Human Resource

Management

Fourteenth Edition

Global Edition

GARY DESSLER

Florida International University

PEARSON

Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Säo Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo

CONTEN TS

Preface 28

PART ONE INTRODUCTION 34

1 Introduction to Human Resource Management 34 WHAT IS HUMAN RESOURCE MANAGEMENT, AND WHY IS IT IMPORTANT? 36

What Is Human Resource Management? 36 Why Is Human Resource Management Important to All Managers? 36 Line and Staff Aspects of Human Resource Management 38 Line Managers' Human Resource Duties 38 Human Resource Manager'; Duties 39 Organizing the Human Resource Departments Responsibilities 39 Cooperative Line and Staff HR Management: An Example 41

THE TRENDS SHARING HUMAN RESOURCE MANAGEMENT 41 Tecbnological Advances 42 Improving Performance Through HRIS: The HR Portal 42 Globalization and Competition Trends 42 Indebtedness ("Leverage") and Deregulation 42 Trends in the Nature of Work 43

• IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: Improving a Bank s Customer Service 44

Demographic and Workforce Trends 44 Economic Challenges and Trends 45

THE NEW HUMAN RESOURCE MANAGER 46 They Focus More on Strategie, Big-Picture Issues 46 They Focus on Improving Performance 46 They Measure HR Performance and Results 47 They Use Evidence-Based Human Resource Management 47 They Add Value 48 They Use New Ways to Provide HR Services 48 They Take a Talent Management Approach to Managing Human Resources 48 They Manage Employee Engagement 48 They Manage Ethics 48 They Understand Their Human Resource Philosophy 49 They Have New Competencies 49

THE HUMAN RESOURCE MANAGER S COMPETENCIES 49 HRCI Certification 50 The HRCI Knowledge Base 50

THE PLAN OF THIS BOOK 51 The Basic Themes and Features 51

CHAPTER CONTENTS OVERVIEW 51 Part 1: Introduction 51 Part 2: Recruitment, Placement, and Talent Management 51 Part 3: Training and Development 52 Part 4: Compensation 52 Part 5: Enrichment Topics in Human Resource Management 52 The Topics Are Interrelated 52

CHAPTER SECTION SUMMARIES 52 DISCUSSION QUESTIONS 53 INDIVIDUAL AND GROUP ACTIVITIES 53

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10 CONTENTS

EXPERIENTIAL EXERCISE 54 VIDEO CASE: VIDEO TITLE: HUMAN RESOURCE MANAGEMENT (PATAGONIA) 54 APPLICATION CASE: JACK NELSON S PROBLEM 55 CONTINUING CASE: CARTER CLEANING COMPANY 55 KEY TERMS 56 ENDNOTES 56

2 Equal Opportunity and the Law 58 EQUAL OPPORTUNITY LAWS ENACTED FROM 1964 TO 1991 60

Title VII of the 1964 Civil Rights Act 60 Executive Orders 60 Equal Pay Act of 1963 60 Age Discrimination in Employment Act of 1967 61 Vocational Rehabilitation Act of 1973 61 Pregnancy Discrimination Act of 1978 61 Federal Agency Guidelines 61 Early Court Decisions Regarding Equal Employment Opportunity 61

THE LAWS ENACTED FROM 1991 TO THE PRESENT 62 The Civil Rights Act of 1991 62 The Americans with Disabilities Act 63 Uniformed Services Employment and Reemployment Rights Act 65 Genetic Information Nondiscrimination Act of 2008 (GlNA) 65 State and Local Equal Employment Opportunity Laws 65

• IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE 65 In Summary: Religious and Other Types of Discrimination 65 Sexual Harassment 66 Social Media and HR 69

OEFENSES AGAINST DISCRIMINATION ALLEGATIONS 69 The Central Role of Adverse Impact 69 Bona Fide Occupational Qualification 72 Business Necessity 72

• KNOW YOUR EMPLOYMENT LAW: Examples of What You Can and Cannot Do 73 THE EEOC ENFORCEMENT PROCESS 75

