HRM Slide 2018 PDF

HUMAN RESOURCE MANAGEMENT
Global Edition 12e
PowerPoint Presentation by Charlie Cook

Copyright © 2011 Pearson Education GARY DESSLER The University of West Alabama
Learning Outcomes
1. What HRM is and how it relates to the management
process.
2. Why HRM is important to all managers
3. Distinguish among Recruitment and Placement,
Training and Development, Compensation, Employess
relations,…
4. Practical cases and solutions
5. Group working
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

1–2
Content
• Chap 1: Introduction to HRM
• Chap 2: Equal Opportunity and the Law
• Chap 3: Manager‘s role in Strategic HRM
• Chap 4: Job Analysis
• Chap 5: Personnel Planning and Recruiting
• Chap 6: Employee Testing and Selection
• Chap 7: Interviewing Candiadtes
• Chap 8: Training and Developing Employees
• Chap 9: Performance Management and Appraisal

1–3
Content
• Chap 10: Coaching, Careers and Talent management
• Chap 11: Establishing Strategic Pay Plans
• Chap 12: Pay for Performance and Financial Incentives
• Chap 13: Benefits and Services
• Chap 14: Ethics, Justice and Fair Treatment in HRM
• Chap 15: Labor Relations and Collective Bargaining
• Chap 16: Employee Safety and Health
• Chap 17: Managing Global HR
• Chap 18: Managing HR in Entrepreneurial Firms

1–4
References
1. HRM, 12th edition, Gary Dessler, Pearson, 2011
2. HRM, 89th edition,John M. Ivancevich, Mc.Graw-Hill
Higher Education, 2007.
3. HRM: Gaining A Competitive Advantage (5th Ed.),
Noe, Hollenbeck, Gerhart, Wright, McGraw-Hill , 2006
4. Management, 10th edition, Stephen P. Robbins/ Mary
Coulter,, Prentice Hall, 2008.
5. Essentials of Contemporary Management, 3rd edition,
Gareth R. Jones/ Jennifer George, McGraw-Hill, 2007.
6. Management: A Practical Introduction, Kinicki/
Williams, McGraw-Hill, 2008.
7. Principles of Management, Charlse. W.L Hill/ Steven
L. McShane, McGraw-Hill, 2008
1–5
Global Edition 12e
Chapter 1
Introduction to
Human Resource
Management
Part 1 Introduction

LEARNING OUTCOMES
1. Explain what human resource management is and how
it relates to the management process.
2. Show with examples why human resource management
is important to all managers.
3. Illustrate the human resources responsibilities of line
and staff (HR) managers.
4. Briefly discuss and illustrate each of the important
trends influencing human resource management.
5. List and briefly describe important trends in human
resource management.
6. Define and give an example of evidence-based human
resource management.
7. Outline the plan of this book.
Copyright © 2011 Pearson Education 1–7
Global Edition 12e
Chapter 2
Equal Opportunity
and the Law
Part 1 Introduction

LEARNING OUTCOMES
1. Explain the importance of and list the basic features of Title VII of
the 1964 Civil Rights Act and at least five other equal employment
laws.
2. Explain how to avoid and deal with accusations of sexual
harassment at work.
3. Define adverse impact and explain how it is proved.
4. Explain and illustrate two defenses you can use in the event of
discriminatory practice allegations.
5. Cite specific discriminatory personnel management practices in
recruitment, selection, promotion, transfer, layoffs, and benefits.
6. List the steps in the EEOC enforcement process.
7. Discuss why diversity management is important and how to
institutionalize a diversity management program.

Global Edition 12e
Chapter 3
The Manager’s Role
in Strategic Human
Resource
Management
Part 1 Introduction

LEARNING OUTCOMES
1. Explain why strategic planning is important to all
managers.
2. Outline the basic steps in the management planning
process.
3. List the main contents of a typical business plan.
4. Answer the question, ―What should a manager do to set
‗smart‘ motivational goals?‖
5. Explain with examples each of the seven steps in the
strategic planning process.
6. List with examples the main generic types of corporate
strategies and competitive strategies.

LEARNING OUTCOMES (cont’d)
7. Define strategic human resource management and give
an example of strategic human resource management
in practice.
8. Briefly describe three important strategic human
resource management tools.
9. Explain with examples why metrics are essential for
identifying and creating high-performance human
resource policies and practices.

Global Edition 12e
Chapter 4
Job Analysis
Part 2 Recruitment and Placement

LEARNING OUTCOMES
1. Discuss the nature of job analysis, including what it is
and how it‘s used.
2. Use at least three methods of collecting job analysis
information, including interviews, questionnaires, and
observation.
3. Write job descriptions, including summaries and job
functions, using the Internet and traditional methods.
4. Write a job specification.
5. Explain job analysis in a ―worker-empowered‖ world,
including what it means and how it‘s done in practice.

Global Edition 12e
Chapter 5
Personnel Planning
and Recruiting

LEARNING OUTCOMES
1. List the steps in the recruitment and selection process.
2. Explain the main techniques used in employment
planning and forecasting.
3. Explain and give examples for the need for effective
recruiting.
4. Name and describe the main internal sources of
candidates.
5. List and discuss the main outside sources of
candidates.
6. Develop a help wanted ad.
7. Explain how to recruit a more diverse workforce.

Global Edition 12e
Chapter 6
Employee Testing
and Selection

LEARNING OUTCOMES
1. Explain what is meant by reliability and validity.
2. Explain how you would go about validating a test.
3. Cite and illustrate our testing guidelines.
4. Give examples of some of the ethical and legal
considerations in testing.
5. List eight tests you could use for employee selection
and how you would use them.
6. Give two examples of work sample/simulation tests.
7. Explain the key points to remember in conducting
background investigations.

Global Edition 12e
Chapter 7
Interviewing
Candidates

LEARNING OUTCOMES
1. List the main types of selection interviews.
2. List and explain main errors that can undermine an
interview‘s usefulness.
3. Define a structured situational interview.
4. Explain and illustrate each guideline for being a more
effective interviewer.
5. Give several examples of situational questions,
behavioral questions, and background questions that
provide structure.
6. List the steps in a streamlined interview process.
7. List guidelines for interviewees.

Global Edition 12e
Chapter 8
Training and
Developing
Employees
Part 3 Training and Development

LEARNING OUTCOMES
1. Summarize the purpose and process
of employee orientation.
2. List and briefly explain each of the four steps
in the training process.
3. Discuss how you would motivate trainees.
4. Describe and illustrate how you would identify
training requirements.
5. Explain how to distinguish between problems
you can fix with training and those you can‘t.
6. Explain how to use five training techniques.

LEARNING OUTCOMES (cont’d)
7. List and briefly discuss four management
development programs.
8. List and briefly discuss the importance of the eight
steps in leading organizational change.
9. Answer the question, ―What is organizational
development and how does it differ from traditional
approaches to organizational change?‖

Global Edition 12e
Chapter 9
Performance
Management and
Appraisal

LEARNING OUTCOMES
1. Define performance management and discuss how it
differs from performance appraisal.
2. Set effective performance appraisal standards.
3. Describe the appraisal process.
4. Develop, evaluate, and administer at least four
performance appraisal tools.
5. Explain and illustrate the problems to avoid in
appraising performance.
6. Discuss the pros and cons of using different raters to
appraise a person‘s performance.
7. Perform an effective appraisal interview.

Global Edition 12e
Chapter 10
Coaching, Careers,
And Talent
Management

LEARNING OUTCOMES
1. Compare and contrast coaching and mentoring and
describe the importance of each.
2. Compare employers‘ traditional and career planning-
oriented HR focuses.
3. Explain the employee‘s, manager‘s, and employer‘s
career development roles.
4. Describe the issues to consider when making promotion
decisions.
5. List and briefly explain at least four methods for better
managing retirements.
6. Define talent management and give an example of an
actual talent management system.

Global Edition 12e
Chapter 11
Establishing
Strategic Pay
Plans
Part 4 Compensation

LEARNING OUTCOMES
1. List the basic factors determining pay rates.
2. Define and give an example of how to conduct a job
evaluation.
3. Explain in detail how to establish pay rates.
4. Explain how to price managerial and professional jobs.
5. Explain the difference between competency-based and
traditional pay plans.
6. Explain the importance today of broadbanding,
comparable worth, and board oversight of executive
pay.

Global Edition 12e
Chapter 12
Pay for Performance
and Financial
Incentives
Part 4 Compensation

LEARNING OUTCOMES
1. Explain how you would apply five motivation theories in
formulating an incentive plan.
2. Discuss the main incentives for individual employees.
3. Discuss the pros and cons of commissions versus
straight pay incentives for salespeople.
4. Describe the main incentives for managers and
executives.
5. Name and define the most popular organizationwide
variable pay plans.
6. Outline the steps in designing effective incentive plans.

Global Edition 12e
Chapter 13
Benefits and
Services
Part 4 Compensation

LEARNING OUTCOMES
1. Name and define each of the main pay for time not
worked benefits.
2. Describe each of the main insurance benefits.
3. Discuss the main retirement benefits.
4. Outline the main employees‘ services benefits.
5. Explain the main flexible benefit programs.

Global Edition 12e
Chapter 14
Ethics, Justice, And
Fair Treatment in HR
Management
Part 5 Employee Relations

LEARNING OUTCOMES
1. Explain what is meant by ethical behavior at work.
2. Discuss important factors that shape ethical behavior
at work.
3. Describe at least four specific ways in which HR
management can influence ethical behavior at work.
4. Employ fair disciplinary practices.
5. List at least four important factors in managing
dismissals effectively.

Global Edition 12e
Chapter 15
Labor Relations and
Collective
Bargaining

LEARNING OUTCOMES
1. Give a brief history of the American labor movement.
2. Discuss the main features of at least three major pieces
of labor legislation.
3. Present examples of what to expect during the union
drive and election.
4. Describe five ways to lose an NLRB election.
5. Illustrate with examples bargaining that is not in good
faith.
6. Develop a grievance procedure.

Global Edition 12e
Chapter 16
Employee Safety
And Health

LEARNING OUTCOMES
1. Explain the supervisor‘s role in safety.
2. Explain the basic facts about safety law and OSHA.
3. Answer the question, ―What causes accidents?‖
4. List and explain five ways to prevent accidents.
5. Minimize unsafe acts by employees.
6. List five workplace health hazards and how to deal
with them.
7. Discuss the prerequisites for a security plan and
how to set up a basic security program.

Global Edition 12e
Chapter 17
Managing Global
Human Resources

LEARNING OUTCOMES
1. List the HR challenges of international business.
2. Illustrate with examples how intercountry differences
affect HRM.
3. List and briefly describe the main methods for staffing
global organizations.
4. Discuss some important issues to keep in mind in
training, appraising, and compensating international
employees.
5. Explain with examples how to implement a global
human resource management program.

Global Edition 12e
Chapter 18
Managing Human
Resources in
Entrepreneurial
Firms

LEARNING OUTCOMES
1. Explain why human resource management in small
companies is different from that in larger companies.
2. Give at least five specific examples of how you would use the
Internet and government tools to support the HR effort in a
small business.
3. Answer the question, ―Why are familiarity, flexibility, and
informality important tools that entrepreneurs can use to
improve human resource management practices in their
small businesses?‖
4. Explain what professional employers‘ organizations are and
how entrepreneurs can use them.
5. Describe how HR systems traditionally evolve in a small
business and give examples of how small businesses can
use human resource management information systems.
Global Edition 12e
Chapter 1
Introduction to
Human Resource
Management
Part 1 Introduction

Learning Outcomes
process.
2. Why HRM is important to all managers.
3. Illustrate the HR responsibilities of line and staff (HR)
managers.
4. Illustrate each of the important trends influencing
HRM.
5. Describe important trends in HRM.

Management Process
Planning
Controlling Organizing
Leading Staffing

HRM Processes
Acquisition
Fairness Training
HRM
Health and Safety Appraisal
Labor Relations Compensation

Personnel Aspects of a Manager’s Job
• Conducting job analyses
• Planning labor needs and recruiting job candidates
• Selecting job candidates
• Orienting and training new employees
• Managing wages and salaries
• Providing incentives and benefits
• Appraising performance
• Communicating
• Training and developing managers
• Building employee commitment

Personnel Mistakes
• Hire the wrong person for the job
• Experience high turnover
• Have your people not doing their best
• Waste time with useless interviews
• Have firm in court because of discriminatory actions
• Have some employees think their salaries are unfair and
inequitable relative to others in the organization
• Allow a lack of training to undermine your department‘s
effectiveness
• Commit any unfair labor practices

Basic HR Concepts
• Bottom line of managing: Getting results
• HR creates value by engaging in activities
that produce the employee behaviors that
the organization needs to achieve its
strategic goals.
• Looking ahead: Using evidence-based
HRM to measure the value of HR activities
in achieving those goals.

Line and Staff Aspects of HRM
• Line Manager
 Is authorized to direct the work of subordinates and is
responsible for accomplishing the organization‘s tasks.
• Staff Manager
 Assists and advises line managers.
 Has functional authority to coordinate personnel activities
and enforce organization policies.

Line Managers’ HRM Responsibilities
1. Placing the right person on the right job
2. Starting new employees in the organization
3. Training employees for jobs that are new to them
4. Improving the job performance of each person
5. Gaining creative cooperation and developing smooth
working relationships
6. Interpreting the firm‘s policies and procedures
7. Controlling labor costs
8. Developing the abilities of each person
9. Creating and maintaining department morale
10. Protecting employees‘ health and physical condition

HR Managers’ Duties
Functions of
HR Managers
Line Function Coordinative Staff Functions

Line Authority Function Staff Authority
Implied Authority Functional Authority Innovator/Advocacy

HR Specialties
Recruiter
Labor relations
specialist EEO coordinator
HR Specialties
Training specialist Job analyst
Compensation
manager

New Approaches to Organizing HR
New HR Services Groups
Transactional Corporate Embedded Centers of

HR group HR group HR unit Expertise

Trends Shaping HRM
Globalization
and Competition
Trends
Indebtedness
(―Leverage‖) and Technological
Deregulation Trends
Trends
in HRM
Workforce and
Trends in the
Demographic
Nature of Work
Trends
Economic
Challenges and
Trends

Trends in the Nature of Work
Changes in How We Work
High-Tech Service Knowledge Work

Jobs Jobs and Human Capital

Important Trends in HRM
New HR Managers
Strategic High-Performance
HRM Work Systems
HRM Trends
Evidence-Based Managing
HRM Ethics
HR
Certification

Meeting Today’s HRM Challenges
New HR Managers
Acquire
Focus more on Find new ways broader
―big picture‖ to provide business
(strategic) transactional knowledge and
issues services new HRM
proficiencies

High-Performance Work Systems
•Increase productivity and performance by:
 Recruiting, screening and hiring more effectively
 Providing more and better training
 Paying higher wages
 Providing a safer work environment
 Linking pay to performance

Evidence-Based HRM
Providing Evidence for

HRM Decision Making
Actual Existing Research

measurements data studies

Managing Ethics
• Ethics
 Standards that someone uses to decide
what his or her conduct should be
• HRM-related Ethical Issues
 Workplace safety
 Security of employee records
 Employee theft
 Affirmative action
 Comparable work
 Employee privacy rights

HR Certification
• HR is becoming more professionalized.
• Society for HRM (SHRM)
 SHRM‘s HR Certification Institute (HRCI)
 SPHR (Senior Professional in HR) certificate

 GPHR (Global Professional in HR) certificate
 PHR (Professional in HR) certificate

KEY TERMS
organization
manager
management process
human resource management (HRM)
authority
line authority
staff authority
line manager
staff manager
functional authority
globalization
human capital

Discussion
process and Why HRM is important to all managers.
2. Illustrate the HR responsibilities of line and staff (HR)
managers.
3. Illustrate each of the important trends influencing HRM
4. Describe personnel aspects of a manager‘s job and
analyse personnel mistakes
5. Discuss today‘s HRM challenges

Global Edition 12e
Chapter 2
Equal Opportunity
and the Law
Part 1 Introduction

Learning Outcomes
1. How to avoid and deal with accusations of sexual harassment at
work.
2. Define adverse impact and explain how it is proved.
3. Explain and illustrate two defenses you can use in the event of
discriminatory practice allegations.
4. Cite specific discriminatory personnel management practices in
recruitment, selection, promotion, transfer, layoffs, and benefits.
5. List the steps in the EEOC enforcement process.
6. Why diversity management is important and how to
institutionalize a diversity management program.

Equal Employment Opportunity 1964–1991
Title VII of the 1964

Civil Rights Act
(EEOC)
Executive Orders
Federal Agency
11246, 11375
Guidelines
OFCCP
Equal
Employment
Pregnancy
Opportunity Equal Pay Act
Discrimination Act
of 1963
of 1978
Vocational Age Discrimination

Rehabilitation Act in Employment Act
of 1973 of 1967

Title VII of the 1964 Civil Rights Act
• Employer cannot discriminate based on race, color,
religion, sex, or national origin.
 Applies to public and private employers with 15 or more
employees.
• Unlawful employment practices for an employer:
 To fail or refuse to hire or to discharge an individual because of
the individual‘s race, color, religion, sex, or national origin.
 To limit, segregate, or classify employees or applicants by their
race, color, religion, sex, or national origin such that they would
be deprived employment opportunities or employment status.
• Equal Employment Opportunity Commission

Equal Employment Opportunity
Commission (EEOC)
• Established by Title VII of the 1964 Civil Rights Act.
• Comprised of five members appointed by the President
for five-year terms; approved by the Senate.
• Administers and enforces civil rights employment law.
• Issues federal guidelines for EEO procedures to be
followed by employers.
• Receives and investigates job discrimination complaints.

Early Court Decisions Regarding
Griggs v. Duke Power Company
1 Burden of job-related proof on employer.

Employer‘s nondiscriminatory intent is
2
irrelevant.
3 ―Fair in form‖ practice must also be nondiscriminatory.
4 Business necessity is a defense for adverse impact.
5 Test or practice must be related to job performance.

Early Court Decisions Regarding
• Albemarle Paper Company v. Moody
 If a test is used to screen candidates, then the job‘s specific duties
and responsibilities must be analyzed and documented.
 Performance standards for the job should be clear and
unambiguous.
 Federal (EEOC) Guidelines on validation are to be used for
validating employment practices.

1990–91–present
Civil Rights Act of 1991
Burden of Proof Money Damages Mixed Motives

Disparate treatment Compensatory and Motivation versus
Adverse impact punitive awards alternative factors

1990–91–present (cont’d)
Americans with Disabilities

Act (ADA) of 1990
Mental Qualified Reasonable Employer

impairments individual accommodation defenses

FIGURE 2–1 Examples of How to Provide Reasonable Accommodation

Employer Obligations Under ADA
• An employer must make a reasonable accommodation for a
qualified disabled individual unless doing so would result in
undue hardship.
• Employers are not required to lower existing performance
standards or stop using tests for a job.
• Employers may ask pre-employment questions about essential
job functions but can not make inquiries about disability.
• Medical exams (or testing) must be job related.
• Employers should review job application forms, interview
procedures, and job descriptions for illegal questions and
statements.
• Employers should have up-to-date job descriptions that identify
the current essential functions of the job.

Employers and ADA
• Employers are not required to tolerate misconduct or
erratic performance, even if the behaviors can be
attributed to the disability.
• Employers do not have to create a new job for the
disabled worker nor reassign that person to a light-duty
position for an indefinite period, unless such a position
exists.
• Employers should not treat employees as if they are
disabled so that they will not be ―regarded as‖ disabled
and protected under the ADA.

―New‖ ADA Amendments Act of 2008
(ADAAA)
• ADAA expanded the list of major life activities making it
easier for an employee to show his or her disability as
―limiting‖ in his or her ability to engage in a major life
activity.
• Under ADAAA, an employee is considered disabled
even if he or she has been able to control his or her
impairments through medical or ―learned behavioral‖
modifications.

