Human Resources Guidebook 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 External Role of Human Resources... 4 Human Resources Organizational Positioning... 4 Human Resources Shared Services... 5 Employee Leasing... 5 Summary... 5 Review Questions... 6 Review Answers... 7 Chapter 2 Human Resources Strategy... 8 Learning Objectives... 8 Introduction... 8 Match to Corporate Strategy... 8 Match to Corporate Culture... 9 Job Rotation Strategy... 9 Contract Workers... 9 Incentives Linkage to Strategy... 10 Top Talent Management... 10 Organizational Structure... 11 Hierarchical Organizational Structure... 11 Decentralized Organizational Structure... 12 Divisional Organizational Structure... 13 Organization Branding... 15 Summary... 15 Review Questions... 16 Review Answers... 17 Chapter 3 Job Analysis... 18 Learning Objectives... 18 Introduction... 18 The Need for Job Descriptions... 18 Job Analysis... 18 Job Titles... 20 Success Attributes... 21 Job Sculpting... 21 The Employer-Employee Alliance... 21 Job Analysis Frequency... 22 Summary... 23 Review Questions... 24 Review Answers... 25 Chapter 4 Workforce Planning... 26 Learning Objectives... 26 Introduction... 26 Overview of Workforce Planning... 26 Attrition Planning... 27 Skill Matching... 28 The Overtime Conundrum... 28 Recruiting Time... 29
The Ramp-up Interval... 29 The Relocation Option... 30 Outsourcing... 30 Technology Innovations... 31 Projects versus Full-Time Employment... 31 Organizational Structure... 32 Training Considerations... 32 Downturn Considerations... 32 Acquisition Considerations... 32 Divestiture Considerations... 33 Workforce Planning Effectiveness... 33 Summary... 33 Review Questions... 34 Review Answers... 35 Chapter 5 Recruitment... 36 Learning Objectives... 36 Introduction... 36 Recruitment Alternatives... 36 Job Specifications... 36 Recruitment Timing... 37 Recruitment Principles... 37 Recruitment Marketing... 39 Broadcasting... 40 Refining the Broadcasting Concept... 40 Broadcasting for Bulk Hiring... 41 Blind Ads... 42 Newspaper/Magazine Ads... 42 The Search Firm... 42 Internal Hiring... 43 External Hiring... 44 The Part-Time Staffing Option... 45 The Internship Option... 46 College Recruiting... 46 The Return-to-Work Option... 47 Poaching... 48 The Ex-Offender Option... 49 Communications with Applicants... 49 The Recruitment Database... 49 Recruitment Management... 49 The Recruitment Feedback Loop... 50 Summary... 50 Review Questions... 51 Review Answers... 52 Chapter 6 Applicant Evaluation and Selection... 53 Learning Objectives... 53 Introduction... 53 The Job Application... 53 Resume Analysis... 54 Telephone Screening... 55 Interview Preparation... 56 Conducting the Interview... 56 Executive Interviews... 59 Applicant Testing... 60 Criteria Analysis... 61 Reference Checks... 61 ii
Additional Searches... 63 Applicant Evaluation... 63 The Job Offer... 65 Speed... 65 Verbal Offer... 66 Offer Deadline... 66 Negotiations... 66 Offer Letter... 66 The Employment Contract... 67 The Rejection Letter... 67 The Feedback Loop... 68 Summary... 68 Review Questions... 69 Review Answers... 70 Chapter 7 Employee Assimilation... 71 Learning Objectives... 71 Introduction... 71 Prior to First Day... 71 First Day... 71 General Employee Orientation... 72 Departmental Employee Orientation... 73 Manager Involvement... 74 Periodic Reviews... 74 Summary... 75 Review Questions... 76 Review Answers... 77 Chapter 8 The Work Environment... 78 Learning Objectives... 78 Introduction... 78 Flexible Work Hours... 78 The Compressed Work Week... 78 Shift Trading... 79 Job Sharing... 79 Working from Home... 79 Snowbird Seasonal Employment... 81 Permanent Part-Time Work... 81 Alternative Location Arrangements... 82 The Work Space... 82 Rule Minimization... 82 Management Training... 83 Feedback Loop... 83 Summary... 83 Review Questions... 85 Review Answers... 86 Chapter 9 Career Development... 87 Learning Objectives... 87 Introduction... 87 The Need for Career Development... 87 The Development Plan... 87 Alternative Career Paths... 88 Mentoring... 89 Reverse Mentoring... 90 Job Shadowing... 91 The Leadership Track... 91 iii