Voluntary Mediation 77 Mandatory Arbitration of Discrimination Claims 77

DIVERSITY MANAGEMENT 78 Potential Threats to Diversity 78 Some Diversity Benefits 79 Diversity Counts 79 Managing Diversity 79 Implementing the Affirmative Action Program 80 Reverse Discrimination 81

• IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS AND ENTREPRENEURS 82 CHARTER SECTION SUMMARIES 83 DISCUSSION QUESTIONS 84 INDIVIDUAL AND GROUP ACTIVITIES 84 EXPERIENTIAL EXERCISE 84 VIDEO CASE: VIDEO TITLE: EQUAL EMPLOYMENT (UPS) 85 APPLICATION CASE: THE EMIRATIZATION OF HRM PRACTICES AT A PETROLEUM COMPANY 85 CONTINUING CASE: CARTER CLEANING COMPANY 86 KEY TERMS 87 ENDNOTES 87

3 Human Resource Management Strategy and Analysis 92 THE STRATEGIC MANAGEMENT PROCESS 94

The Management Flanning Process 94 Strategie Flanning 95

CONTENTS 11

Improving Performance Through HRIS: Using Computerized Business Flanning Software 98

TYPES OF STRATEGIES 98 Corporate Strategy 98 Competitive Strategy 99 Functional Strategy 99 Managers' Roles in Strategie Flanning 99

STRATEGIC HUMAN RESOURCE MANAGEMENT 100 What Is Strategie Human Resource Management? 100

• IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE 100 Human Resource Strategies in Action 101 Diversity Counts: Longo Builds Its Strategy on Diversity 102 Translating Strategy into Human Resource Policies and Practices: An Example 102 Strategie Human Resource Management Tools 103

HR METRICS AND BENCHMARKING 105 Types of Metrics 105 Improving Performance Through HRIS: Tracking Applicant Metrics for Improved Talent Management 105 Benchmarking and Needs Analysis 105 Strategy and Strategy-Based Metrics 106 Improving Performance Through HRIS: Workforce/Talent Analytics 107 What Are HR Audits? 108 Evidence-Based HR and the Scientific Way of Döing Things 108

• IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS AND ENTREPRENEURS 109 HIGH-PERFORMANCE WORK SYSTEMS 109

High-Performance Human Resource Policies and Practices 110 CHARTER SECTION SUMMARIES 111 DISCUSSION QUESTIONS 112 INDIVIDUAL AND GROUP ACTIVITIES 112 EXPERIENTIAL EXERCISE 112 VIDEO CASE: VIDEO TITLE: STRATEGIC MANAGEMENT (JOIE DE VIVRE HOSPITALITY) 113 APPLICATION CASE: SIEMENS BUILDS A STRATEGY ORIENTED HR SYSTEM 113 CONTINUING CASE: CARTER CLEANING COMPANY 114 TRANSLATING STRATEGY INTO HR POLICIES AND PRACTICES CASE: IMPROVING PERFORMANCE AT THE HOTEL PARIS 114 KEY TERMS 116 ENDNOTES 116

PART TWO RECRUITMENT, PLACEMENT, AND TALENT MANAGEMENT 118

4 Job Analysis and the Talent Management Process 118 THE TALENT MANAGEMENT PROCESS 120

Improving Performance Through HRIS: Talent Management Software 121 THE BASICS OF JOB ANALYSIS 121

Uses of Job Analysis Information 122 Conducting a Job Analysis 122

• IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: Boosting Productivity Through Work Redesign 123 METHODS FOR COLLECT!NG JOB ANALYSIS INFORMATION 125

The Interview 125 Questionnaires 126 Observation 129 Participant Diary/Logs 129

Quantitative Job Analysis Techniques 129 Electronic Job Analysis Methods 131

WRITING JOB DESCRIPTIONS 133 Diversity Counts 133 Job Identification 134 JobSummary 134 Relationships 134 Responsibilities and Duties 134

• KNOW YOUR EMPLOYMENT LAW: Writing Job Descriptions That Comply with the ADA 137