FIGURE 2–2 ADA Guidelines For Managers And Employers
• Do not deny a job to a disabled individual if the person is qualified and

able to perform the essential job functions.
• Make a reasonable accommodation unless doing so would result in undue
hardship.
• You need not lower existing performance standards or stop using tests for
a job. However, those standards or tests must be job related and uniformly
applied to all employees and candidates.
• Know what you can ask applicants. In general, you may not make
preemployment inquiries about a person‘s disability before making an
offer. However, you may ask questions about the person‘s ability to
perform essential job functions.
• Review job application forms, interview procedures, and job descriptions
for illegal questions and statements about health, disabilities, medical
histories, or previous workers‘ compensation claims.
• Itemize essential job functions in job descriptions. In ADA legal actions, a
central question will be what are the essential functions of the job?
• Do not allow misconduct or erratic performance (including absences and
tardiness), even if that behavior is linked to the disability.

Other Employment Acts and Laws
• Genetic Information Nondiscrimination Act of 2008
(GINA)
 Prohibits discrimination by health insurers and the use of
genetic information by employers in employment.
 Prohibits the intentional acquisition of genetic information about
applicants and employees.
 Imposes strict confidentiality requirements.
• State and Local Equal Employment Opportunity Laws
 Cannot conflict with federal law but can extend coverage to
additional protected groups.
 EEOC can defer a discrimination charge to state and local
agencies that have comparable jurisdiction.

TABLE 2–1 Summary of Important Equal Employment Opportunity Actions
Action What It Does

Title VII of 1964 Civil Rights Bars discrimination because of race, color, religion, sex, or
Act, as amended national origin; instituted EEOC.
Executive orders Prohibit employment discrimination by employers with federal
contracts of more than $10,000 (and their subcontractors);
establish office of federal compliance; require affirmative action
programs.
Federal agency guidelines Indicate guidelines covering discrimination based on sex,
national origin, and religion, as well as employee selection
procedures; for example, require validation of tests.
Supreme Court decisions: Rule that job requirements must be related to job success; that
Griggs v. Duke Power Co., discrimination need not be overt to be proved; that the burden of
Albemarle v. Moody proof is on the employer to prove the qualification is valid.
Equal Pay Act of 1963 Requires equal pay for men and women for performing similar
work.
Age Discrimination in Prohibits discriminating against a person age 40 or over in any
Employment Act of 1967 area of employment because of age.
State and local laws Often cover organizations too small to be covered by federal
laws.
Vocational Rehabilitation Act Requires affirmative action to employ and promote qualified
of 1973 handicapped persons and prohibits discrimination against
handicapped persons.
TABLE 2–1 Summary of Important Equal Employment Opportunity Actions (cont‘d)
Action What It Does

Pregnancy Discrimination Act of 1978 Prohibits discrimination in employment against
pregnant women, or related conditions.
Vietnam Era Veterans‘ Readjustment Requires affirmative action in employment for veterans
Assistance Act of 1974 of the Vietnam war era.
Ward Cove v. Antonio Made it more difficult to prove a case of unlawful
discrimination against an employer.
Americans with Disabilities Act of 1990 Strengthens the need for most employers to make
reasonable accommodations for disabled employees at
work; prohibits discrimination.
Civil Rights Act of 1991 Reverses various U.S. Supreme Court decisions; places
burden of proof back on employer and permits
compensatory and punitive money damages for
discrimination.
ADA Amendments Act of 2008 Makes it easier for employee to show that his or her
disability ―substantially limits" a major life function.
Genetic Information Nondiscrimination Signed into law in May 2008, this prohibits
Act discriminating against employees and applicants based
on their genetic information.

Sexual Harassment
• Sexual Harassment under Title VII
 Harassment on the basis of sex that has the purpose or effect of
substantially interfering with a person‘s work performance or
creating an intimidating, hostile, or offensive work
environment.
 Employers have an affirmative duty to maintain workplaces
free of sexual harassment and intimidation.
• Federal Violence Against Women Act of 1994
 A person who commits a violent crime motivated by gender is
liable to the party injured.
• When Is the Work Environment ―Hostile‖?
 How frequent and/or severe was the discriminatory conduct?
 Was it physically threatening, humiliating, or offensive?
 Did it unreasonably interfere with the employee‘s work?
 Did the employee perceive the environment as hostile?
What Is Sexual Harassment?
• EEOC guidelines define sexual harassment as:
 Unwelcome sexual advances, requests for sexual favors, and
other verbal or physical conduct of a sexual nature that takes
place under any of the following conditions:
1. Submission to such conduct is made either explicitly or
implicitly a term or condition of an individual‘s
employment.
2. Submission to or rejection of such conduct by an individual
is used as the basis for employment decisions affecting such
individual.
3. Such conduct has the purpose or effect of unreasonably
interfering with an individual‘s work performance or
creating an intimidating, hostile, or offensive work
environment.

Proving Sexual Harassment
Conditions Proving
Sexual Harassment
Hostile
Hostile
Environment
Environment
Quid Pro Quo Created by
Created by
Coworkers or
Supervisors
Nonemployees

Sexual Harassment: Court Decisions
Sexual Harassment Decisions
Meritor Savings Bank, Burlington Industries v. Faragher v.

FSB v. Vinson Ellerth City of Boca Raton

Discrimination Allegation Defenses
• Disparate Treatment
 Is intentional discrimination (different treatment) against
protected minority group members because of their minority
status characteristic.
• Disparate Impact
 Is the result of an employment practice or policy that has a
greater adverse impact (effect) on a protected group under Title
VII than on other employees, regardless of intent.
• Adverse Impact
 Is the result of a neutral employment practice that creates an
adverse impact—a significant disparity—between the
proportion of a protected class and the proportion of the
majority class hired from the available labor pool.

Adverse Impact
Showing Adverse Impact
Disparate Restricted Population McDonald-

rejection rates policy comparisons Douglas test

Showing Disparate Treatment
McDonnell-Douglas Test for Prima Facie Case
1 Person belongs to a protected class.
2 Person applied and was qualified for the job.
3 Person was rejected despite qualification.
4 Employer continued seeking applications.

Bona Fide Occupational Qualification
Bona Fide Occupational Qualification (BFOQ)
National
Age Religion Gender
origin

Business Necessity
• ―Business Necessity‖
 A defense requiring employers to show that there
is an overriding business purpose (i.e., ―irresistible
demand‖) for a discriminatory practice.
 Spurlock v. United Airlines
• Validity
 Degree to which the test or other employment
practice is related to or predicts performance on
the job can serve as a business necessity defense.

Other Considerations in
Discriminatory Practice Defenses
1. Good intentions are no excuse.
2. Employers cannot hide behind collective bargaining
agreements—equal opportunity laws override union
contract agreements.
3. Firms should react by agreeing to eliminate an illegal
practice and (when required) by compensating the
people discriminated against.

Discriminatory Employment Practices
Recruitment Selection Personal

Word of mouth Educational requirements Appearance
Misleading Tests Dress
information Preference to relatives Hair
Help wanted ads Height, weight, and Uniforms
physical characteristics
Arrest records
Application forms
Discharge due to
garnishment

EEOC Enforcement Process
EEOC Claim and Enforcement Process
1 File charge
2 Charge acceptance
3 Service of notice of charge
4 Investigation/fact-finding
5 Declaration of cause/no cause
6 Offer of conciliation
7 Notice to sue

Managing Diversity
Steps in a Diversity Management Program
1 Provide strong leadership
2 Assess the situation
3 Provide diversity training and education
4 Change culture and management systems
5 Evaluate the diversity management program

Is the Diversity Initiative Effective?
• Are there women and minorities reporting directly to
senior managers?
• Do women and minorities have a fair share of job
assignments that are stepping stones to successful
careers in the company?
• Do women and minorities have equal access to
international assignments?
• Are female and minority candidates in the company‘s
career development pipeline?
• Are turnover rates for female and minority managers the
same or lower than those for white male managers?

KEY TERMS
Title VII of the 1964 Civil Rights Act sexual harassment
Equal Employment Opportunity Federal Violence Against
Commission (EEOC) Women Act of 1994
affirmative action adverse impact
Office of Federal Contract Compliance disparate rejection rates
Programs (OFCCP) 4/5ths rule
Equal Pay Act of 1963 restricted policy
Age Discrimination in Employment bona fide occupational
Act qualification (BFOQ)
of 1967 (ADEA)
alternative dispute resolution
Vocational Rehabilitation Act of 1973 or ADR program
Pregnancy Discrimination Act (PDA) diversity
uniform guidelines managing diversity
protected class good faith effort strategy
Civil Rights Act of 1991 (CRA 1991) reverse discrimination
mixed motive case
Americans with Disabilities Act
(ADA)
Global Edition 12e
Chapter 3
Manager’s Role in
Strategic Human
Resource
Management
Part 1 Introduction

Learning Outcomes
1. Why strategic planning is important to all managers.
2. Outline the basic steps in the management planning
process.
3. List the main contents of a typical business plan.
4. What should a manager do to set ‗smart‘ motivational
goals?
5. Explain with examples each of the seven steps in the
strategic planning process.
6. List with examples the main generic types of corporate
strategies and competitive strategies.

Why Strategic Planning Is Important
To All Managers
• Firm‘s strategic plan guides much of what is done by all
to accomplish organizational goals.
• Decisions made by managers depend on the goals set at
each organizational level in support of higher level
goals.

FIGURE 3–1 Sample Hierarchy of Goals Diagram for a Company

Fundamentals of Management Planning
The Planning Process
1 Set an objective.
2 Make forecasts and check assumptions.
3 Determine/develop alternative courses of action.
4 Evaluate the alternatives.
5 Implement and evaluate your plan.

How to Set Motivational Goals
Motivational Goal Setting
Assign Assign Assign Encourage

specific measurable challenging but employee
goals goals doable goals participation

Using Management by Objectives (MBO)
MBO Process
1 Set overall organizational goals.
2 Set departmental (supporting) goals.
3 Discuss departmental goals with subordinates.
4 Set individual goals and timetables.
5 Give feedback on progress toward goal.

Strategic Management Process
• Strategy
 A course of action the organization intends to pursue to achieve
its strategic aims.
• Strategic Plan
 How an organization intends to match its internal strengths and
weaknesses with its external opportunities and threats to
maintain a competitive advantage over the long term.
• Strategic Management
 Process of identifying and executing the organization‘s mission
by matching its capabilities with the demands of its
environment.
• Leveraging
 Capitalizing on a firm‘s unique competitive strength while
underplaying its weaknesses.

Business Vision and Mission
• Vision
 A general statement of an organization‘s intended direction that
evokes emotional feelings in organization members.
• Mission
 Spells out who the firm is, what it does, and where it‘s headed.

FIGURE 3–4 Management Objectives Grid
Company-Wide or Departmental Objective:

Double sales revenue to $16 million in fiscal year 2011

FIGURE 3–5 The Strategic Management Process

Types of Corporate Strategies
Corporate Strategy Possibilities
Concentration Diversification Consolidation
Vertical Geographic
integration expansion

Types of Competitive Strategies
Business-Level
Competitive Strategies
Cost leadership Differentiation Focus/Niche

Achieving Strategic Fit
• ―Fit‖ Point of View (Porter)
 All of the firm‘s activities must be tailored to or fit the chosen
strategy such that the firm‘s functional strategies support its
corporate and competitive strategies.
• Leveraging (Hamel and Prahalad)
 ―Stretch‖ in leveraging resources—supplementing what you
have and doing more with what you have—can be more
important than just fitting the strategic plan to current resources.

Departmental Managers’
Strategic Planning Roles
Department Managers
and Strategy Planning
Formulate
Help devise supporting, Execute
the strategic functional/ the strategic
plan departmental plans
strategies

Strategic HRM
• Strategic HRM
 Linking of HRM with strategic goals and objectives in order to
improve business performance and develop organizational
cultures that foster innovation and flexibility.
 Involves formulating and executing HR systems—HR policies
and activities—that produce the employee competencies and
behaviors that the company needs to achieve its strategic aims.

Strategic HRM Tools
Strategic HRM Tools
Strategy map HR scorecard Digital dashboard

FIGURE 3–14 Basic HR Scorecard Relationships
HR activities
Emergent employee
behaviors
Strategically relevant
organizational outcomes
Organizational
performance
Achieve strategic goals

Creating an HR Scorecard
10-Step HR Scorecard Process
Identify required HR policies

1 Define the business strategy 6
and activities
2 Outline value chain activities 7 Create HR Scorecard
Choose HR Scorecard
3 Outline a strategy map 8
measures
Identify strategically required Summarize Scorecard
4 9
outcomes measures on digital dashboard
Identify required workforce 10
5 Monitor, predict, evaluate
competencies and behaviors

FIGURE 3–15 Three Important Strategic HR Tools
Strategy Map HR Scorecard Digital Dashboard
A graphical tool that A process for managing An information

summarizes the chain of employee performance technology tool that
activities that contribute and for aligning all presents the manager
to a company's success, employees with key with desktop graphs and
and so shows employees objectives, by assigning charts, so he or she gets
the "big picture" of how financial and a picture of where the
their performance nonfinancial goals, company has been and
contributes to achieving monitoring and where it's going, in
the company's overall assessing performance, terms of each activity in
strategic goals. and quickly taking the strategy map.
corrective action.

Building A High-Performance Work System
• High-Performance Work System (HPWS)
 A set of HRM policies and practices that promote organizational
effectiveness.
• High-Performance HR Policies and Practices
 Emphasize the use of relevant HR metrics.
 Set out the things that HR systems must do to become an HPWS.
 Foster practices that encourage employee self-management.
 Practice benchmarking to set goals and measure the notable
performance differences required of an HPWS.

TABLE 3–1 Comparison of Selected HR Practices in
High-Performance and Low-Performance Companies

KEY TERMS
business plan offshoring

management by objectives (MBO) strategic human resource
strategic plan management
strategy strategy map
strategic management HR Scorecard
vision statement digital dashboard
mission statement high-performance work system
corporate-level strategy human resource metric
competitive strategy value chain
competitive advantage HR audit
functional strategies

Global Edition 12e
Chapter 4
Job Analysis

Learning Outcomes
2. Use at least three methods of collecting job analysis
information, including interviews, questionnaires, and
observation.

Types of Information Collected
Work
activities
Human Human
requirements behaviors
Information
Collected Via
Job Analysis
Machines, tools,
Job
equipment, and
context
work aids
Performance
standards

Uses of Job Analysis Information
Recruitment
and selection
EEO
compliance Compensation
Information
Collected via
Job Analysis
Discovering Performance
unassigned duties appraisal
Training

FIGURE 4–1 Uses of Job Analysis Information
Job analysis
Job description
and specification
Recruiting Performance Job evaluation— Training

and selection appraisal wage and salary requirements
decisions decisions
(compensation)

Collecting Job Analysis Information
Methods for Collecting Job Analysis Information
Interviews Questionnaires Observations Diaries/Logs

FIGURE 4–3 Job Analysis Questionnaire for Developing Job Descriptions
Note: Use a
questionnaire like
this to interview job
incumbents, or have
them fill it out.

FIGURE 4–3 Job Analysis Questionnaire for Developing Job Descriptions

FIGURE 4–4 Example of Position/Job Description Intended for Use Online

FIGURE 4–4 Example of Position/Job Description Intended for Use Online

Quantitative Job Analysis Techniques
Quantitative Job
Analysis
Department of
Position Analysis Functional Job
Labor (DOL)
Questionnaire Analysis
Procedure

Writing Job Descriptions
Job
identification
Job Job
specifications summary
Sections of a
Typical Job
Working Description Responsibilities
conditions and duties
Standards of Authority of
performance the incumbent

Job Description
• Job Identification • Responsibilities and Duties
 Job title  Major responsibilities and
 FLSA status section duties
 Preparation date  Decision-making authority
 Preparer  Direct supervision

 Budgetary limitations
• Job Summary
 General nature of the job • Standards of Performance
 Major functions/activities and Working Conditions
 What it takes to do the job
• Relationships successfully
 Reports to:
 Supervises:
 Works with:
 Outside the company:

FIGURE 4–8 Sample Job Description, Pearson Education

FIGURE 4–8 Sample Job Description, Pearson Education

Writing Job Descriptions
Step 1. Decide on a Plan
Step 2. Develop an Organization Chart
Step 3. Use a Simplified Job Analysis Questionnaire
Step 4. Obtain List of Job Duties from O*NET
Step 5. Compile the Job‘s Human Requirements
from O*NET
Step 6. Finalize the Job Description

FIGURE 4–10 Preliminary Job Description Questionnaire

Writing Job Specifications
―What human traits and

experience are required
to do this job well?‖
Job specifications Job specifications

Job specifications
for trained versus based on statistical
based on judgment
untrained personnel analysis

Writing Job Specifications
•Steps in the Statistical Approach
1. Analyze the job and decide how to measure job
performance.
2. Select personal traits that you believe should
predict successful performance.
3. Test candidates for these traits.
4. Measure the candidates‘ subsequent job
performance.
5. Statistically analyze the relationship between the
human traits and job performance.

Job Analysis in a Worker-Empowered
World
Job Design:
From Specialized
to Enriched Jobs
Job Job Job

Enlargement Rotation Enrichment

Other Changes at Work
Changing the
Organization and
Its Structure
Flattening the Using self-managed Reengineering

organization work teams business processes

Competency-Based Job Analysis
•Competencies
 Demonstrable characteristics of a person that enable
performance of a job.
•Reasons for Competency-Based Job Analysis
 To support a high-performance work system.
 To create strategically-focused job descriptions.
 To support the performance management process in
fostering, measuring, and rewarding:
 General competencies
 Leadership competencies
 Technical competencies
How to Write Job Competencies-Based Job
Descriptions
•Interview job incumbents and their supervisors
 Ask open-ended questions about job responsibilities
and activities.
 Identify critical incidents that pinpoint success on the
job.
•Use off-the-shelf competencies databanks

KEY TERMS
job analysis
job description
job specifications
organization chart
process chart
diary/log
position analysis questionnaire (PAQ)
Standard Occupational Classification (SOC)
job enlargement
job rotation
job enrichment
competency-based job analysis

Discussion
2. Describe methods of collecting job analysis information,
including interviews, questionnaires, and observation.

Global Edition 12e
Chapter 5
Personnel Planning
and Recruiting

Learning Outcomes
3. Give examples for the need for effective recruiting.
4. Describe the main internal and outside sources of
candidates.
5. Develop a help wanted ad.
6. How to recruit a more diverse workforce.

FIGURE 5–1 Steps in Recruitment and Selection Process
The recruitment and selection process is a series of hurdles aimed at selecting the best candidate for the job.

Planning and Forecasting
• Employment or Personnel Planning
 Process of deciding what positions
the firm will have to fill, and how to fill
them.
• Succession Planning
 Process of deciding how to fill the
company‘s most important executive jobs.
• What to Forecast?
 Overall personnel needs
 Supply of inside candidates
 Supply of outside candidates

Forecasting Personnel Needs
Forecasting Tools
Trend analysis Ratio analysis Scatter plotting

FIGURE 5–3 Determining the Relationship Between
Hospital Size and Number of Nurses
Hospital Size Number of

(Number Registered
of Beds) Nurses
200 240
300 260
400 470
500 500
600 620
700 660
800 820
900 860
Note: After fitting the line,

you can project how many
employees are needed,
given your projected volume.

Drawbacks to Traditional Forecasting
Techniques
• Focus on projections and historical relationships.
• Do not consider the impact of strategic initiatives on
future staffing levels.
• Support compensation plans that reward managers for
managing ever-larger staffs.
• ―Bake in‖ the idea that staff increases are inevitable.
• Validate and institutionalize present planning processes
and the usual ways of doing things.

Using Computers to Forecast Personnel
Requirements
• Computerized Forecasts
 Software that estimates future staffing needs by:
 Projecting sales, volume of production, and personnel

required to maintain different volumes of output.
 Forecasting staffing levels for direct labor, indirect staff, and
exempt staff.
 Creating metrics for direct labor hours and three sales
projection scenarios—minimum, maximum, and probable.