Job Rotation... 91 Coaching... 92 Summary... 92 Review Questions... 94 Review Answers... 95 Chapter 10 Employee Training... 96 Learning Objectives... 96 Introduction... 96 The Need for Training... 96 Types of Training... 97 Fine-Tuning Training... 99 Employee Turnover and the Training Investment... 101 Measuring the Results of Training... 101 The Administrative Side of Training... 102 Summary... 103 Review Questions... 104 Review Answers... 105 Chapter 11 Succession Planning... 106 Learning Objectives... 106 Introduction... 106 The Succession Planning Concept... 106 The Pooling Concept... 107 The Well-Rounded Candidate... 108 The Insertion of Outsiders... 108 Employee Departures... 109 Summary... 109 Review Questions... 110 Review Answers... 111 Chapter 12 Performance Evaluation... 112 Learning Objectives... 112 Introduction... 112 The Performance Evaluation Process... 112 The Traditional Annual Review... 112 Improvement of the Annual Review... 113 Immediate Feedback... 113 Continual Goal Setting... 114 Improve Performance Goals... 114 Common Review Period... 114 Time Allowance... 115 Separate the Compensation Discussion... 115 Balanced Appraisal... 115 Two-Way Conversation... 115 Initial Focus on Positive Aspects... 116 Emphasis on Results... 116 Discussion of Failures... 116 Prepare Improvements List... 116 End on Positive Note... 116 Dealing with Hostility... 117 Consistent Template Usage... 117 Use Separate Documentation of Poor Performance... 117 Performance Appraisal Methods... 117 Rating Scales... 117 Essay Reviews... 118 Self-Appraisal... 118 iv
Behavioral Expectations... 118 Paired Comparisons... 119 Critical Incidents Analysis... 119 360-Degree Reviews... 119 Management by Objectives... 120 General Appraisal Issues... 121 The Nature of Performance Criteria... 121 Performance Improvement Plans... 122 Summary... 123 Review Questions... 124 Review Answers... 125 Chapter 13 Termination of Employment... 126 Learning Objectives... 126 Introduction... 126 Firing Employees... 126 Guarding Against Lawsuits... 128 The Downsizing Process... 128 Outplacement Firms... 130 The Voluntary Termination... 130 Retirement Options... 130 The Exit Interview... 130 Summary... 131 Review Questions... 132 Review Answers... 133 Chapter 14 Employee Compensation... 134 Learning Objectives... 134 Introduction... 134 Compensation from the Human Resources Perspective... 134 The Difference between Salaries and Wages... 135 The Work Week... 137 Compensation Development... 138 Setting Compensation Levels... 138 Setting Pay Ranges... 138 Salary Compression... 140 Unstructured Compensation... 140 Broadbanding... 140 Individual Compensation Considerations... 141 Expatriate Compensation... 141 The Outcome of Minimal Compensation... 142 The Cash or Stock Option Alternative... 142 Commission Plans... 142 Commissions Based on Cash Receipts... 144 Final Commission Calculations... 144 Hourly Rate Plan... 145 The Minimum Wage... 145 Piece Rate Pay... 146 Overtime Pay... 147 Compensation for Travel Time... 148 Salaries Paid for Partial Periods... 148 Bonus Plans... 149 Golden Parachute Payments... 149 Summary... 150 Review Questions... 151 Review Answers... 152 v
Chapter 15 Employee Benefits... 153 Learning Objectives... 153 Introduction... 153 Adoption Assistance... 153 Athletic Facilities... 153 Cell Phones Provided by Employer... 153 Child Care... 154 De Minimis Benefits... 154 Disability Insurance... 154 Educational Assistance... 155 Employee Assistance Programs... 156 Employee Discounts... 156 Flexible Spending Accounts... 156 Health Savings Account... 159 Life Insurance... 160 Loans to Employees... 161 Lodging on Business Premises... 161 Meals... 162 Medical Insurance... 163 Medical Insurance COBRA... 165 Medicare... 166 Moving Expense Reimbursement... 166 No-Additional-Cost Services... 166 On-Site Services... 168 Pension Plans... 168 Defined Contribution Plan... 168 Defined Benefit Plan... 170 Personal Retirement Account... 170 Paid Time Off... 171 Retirement Planning Services... 171 Sabbaticals... 172 Sick Leave... 172 Social Security... 172 Stock Options... 173 Incentive and Nonqualified Stock Options... 173 Phantom Stock... 175 Stock Purchase Plans... 175 Transportation Benefits... 176 Tuition Reduction... 176 Unemployment Compensation... 176 Vacation Benefits... 177 The Amount of Vacation Time... 177 Use it or Lose it Provision... 178 Earned Vacation Time Reporting... 178 Wellness Programs... 179 Workers Compensation Insurance... 179 Working Condition Benefits... 180 Vehicles... 180 Education... 181 Outplacement Services... 181 Other Benefits... 181 Benefit Authorization Form... 182 Taxability of Benefits... 183 Benefits Plan Administration... 183 Communication of the Benefits Plan... 184 Summary... 184 vi