Standards of Performance and Working Conditions 138 • IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS AND ENTREPRENEURS: Using 0*NET 138

Social Media and HR 141 WRITING JOB SPECIFICATIONS 141

Specifications for Trained versus Untrained Personnel 141 Specifications Based on Judgment 141 Job Specifications Based on Statistical Analysis 142 The Job Requirements Matrix 143

USING MODELS AND PROFILES IN TALENT MANAGEMENT 143 • IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE: Daimler Alabama Example 144

A Closer Look at Competencies 145 How to Write Competencies Statements 145

CHAPTER SECTION SUMMARIES 146 DISCUSSION QUESTIONS 147 INDIVIDUAL AND GROUP ACTIVITIES 147 EXPERIENTIAL EXERCISE 148 VIDEO CASE: VIDEO TITLE: TALENT MANAGEMENT (THE WEATHER CHANNEL) 148 APPLICATION CASE: RECRUITING IN EUROPE 148 CONTINUING CASE: CARTER CLEANING COMPANY 149 TRANSLATING STRATEGY INTO HR POLICIES AND PRACTICES CASE: IMPROVING PERFORMANCE AT THE HOTEL PARIS 149 KEY TERMS 150 ENDNOTES 150

Personnel Flanning and Recruiting 152 INTRODUCTION 154 WORKFORCE FLANNING AND FORECASTING 154

Improving Performance Through HRIS: Workforce Flanning 154 Strategy and Workforce Flanning 155 Forecasting Personnel Needs (Labor Demand) 155 Improving Performance Through HRIS 157 Forecasting the Supply of Inside Candidates 158 Forecasting the Supply of Outside Candidates 159 Predictive Workforce Monitoring's Role in Talent Management 159

• IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE: Predicting Labor Needs 160

Developing an Action Plan to Match Projected Labor Supply and Labor Demand 160 Succession Flanning 160 Improving Performance Through HRIS: Succession Systems 161

WHY EFFECTIVE RECRUITING IS IMPORTANT 161 The Recruiting Yield Pyramid 161

• KNOW YOUR EMPLOYMENT LAW: Preemployment Activities 162 Organizing How You Recruit 162

INTERNAL SOURCES OF CANDIDATES 162 Finding Internal Candidates 163

CONTENTS 13

OUTSIDE SOURCES OF CANDIDATES 163 Informal Recruiting and the Hidden Job Market 163 Recruiting via the Internet 163 Social Media and HR 164 Improving Performance Through HRIS: Using Applicant Tracking 165 Advertising 166 Employment Agencies 167 Temporary Workers and Alternative Staffing 169

• KNOW YOUR EMPLOYMENT LAW: Contract Employees 170 Offshoring and Outsourcing Jobs 170 Executive Recruiters 171

• IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS AND ENTREPRENEURS: Recruiting 101 172

Referrals and Walk-Ins 172 On-Demand Recruiting Services 173 College Recruiting 173 Telecommuters 174 Military Personnel 174 Evidence-Based HR: Measuring Recruiting Effectiveness and Reducing Recruitment Costs 174

• IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: Cutting Recruitment Costs 175 RECRUITING A MORE DIVERSE WORKFORCE 176

Recruiting Women 176 Recruiting Single Parents 176 Older Workers 176 Diversity Counts 177 Recruiting Minorities 177 The Disabled 178

DEVELOPING AND USING APPLICATION FORMS 178 Purpose of Application Forms 178

• IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS AND ENTREPRENEURS: Application Guidelines 178 • KNOW YOUR EMPLOYMENT LAW: Application Forms and EEO Law 179