Forecasting the Supply of
Inside Candidates
Qualification
Inventories
Manual systems and Computerized skills

replacement charts inventories

Need for Effective Recruiting
Recruiting Challenges
Effectiveness of Effects of Legal requirements

chosen recruiting nonrecruitment associated with
methods issues and policies employment laws

Effective Recruiting
• External Factors Affecting Recruiting
 Supply of workers
 Outsourcing of white-collar jobs
 Fewer ―qualified‖ candidates
• Other Factors Affecting Recruiting Success

 Consistency of recruitment with strategic goals
 Types of jobs recruited and recruiting methods
 Nonrecruitment HR issues and policies
 Successful prescreening of applicants
 Public image of the firm
 Employment laws

Organizing How You Recruit
Advantages of Centralizing Recruiting Efforts
Facilitates Reduces Ensures Fosters effective

strategic duplication of compliance with use of online
priorities HR activities EEO laws recruiting

Measuring Recruiting Effectiveness
Evaluating
Recruiting
Effectiveness
What to How to
measure measure

Finding Internal Candidates
Hiring-from-Within
Tasks
Posting open Rehiring former Succession

job positions employees planning (HRIS)

FIGURE 5–8 Ineffective and Effective Web Ads

Advertising for Outside Candidates
• Media Choice
 Selection of the best medium depends on the positions for which
the firm is recruiting.
• Constructing (Writing) Effective Ads
 Create attention, interest, desire, and action (AIDA).
 Create a positive impression (image) of the firm.

FIGURE 5–9 Help Wanted Ad that Draws Attention

Employment Agencies
Types of
Employment
Agencies
Public Nonprofit Private

agencies agencies agencies

Why Use a Private Employment Agency?
• No HR department.
• To fill a particular opening quickly.
• To attract more minority or female applicants.
• To reach currently employed individuals.
• To reduce internal time devoted to recruiting.

Avoiding Problems with
Employment Agencies
• Give agency an accurate and complete job description.
• Make sure tests, application blanks, and interviews are
part of the agency‘s selection process.
• Review candidates accepted or rejected by your firm or
the agency for effectiveness and fairness of agency‘s
screening process.
• Screen agency for effectiveness in filling positions.
• Supplement the agency‘s reference checking by checking
the final candidate‘s references yourself.

Specialized Staffing and Recruiting
• Alternative Staffing
 In-house contingent (casual, seasonal, or temporary) workers
employed by the company, but on an explicit short-term basis.
 Contract technical employees supplied for long-term projects
under contract from outside technical services firms.
• On-Demand Recruiting Services (ODRS)
 Provide short-term specialized recruiting to support specific
projects without the expense of retaining traditional search
firms.

Temp Agencies and Alternative Staffing
• Benefits of Temps
 Increased productivity—paid only when working
 Allows ―trial run‖ for prospective employees
 No recruitment, screening, and payroll administration costs
• Costs of Temps
 Increased labor costs due to fees paid to temp agencies
 Temp employees‘ lack of commitment to the firm

Concerns of Temp Employees
• Dehumanizing, impersonal, and discouraging treatment
by employers.
• Insecurity about employment and pessimism about the
future.
• Worry about the lack of insurance and pension benefits.
• Being misled about job assignments and whether
temporary assignments are likely to become full-time
positions.
• Being ―underemployed‖ while trying to return to the
full-time labor market.
• Anger toward the corporate world and its values;
expressed as alienation and disenchantment.

Offshoring and Outsourcing Jobs
Political and
military instability
Resentment and
Cultural
anxiety of
misunderstandings
employees/unions
Outsourcing/
Offshoring
Customers‘
Costs of foreign Issues securing and
workers
privacy concerns
Foreign contracts,
Special training of
liability, and legal
foreign employees
concerns

Executive Recruitment
• Executive Recruiters (Headhunters)
 Contingent-based recruiters
 Retained executive searchers
 Internet technology and specialization trends
• Guidelines for Choosing a Recruiter

1. Ensure the firm is capable of conducting a thorough search.
2. Meet individual who will handle your assignment.
3. Ask how much the search firm charges.
4. Make sure the recruiter and you agree on what sort of person
you need for the position.
5. Never rely solely on the recruiter to do reference checking.

College Recruiting
• On-campus recruiting goals • On-site visits
 To determine if the candidate is  Invitation letters
worthy of further consideration  Assigned hosts
 To attract good candidates  Information packages
 Planned interviews
 Timely employment offer
 Follow-up
• Internships

Sources of Outside Applicants
Other Sources of Outside Applicants
Employee Military
Walk-ins Telecommuters
referrals personnel

Employee Referrals and Walk-ins
• Employee Referrals
 Referring employees become stakeholders.
 Referral is a cost-effective recruitment program.
 Referral can speed up diversifying the workforce.
 Relying on referrals may be discriminatory.
• Walk-ins
 Seek employment through a personal direct approach to the
employer.
 Courteous treatment of any applicant is a good business
practice.

Developing and Using Application Forms
Uses of Application Form

Information
Applicant‘s Applicant‘s Applicant‘s Applicant‘s

education and prior progress employment likelihood of
experience and growth stability success

Application Forms and the Law
Educational
achievements
Housing Arrest
arrangements record
Areas of
Personal
Marital Information Notification in case
status of emergency
Physical Membership in
handicaps organizations

Two-Stage Process
Is Applicant Yes Conditional

Qualified? Job Offer
Review application Make conditional job

information, personal offer contingent on
interview, testing, and meeting all ―second
do background check stage‖ conditions

KEY TERMS
employment (or personnel) planning
trend analysis
ratio analysis
scatter plot
qualifications (or skills) inventories
personnel replacement charts
position replacement card
employee recruiting
recruiting yield pyramid
job posting
succession planning
applicant tracking systems
alternative staffing
on-demand recruiting services (ODRS)
college recruiting
application form
Discussion
3. Give examples for the need for effective recruiting.
4. Describe the main internal and outside sources of
candidates.

Global Edition 12e
Chapter 6
Employee Testing
and Selection

Learning Outcomes
1. What is meant by reliability and validity.
2. How you would go about validating a test.
3. List tests you could use for employee selection and how
you would use them.
4. Explain the key points to remember in conducting
background investigations.

Why Careful Selection is Important
Importance of Selecting
the Right Employees
Organizational Costs of recruiting Legal obligations

performance and hiring and liability

Basic Testing Concepts
• Reliability
 Describes the consistency of scores obtained by the same person
when retested with the identical or alternate forms of the same
test.
 Are test results stable over time?
• Validity
 Indicates whether a test is measuring what it is supposed to be
measuring.
 Does the test actually measure what it is intended to measure?

Types of Validity
Types of
Test Validity
Criterion validity Content validity

Evidence-Based HR: How to Validate a Test
Steps in Test Validation
1 Analyze the Job
2 Choose the Tests
3 Administer the Test
4 Relate Your Test Scores and Criteria
5 Cross-Validate and Revalidate

TABLE 6–1 Testing Program Guidelines
1. Use tests as supplements.

2. Validate the tests.
3. Monitor your testing/selection program.
4. Keep accurate records.
5. Use a certified psychologist.
6. Manage test conditions.
7. Revalidate periodically.

Test Takers’ Individual Rights
and Test Security
• Under the APA‘s standard for educational and
psychological tests, test takers have the following
rights:
 Right to the confidentiality of test results.
 Right to informed consent regarding use of these results.
 Right to expect that only people qualified to interpret the
scores will have access to them, or that sufficient information
will accompany the scores to ensure their appropriate
interpretation.
 Right to expect the test is fair to all. For example, no one
taking it should have prior access to the questions or
answers.

Legal Privacy Issues
• Defamation
 Libeling or slandering of employees or former employees
by an employer.
• Avoiding Employee Defamation Suits
1. Train supervisors regarding the importance of employee
confidentiality.
2. Adopt a ―need to know‖ policy.
3. Disclose procedures impacting confidentially of
information to employees.

How Do Employers Use Tests at Work?
• Major Types of Tests
 Basic skills tests
 Job skills tests
 Psychological tests
• Why Use Testing?

 Increased work demands = more testing
 Screen out bad or dishonest employees

 Reduce turnover by personality profiling

FIGURE 6–4 Sample Test

Computerized and Online Testing
• Online tests
 Telephone prescreening
 Offline computer tests
 Virtual ―inbox‖ tests
 Online problem-solving tests
• Types of Tests
 Specialized work sample tests
 Numerical ability tests
 Reading comprehension tests
 Clerical comparing and checking tests

Types of Tests
What Different Tests

Measure
Motor and
Cognitive Personality Current
physical
abilities and interests achievement
abilities

Work Samples and Simulations
Measuring Work
Performance Directly
Management Video-based Miniature job

Work
assessment situational training and
samples
centers testing evaluation

Background Investigations and
Other Selection Methods
• Investigations and Checks
 Reference checks
 Background employment checks
 Criminal records
 Driving records
 Credit checks
• Why?
 To verify factual information provided by applicants
 To uncover damaging information

Background Investigations and
Reference Checks
Former Employers
Current Supervisors
Sources of Commercial Credit

Information Rating Companies
Written References
Social Networking Sites

Limitations on Background Investigations
and Reference Checks
Legal Issues:
Defamation
Background
Employer Legal Issues:
Guidelines
Investigations and Privacy
Reference Checks
Supervisor
Reluctance

Making Background Checks More Useful
1. Include on the application form a statement for
applicants to sign explicitly authorizing a background
check.
2. Use telephone references if possible.
3. Be persistent in obtaining information.
4. Compare the submitted résumé to the application.
5. Ask open-ended questions to elicit more information
from references.
6. Use references provided by the candidate as a source
for other references.

Using Preemployment Information Services
Acquisition and Use of Background Information
Disclosure to and authorization by

1
applicant/employee
2 Employer certification to reporting agency
3 Providing copies of reports to applicant/employee
4 Notice of adverse action to applicant/employee

Honesty Testing Programs:
What Employers Can Do
• Antitheft Screening Procedure:
 Ask blunt questions.
 Listen, rather than talk.
 Do a credit check.
 Check all employment and personal references.
 Use paper-and-pencil honesty tests and psychological tests.
 Test for drugs.
 Establish a search-and-seizure policy and conduct searches.

Physical Examinations
• Reasons for preemployment medical examinations:
 To verify that the applicant meets the physical requirements of
the position.
 To discover any medical limitations to be taken into account in
placing the applicant.
 To establish a record and baseline of the applicant‘s health for
future insurance or compensation claims.
 To reduce absenteeism and accidents.
 To detect communicable diseases that may be unknown to the
applicant.

Substance Abuse Screening
• Types of Screening
 Before formal hiring
 After a work accident
 Presence of obvious behavioral symptoms
 Random or periodic basis
 Transfer or promotion to new position
• Types of Tests
 Urinalysis
 Hair follicle testing

KEY TERMS
reliability
test validity
criterion validity
content validity
expectancy chart
interest inventory
work samples
work sampling technique
management assessment center
situational test
video-based simulation
miniature job training and evaluation

Discussion
1. What is meant by reliability and validity.
2. Give examples of some of the ethical and legal
considerations in testing.
3. List tests you could use for employee selection and how
you would use them.
4. Discuss background investigations and reference check

Global Edition 12e
Chapter 7
Interviewing
Candidates

Learning Outcomes
1. List the main types of selection interviews.
2. Explain main errors that can undermine an interview‘s
usefulness.
3. Define a structured situational interview.
4. Illustrate each guideline for being a more effective
interviewer.
provide structure.
6. List the steps in a streamlined interview process.
7. List guidelines for interviewees.

Basic Types of Interviews
Selection Interview
Types of
Appraisal Interview
Interviews
Exit Interview

Selection Interview Structure
Selection Interview
Characteristics
Interview Interview Interview

structure content administration

Selection Interview Formats
Interview Structure
Formats
Unstructured Structured
interview interview

EEOC Aspects of Interviews
Use objective/job-related questions
Avoiding
Discrimination Standardize interview administration
in Interviews
Use multiple interviewers

Interview Content
Types of Questions Asked
Situational Behavioral Job-related Stress

interview interview interview interview

Administering the Interview
Unstructured
sequential
interview
Structured
Panel
sequential
interview
interview
Ways in
Which
Mass
Interview Can Phone
interview be Conducted interviews
Computerized Video/Web-
interviews assisted interviews

Three Ways to Make the Interview Useful
Structure the interview to

increase its validity
Making the
Carefully choose what sorts
Interview of traits are to be assessed
Useful
Beware of committing
interviewing errors

What Can Undermine An Interview’s Usefulness?
Nonverbal behavior
First impressions (snap
and impression
judgments)
management
Interviewer’s Factors Affecting

Applicant’s personal
misunderstanding An Interview’s characteristics
of the job Usefulness
Candidate-order
Interviewer’s
(contrast) error and
inadvertent behavior
pressure to hire

How to Design and Conduct
An Effective Interview
• Structured Situational Interview
 Use either situational questions or behavioral questions that
yield high criteria-related validities.
Step 1: Analyze the job.
Step 2: Rate the job‘s main duties.
Step 3: Create interview questions.
Step 4: Create benchmark answers.
Step 5: Appoint the interview panel and conduct
interviews.

How to Conduct a More Effective Interview
Being Systematic and Effective
1 Know the job.

2 Structure the interview.
3 Get organized.
4 Establish rapport.
5 Ask questions.
6 Take brief, unobtrusive notes.
7 Close the interview.
8 Review the interview.

Creating Effective Interview Structures
•Base questions on actual job duties.
•Use job knowledge, situational or behavioral
questions, and objective criteria to evaluate
interviewee‘s responses.
•Use the same questions with all candidates.
•Use descriptive rating scales to rate answers.
•If possible, use a standardized interview form.

FIGURE 7–3 Suggested Supplementary Questions for Interviewing Applicants
1. How did you choose this line of work?

2. What did you enjoy most about your last job?
3. What did you like least about your last job?
4. What has been your greatest frustration or disappointment on your present job? Why?
5. What are some of the pluses and minuses of your last job?
6. What were the circumstances surrounding your leaving your last job?
7. Did you give notice?
8. Why should we be hiring you?
9. What do you expect from this employer?
10. What are three things you will not do in your next job?
11. What would your last supervisor say your three weaknesses are?
12. What are your major strengths?
13. How can your supervisor best help you obtain your goals?
14. How did your supervisor rate your job performance?
15. In what ways would you change your last supervisor?
16. What are your career goals during the next 1–3 years? 5–10 years?
17. How will working for this company help you reach those goals?
18. What did you do the last time you received instructions with which you disagreed?
19. What are some things about which you and your supervisor disagreed? What did you do?
20. Which do you prefer, working alone or working with groups?
21. What motivated you to do better at your last job?
22. Do you consider your progress in that job representative of your ability? Why?
23. Do you have any questions about the duties of the job for which you have applied?
24. Can you perform the essential functions of the job for which you have applied?
Using a Streamlined Interview Process
1. Prepare for the interview 3. Conduct the interview
• Knowledge and experience • Have a plan
• Motivation • Follow your plan
• Intellectual capacity 4. Match the candidate to the job
• Personality factor
2. Formulate questions to ask
in the interview
• Intellectual factor
• Motivation factor
• Personality factor
• Knowledge and experience
factor

FIGURE 7–4
Interview Evaluation
Form

Guidelines for Interviewees
• Preparation is essential.
• Uncover the interviewer‘s real needs.
• Relate yourself to the interviewer‘s needs.
• Think before answering.
• Appearance and enthusiasm are important.
• Make a good first impression.
• Ask questions.

FIGURE 7–5 Interview Questions to Ask
1. What is the first problem that needs the attention of the person you hire?
2. What other problems need attention now?
3. What has been done about any of these to date?
4. How has this job been performed in the past?
5. Why is it now vacant?
6. Do you have a written job description for this position?
7. What are its major responsibilities?
8. What authority would I have? How would you define its scope?
9. What are the company‘s five-year sales and profit projections?
10. What needs to be done to reach these projections?
11. What are the company‘s major strengths and weaknesses?
12. What are its strengths and weaknesses in production?
13. What are its strengths and weaknesses in its products or its competitive position?
14. Whom do you identify as your major competitors?
15. What are their strengths and weaknesses?
16. How do you view the future for your industry?
17. Do you have any plans for new products or acquisitions?
18. Might this company be sold or acquired?
19. What is the company‘s current financial strength?
20. What can you tell me about the individual to whom I would report?
21. What can you tell me about other persons in key positions?
22. What can you tell me about the subordinates I would have?
23. How would you define your management philosophy?
24. Are employees afforded an opportunity for continuing education?
25. What are you looking for in the person who will fill this job?
KEY TERMS
unstructured (or nondirective) interview

structured (or directive) interview
situational interview
behavioral interview
job-related interview
stress interview
unstructured sequential interview
structured sequential interview
panel interview
mass interview
candidate-order error (or contrast) error
structured situational interview

Discussion
1. List the types of selection interviews.
2. Explain main errors that can undermine an interview‘s
usefulness.
3. Illustrate each guideline for being a more effective
interviewer.
provide structure.

Global Edition 12e
Chapter 8
Training and
Developing
Employees

Learning Outcomes
1. Summarize the purpose and process

of employee orientation.
2. Explain each of the four steps in the training process.
3. How you would motivate trainees.
4. Illustrate how you would identify training
requirements.
5. How to distinguish between problems you can fix
with training and those you can‘t.
6. How to use five training techniques.

Purpose of Orientation
Orientation Helps New

Employees
Know what is
Understand Begin the
Feel welcome expected in
the socialization
and at ease work and
organization process
behavior

Orientation Process
Company
Employee benefit
organization and
information
operations
Personnel Employee Safety measures

policies Orientation and regulations
Daily Facilities
routine tour

Steps in the Training Process
Four-Step Training Process
1 Needs analysis
2 Instructional design
3 Program implementation
4 Evaluation

Training, Learning, and Motivation
• Make the Learning Meaningful
1. At the start of training, provide a bird‘s-eye view
of the material to be presented to facilitate learning.
2. Use a variety of familiar examples.
3. Organize the information so you can present it
logically, and in meaningful units.
4. Use terms and concepts that are already familiar
to trainees.
5. Use as many visual aids as possible.
6. Create a perceived training need in trainees‘ minds.

• Make Skills Transfer Easy
1. Maximize the similarity between the training
situation and the work situation.
2. Provide adequate practice.
3. Label or identify each feature of the machine
and/or step in the process.
4. Direct the trainees‘ attention to important aspects
of the job.
5. Provide ―heads-up,‖ preparatory information that
lets trainees know what might happen back on
the job.

• Reinforce the Learning
1. Trainees learn best when the trainers immediately
reinforce correct responses, perhaps with a quick
―well done.‖
2. Schedule is important. The learning curve goes
down late in the day, so that ―full day training is
not as effective as half the day or three-fourths of
the day.‖

Analyzing Training Needs
Training Needs
Analysis
Task Analysis: Performance Analysis:

Assessing new employees‘ Assessing current
training needs employees‘ training needs

Performance Analysis:
Assessing Current Employees’ Training Needs
Specialized Software
Assessment Center
Results Performance Appraisals
Individual Diaries Methods Job-Related

for Identifying Performance Data
Training Needs
Attitude Surveys Observations
Tests Interviews
Can’t-do or Won’t-do?

Training Methods
• On-the-Job Training • Computer-Based Training (CBT)
• Apprenticeship Training • Simulated Learning
• Informal Learning • Internet-Based Training
• Job Instruction Training • Learning Portals
• Lectures
• Programmed Learning
• Audiovisual-Based Training
• Vestibule Training
• Teletraining and
Videoconferencing
• Electronic Performance
Support Systems (EPSS)

Succession Planning
Steps in the Succession Planning Process
1 Anticipate management needs
2 Review firm‘s management skills inventory
3 Create replacement charts
4 Begin management development

Management Development Techniques
Managerial On-the-Job Training
Job Coaching and Action

rotation understudy learning

Other Management Training Techniques
Off-the-Job Management Training

and Development Techniques
Case study method Role playing
Management games Behavior modeling
Outside seminars Corporate universities
University-related programs Executive coaches

Behavior Modeling
Behavior Modeling Training
1 Model the effective behaviors
2 Have trainees role play using behaviors
3 Provide social reinforcement and feedback
4 Encourage transfer of training to job

Managing Organizational
Change Programs
What to Change
Strategy Culture Structure Technologies Employees

Managing Organizational Change
and Development
HR Manager‘s Role
Organizing Effectively using

Overcoming
and leading organizational
resistance to
organizational development
change
change practices

Managing Organizational Change
and Development
Overcoming Resistance to Change:

Lewin‘s Change Process
1 Unfreezing
2 Moving
3 Refreezing

How to Lead the Change
• Unfreezing Stage
1. Establish a sense of urgency (need for change).
2. Mobilize commitment to solving problems.
• Moving Stage
3. Create a guiding coalition.
4. Develop and communicate a shared vision.
5. Help employees to make the change.
6. Consolidate gains and produce more change.
• Refreezing Stage
7. Reinforce new ways of doing things.
8. Monitor and assess progress.

