 95 Reverse Mentoring... 96 Job Shadowing... 97 The Leadership Track... 97 Job Rotation... 97 Coaching... 98 Chapter Summary... 98 Review Questions... 99 Review Answers... 100 Chapter 10 Employee Training... 101 Learning Objectives... 101 Introduction... 101 The Need for Training... 101 Types of Training... 102 Fine-Tuning Training... 104 Employee Turnover and the Training Investment... 106 Measuring the Results of Training... 106 The Administrative Side of Training... 107 Chapter Summary... 108 Review Questions... 109 Review Answers... 110 Chapter 11 Succession Planning... 111 Learning Objectives... 111 Introduction... 111 The Succession Planning Concept... 111 The Pooling Concept... 112 The Well-Rounded Candidate... 113 The Insertion of Outsiders... 113 Employee Departures... 114 Chapter Summary... 114 Review Questions... 115 Review Answers... 116 Chapter 12 Performance Evaluation... 117 Learning Objectives... 117 Introduction... 117 The Performance Evaluation Process... 117 The Traditional Annual Review... 117 Improvement of the Annual Review... 118 Immediate Feedback... 118 Continual Goal Setting... 118 Improve Performance Goals... 119 Common Review Period... 119 Time Allowance... 119 Separate the Compensation Discussion... 120 Balanced Appraisal... 120 Two-Way Conversation... 120 Initial Focus on Positive Aspects... 120 Emphasis on Results... 120 Adjust Feedback to the Situation... 121 Discussion of Failures... 121 Prepare Improvements List... 121 End on Positive Note... 121 Dealing with Hostility... 122 iv
Consistent Template Usage... 122 Use Separate Documentation of Poor Performance... 122 Performance Appraisal Methods... 122 Rating Scales... 122 Essay Reviews... 123 Self-Appraisal... 123 Behavioral Expectations... 123 Paired Comparisons... 124 Critical Incidents Analysis... 124 360-Degree Reviews... 124 Management by Objectives... 125 General Appraisal Issues... 126 The Nature of Performance Criteria... 126 Performance Improvement Plans... 127 Chapter Summary... 127 Review Questions... 128 Review Answers... 129 Chapter 13 Termination of Employment... 131 Learning Objectives... 131 Introduction... 131 Firing Employees... 131 Guarding Against Lawsuits... 133 The Downsizing Process... 133 Outplacement Firms... 135 The Voluntary Termination... 135 Retirement Options... 135 The Exit Interview... 135 Chapter Summary... 136 Review Questions... 137 Review Answers... 138 Chapter 14 Employee Compensation... 139 Learning Objectives... 139 Introduction... 139 Compensation from the Human Resources Perspective... 139 The Difference between Salaries and Wages... 140 The Workweek... 142 Compensation Development... 142 Setting Compensation Levels... 143 Setting Pay Ranges... 143 Salary Compression... 145 Unstructured Compensation... 145 Broadbanding... 145 Individual Compensation Considerations... 145 Expatriate Compensation... 146 The Outcome of Minimal Compensation... 146 The Cash or Stock Option Alternative... 147 Commission Plans... 147 Commissions Based on Cash Receipts... 149 Final Commission Calculations... 149 Hourly Rate Plan... 150 The Minimum Wage... 150 Piece Rate Pay... 151 Overtime Pay... 152 Compensation for Travel Time... 153 Salaries Paid for Partial Periods... 153 v
Bonus Plans... 154 Golden Parachute Payments... 154 Chapter Summary... 155 Review Questions... 156 Review Answers... 157 Chapter 15 Employee Benefits... 159 Learning Objectives... 159 Introduction... 159 Adoption Assistance... 159 Athletic Facilities... 159 Cell Phones Provided by Employer... 160 Childcare... 160 De Minimis Benefits... 160 Disability Insurance... 160 Educational Assistance... 161 Employee Assistance Programs... 162 Employee Discounts... 162 Flexible Spending Accounts... 162 Health Savings Account... 165 Life Insurance... 166 Loans to Employees... 167 Lodging on Business Premises... 168 Meals... 168 Medical Insurance... 169 Medical Insurance COBRA... 171 Medicare... 172 Moving Expense Reimbursement... 172 No-Additional-Cost Services... 172 On-Site Services... 174 Pension Plans... 174 Defined Contribution Plan... 174 Defined Benefit Plan... 176 Personal Retirement Account... 176 Paid Time Off... 177 Retirement Planning Services... 177 Sabbaticals... 178 Sick Leave... 178 Social Security... 178 Stock Options... 179 Incentive and Nonqualified Stock Options... 179 Phantom Stock... 180 Stock Purchase Plans... 181 Transportation Benefits... 181 Tuition Reduction... 182 Unemployment Compensation... 182 Vacation Benefits... 183 The Amount of Vacation Time... 183 Use it or Lose it Provision... 184 Earned Vacation Time Reporting... 184 Wellness Programs... 184 Workers Compensation Insurance... 185 Working Condition Benefits... 185 Vehicles... 186 Education... 186 Outplacement Services... 187 Other Benefits... 187 vi