Using Application Forms to Predict Job Performance 180 • KNOW YOUR EMPLOYMENT LAW: Mandatory Arbitration 180 CHAPTER SECTION SUMMARIES 181 DISCUSSION QUESTIONS 181 INDIVIDUAL AND GROUP ACTIVITIES 182 EXPERIENTIAL EXERCISE 182 VIDEO CASE: VIDEO TITLE: RECRUITING (HAUTELOOK) 182 VIDEO CASE: VIDEO TITLE: PERSONNEL FLANNING AND RECRUITING (GAWKER MEDIA) 183 APPLICATION CASE: YA KUN KAYA INTERNATIONAL 183 CONTINUING CASE: CARTER CLEANING COMPANY 183 TRANSLATING STRATEGY INTO HR POLICIES AND PRACTICES CASE: IMPROVING PERFORMANCE AT THE HOTEL PARIS 184 KEY TERMS 184 ENDNOTES 185

Employee Testing and Selection 188 WHY EMPLOYEE SELECTION IS IMPORTANT 190 THE BASICS OF TESTING AND SELECTING EMPLOYEES 190

Reliability 190 Validity 191 Evidence-Based HR: How to Validate a Test 192

14 CONTENTS

Bias 194 Utility Analysis 194

• IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: Using Tests to Cut Costs and Boost Profits 194

Validity Generalization 195 • KNOW YOUR EMPLOYMENT LAW: Testing and Equal Employment Opportunity 196

Test Takers' Individual Rights and Test Security 196 Diversity Counts: Gender Issues in Testing 196 How Do Employers Use Tests at Work? 197

TYPES OF TESTS 197 Tests of Cognitive Abilities 197 Tests of Motor and Physical Abilities 198 Measuring Personality and Interests 198 Achievement Tests 200 Improving Performance Through HRIS: Computerization, Online Testing, and Data Analytics 200

WORK SAMPLES AND SIMULATIONS 201 Using Work Sampling for Employee Selection 201 Situational Judgment Tests 202 Management Assessment Centers 202

• IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE: Testing in China 203

Situational Testing and Video-Based Situational Testing 203 The Miniature Job Training and Evaluation Approach 203 Realistic Job Previews 204 Choosing a Selection Method 204

• IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS AND ENTREPRENEURS Employee Testing and Selection 205 BACKGROUND INVESTIGATIONS AND OTHER SELECTION METHODS 205

Why Perform Background Investigations and Reference Checks? 205 • KNOW YOUR EMPLOYMENT LAW: Giving References 206

How to Check a Candidate's Background 207 Social Media and HR 207 Using Preemployment Information Services 207

• IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS AND ENTREPRENEURS: Making the Background Check More Valuable 209

The Polygraph and Honesty Testing 210 • IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS AND ENTREPRENEURS: Testing for Honesty 211

Graphology 211 "Human Lie Detectors" 211 Physical Exams 211 Substance Abuse Screening 212

• KNOW YOUR EMPLOYMENT LAW Drug Testing 213 Complying with Immigration Law 213

CHAPTER SECTION SUMMARIES 214 DISCUSSION QUESTIONS 215 INDIVIDUAL AND GROUP ACTIVITIES 215 EXPERIENTIAL EXERCISE 215 VIDEO CASE: VIDEO TITLE: EMPLOYEE TESTING AND SELECTION (PATAGONIA) 216 APPLICATION CASE: KPMG RECRUITS 216 CONTINUING CASE: CARTER CLEANING COMPANY 216 TRANSLATING STRATEGY INTO HR POLICIES AND PRACTICES CASE: IMPROVING PERFORMANCE AT THE HOTEL PARIS 217 KEY TERMS 218 ENDNOTES 218

CONTENTS 15

7 Interviewing Candidates 222 BASIC TYPES OF INTERVIEWS 224

Structured versus Unstructured Interviews 224 Interview Content (What Types of Questions to Ask) 224 How Should We Conduct the Interview? 227 Improving Performance Through HRIS: Web-Based Interviews 228

• IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: Great Western Bank 229 Three Ways to Make the Interview More Useful 230

• KNOW YOUR EMPLOYMENT LAW: Interviewing Candidates 230 ERRORS THAT CAN UNDERMINE AN INTERVIEWS USEFULNESS 230