Using Organizational Development
Organizational Development (OD)
1 Usually involves action research
2 Applies behavioral science knowledge
3 Changes the organization in a particular direction

Evaluating the Training Effort
•Designing the Evaluation Study
 Time series design
 Controlled experimentation
•Choosing Which Training Effects to Measure

 Reaction
 Learning
 Behavior
 Results

KEY TERMS
employee orientation virtual classroom

training lifelong learning
negligent training management development
task analysis job rotation
competency model action learning
performance analysis case study method
on-the-job training (OJT) management game
apprenticeship training role playing
job instruction training (JIT) behavior modeling
programmed learning in-house development center
electronic performance support executive coach
systems (EPSS) organizational development
job aid controlled experimentation

Discussion
1. Explain each of the four steps in the training process.

2. How you would motivate trainees.
3. Discuss four management development programs.
4. Discuss the importance of the steps in leading
organizational change.
5. Discuss advantages and disadvantages of training
methods

Global Edition 12e
Chapter 9
Performance
Management and
Appraisal

Learning Outcomes
1. How performance management differs from
performance appraisal.
2. Describe the appraisal process.
performance appraisal tools.
4. Illustrate the problems to avoid in appraising
performance.
5. Discuss the pros and cons of using different raters to
appraise a person‘s performance.

Basic Concepts in Performance
Management and Appraisal
Performance Performance
Appraisal Management
Setting work An integrated

standards, assessing approach to ensuring
performance, and that an employee‘s
providing feedback to performance supports
employees to and contributes to the
motivate, correct, and organization‘s
continue their strategic aims.
performance.

Defining the Employee’s Goals
and Work Standards
Guidelines for
Effective
Goal Setting
Set Assign Assign Assign

Encourage
SMART specific measurable challenging/
participation
goals goals goals doable goals

An Introduction to Appraising Performance
Why Appraise Performance?
1 Is basis for pay and promotion decisions.
2 Plays an integral role in performance management.
Helps in correcting deficiencies and reinforcing good

3
performance.
4 Is useful in career planning.

(Un)Realistic Appraisals
• Motivations for Soft Appraisals
 Fear of having to hire and train someone new.
 Unpleasant reaction of the appraisee.
 An appraisal process that‘s not conducive to candor.
• Hazards of Soft Appraisals

 Employee loses the chance to improve before being discharged
or forced to change jobs.
 Lawsuits arising from dismissals involving inaccurate
performance appraisals.

Performance Appraisal Roles
• Supervisor‘s Role
 Usually do the actual
appraising
 Must be familiar with basic
appraisal techniques
 Must understand and avoid
problems that can cripple
appraisals
 Must know how to conduct
appraisals fairly

Performance Appraisal Roles
• HR Department‘s Role
 Serves a policy-making and advisory role.
 Provides advice and assistance regarding the appraisal

tool to use.
 Trains supervisors to improve their appraisal skills.
 Monitors the appraisal system effectiveness and

compliance with EEO laws.

Designing the Appraisal Tool
• What to Measure?
 Work output
 Personal competencies
 Goal (objective) achievement
• How to Measure?
 Generic dimensions
 Actual job duties
 Behavioral competencies

Performance Appraisal Methods
Appraisal Methodologies
1 Graphic rating scale 6 Narrative forms
Behaviorally anchored rating

2 Alternation ranking 7
scales (BARS)
3 Paired comparison 8 Management by objectives (MBO)
Computerized and Web-based

4 Forced distribution 9
performance appraisal
5 Critical incident 10 Merged methods

FIGURE 9–3 One Item from an Appraisal Form Assessing Employee
Performance on Specific Job-Related Duties

FIGURE 9–4 Appraisal Form for Assessing Both Competencies and Specific Objectives

FIGURE 9–4 Appraisal Form for Assessing Both Competencies and Specific Objectives (cont‘d)

FIGURE 9–5 Scale for Alternate Ranking of Appraisee

FIGURE 9–6 Ranking Employees by the Paired Comparison Method
Note: + means ―better than.‖ - means ―worse than.‖ For each chart, add up
the number of +‘s in each column to get the highest ranked employee.

TABLE 9–1 Examples of Critical Incidents for Assistant Plant Manager
Continuing Duties Targets Critical Incidents

Schedule production 90% utilization of Instituted new production
for plant personnel and machinery scheduling system; decreased late
in plant; orders delivered orders by 10% last month;
on time increased machine utilization in
plant by 20% last month
Supervise procurement Minimize inventory costs Let inventory storage costs rise
of raw materials and while keeping adequate 15% last month; over-ordered
on inventory control supplies on hand parts ―A‖ and ―B‖ by 20%; under-
ordered part ―C‖ by 30%
Supervise machinery No shutdowns due Instituted new preventative

maintenance to faulty machinery maintenance system for plant;
prevented a machine breakdown
by discovering faulty part

FIGURE 9–7
Appraisal-Coaching
Worksheet

Behaviorally Anchored Rating Scale (BARS)
Developing a BARS Advantages of BARS
1. Write critical  A more accurate gauge
incidents  Clearer standards
2. Develop performance
 Feedback
dimensions
 Independent dimensions
3. Reallocate incidents
 Consistency
4. Scale the incidents
5. Develop a final
instrument

FIGURE 9–8
Example of a
Behaviorally
Anchored Rating
Scale for the
Dimension
Salesmanship Skills

Management by Objectives (MBO)
• A comprehensive and formal organizationwide
goal-setting and appraisal program requiring:
1. Setting of organization‘s goals
2. Setting of departmental goals

3. Discussion of departmental goals
4. Defining expected results

5. Conducting periodic performance reviews
6. Providing performance feedback

Using MBO
Potential Problems with

MBO
Conflict with
Setting unclear Time-consuming
subordinates over
objective appraisal process
objectives

Computerized and Web-Based
Performance Appraisal Systems
• Allow managers to keep notes on subordinates.
• Notes can be merged with employee ratings.
• Software generates written text to support appraisals.
• Allows for employee self-monitoring and self-
evaluation.
• Electronic Performance Monitoring (EPM) Systems
 Use computer network technology to allow managers access to
their employees‘ computers and telephones.
 Managers can monitor the employees‘ rate, accuracy, and time
spent working online.

Dealing with Performance
Appraisal Problems
Potential Rating Scale

Appraisal Problems
Unclear Halo Central Leniency or

Bias
standards effect tendency strictness

TABLE 9–2 A Graphic Rating Scale with Unclear Standards

Guidelines for Effective Appraisals
How to Avoid
Appraisal Problems
Get
Know the Use the Keep a Be
agreement
problems right tool diary fair
on a plan

Choosing the Right Appraisal Tool
Criteria for Choosing an

Appraisal Tool
Employee
Accessibility Ease-of-use Accuracy
acceptance

Who Should Do the Appraising?
Immediate
Self-rating
supervisor
Potential
Peers Subordinates
Appraisers
Rating 360-degree
committee feedback

Appraisal Interview
Satisfactory—Promotable
Types of Satisfactory—Not Promotable

Appraisal
Interviews Unsatisfactory—Correctable
Unsatisfactory—Uncorrectable

FIGURE 9–12 Sample Employee Development Plan

Appraisal Interview Guidelines
Guidelines for Conducting

an Interview
Talk in terms
Don‘t get Encourage the Get
of objective
personal person to talk agreement
work data

FIGURE 9–13
Checklist During
Appraisal Interview

Handling Defensive Responses
How to Handle a Defensive Subordinate
1 Recognize that defensive behavior is normal.
2 Never attack a person‘s defenses.
3 Postpone action.
4 Recognize your own limitations.

How to Deliver Criticism
How to Criticize a Subordinate
1
Do it in a manner that lets the person maintain
his or her dignity and sense of worth.
2 Criticize in private, and do it constructively.

Give daily feedback so that the review has no
3
surprises.
4 Never say the person is ―always‖ wrong.
5 Criticism should be objective and free of biases.

Formal Written Warnings
• Purposes of a Written Warning
 To shake your employee out of bad habits.
 To help you defend your rating, both to your own boss and (if
needed) to the courts.
• A Written Warning Should:

 Identify standards by which employee is judged.
 Make clear that employee was aware of the standard.
 Specify deficiencies relative to the standard.
 Indicate employee‘s prior opportunity for correction.

Performance Management
• Performance Management
 Is the continuous process of identifying, measuring, and
developing the performance of individuals and teams and
aligning their performance with the organization‘s goals.
• How Performance Management Differs From

Performance Appraisal
 A continuous process for continuous improvement
 A strong linkage of individual and team goals to strategic goals

 A constant reevaluation and modification of work processes

Basic Building Blocks of
Performance Management
Ongoing
Direction Goal
performance
sharing alignment
monitoring
Coaching and Rewards,

Ongoing
development recognition, and
feedback
support compensation

Why Performance Management?
Total Quality Management
Performance
Management Resolution of Appraisal Issues
Approach
Strategic Goal Alignment

Using Information Technology to
Support Performance Management
• Assign financial and nonfinancial goals to each team‘s
activities along the strategy map chain of activities
leading up to the company‘s overall strategic goals.
• Inform all employees of their goals.
• Use IT-supported tools like scorecard software and
digital dashboards to continuously monitor and assess
each team‘s and employee‘s performance.
• Take corrective action at once.

KEY TERMS
performance appraisal
graphic rating scale
alternation ranking method
paired comparison method
forced distribution method
critical incident method
behaviorally anchored rating scale (BARS)
electronic performance monitoring (EPM)
unclear standards
halo effect
central tendency
strictness/leniency
bias
appraisal interview
performance management

Discussion
1. How performance management differs from
performance appraisal.
performance appraisal tools and discuss advantages
and disadvantages of appraisal tools
3. Illustrate the problems to avoid in appraising
performance.
4. Perform an effective appraisal interview.

Global Edition 12e
Chapter 10
Coaching, Careers,
And Talent
Management

Learning Outcomes
2. Compare employers‘ traditional and career planning-
oriented HR focuses.
4. Explain at least four methods for better managing
retirements.

Improving Your Coaching Skills
Four-Step Coaching Process
1 Preparing to coach
2 Developing a mutually agreed change plan
3 Engaging in active coaching
4 Evaluating for feedback and follow-up

Preparing to Coach:
Applying the ABC Approach
•Antecedents
 What things must come before the person does the job?
•Behavior
 Can the person do the job if he or she wanted to?
•Consequences
 What are the consequences of doing the job right?

Basics Of Career Management
Career Management
Career
Career Development
Terminology
Career Planning

Careers Today and
Employee Commitment
Old Contract New Contract

(Employer-focused) (Employee-focused)
―Do your best and be ―I‘ll do my best for you,

loyal to us, and we‘ll but I expect you to
take care of your provide the
career.‖ development and
learning that will
prepare me for the day
I must move on, and for
having the work-life
balance that I desire.‖

FIGURE 10–3
Employee Career
Development Plan

Why Offer Career Development?
Better equips employees

to serve the firm
Career
Boosts employee
Development commitment to the firm
Benefits
Supports recruitment and
retention of efforts

TABLE 10–2 Roles in Career Development
Individual Manager
• Accept responsibility for your own career. • Provide timely and accurate performance
• Assess your interests, skills, and values. feedback.
• Seek out career information and resources. • Provide developmental assignments and
support.
• Establish goals and career plans.
• Participate in career development
• Utilize development opportunities.
discussions with subordinates.
• Talk with your manager about your career.
• Support employee development plans.
• Follow through on realistic career plans.
Employer
• Communicate mission, policies, and procedures.
• Provide training and development opportunities, including workshops.
• Provide career information and career programs.
• Offer a variety of career paths.
• Provide career-oriented performance feedback.
• Provide mentoring opportunities to support growth and self-direction.
• Provide employees with individual development plans.
• Provide academic learning assistance programs.

Innovative Corporate Career
Development Initiatives
1. Provide individual lifelong learning budgets.
2. Encourage role reversal.
3. Help organize ―career success teams.‖
4. Provide career coaches.
5. Offer online career development programs.

Commitment-Oriented
Career Development Efforts
• Change in Employee Commitment
 Globalization raising productivity and efficiency requirements
 Employees thinking of selves as free agents
• Career-oriented Appraisals
 Provide an opportunity to discuss and link the employee‘s
performance, career interests, and developmental needs into a
coherent career plan.

Establishing an Effective
Mentoring Program
• Require mentoring?
• Provide mentoring training?
• Does distance matter?
• Same or different departments?
• Big or small difference in rank?

Characteristics of Effective Mentors
• Are professionally competent
• Are trustworthy
• Are consistent
• Have the ability to communicate
• Are willing to share control
• Set high standards
• Are willing to invest time and effort
• Actively steer protégés into important work

Choosing a Mentor
• Choose an appropriate potential mentor.
• Don‘t be surprised if you‘re turned down.
• Be sure that the mentor understands what you expect in
terms of time and advice.
• Have an agenda.
• Respect the mentor‘s time.

Enhancing Diversity Through
Career Management
• Sources of Bias and Discrimination
 A lack of diversity in the hiring department
 The ―old-boy network‖ of informal friendships
 A lack of women mentors
 A lack of high-visibility assignments and developmental

experiences (glass ceiling)
 A lack of company role models for members of the same
racial or ethnic group
 Inflexible organizations and career tracks

Taking Steps to Enhance Diversity:
Women’s and Minorities’ Prospects
Eliminate institutional barriers
Improve networking and mentoring

Supporting
Diversity
Abolish the glass ceiling
Adopt flexible career tracks

Employer Life-Cycle Career Management
Making Promotion and

Transfer Decisions
Decision 1: Decision 2: Decision 3: Decision 4:

Is Seniority or How Should Is the Process Vertical,
Competence We Measure Formal or Horizontal,
the Rule? Competence? Informal? or Other?

Managing Transfers
• Employees‘ reasons for desiring transfers
 Personal enrichment and growth
 More interesting jobs
 Greater convenience
 Greater advancement possibilities
• Employers‘ reasons for transferring employees

 To vacate a position where an employee is no longer needed
 To fill a position where an employee is needed
 To find a better fit for an employee within the firm
 To boost productivity by consolidating positions

Attracting and Retaining Older Workers
Create a culture that honors experience
Modify selection procedures

HR Policies for
Older Workers
Offer flexible or part-time work
Implement phased retirement programs

Managing Retirements
• Preretirement Counseling Practices
 Explanation of Social Security benefits
 Leisure time counseling
 Financial and investment counseling

 Health counseling
 Psychological counseling
 Counseling for second careers
 Counseling for second careers inside the company

Talent Management
• Talent Management
 Is the automated end-to-end process of planning, recruiting,
developing, managing, and compensating employees
throughout the organization
 Requires coordinating several human resource activities, in
particular workforce acquisition, assessment, development,
and retention
 Is career management from the employer‘s point of view

FIGURE 10–6 Talent Management Process

KEY TERMS
coaching career cycle
mentoring growth stage
career exploration stage
career management establishment stage
career development trial substage
career planning stabilization substage
reality shock midcareer crisis substage
promotions maintenance stage
transfers decline stage
talent management career anchors

Discussion
3. Explain methods for better managing retirements.

Global Edition 12e
Chapter 11
Establishing
Strategic Pay
Plans
Part 4 Compensation

Learning Outcomes
1. List the basic factors determining pay rates.
2. Give an example of how to conduct a job evaluation.
3. How to establish pay rates.
4. How to price managerial and professional jobs.
5. Explain the difference between competency-based and
traditional pay plans.
6. Explain the importance today of broadbanding,
comparable worth, and board oversight of executive
pay.

Basic Factors in Determining
Pay Rates
Employee Compensation
Components
Direct financial Indirect financial

payments payments

Corporate Policies, Competitive Strategy,
and Compensation
• Aligned Reward Strategy
 Employer‘s basic task:
 To create a bundle of rewards—a total reward package—that
specifically elicits the employee behaviors that the firm needs
to support and achieve its competitive strategy.
 hr or compensation manager along with top management
creates pay policies that are consistent with the firm‘s strategic
aims.

TABLE 11–1 Developing an Aligned Reward Strategy
Questions to Ask:
1. What must our company do, (for instance in terms of improving

customer service), to be successful in fulfilling its mission or
achieving its desired competitive position?
2. What are the employee behaviors or actions necessary to
successfully implement this competitive strategy?
3. What compensation programs should we use to reinforce those
behaviors? What should be the purpose of each program in
reinforcing each desired behavior?
4. What measurable requirements should each compensation
program meet to be deemed successful in fulfilling its purpose?
5. How well do our current compensation programs match these
requirements?

Compensation Policy Issues
• Pay for performance
• Pay for seniority
• The pay cycle
• Salary increases and promotions
• Overtime and shift pay
• Probationary pay
• Paid and unpaid leaves
• Paid holidays
• Salary compression
• Geographic costs of living differences

Equity and Its Impact on Pay Rates
Forms of Compensation
Equity
External Internal Individual Procedural

equity equity equity equity

Addressing Equity Issues
Area wage and salary surveys
Job analysis and job evaluation

Methods to
Address Equity
Issues
Performance appraisal and incentive pay
Communications, grievance mechanisms,

and employees’ participation

Establishing Pay Rates
Steps in Establishing Pay Rates
Conduct a salary survey of what other employers are

1
paying for comparable jobs (to help ensure external equity).
2
Determine the worth of each job in your organization
through job evaluation (to ensure internal equity).
3 Group similar jobs into pay grades.
4 Price each pay grade by using wave curves.
5 Fine-tune pay rates.

Step1: Salary Survey
Uses for Salary Surveys
To make
To price To market-price
decisions about
benchmark jobs wages for jobs
benefits

Sources for Salary Surveys
Sources of Wage and

Salary Information
Self-
Consulting Professional Government The
Conducted
Firms Associations Agencies Internet
Surveys

TABLE 11–2 Some Pay Data Web Sites
Sponsor Internet Address What It Provides Downside

Salary.com Salary.com Salary by job and zip code, Adapts national
plus job and description, averages by applying
for hundreds of jobs local cost-of-living
differences
Wageweb www.wageweb.com Average salaries for more than Charges for

150 clerical, professional, and breakdowns by
managerial jobs industry, location, etc.
U.S. Office of www.opm.gov/oca/ Salaries and wages for U.S. Limited to U.S.
Personnel 09Tables/index.asp government jobs, by location government jobs
Management
Job Smart http://jobstar.org/tools/ Profession-specific salary Necessary to review

salary/sal-prof.php surveys numerous salary
surveys for each
profession
cnnmoney.com cnnmoney.com Input your current salary and Based on national

city, and this gives you averages adapted
comparable salary in to cost-of-living
destination city differences

Step 2: Job Evaluation
Identifying Compensable Factors
Working
Skills Effort Responsibility
conditions

Job Evaluation Process
Preparing for the Job Evaluation
1 Identifying the need for the job evaluation
2 Getting the cooperation of employees
3 Choosing an evaluation committee

4 Performing the actual evaluation

How to Evaluate Jobs
Methods for Evaluating Jobs
Job Factor
Ranking Point method
classification comparison

Job Evaluation Methods: Ranking
• Ranking each job relative to all other jobs, usually
based on some overall factor.
• Steps in job ranking:
1. Obtain job information.
2. Select and group jobs.
3. Select compensable factors.
4. Rank jobs.
5. Combine ratings.

TABLE 11–3 Job Ranking by Olympia Health Care
Ranking Order Annual Pay Scale

1. Office manager $43,000
2. Chief nurse 42,500
3. Bookkeeper 34,000
4. Nurse 32,500
5. Cook 31,000
6. Nurse‘s aide 28,500
7. Orderly 25,500

Job Evaluation Methods:
Job Classification
• Raters categorize jobs into groups or classes of jobs that
are of roughly the same value for pay purposes.
 Classes contain similar jobs.
 Grades are jobs similar in difficulty but otherwise different.
 Jobs are classed by the amount or level of compensable factors
they contain.

