Human Resources Guidebook 2 nd 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... 33 Divestiture Considerations... 34 Workforce Planning Effectiveness... 34 Chapter Summary... 34 Review Questions... 35 Review Answers... 36 Chapter 5 Recruitment... 37 Learning Objectives... 37 Introduction... 37 Recruitment Alternatives... 37 Job Specifications... 37 Recruitment Timing... 38 Recruitment Principles... 38 Recruitment Marketing... 40 Broadcasting... 41 Refining the Broadcasting Concept... 41 Broadcasting for Bulk Hiring... 42 Blind Ads... 42 Newspaper/Magazine Ads... 43 The Search Firm... 43 Internal Hiring... 44 External Hiring... 45 The Part-Time Staffing Option... 46 The Internship Option... 46 College Recruiting... 47 The Return-to-Work Option... 48 Poaching... 48 The Ex-Offender Option... 49 Communications with Applicants... 49 The Recruitment Database... 50 Recruitment Management... 50 The Recruitment Feedback Loop... 51 Chapter Summary... 51 Review Questions... 52 Review Answers... 53 Chapter 6 Applicant Evaluation and Selection... 55 Learning Objectives... 55 Introduction... 55 The Job Application... 55 Résumé Analysis... 56 Telephone Screening... 57 Interview Preparation... 58 Conducting the Interview... 58 Executive Interviews... 61 Tryouts... 62 ii
Applicant Testing... 62 Criteria Analysis... 63 Reference Checks... 64 Additional Searches... 65 Applicant Evaluation... 65 The Job Offer... 67 Speed... 68 Verbal Offer... 68 Offer Deadline... 68 Negotiations... 68 Offer Letter... 68 The Employment Contract... 69 The Rejection Letter... 70 The Feedback Loop... 70 Chapter Summary... 70 Review Questions... 71 Review Answers... 72 Chapter 7 Employee Assimilation... 73 Learning Objectives... 73 Introduction... 73 Prior to First Day... 73 First Day... 74 General Employee Orientation... 74 Departmental Employee Orientation... 75 Employee Manual... 76 Manager Involvement... 77 Periodic Reviews... 77 Chapter Summary... 77 Review Questions... 79 Review Answers... 80 Chapter 8 The Work Environment... 81 Learning Objectives... 81 Introduction... 81 Flexible Work Hours... 81 The Compressed Workweek... 81 Shift Trading... 82 Job Sharing... 82 Working from Home... 82 Snowbird Seasonal Employment... 84 Permanent Part-Time Work... 84 Alternative Location Arrangements... 85 The Workspace... 85 Rule Minimization... 85 Management Training... 86 Employee Recognition... 86 Feedback Loop... 86 Chapter Summary... 87 Review Questions... 88 Review Answers... 89 Chapter 9 Career Development... 91 Learning Objectives... 91 Introduction... 91 The Need for Career Development... 91 The Development Plan... 91 iii
Alternative Career Paths... 92 Mentoring... 93 Reverse Mentoring... 94 Job Shadowing... 95 The Leadership Track... 95 Job Rotation... 95 Coaching... 96 Chapter Summary... 96 Review Questions... 97 Review Answers... 98 Chapter 10 Employee Training... 99 Learning Objectives... 99 Introduction... 99 The Need for Training... 99 Types of Training... 100 Fine-Tuning Training... 102 Employee Turnover and the Training Investment... 104 Measuring the Results of Training... 104 The Administrative Side of Training... 105 Chapter Summary... 106 Review Questions... 107 Review Answers... 108 Chapter 11 Succession Planning... 109 Learning Objectives... 109 Introduction... 109 The Succession Planning Concept... 109 The Pooling Concept... 110 The Well-Rounded Candidate... 111 The Insertion of Outsiders... 111 Employee Departures... 112 Chapter Summary... 112 Review Questions... 113 Review Answers... 114 Chapter 12 Performance Evaluation... 115 Learning Objectives... 115 Introduction... 115 The Performance Evaluation Process... 115 The Traditional Annual Review... 115 Improvement of the Annual Review... 116 Immediate Feedback... 116 Continual Goal Setting... 116 Improve Performance Goals... 117 Common Review Period... 117 Time Allowance... 118 Separate the Compensation Discussion... 118 Balanced Appraisal... 118 Two-Way Conversation... 118 Initial Focus on Positive Aspects... 118 Emphasis on Results... 119 Discussion of Failures... 119 Prepare Improvements List... 119 End on Positive Note... 119 Dealing with Hostility... 119 Consistent Template Usage... 120 iv