Benefit Authorization Form... 187 Taxability of Benefits... 188 Benefits Plan Administration... 189 Communication of the Benefits Plan... 190 Chapter Summary... 190 Review Questions... 191 Review Answers... 192 Chapter 16 Cost Reduction Concepts... 193 Learning Objectives... 193 Introduction... 193 Proactive Hiring Solutions... 193 Temporary Cost Reductions... 194 Permanent Cost Reductions... 196 Productivity-Based Solutions... 198 Benefit Cost Sharing... 199 Benefit Reductions... 199 Benefit Limitations... 200 Benefit Swaps... 201 Benefit Aggregation Concepts... 201 Benefit Terminations... 202 Workers Compensation Issues... 202 Corporate Wellness Programs... 203 Eligibility Audits... 203 Employee Existence Audits... 204 Benefit Cost Administration... 204 Other Cost Management Concepts... 205 Total Labor Cost Analysis... 205 Timing of Compensation and Benefit Changes... 206 Chapter Summary... 206 Review Questions... 207 Review Answers... 208 Chapter 17 Human Resources Budgeting... 209 Learning Objectives... 209 Introduction... 209 The Compensation Budget... 209 The Treatment of Hourly Pay and Overtime... 211 The Benefits Budget... 212 The Headcount Budget... 213 The Link between Budgets and Bonus Compensation... 213 The Direct Labor Budget (Traditional Method)... 215 The Direct Labor Budget (Crewing Method)... 216 The Direct Labor Budget for Manufacturing Cells... 217 The Cost of Direct Labor... 217 Anomalies in the Direct Labor Budget... 218 Compensation without a Budget... 218 Chapter Summary... 220 Review Questions... 221 Review Answers... 222 Chapter 18 Labor Unions... 223 Learning Objectives... 223 Introduction... 223 The Labor Union Concept... 223 Collective Bargaining... 224 The Two-Tier Wage System... 226 vii
Unfair Labor Practices... 226 Grievances... 227 Strikes... 227 Strategy and Tactics: Union Perspective... 228 Strategy and Tactics: Company Perspective... 229 Industrial Relations... 230 Chapter Summary... 230 Review Questions... 231 Review Answers... 232 Chapter 19 Discrimination Issues... 233 Learning Objectives... 233 Introduction... 233 The Protected Class Concept... 233 Categories of Employment Discrimination... 233 Bona Fide Occupational Qualifications... 234 Equal Employment Opportunity... 234 Equal Employment Opportunity Commission... 235 The Employer Information Report EEO-1... 235 Retaliation... 236 Affirmative Action... 236 Interviewing Issues... 238 Applicant Testing... 239 Medical Examinations... 239 Genetic Tests... 239 Polygraph Tests... 239 Credit Checks... 240 Sexual Harassment... 240 Expansion of the National Origin Protected Class... 241 The English-Only Rule... 241 Ex-Offender Hiring... 241 The Flextime Part Time Conundrum... 242 Termination Decisions... 242 Chapter Summary... 242 Review Questions... 243 Review Answers... 244 Chapter 20 Laws Impacting Human Resources... 245 Learning Objectives... 245 Introduction... 245 Anti-Discrimination Laws... 245 Age Discrimination in Employment Act (1967)... 245 Americans with Disabilities Act (1990)... 246 Civil Rights Act (1964)... 246 Equal Pay Act (1963)... 247 Genetic Information Nondiscrimination Act (2008)... 247 Lilly Ledbetter Fair Pay Act (2009)... 247 Older Workers Benefit Protection Act (1990)... 247 Pregnancy Discrimination Act (1978)... 248 Uniformed Services Employment & Reemployment Rights Act (1994)... 248 Consolidated Omnibus Budget Reconciliation Act (1986)... 248 Employee Retirement Income Security Act (1974)... 249 Fair Labor Standards Act (1938)... 249 Family and Medical Leave Act (1993)... 249 Federal Unemployment Tax Act (1939)... 250 Immigration Reform and Control Act (1986)... 251 Rehabilitation Act (1973)... 254 viii
USA Patriot Act (2001)... 254 Worker Adjustment and Retraining Notification Act (1988)... 254 Chapter Summary... 254 Review Questions... 255 Review Answers... 256 Chapter 21 Human Resources Metrics... 257 Learning Objectives... 257 Introduction... 257 Overview of Human Resources Measurements... 257 Position Fulfillment Speed... 257 Unfilled Requisitions Ratio... 258 Recruiter Effectiveness Ratio... 259 Yield Rate... 260 Selection Ratio... 261 Acceptance Rate... 261 Intern Conversion Ratio... 262 Cost per Hire... 262 Employee Replacement Cost... 263 Accession Rate... 264 Employee Turnover... 264 Absenteeism and Sick Leave Usage... 265 Annualized Compensation per Employee... 266 Net Benefits Cost per Employee... 267 Sales per Person... 268 Profit per Person... 268 Administrative Staff Ratio... 269 Ergonomic Injury Rate... 270 Outsourcing Cost Effectiveness... 271 General Management Measurements... 272 Chapter Summary... 272 Review Questions... 273 Review Answers... 274 Chapter 22 Records Management... 275 Learning Objectives... 275 Introduction... 275 Human Resources Records... 275 Records for Warnings... 276 Records for Contingent Workers... 277 Record Security... 277 Records Destruction... 278 Chapter Summary... 278 Review Questions... 279 Review Answers... 280 Glossary... 281 Index... 287 ix