FIGURE 11–4 Example of a Grade Level Definition
This is a summary chart of the key grade level criteria for the GS-7 level of clerical and assistance
work. Do not use this chart alone for classification purposes; additional grade level criteria are in the
Web-based chart.

Job Evaluation Methods: Point Method
• A quantitative technique that involves:
 Identifying the degree to which each compensable factor is
present in the job.
 Awarding points for each degree of each factor.
 Calculating a total point value for the job by adding up the
corresponding points for each factor.

Step 3: Grouping Jobs
Point Method
Grouping
Similar Jobs
Ranking Method
into Pay
Grades
Classification Methods

Step 4: Price Each Pay Grade
• Wage Curve
 Shows the pay rates paid for jobs in each pay grade, relative to
the points or rankings assigned to each job or grade by the job
evaluation.
 Shows the relationships between the value of the job as
determined by one of the job evaluation methods and the
current average pay rates for your grades.

FIGURE 11–5 Plotting a Wage Curve

Step 5: Fine-Tune Pay Rates
• Developing Pay Ranges
 Flexibility in meeting external job market rates
 Easier for employees to move into higher pay grades
 Allows for rewarding performance differences and seniority
• Correcting Out-of-Line Rates

 Raising underpaid jobs to the minimum of the rate range
for their pay grade
 Freezing rates or cutting pay rates for overpaid (―red circle‖)
jobs to maximum in the pay range for their pay grade

FIGURE 11–6 Wage Structure

HR in Practice:
Developing a Workable Pay Plan
• Simplified Approach:
 Conduct a wage survey
 Conduct a job evaluation
 Conduct once-a-year job appraisals
 Compile the compensation budget
for upcoming year

FIGURE 11–7
Compensation
Administration
Checklist

Pricing Managerial and Professional Jobs
Compensating Executives
and Managers
Base Short-term Long-term Executive

pay incentives incentives benefits/perks

Pricing Managerial and Professional Jobs
• What Determines Executive Pay?
 CEO pay is set by the board of directors taking into account
factors such as the business strategy, corporate trends, and
where they want to be in the short and long term.
 CEOs can have considerable influence over the boards that
determine their pay.
 Firms pay CEOs based on the complexity of the jobs they fill.
 Shareholder activism and government oversight have tightened

the restrictions on what companies pay top executives.
 Boards are reducing the relative importance of base salary while
boosting the emphasis on performance-based pay.

Compensating Professional Employees
• Employers can use job evaluation for professional jobs.
• Compensable factors focus on problem solving,
creativity, job scope, and technical knowledge and
expertise.
• Firms use the point method and factor comparison
methods, although job classification is most popular.
• Professional jobs are market-priced to establish the
values for benchmark jobs.

Competency-Based Pay
• Competencies
 Demonstrable characteristics of a person, including knowledge,
skills, and behaviors, that enable performance
• What is Competency-Based Pay?
 Paying for the employee‘s range, depth, and types of skills and
knowledge, rather than for the job title he or she holds

Why Use Competency-Based Pay?
Competency-Based Pay Supports
High-Performance Strategic Performance

Work Systems Aims Management

Competency-Based Pay in Practice
• Main elements of skill/competency/knowledge–based
pay programs:
1. A system that defines specific skills
2. A process for tying the person‘s pay to his or her skill
3. A training system that lets employees seek and acquire skills
4. A formal competency testing system
5. A work design that lets employees move among jobs to
permit work assignment flexibility

Competency-Based Pay: Pros and Cons
• Pros
 Higher quality
 Lower absenteeism
 Fewer accidents
• Cons
 Pay program implementation problems
 Costs of paying for unused knowledge, skills, and behaviors
 Complexity of program
 Uncertainty that the program improves productivity

Special Topics in Compensation
• Broadbanding
 Consolidating salary grades and ranges into a few wide levels
or ―bands,‖ each of which contains a relatively wide range of
jobs and salary levels.
 Pros and Cons
 More flexibility in assigning workers to different job grades

 Provides support for flatter hierarchies and teams
 Promotes skills learning and mobility
 Lack of permanence in job responsibilities can be unsettling
to new employees.

FIGURE 11–8 Broadbanded Structure and How It Relates
to Traditional Pay Grades and Ranges

Comparable Worth
• Concept:
 Employers should be required to pay men and women
equal wages for dissimilar jobs that are of comparable
(rather than strictly equal) value to the employer.
• Basis:
 Seeks to address the issue that women have jobs that
are dissimilar to those of men and those jobs are often
consistently valued less than men‘s jobs.
• Question at Hand:
 Who will get to make final decisions on the comparability
of jobs?

Pay Gap
• Factors Lowering the Earnings of Women:
1. Women‘s starting salaries are traditionally lower.
2. Salary increases for women in professional jobs do not
reflect their above-average performance.
3. In white-collar jobs, men change jobs more frequently,
enabling them to be promoted to higher-level jobs over
women with more seniority.
4. In blue-collar jobs, women tend to be placed in
departments with lower-paying jobs.

Improving Productivity Through HRIS:
Automating Compensation Administration
• Benefits of Compensation Automation:
 Allows for quick updating of compensation programs
 Eliminates costs of formerly manual processes

 Coordinates centralized compensation budgets to prevent
overages in compensation and raises
 Can integrate and automatically administer other pay actions

KEY TERMS
employee compensation ranking method
direct financial payments job classification (or grading)
indirect financial payments method
Davis-Bacon Act (1931) classes
Walsh-Healey Public Contract grades
Act (1936) grade definition
Title VII of the 1964 Civil Rights Act point method
Fair Labor Standards Act (1938) factor comparison method
Equal Pay Act (1963) pay grade
Employee Retirement Income wage curve
Security Act (ERISA) pay ranges
salary compression competency-based pay
salary survey competencies
benchmark job broadbanding
job evaluation comparable worth
compensable factor

Global Edition 12e
Chapter 12
Pay for Performance
and Financial
Incentives
Part 4 Compensation

Learning Outcomes
1. How you would apply five motivation theories in
formulating an incentive plan.
2. Discuss the main incentives for individual employees.
executives.
5. Define the most popular organizationwide variable pay
plans.
6. Outline the steps in designing effective incentive plans.

Motivation, Performance, and Pay
• Incentives
 Financial rewards paid to workers whose production exceeds a
predetermined standard.
• Frederick Taylor
 Popularized scientific management and the use of financial
incentives in the late 1800s.
• Linking Pay and Performance
 Understanding the motivational
bases of incentive plans

Hierarchy of Needs
• Maslow‘s Hierarchy of Needs
 Physiological
 Security
 Social
 Self-esteem
 Self-actualization
• Maslow‘s prepotency process principle

 People are motivated first to satisfy each lower-order need
and then, in sequence, each of the higher-level needs.

Herzberg’s Hygiene–Motivator Theory
• Hygienes (extrinsic job factors)
 Satisfy lower-level needs
 Inadequate working conditions, salary, and incentive pay can
cause dissatisfaction and prevent satisfaction.
• Motivators (intrinsic job factors)
 Satisfy higher-level needs
 Job enrichment (challenging job, feedback, and recognition)
addresses higher-level (achievement, self-actualization) needs.
• Premise
 Best way to motivate someone is to organize the job so that
doing it provides feedback and challenge that helps satisfy the
person‘s higher-level needs.

Demotivators and Edward Deci
• Intrinsically motivated behaviors are motivated by the
individual‘s underlying need for competence and self-
determination.
 Offering an extrinsic reward for an intrinsically-motivated act
can conflict with the acting individual‘s internal sense of
responsibility.
 Some behaviors are best motivated by job challenge and
recognition, others by financial rewards.

Victor Vroom’s Expectancy Theory
• Motivation is a function of:
 Expectancy
 Instrumentality
 Valence
• Motivation = (E x I x V)
 If any factor (E, I, or V) is zero, then there is no motivation
to work toward the reward.
 Employee confidence building and training, accurate
appraisals, and knowledge of workers‘ desired rewards can
increase employee motivation.

Behavior Modification /
Reinforcement Theory
• B. F. Skinner‘s Principles
 To understand behavior one must understand
the consequences of that behavior.
 Behavior that leads to a positive consequence (reward)
tends to be repeated, while behavior that leads to a negative
consequence (punishment) tends not to be repeated.
 Behavior can be changed by providing properly scheduled
rewards (or punishments).

Incentive Pay Terminology
• Pay-for-Performance Plan
 Ties employee‘s pay to the employee‘s performance
• Variable Pay Plan
 Is an incentive plan that ties a group or team‘s pay to some
measure of the firm‘s (or the facility‘s) overall profitability
 May include incentive plans for individual employees

Employee Incentives and the Law
• FLSA Wage Calculations and Incentive Payments
 Bonuses included in overtime calculations:
 Those promised to newly hired employees
 Those provided for in union contracts or other agreements
 Those announced to induce employees to work more
productively, steadily, rapidly, or efficiently or to induce
them to remain with the firm
 Bonuses excluded from overtime calculations:
 Christmas and gift bonuses not based on hours worked.
 Bonuses so substantial that employees don‘t consider them a
part of their wages
 Purely discretionary bonuses in which the employer retains
discretion over how much, if anything, to pay

Types of Employee Incentive Plans
Individual Employee
Incentive and Recognition
Programs
Sales Compensation
Programs
Pay-for-Performance Team/Group-based
Plans Variable Pay Programs
Organizationwide Incentive
Programs
Executive Incentive
Compensation Programs

Individual Incentive Plans
• Piecework Plans
 Worker is paid a sum (―piece rate‖) for
each unit he or she produces.
 Straight piecework
 Standard hour plan

Pros and Cons of Piecework
• Easily understandable, equitable,
and powerful incentives
• Employee resistance to changes
in standards or work processes
affecting output
• Quality problems caused by
an overriding output focus
• Possibility of violating minimum
wage standards
• Employee dissatisfaction when
incentives either cannot be earned
or are withdrawn

Individual Incentive Plans
• Merit Pay
 Is a permanent cumulative salary increase the firm awards
to an individual employee based on his or her individual
performance
 Can detract from performance if awarded across the board
 Becomes permanent ongoing reward for past performance
• Merit Pay Options

 Give annual lump-sum merit raises that do not make the
raise part of an employee‘s base salary.
 Tie merit awards to both individual and organizational
performance.

TABLE 12–1 Merit Award Determination Matrix (an Example)
Company Performance (Weight = 0.50)
Employee Performance
Rating (Weight = .50) Outstanding Excellent Good Marginal Unacceptable
Outstanding 1.00 0.90 0.80 0.70 0.00
Excellent 0.90 0.80 0.70 0.60 0.00
Good 0.80 0.70 0.60 0.50 0.00
Marginal — — — — —
Unacceptable — — — — —
To determine the dollar value of each employee’s incentive award: (1) multiply the employee’s
annual, straight-time wage or salary as of June 30 times his or her maximum incentive award
and (2) multiply the resultant product by the appropriate percentage figure from this table.
Example: if an employee had an annual salary of $20,000 on June 30 and a maximum incentive
award of 7% and if her performance and the organization’s performance were both ―excellent,‖
the employee’s award would be $1,120 ($20,000 × 0.07 × 0.80 = $1,120).

Incentives for Professional Employees
• Professional Employees
 Are those whose work involves the application
of learned knowledge to the solution of the employer‘s
problems.
• Possible Incentives
 Bonuses, stock options and grants, profit sharing
 Better vacations, more flexible work hours
 Improved pension plans
 Equipment for home offices

Nonfinancial and Recognition Awards
• Effects of Recognition-Based Awards
 Recognition has a positive impact on performance, either alone
or in conjunction with financial rewards.
 Day-to-day recognition from supervisors, peers, and team
members is important.
• Ways to Use Recognition
 Social recognition
 Performance-based recognition
 Performance feedback

Online and IT-Supported Awards
• Information Technology and Incentives
 Enterprise incentive management (EIM)
 Software that automates planning, calculation, modeling,
and management of incentive compensation plans
 Enabling companies to align their employees with
corporate strategy and goals
• Online Award Programs
 Programs offered by online incentives firms that improve and
expedite the awards process
 Broader range of awards
 More immediate rewards

Incentives for Salespeople
• Salary Plan
 Straight salaries
 Best for prospecting (finding new clients), account servicing,
training customer‘s sales force, or participating in national
and local trade shows
• Commission Plan
 Pay is a percentage of sales results.
 Keeps sales costs proportionate to sales revenues
 May cause a neglect of nonselling duties
 Can create wide variation in salesperson‘s income
 Likelihood of sales success may be linked to external factors
rather than to salesperson‘s performance
 Can increase turnover of salespeople

Incentives for Salespeople
• Combination Plan
 Pay is a combination of salary and commissions, usually
with a sizable salary component.
 Plan gives salespeople a floor (safety net) to their earnings.
 Salary component covers company-specified service
activities.
 Plans tend to become complicated, and misunderstandings
can result.

Specialized Commission Plans
• Commission-plus-Drawing-Account Plan
 Commissions are paid but a draw on future earnings helps
the salesperson to get through low sales periods.
• Commission-plus-Bonus Plan
 Pay is mostly based on commissions.
 Small bonuses (―spiffs‖) are paid for directed activities like
selling add-ons or slow-moving items.

Incentives for Managers and Executives
• Executive Total Reward Package
 Base salary
 Short-term incentives
 Long-term incentives
• Sarbanes-Oxley Act of 2002

 Makes executives and the board of directors
personally liable for violating their fiduciary
responsibilities to their shareholders.
 Requires the CEO and CFO to repay bonuses,
incentives, or equity-based compensation
received following issuance of a financial
statement that the firm must restate.

Short- and Long-Term Incentives
• Short-Term Incentives: Annual Bonus
 Plans intended to motivate short-term performance
of managers and tied to company profitability.
 Issues in awarding bonuses
 Eligibility basis
 Fund size basis
 Individual performance award
 Long-term incentives
 Stock options
 Performance shares
 Indexed options
 Premium price options
 Stock appreciation rights
 Perks

TABLE 12–2 Multiplier Approach to Determining Annual Bonus
Company’s Performance (Based on Sales Targets, Weight = 0.50)

Individual Performance
(Based on Appraisal, Weight = .50) Excellent Good Fair Poor
Excellent 1.00 0.90 0.80 0.70
Good 0.80 0.70 0.60 0.50
Fair 0.00 0.00 0.00 0.00
Poor 0.00 0.00 0.00 0.00
Note: To determine the dollar amount of a manager’s award, multiply the maximum possible
(target) bonus by the appropriate factor in the matrix.

Creating an Executive Compensation Plan
1. Define the strategic context for the executive
compensation program.
2. Shape each component of the package to focus
the manager on achieving the firm‘s strategic goals.
3. Check the executive compensation plan for
compliance with all legal and regulatory
requirements and for tax effectiveness.
4. Install a process for reviewing and evaluating
the executive compensation plan whenever
a major business change occurs.

Team/Group Incentive Plans
• Team (or Group) Incentive Plans
 Incentives are based on team‘s performance.
• How to Design Team Incentives

 Set individual work standards.
 Set work standards for each team member
and then calculate each member‘s output.
 Members are paid based on one of three formulas:
 All receive the same pay earned by the highest producer.
 All receive the same pay earned by the lowest producer.
 All receive the same pay equal to the average pay
earned by the group.

Pros and Cons of Team Incentives
• Pros
 Reinforces team planning and problem solving
 Helps ensure collaboration
 Encourages a sense of cooperation
 Encourages rapid training of new members
• Cons
 Pay is not proportionate to an individual‘s effort
 Rewards ―free riders‖

Organizationwide Incentive Plans
• Profit-Sharing Plans
 Current profit-sharing (cash) plans
 Employees receive cash shares of the firm‘s profits
at regular intervals.
 Deferred profit-sharing plans
 A predetermined portion of profits based on the
employee‘s contribution to the firm‘s profits is
placed in each employee‘s retirement account
under a trustee‘s supervision.
 Employees‘ income taxes on the distributions are
deferred, often until the employee retires.

Gainsharing Plans
Scanlon Plan
Components
Philosophy Benefits
Involvement
of Identity Competence sharing
system
cooperation formula

Implementing a Gainsharing Plan
1. Establish general plan objectives.
2. Choose specific performance measures.
3. Decide on a funding formula.
4. Decide on a method for dividing and distributing
the employees‘ share of the gains.
5. Choose the form of payment.
6. Decide how often to pay bonuses.
7. Develop the involvement system.
8. Implement the plan.

At-Risk Variable Pay Plans
• Put some portion of the employee‘s
weekly pay at risk.
 If employees meet or exceed
their goals, they earn incentives.
 If they fail to meet their goals, they
forego some of the pay they would
normally have earned.

Organizationwide Incentive Plans
• Employee Stock Ownership Plan (ESOP)
 A firm annually contributes its own stock—or cash (with a
limit of 15% of compensation) to be used to purchase the
stock—to a trust established for the employees.
 Trust holds the stock in individual employee accounts and
distributes it to employees upon separation from the firm if the
employee has worked long enough to earn ownership of the
stock.

Advantages of ESOPs
• For the Company
 Can take a tax deduction equal to the fair market value
of the shares transferred to the ESOP trustee
 Gets an income tax deduction for dividends paid
on ESOP-owned stock
 Can borrow against ESOP in trust and then repay
the loan in pretax rather than after-tax dollars
• For the Employees
 Develop a sense of ownership in and commitment to the firm.
 Do not pay taxes on ESOP earnings until they receive
a distribution.
• For the Shareholders of Closely-Held Corporations
 Can place assets into an ESOP trust which will allow them to
purchase other marketable securities to diversify their holdings

Implementing an Effective Incentive Plan
1. Ask: Does it make sense to use an incentive here?
2. Link the incentive with your strategy.
3. Make sure the program is motivational.
4. Set complete standards.
5. Be scientific in analyzing the effects of the plan.

Why Incentive Plans Fail
• Performance pay can‘t replace good management.
• You get what you pay for.
• ―Pay is not a motivator.‖
• Rewards punish.
• Rewards rupture relationships.
• Rewards can have unintended consequences.
• Rewards may undermine responsiveness.
• Rewards undermine intrinsic motivation.

KEY TERMS
financial incentives merit pay (merit raise)
fair day‘s work annual bonus
scientific management movement stock option
expectancy golden parachutes
instrumentality team (or group) incentive plan
valence organizationwide incentive plans
behavior modification profit-sharing plan
variable pay Scanlon plan
piecework gainsharing plan
straight piecework at-risk variable pay plans
standard hour plan employee stock ownership plan (ESOP)

Discussion
1. How apply five motivation theories in formulating an
incentive plan.
2. Discuss the incentives for individual employees.
executives

Global Edition 12e
Chapter 13
Benefits and
Services
Part 4 Compensation

Learning Outcomes
1. Define each of the main pay for time not worked
benefits.
2. Describe each of the main insurance benefits.
3. Discuss the main retirement benefits.
5. Explain the main flexible benefit programs.

Benefits
Types of Employee Benefits
Supplemental Insurance Retirement Executive

pay benefits benefits services

Policy Issues in Designing Benefit Packages
Which benefits to offer Who will be covered
Whether to include Coverage during

retirees probation
Policy Issues
Degree of employee
How to finance benefits
choice
Cost containment Communicating

procedures benefits options

Pay For Time Not Worked
Unemployment Vacations and

insurance holidays
Supplemental
Sick leave Parental leave
Pay Benefits
Supplemental
Severance pay unemployment
benefits

Pay for Time Not Worked
• Unemployment Insurance
 Provides for benefits if a person is unable to work through
no fault of his or her own.
 Is an employer payroll tax that is determined by an
employer‘s rate of personnel terminations.
 Tax is collected and administered by the state.
• Vacations and Holidays

 Number of paid leave days and holidays varies by employer.
 Qualification for and calculation of holiday and leave pay
varies by employer.
 Premium pay for those who work on holidays.