Use Separate Documentation of Poor Performance... 120 Performance Appraisal Methods... 120 Rating Scales... 120 Essay Reviews... 121 Self-Appraisal... 121 Behavioral Expectations... 121 Paired Comparisons... 121 Critical Incidents Analysis... 122 360-Degree Reviews... 122 Management by Objectives... 123 General Appraisal Issues... 124 The Nature of Performance Criteria... 124 Performance Improvement Plans... 125 Chapter Summary... 125 Review Questions... 126 Review Answers... 127 Chapter 13 Termination of Employment... 129 Learning Objectives... 129 Introduction... 129 Firing Employees... 129 Guarding Against Lawsuits... 131 The Downsizing Process... 131 Outplacement Firms... 132 The Voluntary Termination... 133 Retirement Options... 133 The Exit Interview... 133 Chapter Summary... 134 Review Questions... 135 Review Answers... 136 Chapter 14 Employee Compensation... 137 Learning Objectives... 137 Introduction... 137 Compensation from the Human Resources Perspective... 137 The Difference between Salaries and Wages... 138 The Workweek... 140 Compensation Development... 140 Setting Compensation Levels... 141 Setting Pay Ranges... 141 Salary Compression... 143 Unstructured Compensation... 143 Broadbanding... 143 Individual Compensation Considerations... 143 Expatriate Compensation... 144 The Outcome of Minimal Compensation... 144 The Cash or Stock Option Alternative... 145 Commission Plans... 145 Commissions Based on Cash Receipts... 147 Final Commission Calculations... 147 Hourly Rate Plan... 148 The Minimum Wage... 148 Piece Rate Pay... 149 Overtime Pay... 150 Compensation for Travel Time... 151 Salaries Paid for Partial Periods... 151 Bonus Plans... 152 v
Golden Parachute Payments... 152 Chapter Summary... 153 Review Questions... 154 Review Answers... 155 Chapter 15 Employee Benefits... 157 Learning Objectives... 157 Introduction... 157 Adoption Assistance... 157 Athletic Facilities... 157 Cell Phones Provided by Employer... 157 Childcare... 158 De Minimis Benefits... 158 Disability Insurance... 158 Educational Assistance... 159 Employee Assistance Programs... 160 Employee Discounts... 160 Flexible Spending Accounts... 160 Health Savings Account... 163 Life Insurance... 164 Loans to Employees... 165 Lodging on Business Premises... 165 Meals... 166 Medical Insurance... 167 Medical Insurance COBRA... 168 Medicare... 169 Moving Expense Reimbursement... 170 No-Additional-Cost Services... 170 On-Site Services... 172 Pension Plans... 172 Defined Contribution Plan... 172 Defined Benefit Plan... 174 Personal Retirement Account... 174 Paid Time Off... 175 Retirement Planning Services... 175 Sabbaticals... 176 Sick Leave... 176 Social Security... 176 Stock Options... 177 Incentive and Nonqualified Stock Options... 177 Phantom Stock... 179 Stock Purchase Plans... 179 Transportation Benefits... 180 Tuition Reduction... 180 Unemployment Compensation... 180 Vacation Benefits... 181 The Amount of Vacation Time... 181 Use it or Lose it Provision... 182 Earned Vacation Time Reporting... 182 Wellness Programs... 183 Workers Compensation Insurance... 183 Working Condition Benefits... 184 Vehicles... 184 Education... 185 Outplacement Services... 185 Other Benefits... 185 Benefit Authorization Form... 186 vi