Review Questions... 186 Review Answers... 187 Chapter 16 Cost Reduction Concepts... 188 Learning Objectives... 188 Introduction... 188 Proactive Hiring Solutions... 188 Temporary Cost Reductions... 189 Permanent Cost Reductions... 191 Productivity-Based Solutions... 193 Benefit Cost Sharing... 194 Benefit Reductions... 194 Benefit Limitations... 195 Benefit Swaps... 196 Benefit Aggregation Concepts... 196 Benefit Terminations... 197 Workers Compensation Issues... 197 Corporate Wellness Programs... 198 Eligibility Audits... 198 Benefit Cost Administration... 199 Other Cost Management Concepts... 200 Total Labor Cost Analysis... 200 Timing of Compensation and Benefit Changes... 201 Summary... 201 Review Questions... 202 Review Answers... 203 Chapter 17 Human Resources Budgeting... 204 Learning Objectives... 204 Introduction... 204 The Compensation Budget... 204 The Treatment of Hourly Pay and Overtime... 206 The Benefits Budget... 207 The Headcount Budget... 208 The Link between Budgets and Bonus Compensation... 208 The Direct Labor Budget (Traditional Method)... 210 The Direct Labor Budget (Crewing Method)... 211 The Direct Labor Budget for Manufacturing Cells... 212 The Cost of Direct Labor... 213 Anomalies in the Direct Labor Budget... 213 Compensation without a Budget... 214 Summary... 216 Review Questions... 217 Review Answers... 218 Chapter 18 Labor Unions... 219 Learning Objectives... 219 Introduction... 219 The Labor Union Concept... 219 Collective Bargaining... 220 The Two-Tier Wage System... 222 Unfair Labor Practices... 222 Grievances... 223 Strikes... 223 Strategy and Tactics: Union Perspective... 224 Strategy and Tactics: Company Perspective... 225 Industrial Relations... 226 vii
Summary... 226 Review Questions... 227 Review Answers... 228 Chapter 19 Discrimination Issues... 229 Learning Objectives... 229 Introduction... 229 The Protected Class Concept... 229 Categories of Employment Discrimination... 229 Bona Fide Occupational Qualifications... 230 Equal Employment Opportunity... 230 Equal Employment Opportunity Commission... 231 The Employer Information Report EEO-1... 231 Retaliation... 232 Affirmative Action... 232 Interviewing Issues... 234 Applicant Testing... 235 Medical Examinations... 235 Genetic Tests... 235 Polygraph Tests... 235 Credit Checks... 236 Sexual Harassment... 236 Expansion of the National Origin Protected Class... 237 The English-only Rule... 237 Ex-Offender Hiring... 237 The Flextime Part Time Conundrum... 238 Termination Decisions... 238 Summary... 238 Review Questions... 239 Review Answers... 240 Chapter 20 Laws Impacting Human Resources... 241 Learning Objectives... 241 Introduction... 241 Anti-Discrimination Laws... 241 Age Discrimination in Employment Act (1967)... 241 Americans with Disabilities Act (1990)... 242 Civil Rights Act (1964)... 242 Equal Pay Act (1963)... 243 Genetic Information Nondiscrimination Act (2008)... 243 Lilly Ledbetter Fair Pay Act (2009)... 243 Older Workers Benefit Protection Act (1990)... 243 Pregnancy Discrimination Act (1978)... 244 Uniformed Services Employment & Reemployment Rights Act (1994)... 244 Consolidated Omnibus Budget Reconciliation Act (1986)... 244 Employee Retirement Income Security Act (1974)... 245 Fair Labor Standards Act (1938)... 245 Family and Medical Leave Act (1993)... 246 Federal Unemployment Tax Act (1939)... 247 Immigration Reform and Control Act (1986)... 247 Rehabilitation Act (1973)... 250 USA Patriot Act (2001)... 250 Worker Adjustment and Retraining Notification Act (1988)... 250 Summary... 250 Review Questions... 251 Review Answers... 252 viii
Chapter 21 Human Resources Metrics... 253 Learning Objectives... 253 Introduction... 253 Overview of Human Resources Measurements... 253 Position Fulfillment Speed... 253 Unfilled Requisitions Ratio... 254 Recruiter Effectiveness Ratio... 255 Intern Conversion Ratio... 256 Cost per Hire... 257 Employee Replacement Cost... 258 Accession Rate... 259 Employee Turnover... 259 Absenteeism and Sick Leave Usage... 260 Annualized Compensation per Employee... 261 Net Benefits Cost per Employee... 261 Sales per Person... 262 Profit per Person... 263 Administrative Staff Ratio... 264 Ergonomic Injury Rate... 265 Outsourcing Cost Effectiveness... 266 General Management Measurements... 267 Summary... 267 Review Questions... 268 Review Answers... 269 Chapter 22 Records Management... 270 Learning Objectives... 270 Introduction... 270 Human Resources Records... 270 Records for Warnings... 272 Records for Contingent Workers... 272 Record Security... 272 Records Destruction... 273 Summary... 273 Review Questions... 274 Review Answers... 275 Glossary... 277 Index... 283 ix