TABLE 13–2 An Unemployment Insurance Cost-Control Checklist
Do You:
Keep documented history of lateness, absence, and warning notices
Warn chronically late employees before discharging them
Have rule that 3 days’ absence without calling in is reason for automatic discharge
Request doctor’s note on return to work after absence
Make written approval for personal leave mandatory
Stipulate date for return to work from leave
Obtain a signed resignation statement
Mail job abandonment letter if employee fails to return on time
Document all instances of poor performance
Require supervisors to document the steps taken to remedy the situation
Document employee’s refusal of advice and direction
Require all employees to sign a statement acknowledging acceptance of firm’s policies and rules
File the protest against a former employee’s unemployment claim on time (usually within 10 days)
Use proper terminology on claim form and attach documented evidence regarding separation
Attend hearings and appeal unwarranted claims
Check every claim against the individual’s personnel file
Routinely conduct exit interviews to produce information for protesting unemployment claims

• Sick Leave
 Provides pay to an employee when he or she is out of work
because of illness.
 Costs for misuse of sick leave
 Pooled paid leave plans
• Parental Leave
 Family Medical Leave Act of 1993 (FMLA)
 Up to 12 weeks of unpaid leave within a one-year period.
 Employees must take unused paid leave first.
 Employees on leave retain their health benefits.
 Employees have right to return to job or equivalent position.

• Severance Pay
 A one-time payment when terminating an employee.
• Reasons for granting severance pay:

 Acts as a humanitarian gesture and good public relations.
 Mirrors employee‘s two-week quit notice.
 Avoids litigation from disgruntled former employees.
 Reassures employees who stay on after the employer downsizes

its workforce of employer‘s good intentions.

• Supplemental Unemployment Benefits (SUB)
 Payments that supplement the laid-off or furloughed employee‘s
unemployment compensation.
 Employer makes contributions to a SUB reserve fund.
 SUB payments are made to employees for the time the
employee is out of work due to layoffs, reduced workweeks,
or relocations.
 SUB payments are considered previously earned
compensation for unemployment calculation purposes.

Insurance Benefits
• Workers‘ Compensation
 Provides income and medical benefits to work-related
accident victims or their dependents, regardless of fault.
 Death or disability: a cash benefit based on earnings
per week of employment.
 Specific loss injuries: statutory list of losses.
 Injured workers are protected by ADA provisions.
 Controlling workers‘ compensation costs
 Screen out accident-prone workers.
 Make the workplace safer.
 Thoroughly investigate accident claims.
 Use case management to return injured employees to
work as soon as possible.

Insurance Benefits
•Hospitalization, Health, and Disability
Insurance
 Provide for loss of income protection and group-rate
coverage of basic and major medical expenses for off-
the-job accidents and illnesses.
 Accidental death and dismemberment
 Disability insurance
 Mental health benefits

Insurance Benefits
• Health Maintenance Organization (HMO)
 A medical organization consisting of specialists operating
out of a health care center.
 Provides routine medical services to employees who pay
a nominal fee.
 Receives a fixed annual contract fee per employee from
the employer (or employer and employee), regardless of
whether it provides that person with service.

Insurance Benefits
• Preferred Provider Organizations (PPOs)
 Groups of health care providers that contract to provide
services at reduced fees.
 Employees can select from a list of preferred individual
health providers.
 Providers agree to discount services and to submit to
utilization controls.
 Employees using non-PPO-listed providers may pay
all costs or only costs above the reduced fee structure for
services.

Trends in Health Care Cost Controls
Premiums and co-pays
Communication and
empowerment
Cost-Control
Wellness programs
Trends
Health savings accounts
Claim audits

Other Cost-Control Options
Mandatory online plan

enrollment
Defined contribution
health care plans
Controlling
Outsourced health care
Health Care plan administration
Costs
Reduced retiree
health care coverage
Benefits purchasing
alliances

Other Benefits Issues
• Long-Term Care
 Insurance for older workers is a growing issue.
• Life Insurance
 Types
Group life insurance

 Accidental death and dismemberment
 Personnel policy considerations
 Benefits-paid schedule
 Supplemental benefits
 Financing (employee contribution)
• Benefits for Part-Time and Contingent Workers

 Leave and health benefits available to part-time workers.
 Benefits for long-term independent contractors.

Retirement Benefits
• Social Security
(Federal Old Age and Survivor‘s Insurance)
 A federal payroll tax (7.65%) paid by both the employee
and the employer on the employee‘s wages
 Retirement benefits at the age of 62
 Survivor‘s or death benefits paid
to the employee‘s dependents
 Disability payments to disabled employees
and their dependents
 Medicare program
 Health services to people age 65 or older

Retirement Benefits
Types of Pension Plans
Defined Defined
Qualified Nonqualified
benefit contribution
plans plans
plans plans

Retirement Benefits
401(k) plans
Savings and thrift plans
Types of Defined
Contribution Deferred profit-sharing plans
Plans
Employee stock
ownership plans
Cash balance pension plans

Retirement Benefits
• Employee Retirement Income Security Act (ERISA)
of 1974
 Established guidelines for ―qualified‖ pension plans.
 Requires fiduciary responsibility.
• Pension Benefits Guarantee Corporation (PBGC)

 Insures plans that terminate without sufficient funds
to meet obligations.
 Guarantees only defined benefit plans.
 Pays individual pensions up to $54,000 per year.

Pension Plans
Policy Issues in
Pension Planning
Membership Benefit Plan Vesting

requirements formula funding schedule

Pensions and Early Retirement
• Early Retirement Windows
 Offer specific employees (often age 50-plus) an incentive
to voluntarily retire earlier than usual.
 Offer a combination of improved or liberalized pension
benefits plus a cash payment.
 Require careful program construction to avoid
oversubscription and timely delivery to avoid potential age
discrimination claims.
• Older Workers‘ Benefit Protection Act (OWBPA)
 Imposes limitations on waivers that purport to release a
terminating employee‘s potential claims against the employer
based on age discrimination.

Personal Services
• Credit Unions
 Separate businesses established with the employer‘s assistance
to help employees with their borrowing and saving needs.
• Employee Assistance Programs (EAPs)
 Provide counseling and advisory services:
 Personal legal and financial services
 Child and elder care referrals
 Adoption assistance
 Mental health counseling
 Life event planning

Employee Assistance Programs
Steps for Launching an EAP Program
1 Develop a policy statement.
2 Ensure professional staffing.
3 Maintain confidential record-keeping systems.
4 Be aware of legal issues.

Family-Friendly (Work–Life) Benefits
• Subsidized child care
• Sick child benefits
• Elder care
• Time off
• Subsidized employee transportation
• Food services
• Educational subsidies
• Fitness and medical facilities
• Flexible work scheduling

Flexible Benefits Programs
• Cafeteria (Flexible Benefits) Approach
 Each employee is given a limited benefits fund budget
to spend on preferred benefits.
 Types of plans
 Flexible spending accounts
 Core plus option plans
• Employee Leasing
 Professional employer organizations or staff leasing firms
 Handle HR functions for leased employees of small firms
 Can provide benefits by aggregating employees into
larger insurable groups
 Can raise worker commitment, co-employment, and
workers‘ compensation issues

Flexible Work Schedules
• Flextime
• Compressed workweek schedules
• Workplace flexibility
• Job sharing
• Work sharing

KEY TERMS
benefits savings and thrift plan
supplemental pay benefits deferred profit-sharing plan
unemployment insurance employee stock ownership plan (ESOP)
sick leave cash balance plans
severance pay Employee Retirement Income Security Act
supplemental unemployment benefits (ERISA)
workers‘ compensation Pension Benefits Guarantee Corporation
(PBGC)
health maintenance organization (HMO)
early retirement window
preferred provider organizations (PPOs)
employee assistance program (EAP)
group life insurance
family-friendly (or work–life) benefits
Social Security
flexible benefits plan/cafeteria benefits plan
pension plans
flextime
defined benefit pension plan
compressed workweek
defined contribution pension plan
workplace flexibility
portability
job sharing
401(k) plan
work sharing
Discussion
1. Define each of the main pay for time not worked
benefits.
2. Describe each of the main insurance and retirement
benefits.
4. Discuss the main flexible benefit programs.

Global Edition 12e
Chapter 14
Ethics, Justice, And
Fair Treatment in HR
Management

Learning Outcomes
1. What is meant by ethical behavior at work.
2. Discuss important factors that shape ethical behavior
at work.
3. Describe at least four specific ways in which HR
management can influence ethical behavior at work.
4. Employ fair disciplinary practices.
5. List at least four important factors in managing
dismissals effectively.

Ethics and Fair Treatment at Work
• Meaning of Ethics
 Principles of conduct governing an
individual or a group.
 Standards you use to decide what
your conduct should be.
 Ethical behavior depends on
a person‘s frame of reference.
• Ethical Decisions
 Normative judgments
 Morality

Ethics and the Law
A behavior may be legal

but unethical.
A behavior may be illegal

but ethical.
Ethics and
Behaviors A behavior may be both
legal and ethical.
A behavior may be both

illegal and unethical.

Ethics, Fair Treatment, and Justice
Components of Organizational Justice
Distributive justice Procedural justice

FIGURE 14–2 Perceptions of Fair Interpersonal Treatment Scale
What is your organization like most of the time? Circle Yes if the item describes your organization,
No if it does not describe your organization, and ? if you cannot decide.
IN THIS ORGANIZATION:
1. Employees are praised for good work Yes ? No
2. Supervisors yell at employees (R) Yes ? No
3. Supervisors play favorites (R) Yes ? No
4. Employees are trusted Yes ? No
5. Employees’ complaints are dealt with effectively Yes ? No
6. Employees are treated like children (R) Yes ? No
7. Employees are treated with respect Yes ? No
8. Employees’ questions and problems are responded to quickly Yes ? No
9. Employees are lied to (R) Yes ? No
10. Employees’ suggestions are ignored (R) Yes ? No
11. Supervisors swear at employees (R) Yes ? No
12. Employees’ hard work is appreciated Yes ? No
13. Supervisors threaten to fire or lay off employees (R) Yes ? No
14. Employees are treated fairly Yes ? No
15. Coworkers help each other out Yes ? No
16. Coworkers argue with each other (R) Yes ? No
17. Coworkers put each other down (R) Yes ? No
18. Coworkers treat each other with respect Yes ? No
Note: R = the item is reverse scored.

FIGURE 14–3 Some Areas Under Which Workers Have Legal Rights
• Leave of absence and vacation rights • Employee distress rights

• Injuries and illnesses rights • Defamation rights
• Noncompete agreement rights • Employees‘ rights on fraud
• Employees‘ rights on employer policies • Rights on assault and battery
• Discipline rights • Employee negligence rights
• Rights on personnel files • Right on political activity
• Employee pension rights • Union/group activity rights
• Employee benefits rights • Whistleblower rights
• References rights • Workers‘ compensation rights
• Rights on criminal records

What Influences Ethical Behavior At Work?
• Ethical behavior starts with moral awareness.
• Managers strongly influence ethics by carefully cultivating
the right norms, leadership, reward systems, and culture.
• Ethics slide when people undergo moral disengagement.
• The most powerful morality comes from within.
• Beware of the seductive power of an unmet goal.
• Offering rewards for ethical behavior can backfire.
• Don‘t inadvertently reward someone for bad behavior.
• Employers should punish unethical behavior.
• The degree to which employees openly talk about ethics
is a good predictor of ethical conduct.
• People tend to alter their moral compasses when
they join organizations.

What Determines Ethical Behavior at Work?
Individual
Factors
Organizational Organizational
Culture Ethical Work Factors
Behaviors
Ethical Policies The Boss’s

and Codes Influence

What Is Organizational Culture?
• Organizational Culture
 Characteristic values, traditions, and
behaviors a firm‘s employees share
• How Managers Can Support an Ethical Culture

 Clarifying expectations with respect to critical values
 ―Walking the talk‖ in having their actions align with values
 Providing physical support through the use of ethical

managerial values

Boss’s Influence on Ethical Behavior
Telling staffers to do whatever is

necessary to achieve results
Overloading top performers to ensure

Leading that the work gets done
Employees
Astray Looking the other way when
wrongdoing occurs
Taking credit for others’ work or

shifting blame

Fostering Ethical Work Behaviors
What Employers Can Do
Provide manager Establish

Adopt a strong
and employee ethics whistleblower
ethics code
training policies

Employees and Ethical Dilemmas
• Questions employees should ask
when faced with ethical dilemmas:
 Is the action legal?
 Is it right?
 Who will be affected?
 Does it fit the company‘s values?
 How will it ―feel‖ afterwards?
 How will it look in the newspaper?
 Will it reflect poorly on the company?

How Managers Use Personnel Methods
To Promote Ethics and Fair Treatment
HRM Practices that

Promote Ethics
Emphasizing
Providing Ensuring fair and Disciplining
ethics and
mandatory objective all instances
fairness in
employee ethics performance of unethical
personnel
training appraisals conduct
selection

HRM-Related Ethics Activities
• Selection
 Fostering the perception of fairness in the processes
of recruitment and hiring of people:
 Formal hiring procedures that test job competencies
 Respectful interpersonal treatment of applicants
 Feedback provided to applicants
• Training Employees
 How to recognize ethical dilemmas
 How to use ethical frameworks to resolve problems
 How to use HR functions in ethical ways

• Performance Appraisal
 Appraisals that make it clear that the company adheres
to high ethical standards by measuring and rewarding
employees who follow those standards.
• Reward and Disciplinary Systems
 Organization swiftly and harshly punishes unethical
conduct.

• HR‘s Ethics Compliance Activities
 Complying with the Sarbanes-Oxley Act of 2002
 Requires that CEOs and CFOs of publicly traded companies

personally attest to accuracy of their companies‘ financial
statements and that their internal controls are adequate.
 Increased the need for ethics training and verification of
training.
 Firms are using online ethics training programs to comply with
the act‘s requirements.

Fostering Employees’
Perceptions of Fairness
Perceptions of fair treatment depend on:
Involvement in Understanding Setting expectations

decisions through explanation and standards

Managing Employee Discipline
Fair and Just Discipline Process
Clear rules A system of A formal unbiased

and regulations progressive penalties appeals process

Formal Disciplinary Appeals Processes
• FedEx's Multi-Step Guaranteed Fair Treatment Program
 Step 1: Management review
 Step 2: Officer complaint
 Step 3: Executive appeals review

Discipline Without Punishment
(Nonpunitive Discipline)
1. Issue an oral reminder.
2. Should another incident arise within six weeks,
issue a formal written reminder, a copy of which
is placed in the employee‘s personnel file.
3. Give a paid, one-day ―decision-making leave.‖
4. If no further incidents occur in the next year, then
purge the one-day paid suspension from the
person‘s file. If the behavior is repeated, the next
step is dismissal.

Employee Privacy
• Employee privacy violations upheld by courts:
 Intrusion or surveillance
 Publication of private matters
 Disclosure of medical records
 Appropriation of an employee‘s name or likeness
• Actions triggering privacy violations:

 Background checks
 Monitoring off-duty conduct and lifestyle
 Drug testing
 Workplace searches
 Monitoring of workplace

Employee Monitoring
• What Is Monitored:
 Identity verification
 Location
 E-mail activity and Internet use
 Telephone calls
• Why Employers Monitor:

 To guard against liability for illegal acts and
harassment suits caused by employee misuse
 To improve productivity
 To detect leaks of confidential information
 To protect against computer viruses

Restrictions on Workplace Monitoring
• Electronic Communications
Privacy Act (ECPA)
 Restricts employer interception
and monitoring of oral and wire
communications
• Common law
 Provides protections against
invasion of privacy

Managing Dismissals
• Dismissal
 Involuntary termination of an employee‘s employment
with the firm.
• Terminate-at-Will Rule
 Without a contract, the employee can resign for any reason,
at will, and the employer can similarly dismiss the employee
for any reason (or no reason), at will.
• Wrongful Discharge
 An employee dismissal that does not comply with the law or
does not comply with the contractual arrangement stated or
implied by the firm via its employment application forms,
employee manuals, or other promises.

Managing Dismissals
Protections Against
Wrongful Discharge
Common law Public policy

Statutory exceptions
exceptions exceptions

Grounds for Dismissal
Unsatisfactory
performance
Misconduct
Bases for
Dismissal
Lack of qualifications
Changed requirements of
(or elimination of) the job

Insubordination
1. Direct disregard of the boss‘s authority.
2. Direct disobedience of, or refusal to obey,
the boss‘s orders, particularly in front of others.
3. Deliberate defiance of clearly stated company
policies, rules, regulations, and procedures.
4. Public criticism of the boss.
5. Blatant disregard of reasonable instructions.
6. Contemptuous display of disrespect.
7. Disregard for the chain of command.
8. Participation in (or leadership of) an effort to
undermine and remove the boss from power.

Managing Dismissals
• Fostering Perceptions of Fairness in Dismissals
 Provide the employee with full explanations of why and
how termination decisions were made.
 Institute a formal multi-step procedure (including warning)
and establish a neutral appeal process.
 Have the employee‘s direct supervisor inform
the employee of the dismissal decision.
• Security Measures
 Disable employee passwords and network access.
 Collect all company property and keys.
 Escort employee from company property.

Avoiding Wrongful Discharge Suits
• Bases for Wrongful Discharge Suits
 Discharge does not comply with the law.
 Discharge does not comply with the contractual arrangement
stated or implied by the firm via its employment application
forms, employee manuals, or other promises.
• Avoiding Wrongful Discharge Suits
 Set up employment policies and dispute resolution procedures
that make employees feel fairly treated.
 Review and refine all employment-related policies, procedures,
and documents to limit challenges.
 Clearly communicate job expectations to the employee.

Personal Supervisory Liability
• Avoiding Personal Supervisory Liability
 Be familiar with applicable statutes and know how to uphold their
requirements.
 Follow company policies and procedures.
 Be consistent with application of rules or regulations.
 Don‘t administer discipline in a manner that adds to the
emotional hardship on the employee.
 Allow employees to tell their side of the story.
 Do not act in anger.
 Utilize the HR department for advice regarding how to handle
difficult disciplinary matters.

Termination Interview
Guidelines for the Termination Interview
1 Plan the interview carefully.
2 Get to the point.
3 Describe the situation.
4 Listen.
5 Review all elements of the severance package.
6 Identify the next step.

Termination Assistance
• Outplacement Counseling
 A systematic process by which a terminated employee is trained
and counseled in the techniques of conducting a self-appraisal
and securing a new job appropriate to his or her needs and
talents.
• An offer of outplacement assistance:
 Does not imply that the employer takes responsibility
for placing the person in a new job.
 Is part of the terminated employee‘s support or severance
package and is often done by specialized outside firms.

Termination Assistance
• Outplacement Firms
 Can help the employer devise its dismissal plan regarding:
 How to break the news to dismissed employees.

 Dealing with dismissed employees‘ emotional reactions.
 Instituting the appropriate severance pay and equal
opportunity employment plans.

Interviewing Departing Employees
• Exit Interview
 Its aim is to elicit information about the job or related matters that
might give the employer a better insight into what is right—or
wrong—about the company.
 Assumption is that because the employee is leaving, he or
she will be candid.
 Quality of information gained from exit interviews is
questionable.

Plant Closing Law
• Worker Adjustment and Retraining Notification Act
(1989)
 Requires employers of 100 or more employees to give 60
days‘ notice before closing a facility or starting a layoff of 50
people or more.
 Law does not prevent the employer from closing down,
nor does it require saving jobs.
 Law is intended to give employees time to seek other work or
retraining by giving them advance notice of the shutdown.

Layoff Process
• Layoff Steps
 Identify objectives and constraints.
 Form a downsizing team.
 Address legal issues.
 Plan post-implementation actions.
 Address security concerns.
 Try to remain informative.

Layoffs and Downsizing
• Bumping/Layoff Procedures
 Seniority is usually the determinant of who will work.
 Seniority can give way to merit or ability.

 Seniority is usually based on the employee‘s hiring
date, not the date he or she took a particular job.
 Company-wide seniority allows an employee in one
job to bump or displace an employee in another job.

Layoffs and Downsizing Alternatives
• Voluntarily reducing employees‘ pay
• Concentrating employees‘ vacations
• Taking voluntary time off
• Releasing temporary workers
• Offering early retirement buyout packages

Adjusting to Downsizings and Mergers
• Guidelines for treatment of departing employees
during a merger:
 Avoid the appearance of power and domination.
 Avoid win–lose behavior.
 Remain businesslike and professional.
 Maintain a positive feeling about the acquired
company.
 Remember that how the organization treats the
acquired group will affect those who remain.