Taxability of Benefits... 187 Benefits Plan Administration... 187 Communication of the Benefits Plan... 188 Chapter Summary... 188 Review Questions... 190 Review Answers... 191 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... 219 Chapter Summary... 220 Review Questions... 222 Review Answers... 223 Chapter 18 Labor Unions... 225 Learning Objectives... 225 Introduction... 225 The Labor Union Concept... 225 Collective Bargaining... 226 The Two-Tier Wage System... 228 Unfair Labor Practices... 228 vii
Grievances... 229 Strikes... 229 Strategy and Tactics: Union Perspective... 230 Strategy and Tactics: Company Perspective... 231 Industrial Relations... 232 Chapter Summary... 232 Review Questions... 233 Review Answers... 234 Chapter 19 Discrimination Issues... 235 Learning Objectives... 235 Introduction... 235 The Protected Class Concept... 235 Categories of Employment Discrimination... 235 Bona Fide Occupational Qualifications... 236 Equal Employment Opportunity... 236 Equal Employment Opportunity Commission... 237 The Employer Information Report EEO-1... 237 Retaliation... 238 Affirmative Action... 238 Interviewing Issues... 240 Applicant Testing... 241 Medical Examinations... 241 Genetic Tests... 241 Polygraph Tests... 241 Credit Checks... 242 Sexual Harassment... 242 Expansion of the National Origin Protected Class... 243 The English-Only Rule... 243 Ex-Offender Hiring... 243 The Flextime Part Time Conundrum... 243 Termination Decisions... 244 Chapter Summary... 244 Review Questions... 245 Review Answers... 246 Chapter 20 Laws Impacting Human Resources... 247 Learning Objectives... 247 Introduction... 247 Anti-Discrimination Laws... 247 Age Discrimination in Employment Act (1967)... 247 Americans with Disabilities Act (1990)... 248 Civil Rights Act (1964)... 248 Equal Pay Act (1963)... 249 Genetic Information Nondiscrimination Act (2008)... 249 Lilly Ledbetter Fair Pay Act (2009)... 249 Older Workers Benefit Protection Act (1990)... 249 Pregnancy Discrimination Act (1978)... 250 Uniformed Services Employment & Reemployment Rights Act (1994)... 250 Consolidated Omnibus Budget Reconciliation Act (1986)... 250 Employee Retirement Income Security Act (1974)... 251 Fair Labor Standards Act (1938)... 251 Family and Medical Leave Act (1993)... 251 Federal Unemployment Tax Act (1939)... 252 Immigration Reform and Control Act (1986)... 253 Rehabilitation Act (1973)... 256 USA Patriot Act (2001)... 256 viii
Worker Adjustment and Retraining Notification Act (1988)... 256 Chapter Summary... 256 Review Questions... 257 Review Answers... 258 Chapter 21 Human Resources Metrics... 259 Learning Objectives... 259 Introduction... 259 Overview of Human Resources Measurements... 259 Position Fulfillment Speed... 259 Unfilled Requisitions Ratio... 260 Recruiter Effectiveness Ratio... 261 Yield Rate... 262 Selection Ratio... 263 Intern Conversion Ratio... 263 Cost per Hire... 264 Employee Replacement Cost... 265 Accession Rate... 266 Employee Turnover... 266 Absenteeism and Sick Leave Usage... 267 Annualized Compensation per Employee... 268 Net Benefits Cost per Employee... 268 Sales per Person... 269 Profit per Person... 270 Administrative Staff Ratio... 271 Ergonomic Injury Rate... 272 Outsourcing Cost Effectiveness... 273 General Management Measurements... 273 Chapter Summary... 274 Review Questions... 275 Review Answers... 276 Chapter 22 Records Management... 277 Learning Objectives... 277 Introduction... 277 Human Resources Records... 277 Records for Warnings... 279 Records for Contingent Workers... 279 Record Security... 279 Records Destruction... 280 Chapter Summary... 280 Review Questions... 281 Review Answers... 282 Glossary... 283 Index... 289 ix