KEY TERMS
ethics
distributive justice
procedural justice
organizational culture
ethics code
nonpunitive discipline
Electronic Communications Privacy Act (ECPA)
dismissal
termination at will
wrongful discharge
insubordination
termination interview
outplacement counseling
exit interviews
bumping/layoff procedures
downsizing
Global Edition 12e
Chapter 15
Labor Relations and
Collective
Bargaining

Learning Outcomes
1. Give a brief history of the American labor movement.
2. Discuss the main features of at least three major pieces
of labor legislation.
3. Present examples of what to expect during the union
drive and election.
4. Describe five ways to lose an NLRB election.
5. Illustrate with examples bargaining that is not in good
faith.
6. Develop a grievance procedure.

Labor Movement
1790 Skilled craftsmen organize into trade unions.
1869 Knights of Labor seek social and political reform.
1886 American Federation of Labor pursues bread-and-butter
issues and improved working conditions.
1935 National Labor Relations Act fosters organizing
and the rapid growth of labor unions.
1947 Taft-Hartley Act regulates union activities.
1955 AFL and CIO merge.
1970s Union membership peaks and begins to steadily decline.

Why Do Workers Organize?
• Solidarity
 To get their fair share
Improved wages, hours, working conditions, and

benefits
 To protect themselves from management whims
• Conditions Favoring Employee Organization
 Low morale
 Fear of job loss
 Arbitrary management actions

What Do Unions Want?
Union Bargaining Aims
Improved wages, hours,

Increased workplace
working conditions, job
security for the union
security, and benefits

Union Security
Types of Union Security
Closed Union Agency Open Membership

shop shop shop shop maintenance

Unfair Employer Labor Practices
• To ―interface with, restrain, or coerce employees‖
in exercising their right of self-organization
• To dominate or interfere with either the formation
or the administration of labor unions
• To discriminate against employees for legal union
activities
• To discharge or discriminate against employees who
file unfair practice charges against the company
• To refuse to bargain collectively with their employees‘
representatives

Unions and the Law:
Encouragement and Regulation
• Taft-Hartley (Labor Management Relations) Act of 1947
 Prohibited unfair union labor practices
 Enumerated the rights of employees as union members
 Enumerated the rights of employers
 Allowed the United States President to seek an injunction to

temporarily bar a national emergency strike for 60 days

Unfair Union Labor Practices
• To restrain or coerce employees from exercising
their guaranteed bargaining rights.
• To cause an employer to discriminate against
employees in order to encourage or discourage
their membership in a union.
• To refuse to bargain in good faith with the employer
about wages, hours, and other employment conditions.
Certain strikes and boycotts are also unfair practices.
• To engage in ―featherbedding‖ (requiring an employer
to pay an employee for services not performed).

Taft-Hartley and Employers’ Rights
• Employer Rights
 To express views concerning union organization
 To set forth the union‘s record
• Employer Restraints
 Must avoid threats, promises, coercion, and direct
interference with workers‘ organizing decision
 Cannot meet with employees on company time
within 24 hours of an election
 Cannot suggest employees vote against the union
(in private, while they are out of their work area)

Unions and the Law:
Detailed Regulation of Union Internal Affairs
• Landrum-Griffin Act (the Labor Management
Reporting and Disclosure Act) of 1959
 Contains a bill of rights for union members
 Nomination of candidates for union office
 Protects a member‘s right to sue his or her union
 Ensures no member can be fined or suspended
without due process
 Laid out rules regarding union elections
 Regulated union election cycles and who can
serve as union officers
 Expanded list of corrupt union and employer practices

Union Drive and Election
• Step 1. Initial Contact
 Union determines employees‘ interest in
organizing, and sets up an organizing committee.
 Labor relations consultants
 Union salting
• Step 2. Obtaining Authorization Cards
 30% of eligible employees in an appropriate
bargaining unit must sign cards authorizing
the union to petition the NLRB for an election.

Organizing Drive
• Obtaining Authorization Cards
 Let the union seek a representation election.
 Designate the union as a bargaining
representative in all employment matters.
 State that the employee has applied
for membership in the union and will
be subject to union rules and bylaws.
 Can be collected and distributed by unions
through the Internet.

Organizing Drive
• Employer Responses to Organizing
 Can attack the union on ethical and moral grounds
and cite the cost of union membership
 Cannot make promises of benefits
 Cannot make unilateral changes in terms and
conditions of employment that were not planned
to be implemented prior to the onset of union
organizing activity
 Can inform employees of their right to revoke
their authorization cards

Organizing Drive
• Union Activities During Organizing
 Unions can picket the firm, subject to three constraints:
 It must file a petition for an election within 30 days
after the start of picketing.
 Firm cannot already be lawfully recognizing another
union.
 There cannot have been a valid NLRB election
during the past 12 months.

• Step 3. Hold a Hearing
 Consent election
 Employer chooses not to contest union recognition at all.
 Stipulated election
 Employer chooses not to contest:
– Union‘s right to an election
– Scope of the bargaining unit
– Which employees are eligible to vote in the election
 Contesting the union‘s right to an election
 An employer can insist on an NLRB hearing to determine
if employees wish to elect a union to represent them.

NLRB Hearing Officer’s Duties
• Determining if the record indicates there
is enough evidence to hold an election
 Did 30% of the employees in an appropriate
bargaining unit sign the authorization cards?
• Deciding what the bargaining unit will be
 Bargaining unit is the group of employees that
the union will be authorized to represent and
bargain for collectively.

• Step 4. Campaign
 Both sides present their platforms.
• Step 5. Election
 Held within 30 to 60 days after the NLRB issues
its Decision and Direction of Election.
 Election is by secret ballot; the NLRB provides and
counts the ballots.
 Union becomes the employees‘ representative
by getting a majority of the votes cast in the election.

How to Lose a NLRB Election
• Reason 1. Asleep at the Switch
• Reason 2. Appointing a Committee
• Reason 3. Concentrating on Money and Benefits
• Reason 4. Industry Blind Spots
• Reason 5. Delegating Too Much to Divisions

• Supervisor‘s Role
 Unfair labor practices by supervisors:
 Could cause the NLRB to hold a new election after the

company has won a previous election.
 Could cause the company to forfeit the second election and
go directly to contract negotiation.

FIGURE 15–4 Union Avoidance: What Not to Do
Human resources professionals must be very careful to do

the following during union activities at their firms:
• Watch what you say. Angry feelings of the moment may get you in trouble.
• Never threaten workers with what you will do or what will happen if a union comes in. Do not say, for example, that
the business will close or move, that wages will go down or overtime will be eliminated, that there will be layoffs, etc.
• Don‘t tell union sympathizers that they will suffer in any way for their support. Don‘t terminate or discipline workers
for engaging in union activities.
• Don‘t interrogate workers about union sympathizers or organizers.
• Don‘t ask workers to remove union screensavers or campaign buttons if you allow these things for other organizations.
• Don‘t treat pro-union or anti-union workers any differently.
• Don‘t transfer workers on the basis of union affiliation or sympathies.
• Don‘t ask workers how they are going to vote or how others may vote.
• Don‘t ask employees about union meetings or any matters related to unions. You can listen, but don‘t ask for details.
• Don‘t promise workers benefits, promotions, or anything else if they vote against the union.
• Avoid becoming involved—in any way—in the details of the union‘s election or campaign, and don‘t participate
in any petition movement against the union.
• Don‘t give financial aid or any support to any unions.
Any one of these practices may result in a finding of ―unfair labor practices,‖ which may
in turn result in recognition of a union without an election, as well as fines for your firm.

Rules Regarding Literature and Solicitation
• Nonemployees can be barred from soliciting
employees during their work time.
• Employees can be stopped from soliciting other
employees if one or both employees are on paid-duty
time and not on a break.
• Employers can bar nonemployees from the building‘s
interiors and work areas as a right of private property
owners.
• On- or off-duty employees can be denied access to
interior or exterior areas for reasons of production,
safety, or discipline.

Collective Bargaining Process
• What Is Collective Bargaining?
 Both management and labor are required by law
to negotiate wages, hours, and terms and
conditions of employment ―in good faith.‖
• What Is Good Faith Bargaining?
 Both parties communicate and negotiate.
 They match proposals with counterproposals
in a reasonable effort to arrive at an agreement.
 Neither party can compel the other to agree to
a proposal or to make any specific concessions.

Violations of Good Faith Bargaining
1. Surface bargaining
2. Inadequate concessions
3. Inadequate proposals and demands
4. Dilatory tactics
5. Imposing conditions
6. Making unilateral changes in conditions
7. Bypassing the representative
8. Committing unfair labor practices during negotiations
9. Withholding information
10. Ignoring bargaining items

Preparing for Negotiations
• Sources of Negotiating Information
 Local and industry pay and benefits comparisons
 Distribution of demographics of the workforce
 Benefit costs, overall earnings levels, and the amount and
cost of overtime
 Cost of the current labor contract and the increased cost—total,
per employee, and per hour—of the union‘s demands
 Grievances and feedback from supervisors
 Attitude surveys of employees
 Informal conferences with local union leaders

Classes of Bargaining Items
Bargaining Item
Categories
Mandatory Voluntary Illegal

items items items

Bargaining Stages
1. Presentation of initial demands
 Both parties are usually quite far apart on some issues.
2. Reduction of demands
 Each side trades off some of its demands to gain others.
3. Subcommittee studies
 The parties form joint subcommittees to try to work out
reasonable alternatives.
4. An informal settlement
 Each group goes back to its sponsor.
 Union members vote to ratify the agreement.
5. Signing the formal agreement

Bargaining Hints
1. Be sure to set clear objectives for every bargaining
item, and be sure you understand the reason for each.
2. Do not hurry.
3. When in doubt, caucus with your associates.
4. Be well prepared with data supporting your position.
5. Strive to keep some flexibility in your position.
6. Don‘t concern yourself just with what the other party
says and does; find out why.
7. Respect importance of face saving for the other party.
8. Be alert to the real intentions of the other party—not
only for goals, but also for priorities.

Bargaining Hints
9. Be a good listener.
10. Build a reputation for being fair but firm.
11. Learn to control your emotions and use them
as a tool.
12. As you make each bargaining move, be sure you
know its relationship to all other moves.
13. Measure each move against your objectives.
14. Remember that collective bargaining is a compromise
process. There is no such thing as having all the pie.
15. Try to understand the people and their personalities.

When Bargaining Stops
• An Impasse
 Usually occurs because one party is demanding
more than the other will offer.
 Sometimes an impasse can be resolved through
a third party—a disinterested person such as a
mediator or arbitrator.
 If the impasse is not resolved:
 Union may call a work stoppage, or strike, to
put pressure on management.
 Management may lock out employees.

Resolution of an Impasse
Third Party Involvement
Mediation Fact finding Arbitration

Third-Party Involvement
• Mediation
 A neutral third party (mediator) tries to assist
the principals in reaching an agreement by
holding meetings with each party to find
common ground for further bargaining.
 Mediator is a go-between and has no authority
to dictate terms or make concessions.
 Mediator communicates assessments
of the likelihood of a strike, the possible
settlement packages available, and the like.

Third-Party Involvement
• Fact Finder
 A neutral party who studies the issues in a dispute and
makes a public recommendation for a reasonable
settlement.
• Arbitration
 An arbitrator often has the power to determine and dictate
the settlement terms.
 Binding arbitration can guarantee a solution
to an impasse.
 Interest arbitration for labor agreements
 Rights arbitration defines the terms of existing contracts

Resolving an Impasse: Union Strikes
Economic strike
Unfair labor practice strike
Types of Strikes
Wildcat strike
Sympathy strike

Pressure Tactic Alternatives
• Unions
 Picketing
 Corporate campaign
 Boycott
 Inside games
 Injunctions
• Employers
 Replacement workers
 Lockouts
 Injunctions

Main Sections of a Contract Agreement
• Management rights
• Union security and automatic payroll dues deduction
• Grievance procedures
• Arbitration of grievances
• Disciplinary procedures
• Compensation rates
• Hours of work and overtime
• Benefits: vacations, holidays, insurance, pensions
• Health and safety provisions
• Employee security seniority provisions
• Contract expiration date

Grievances
• Grievance • Sources of Grievances
 Any factor involving wages,  Discipline
hours, or conditions of  Seniority
employment that is used
as a complaint against the  Job evaluations
employer  Work assignments
 Overtime
 Vacations
 Incentive plans
 Holiday pay
 Problem employees
 Absenteeism
 Insubordination
 Plant rules

Grievance Procedure
• Grievant and shop steward meet with supervisor.
 If not resolved, employee files formal grievance
• Grievant and shop steward meet with supervisor‘s boss.

 If grievance is not resolved, meeting with higher-level managers.
• If not resolved, matter goes to arbitration.

Handling Grievances: Do
1. Investigate and handle each case as though it may eventually
result in arbitration.
2. Talk with the employee about his or her grievance; give the
person a full hearing.
3. Require the union to identify specific contractual provisions
allegedly violated.
4. Comply with the contractual time limits for handling the grievance.
5. Visit the work area of the grievance.
6. Determine whether there were any witnesses.
7. Examine the grievant‘s personnel record.
8. Fully examine prior grievance records.
9. Treat the union representative as your equal.
10. Hold your grievance discussions privately.
11. Fully inform your own supervisor of grievance matters.

Handling Grievances: Don’t
1. Discuss the case with the union steward alone—the grievant should be
there.
2. Make arrangements with individual employees that are inconsistent with
the labor agreement.
3. Hold back the remedy if the company is wrong.
4. Admit to the binding effect of a past practice.
5. Relinquish to the union your rights as a manager.
6. Settle grievances on what is ―fair.‖ Stick to the labor agreement.
7. Bargain over items not covered by the contract.
8. Treat as subject to arbitration claims demanding discipline or discharge
of managers.
9. Give long written grievance answers.
10. Trade a grievance settlement for a grievance withdrawal.
11. Deny grievances because ―your hands are tied by management.‖
12. Agree to informal amendments in the contract.

Union Movement Today and Tomorrow
• Reasons for the Decline in Union Membership

 Laws have taken over much of the union‘s role
as the workers‘ protector.
 Automation, globalization, and technology have
reduced jobs in unionized manufacturing sectors.
 Unions have failed to organize new plants.
 Management has become better at resisting
union-organizing efforts.
• Upswing Coming?
 Unions have been more aggressive lately in organizing
public sector workers and white-collar workers.

Public Employees and Unions
• Size of Public Unions
 National Education Association; the American Federation of
State, County, and Municipal Employees; and the American
Federation of Teachers—are among the largest U.S. unions.
• Laws Supporting Public Sector Organizing
 Executive Order 10988
 Recognized organizing rights of public sector employees
 Title VII of the Civil Service Reform Act of 1978
(known as the Federal Labor Relations Act)
 Established the Federal Labor Relations Authority

Organizing professionals and
white-collar employees
Pushing “card check” for

union recognition
New Union
Tactics
Filing class action lawsuits to
support workers
Forming alliances with

overseas unions

High-Performance Work Systems,
Employee Participation, and Unions
• To avoid having participation programs viewed
as sham unions:
 Involve employees in the formation of programs.
 Emphasize that programs exist only to address
issues such as quality and productivity.
 Don‘t establish programs when union organizing
activities are beginning.
 Use volunteers and rotate membership.
 Minimize management participation in programs to
avoid interference or the perception of domination.

KEY TERMS
closed shop illegal bargaining items
union shop mandatory bargaining items
agency shop impasse
preferential shop mediation
right to work fact finder
Norris-LaGuardia Act (1932) arbitration
National Labor Relations (or Wagner) Act strike
National Labor Relations Board (NLRB) economic strike
Taft-Hartley Act (1947) unfair labor practice strike
national emergency strikes wildcat strike
Landrum-Griffin Act (1959) sympathy strike
union salting picketing
authorization cards corporate campaign
bargaining unit boycott
decertification inside games
collective bargaining lockout
good faith bargaining injunction
voluntary (or permissible) bargaining items grievance procedure
Global Edition 12e
Chapter 16
Employee Safety
And Health

Learning Outcomes
1. Explain the supervisor‘s role in safety.
2. What causes accidents?
3. Explain five ways to prevent accidents.
5. List workplace health hazards and how to deal with
them.

Supervisor’s Role in Safety
• Safety is not just a case of legal
compliance or humanitarianism.
• Safety is the employer‘s responsibility.
• Safety starts with top management
commitment.
• Safety is an essential part of the on-site
supervisor‘s job.

Occupational Safety Law
• Occupational Safety and Health Act
 Law passed by Congress in 1970 to assure so far as possible safe
and healthful working conditions and to preserve human
resources.
• Occupational Safety and Health Administration (OSHA)
 Agency created within the Department of Labor to set safety and
health standards for almost all workers in the United States.

OSHA Standards and Record Keeping
• OSHA Standards
 OSHA sets general industry standards, maritime standards,
construction standards, other regulations and procedures,
and issues a field operations manual.
• Record Keeping
 Employers with 11 or more employees must maintain records
of, and report, occupational injuries and occupational illnesses.
 Occupational illness
 Any abnormal condition or disorder caused by exposure
to environmental factors associated with employment.

OSHA Inspection Priorities
• Inspections of imminent danger situations
• Inspections of catastrophes, fatalities, and accidents that
have already occurred
• Inspections related to valid employee complaints of
alleged violation standards
• Periodic, special-emphasis inspections aimed at high-
hazard industries, occupations, or substances
• Random inspections and reinspections

Citations and Penalties
• Citation
 Is a summons informing employers and employees
of the regulations and standards that have been
violated in the workplace.
• Penalties
 Are calculated based on the gravity of the violation
and usually take into consideration factors like the
size of the business, the firm‘s compliance history,
and the employer‘s good faith.

Inspection Guidelines
• Initial Contact
 Refer inspector to the company‘s OSHA coordinator.
 Check inspector‘s credentials.
 Ask inspector why he or she is inspecting the workplace:

Complaint? Regular scheduled visit? Fatality or accident
follow-up? Imminent danger?
 If the inspection stems from a complaint, you are entitled to
know whether the person is a current employee, though not the
person‘s name.
 Notify your counsel.

• Opening Conference
 Establish focus and scope of the planned inspection.
 Discuss procedures for protecting trade secret areas.
 Show inspector that you have safety programs in place.

He or she may not go to the work floor if paperwork
is complete and up to date.

• Walk-Around Inspection
 Accompany the inspector and take detailed notes.
 If inspector takes a photo or video, you should, too.
 Ask for duplicates of all physical samples and copies
of all test results.
 Be helpful and cooperative, but don‘t volunteer information.
 To the extent possible, immediately correct any violation
the inspector identifies.

Responsibilities and Rights of Employers
• Employer Responsibilities
 To meet the duty to provide ―a workplace free from
recognized hazards.‖
 To be familiar with mandatory OSHA standards.
 To examine workplace conditions to make sure
they conform to applicable standards.
• Employer Rights
 To seek advice and off-site consultation from OSHA.
 To request and receive proper identification of the OSHA
compliance officer before inspection.
 To be advised by the compliance officer of the reason
for an inspection.

Responsibilities and Rights of Employees
• Employee Responsibilities
 To comply with all applicable OSHA standards.
 To follow all employer safety and health rules and regulations.
 To report hazardous conditions to the supervisor.
• Employee Rights
 The right to demand safety and health on the job
without fear of punishment.
• OSHA cannot cite employees for violations of their
responsibilities.

Dealing with Employee Resistance
• Employer is liable for any penalties that result from
employees‘ noncompliance with OSHA standards.
 Ways to gain compliance
 Bargain with the union for the right to discharge or
discipline an employee who disobeys an OSHA standard.
 Establish a formal employer-employee arbitration process
for resolving OSHA-related disputes.
 Use positive reinforcement and training for gaining
employee compliance.

10 Ways To Get into Trouble with OSHA
1. Ignore or retaliate against employees who raise safety issues.
2. Antagonize or lie to OSHA during an inspection.
3. Keep inaccurate OSHA logs and have disorganized safety files.
4. Do not correct hazards OSHA has cited you for and ignore
commonly cited hazards.
5. Fail to control the flow of information during and after an
inspection.
6. Do not conduct a safety audit, or identify a serious hazard
and do nothing about it.
7. Do not use appropriate engineering controls.
8. Do not take a systemic approach toward safety.
9. Do not enforce safety rules.
10. Ignore industrial hygiene issues.

What Causes Accidents?
Basic Causes
of Accidents
Chance Unsafe Employees‘

occurrences conditions unsafe acts

Improperly
guarded
equipment
Improper Defective
ventilation equipment
Unsafe
Conditions
Improper Hazardous
illumination procedures
Unsafe/Untidy
storage

FIGURE 16–9 Employee Safety Responsibilities Checklist

Controlling Workers’ Compensation Costs
• Before the Accident
 Communicate written safety and substance abuse
policies to workers and then strictly enforce policies.
• After the Accident
 Be proactive in providing first aid, and make sure
the worker gets quick medical attention.
 Make it clear that you are interested in the injured
worker and his or her fears and questions.
 Document the accident; file required reports.
 Encourage a speedy return to work.

Workplace Health Hazards:
Basic Industrial Hygiene Program
Recognition: Evaluation: Control:

Identification Assessing the Elimination or
of a possible severity of the reduction of the
hazard hazard hazard

Workplace Exposure Hazards
• Chemicals and other hazardous materials
• Excessive noise and vibrations
• Temperature extremes
• Biohazards, including those that are normally
occurring and man-made
• Ergonomic hazards of poorly designed equipment
that forces workers to do jobs while contorted in
unnatural positions
• Slippery floors and blocked passageways

Infectious Diseases in the Workplace
• Steps to prevent entry or spread of diseases:
1. Closely monitor Centers for Disease Control and
Prevention (CDC) travel alerts at www.cdc.gov.
2. Provide daily medical screenings for employees
returning from infected areas.
3. Deny access to your facility for 10 days to employees
or visitors returning from affected areas.
4. Tell employees to stay home if they have a fever
or respiratory system symptoms.
5. Clean work areas and surfaces regularly.
6. Stagger breaks. Offer several lunch periods
to reduce overcrowding.
7. Emphasize the importance of frequent hand washing
and make sanitizers containing alcohol easily available.

Substance Abuse: Supervisor Training
• If an employee appears to be under
the influence of drugs or alcohol:
 Ask how the employee feels and look for signs of
impairment such as slurred speech.
 Do not allow an employee judged unfit to continue
working. Send employee for medical care or home.
 Make a written record of your observations and
follow up each incident.
 Inform workers of the number of warnings the
company will tolerate before requiring termination.
 Refer troubled employees to the company‘s
employee assistance program.

Legal Aspects of Workplace
Substance Abuse
• Employer compliance with the Drug-Free Workplace
Act requires:
 Publication of a policy prohibiting the unlawful manufacture,
distribution, dispensing, possession, or use of controlled
substances in the workplace.
 Establishment of a drug-free awareness program that informs
employees about the dangers of workplace drug abuse.
 Informing employees that they are required, as a condition of
employment, not only to abide by the employer‘s policy but also
to report any criminal convictions for drug-related activities in
the workplace.

Dealing with Substance Abuse
Disciplining
When an
Referral to an
Employee Tests Discharge
outside agency
Positive
In-house
counseling

Stress Factors and Their Consequences
• Workplace factors • Human Consequences
 Work schedule  Anxiety
 Pace of work  Depression
 Job security worries  Anger
 Route to and from work  Cardiovascular disease
 Workplace noise  Headaches
 Poor supervision • Employer Consequences
 Number and nature  Diminished quantity and
of customers or clients quality of performance
• Personal Factors  Increased absenteeism and
 Personality type turnover
 Non-job factors  Workplace violence

Reducing Job Stress: Personal
• Build rewarding, pleasant, cooperative relationships.
• Don‘t bite off more than you can chew.
• Build an effective and supportive relationship with your boss.
• Negotiate with your boss for realistic deadlines on projects.
• Learn as much as you can about upcoming events and get
as much lead time as you can to prepare for them.
• Find time every day for detachment and relaxation.
• Take a walk to keep your body refreshed and alert.
• Find ways to reduce unnecessary noise.
• Reduce trivia in your job; delegate routine work.
• Limit interruptions.
• Don‘t put off dealing with distasteful problems.
• Make a ―worry list‖ that includes solutions for each problem.
• Get more and better quality sleep.
• Practice meditation when stressed.
Reducing Job Stress: Organizational
• Provide supportive supervisors.
• Ensure fair treatment for all employees.
• Reduce personal conflicts on the job.
• Have open communication between
management and employees.
• Support employees‘ efforts, for instance, by
regularly asking how they are doing.
• Ensure effective job-person fit, since a mistake
can trigger stress.
• Give employees more control over their jobs.
• Provide EAP including professional counseling.

Employee Stress-Reduction
Primary Ensuring that job designs and

Intervention workflows are correct
Using individual employee assessment,

Intervention
attitude surveys to find sources of stress
Rehabilitation through employee

Rehabilitation
assistance programs and counseling

Burnout
• Burnout
 The total depletion of physical and mental resources caused
by excessive striving to reach an unrealistic work-related goal.
• Recovering from burnout:

 Break the usual patterns to achieve a more well-rounded life.
 Get away from it all periodically to think alone.
 Reassess goals in terms of their intrinsic worth and attainability.
 Think about work: could the job be done without being so

intense?

Employee Depression
• Warning signs of depression
(if they last for more than 2 weeks) include:
 Persistent sad, anxious, or ―empty‖ moods
 Sleeping too little

 Reduced appetite
 Loss of interest in activities once enjoyed
 Restlessness or irritability
 Difficulty concentrating

Other Safety and Health Issues
• Computer-Related Ergonomic Problems
 Avoiding cumulative motion disorders
1. Employees should take a 3–5 minute break from working at the
computer every 20–40 minutes, and use the time for other tasks.
2. Design maximum flexibility and adaptability into the
workstation. Don‘t stay in one position for long periods.
3. Reduce glare with devices such as shades over windows and
recessed or indirect lighting.
4. Give workers a complete preplacement vision exam to ensure
properly corrected vision for reduced visual strain.
5. Allow for positioning wrists at the same level as the elbow.
6. Put the screen at or just below eye level, at a distance of 18
to 30 inches from the eyes.
7. Let the wrists rest lightly on a pad for support.
8. Put the feet flat on the floor or on a footrest.

Other Safety and Health Issues
•Workplace Smoking
 Costs
Higher health and fire insurance costs

 Increased absenteeism
 Reduced productivity
 Secondhand smoke
 Remedies
 Ban smoking in the workplace
 Do not hire smokers
 Fire smokers who won‘t quit

Violence at Work
• Steps to Reduce Workplace Violence:
 Institute heightened security measures
 Improve employee screening
 Provide workplace violence training

 Provide organizational justice
 Pay enhanced attention to employee retention/dismissal
 Take care when dismissing violent employees
 Deal promptly with angry employees
 Understand the legal constraints on reducing workplace

violence

Identifying Potentially Violent Employees
• An act of violence on or off the job
• Erratic behavior evidencing a loss of awareness of actions
• Overly defensive, obsessive, or paranoid tendencies
• Overly confrontational or antisocial behavior
• Sexually aggressive behavior
• Isolationist or loner tendencies
• Insubordinate behavior with a suggestion of violence
• Tendency to overreact to criticism
• Exaggerated interest in war, guns, violence, catastrophes
• The commission of a serious breach of security
• Possession of weapons, guns, knives at the workplace
• Violation of privacy rights of others
• Chronic complaining and frequent, unreasonable grievances
• A retribution-oriented or get-even attitude

Dismissing Violent Employees
• Analyze and anticipate, based on the person‘s history, what kind
of aggressive behavior to expect.
• Have a security guard nearby when the dismissal takes place.
• Clear away furniture and things the person might throw.
• Don‘t wear loose clothing that the person might grab.
• Don‘t make it sound as if you‘re accusing the employee; instead, say
that according to company policy, you‘re required to take action.
• Maintain the person‘s dignity and emphasize something good about
the employee.
• Provide job counseling for terminated employees, to help get the
employee over the traumatic post-dismissal adjustment.
• Consider obtaining restraining orders against those who have
exhibited a tendency to act violently in the workplace.

Dealing with Angry Employees
• Make eye contact.
• Stop what you are doing and give your full attention.
• Speak in a calm voice and create a relaxed environment.
• Be open and honest.
• Let the person have his or her say.
• Ask for examples of what the person is upset about.
• Be careful to define the problem.
• Ask open-ended questions/explore all sides of the issue.
• Listen: Often, angry people simply want a supportive,
empathic ear from someone they can trust.

Occupational Security and Safety
• Basic Prerequisites for Crime Prevention Plan
1. Company philosophy and policy on crime
2. Investigations of job applicants
3. Security awareness training
4. Crisis management
• Setting Up a Basic Security Program

 Analyzing the current level of risk
 Installing natural, mechanical, and
organizational security systems

Assessing Current Level of Risk
Access to Mail
reception area handling
Interior Initial Threat Evacuation

security Assessment procedures
Authorities Data backup

involvement systems

Evacuation Plans
• Evacuation contingency plans should contain:
 Methods for early detection of a problem.
 Methods for communicating the emergency

externally.
 Communications plans for initiating an evacuation.
 Communications plans for those the employer wants

to evacuate that provide specific information about
the emergency, and let them know what action they
should take next.

Company Security and Employee Privacy
• To investigate employees for potential security
breaches:
1. Distribute a policy that says the firm reserves the right
to inspect and search employees, their personal
property, and all company property.
2. Train investigators to focus on the facts and avoid
making accusations.
3. Make sure investigators know that employees can
request that an employee representative be present
during the interview.
4. Make sure all investigations and searches
are evenhanded and nondiscriminatory.

KEY TERMS
Occupational Safety and Health Act of 1970

Occupational Safety and Health Administration (OSHA)
occupational illness
citation
unsafe conditions
behavior-based safety
burnout

Discussion
1. What causes accidents? List and explain five ways to
prevent accidents.
3. List five workplace health hazards and how to deal
with them.

Global Edition 12e
Chapter 17
Managing Global
Human Resources

Learning Outcomes
1. List the HR challenges of international business.
2. How intercountry differences affect HRM.
3. Describe the main methods for staffing global
organizations.
4. Discuss some important issues to keep in mind in
training, appraising, and compensating international
employees.
5. How to implement a global HRM program.

HR and the Internationalization of Business
•Global Challenges
 Coordinating market, product, and production
plans on a worldwide basis
 Creating organization structures capable of
balancing centralized home-office control with
adequate local autonomy
 Extending HR policies and systems
to service staffing needs abroad

Challenges of International HRM
•Deployment
 Getting the right skills to where they are needed,
regardless of geographic location
•Knowledge and Innovation Dissemination
 Spreading state-of-the-art knowledge and
practices throughout the organization regardless
of their origin
•Identifying and Developing Talent
on a Global Basis
 Identifying those who can function effectively in a
global organization and developing their abilities

Intercountry Differences Affecting HRM
Cultural factors
and ethics issues
Political/Legal International Economic

systems HRM systems
Labor
relations

Global Differences and Similarities
in HR Practices
Personnel
selection
procedures
Purpose of
Use of pay and International
performance
other incentives HRM appraisal
Training and
development
practices

Staffing the Global Organization
•International staffing: Home or local?
 Expatriates (expats)
 Home-country nationals
 Third-country nationals
•Offshoring
 Having local employees abroad do jobs that the
firm‘s domestic employees previously did in-house
•Offshoring Issues
 Effective local supervisory/management structure
 Screening and required training for locals
 Local compensation policies and working conditions

Management Values and
International Staffing Policy
Top Management Values
Ethnocentric Polycentric Geocentric

Selecting Expatriate Managers
•Adaptability Screening
 Assessing the assignee‘s (and spouse‘s)
probable success in handling the foreign transfer.
 Overseas Assignment Inventory
 A test that identifies the characteristics and
attitudes international assignment candidates
should have.
•Realistic Previews
 Cover problems to expect in the new job, as well as
the cultural benefits, problems, and idiosyncrasies
of the country.

Personality of Inability of spouse
expatriate to adjust
Why Expatriate Inability to cope

Personal
Assignments with overseas
intentions
Fail responsibilities
Family Lack of cultural

pressures skills

Making Expatriate Assignments Successful
Realistic previews
Careful screening
Helping
Expatriate Improved orientation
Assignments Succeed
Cultural and language
training
Improved benefits
package

Orienting and Training Employees on
International Assignment
•Predeparture training is needed on:
 Impact of cultural differences on
business outcomes
 How attitudes (both negative and positive)
are formed and how they influence behavior
 Factual knowledge about the target country
 Language and adjustment and adaptation skills

Trends in Expatriate Training
• Use of returning managers as resources to cultivate
the ―global mind-sets‖ of their home-office staff.
• Use of software and the Internet for cross-cultural
training.
• Rotating assignments that permit professional growth.
• Management development centers where executives
hone their overseas skills.
• Classroom programs provide overseas executives with
educational opportunities similar to stateside programs.
• Continuing, in-country cross-cultural training.

Compensating Expatriates
•―Balance Sheet Approach‖
 Home-country groups of expenses—income taxes,
housing, goods and services, and discretionary
expenses—are the focus of attention.
 Employer estimates what each of these four
expenses is in the expatriate‘s home country,
and what each will be in the host country.
 Employer then pays any differences such
as additional income taxes or housing expenses.

Incentives for International Assignments
•Foreign Service Premiums
 Financial payments over and above regular
base pay, and typically range between 10%
and 30% of base pay
•Hardship Allowances
 Payments to compensate expatriates
for exceptionally hard living and working
conditions at certain foreign locations
•Mobility Premiums
 Lump-sum payments to reward employees
for moving from one assignment to another

Steps in Establishing a Global Pay System
Develop a global compensation philosophy

1
framework.
2 Identify any gaps in existing rewards systems.
3 Systematize pay systems worldwide.
4 Adapt global pay policies to local conditions.
5 Conduct an ongoing pay policies program assessment.

Appraising Expatriate Managers
•Challenges
 Determining who should appraise the manager.
 Deciding on which factors to base the appraisal.
•Improving the Expatriate Appraisal Process

1. Stipulate the assignment‘s difficulty level, and
adapt the performance criteria to the situation.
2. Weigh evaluation more toward on-site manager‘s
appraisal than toward that of the home-site
manager.
3. If home-office manager does appraisal, use a former
expatriate from same overseas location for advice.
International Labor Relations
Characteristics of European
Labor Relations
Content and
Industry-wide Employer Multiple union
scope of
centralization organization recognition
bargaining

Terrorism, Safety, and Global HR
•Taking Protective Measures
 Crisis management teams
 Intelligence services
•Kidnapping and Ransom (K&R) Insurance
 Crisis situations
 Kidnapping
 Extortion
 Detention
 Threats to property or products unless
employer makes a payment

Repatriation: Problems and Solutions
•Problem
 Making sure that the expatriate and his or her family
don‘t feel that the company has left them adrift.
•Solutions
 Match the expat and his or her family with
a psychologist trained in repatriation issues.
 Make sure the expat always feels ―in the loop‖
with what‘s happening back at the home office.
 Provide formal repatriation services when
the expat returns home.

How to Implement a Global HR System
• Best practices in developing worldwide HR
policies and practices:
 Form global HR networks that make local HR
managers a part of global teams.
 Remember that it‘s more important to
standardize ends and competencies than specific
methods.

Making the Global HR System
More Acceptable
• Best practices for making a global HR system
more acceptable to local managers:
 Remember that global systems are more accepted in
truly global organizations.
 Investigate pressures to differentiate and determine
their legitimacy.
 Try to work within the context of a strong corporate culture.
• Implementing the global HR system:

 Constant contact: ―You can‘t communicate enough.‖
 Dedicate adequate resources for a global HR effort.

TABLE 17–2 Summary of Best Global HR Practices
Do . . . Don’t . . .
• Work within existing local systems— • Try to do everything the same way
integrate global tools into local systems everywhere
• Create a strong corporate culture • Yield to every claim that ―we‘re
• Create a global network for system different‖—make them prove it
development— global input is critical • Force a global system on local people
• Treat local people as equal partners in system • Use local people just for implementation
development • Use the same tools globally, unless you
• Assess common elements across geographies can show that they really work and are
• Focus on what to measure and allow culturally appropriate
flexibility in how to measure • Ignore cultural differences
• Allow for local additions beyond core • Let technology drive your system
elements design—you can‘t assume every location
• Differentiate when necessary has the same level of technology
investment and access
• Train local people to make good decisions
about which tools to use and how to do so • Assume that ―if we build it they will
come‖—you need to market your tools
• Communicate, communicate, communicate!
or system and put change management
• Dedicate resources for global HR efforts strategies in place
• Know, or have access to someone who
knows, the legal requirements in each
country

KEY TERMS
codetermination
expatriates (expats)
home-country nationals
third-country nationals
ethnocentric
polycentric
geocentric
adaptability screening
foreign service
premiums
hardship allowances
mobility premiums

Discussion
1. Discuss the HR challenges of international business.
2. Illustrate with examples how intercountry differences
affect HRM.
3. Describe the main methods for staffing global
organizations.
4. How to implement a global HRM

Global Edition 12e
Chapter 18
Managing Human
Resources in
Entrepreneurial
Firms

Learning Outcomes
1. Why HRM in small companies is different from that in larger
companies.
2. How you would use the Internet and government tools to
support the HR effort in a small business.
3. Why are familiarity, flexibility, and informality important tools
that entrepreneurs can use to improve HRM practices in their
small businesses?
4. What professional employers‘ organizations are and how
entrepreneurs can use them.
5. How HR systems traditionally evolve in a small business and
give examples of how small businesses can use HRM
information systems.

Small Business Challenge
• Why Entrepreneurship Is Important
 Over one-half of the U.S. labor force works
for small firms.
 Over 600,000 small businesses are created annually.
 Three-fourths of employment growth comes from
small firms.
• Why Is HRM Important to Small Businesses?
 Growth of any small business depends on effective
HR activities.
 Getting and keeping large customers requires
compliance with international quality (HR) standards.

How Small Business HRM Is Different
Size of Priority of Informality of Entrepreneur’s

HR staff HR issues HR practices effect on HRM

Entrepreneur’s Risky HRM Situation
Underdeveloped HRM creates

competitive disadvantage
Lack of specialized HR expertise
HR Risks in Increased potential for workplace

Small Businesses litigation not addressed
Compliance with compensation

regulations and laws
Lack of HRIS systems creates

inefficiencies and data entry errors

Why HRM Is Important to Small Businesses
• Effective HRM:
 Is a competitive necessity for small firms.
 Makes small firms more successful .
 Helps small firms get and keep large customers.

 Is necessary to meet ISO-9000 requirements
for competing internationally.

Employment Training
Training Resources for Small

Businesses
National Association of
Private Small Business
Manufacturers
vendors Administration (SBA) (NAM)

Having flexibility in providing
work-life benefits and rewards
Using simple, informal employee

selection procedures
Leveraging the
Providing flexibility in employee
Small Firm Size training procedures
Advantage
Treating nonfamily employees fairly
and equitably
Maintaining effective
communications with employees

Building Communication
Building Effective Communications

in Small Businesses
Online Online
Newsletters The Huddle
reporting information

Using Professional Employer
Organizations (PEO)
Reasons for Employers

To Use a PEO
Dedicated HR Paperwork Decreased Group Higher

support reduction liability benefits performance

Guidelines for Finding and Working with PEOs
• Conduct a needs analysis.
• Review the services of all PEO firms you‘re considering.
• Determine if the PEO is accredited.
• Check the provider‘s bank, credit, and professional references.
• Understand how the employee benefits are funded.
• See if the provider contract assumes the employment law compliance
liabilities in the applicable states.
• Review the service agreement carefully.
• Investigate how long the PEO has been in business.
• Check out the prospective PEO‘s staff.
• Ask how will the firm deliver its services.
• Ask about upfront fees and how these are determined.
• Periodically get proof that payroll taxes and insurance premiums are being
paid properly and that any legal issues are handled correctly.

THANK YOU!

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HUMAN RESOURCE MANAGEMENT

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PowerPoint Presentation by Charlie Cook

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