First Impressions (Snap Judgments) 230 Not Clarifying What the Job Requires 231 Candidate-Order (Contrast) Error and Pressure to Hire 231 Nonverbal Behaviorand Impression Management 231 Effect of Personal Characteristics: Attractiveness, Gender, Race 232 Diversity Counts: Applicant Disability and the Employment Interview 232

• IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE: Selection Practices Abroad 233

Interviewer Behavior 233 Social Media and HR 234

HOW TO DESIGN AND CONDUCT AN EFFECTIVE INTERVIEW 234 Designing a Structured Situational Interview 234

• IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS AND ENTREPRENEURS: How to Conduct an Effective Interview 235

Talent Management: Profiles and Employee Interviews 236 DEVELOPING AND EXTENDING THE JOB OFFER 238 CHAPTER SECTION SUMMARIES 239 DISCUSSION QUESTIONS 240 INDIVIDUAL AND GROUP ACTIVITIES 240 EXPERIENTIAL EXERCISE 241 VIDEO CASE: VIDEO TITLE: INTERVIEWING CANDIDATES (ZIPCAR) 241 APPLICATION CASE: NURSE RECRUITMENT AT GULF HOSPITAL 241 CONTINUING CASE: CARTER CLEANING COMPANY 242 TRANSLATING STRATEGY INTO HR POLICIES AND PRACTICES CASE: IMPROVING PERFORMANCE AT THE HOTEL PARIS 242 KEY TERMS 243 ENDNOTES 243 APPENDIX 1 FOR CHAPTER 7 STRUCTURED INTERVIEW GUIDE 246 APPENDIX 2 FOR CHAPTER 7 INTERVIEW GUIDE FOR INTERVIEWEES 249

PART THREE TRAINING AND DEVELOPMENT 250

8 Training and Developing Employees 250 ORIENTING AND ONBOARDING NEW EMPLOYEES 252

The Purposes of Employee Orientation/Onboarding 252 The Orientation Process 252

• KNOW YOUR EMPLOYMENT LAW: The Employee Handbook 252 OVERVIEW OF THE TRAINING PROCESS 254 • KNOW YOUR EMPLOYMENT LAW: Training and the Law 254

Aligning Strategy and Training 255 Training and Performance 255

• IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: The Training Program That Turned Macy's Around 255

The ADDIE Five-Step Training Process 255 Conductinq the Training Needs Analysis 256

16 CONTENTS

Designing the Training Program 258 Developing the Program 260

IMPLEMENTING THE TRAINING PROGRAM 261 On-the-Job Training 261 Apprenticeship Training 262 Informal Learning 262 Job Instruction Training 263 Lectures 263 Programmed Learning 264 Behavior Modeling 264 Audiovisual-Based Training 264 Vestibüle Training 264 Electronic Performance Support Systems (EPSS) 265 Videoconferencing 265 Computer-Based Training (CBT) 265 Simulated Learning 265 Lifelong and Literacy Training Techniques 266

• IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE: Diversity Training at ABC Virtual Communications, Inc. 266

Team Training 267 Improving Performance Through HRIS 267 The Virtual Classroom 268 Mobile Learning 268 Social Media and HR 269

• IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS AND ENTREPRENEURS: Creating Your Own Training Program 269 IMPLEMENTING MANAGEMENT DEVELOPMENT PROGRAMS 270

Strategy and Development 270 Candidate Assessment and the 9-Box Grid 270 Managerial On-the-Job Training 271 Off-the-Job Management Training and Development Techniques 271 Leadership Development at GE 273 Talent Management and Differential Development Assignments 273

MANAGING ORGANIZATIONAL CHANCE PROGRAMS 273 WhattoChange 274 Lewin's Change Process 274 Leading Organizational Change 275 Using Organizational Development 276

EVALUATING THE TRAINING EFFORT 277 Designing the Study 277 Training Effects to Measure 278

• IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: Judging Training s Impact 280 CHAPTER SECTION SUMMARIES 280 DISCUSSION QUESTIONS 281 INDIVIDUAL AND GROUP ACTIVITIES 282 EXPERIENTIAL EXERCISE 282 VIDEO CASE: VIDEO TITLE: TRAINING (WILSON LEARNING) 283 VIDEO CASE: VIDEO TITLE: TRAINING AND DEVELOPING EMPLOYEES (WITNESS.ORG) 283 APPLICATION CASE: THE MENTORSHIP PROGRAM AT TVH 283 CONTINUING CASE: CARTER CLEANING COMPANY 284 TRANSLATING STRATEGY INTO HR POLICIES AND PRACTICES CASE: IMPROVING PERFORMANCE AT THE HOTEL PARIS CASE 284 KEY TERMS 285 ENDNOTES 286

CONTENTS

Performance Management and Appraisal 290 THE BASICS OF PERFORMANCE MANAGEMENT AND APPRAISAL 292

The Performance Appraisal Process 292 WhyAppraise Performance? 292 Performance Management 293 Using Information Technology to Support Performance Management 293

• IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE: Performance Management at General Dynamics Armament Systems (GDAS) 294

Defining the Employee's Goals and Performance Standards 295 • IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: Setting Performance Goals at Ball Corporation 295 • IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS AND ENTREPRENEURS: How to Set Effective Goals 295

Who Should Do the Appraising? 296 Social Media and HR 298

TECHNIQUES FOR APPRAISING PERFORMANCE 298 Graphic Rating Scale Method 299 Alternation Ranking Method 300 Paired Comparison Method 300 Forced Distribution Method 300 Critical Incident Method 302 Narrative Forms 303 Behaviorally Anchored Rating Scales 304 Mixed Standard Scales 304 Management by Objectives 306 Computerized and Web-Based Performance Appraisal 306 Electronic Performance Monitoring 308 Conversation Days 308 Using Multiple Methods 308

• IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE: TRW's New Global Performance Management System 308 DEALING WITH RATER ERROR APPRAISAL PROBLEMS 309

Potential Rating Problems 309 Diversity Counts: The Problem of Blas 310 Guidelines for Effective Appraisals 310

• KNOW YOUR EMPLOYMENT LAW: Appraising Performance 312 MANAGING THE APPRAISAL INTERVIEW 313

How to Conduct the Appraisal Interview 313 How to Handle a Defensive Subordinate 314 How to Criticize a Subordinate 315 Howto Handle a Formal Written Warning 315

TALENT MANAGEMENT AND EMPLOYEE APPRAISAL 315 Appraising and Actively Managing Employees 315 Segmenting and Actively Managing Employees in Practice 315

CHAPTER SECTION SUMMARIES 316 DISCUSSION QUESTIONS 317 INDIVIDUAL AND GROUP ACTIVITIES 317 EXPERIENTIAL EXERCISE 318 VIDEO CASE: VIDEO TITLE: PERFORMANCE MANAGEMENT (CALIFORNIA HEALTH FOUNDATION) 318 VIDEO CASE: VIDEO TITLE: APPRAISING (HAUTELOOK) 318 VIDEO CASE: VIDEO TITLE: APPRAISING (THE WEATHER CHANNEL) 318 APPLICATION CASE: APPRAISING THE SECRETARIES AT SWEETWATER U 319 CONTINUING CASE: CARTER CLEANING COMPANY 320

18 CONTENTS

TRANSLATING STRATEGY INTO HR POLICIES AND PRACTICES CASE: IMPROVING PERFORMANCE AT THE HOTEL PARIS 320 KEY TERMS 321 ENDNOTES 321

1 0 Managing Employee Retention, Engagement, and Careers 324 MANAGING EMPLOYEE TURNOVER AND RETENTION 326 • IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: Turnover and Performance 326

Managing Voluntary Turnover 326 Retention Strategie: for Reducing Voluntary Turnover 327 A Comprehensive Approach to Retaining Employees 328 Social Media and HR 329

• IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE: IBM Dodges an Employee Turnover Problem 329

Talent Management and Employee Retention 329 Job Withdrawal 329

MANAGING EMPLOYEE ENGAGEMENT 330 Employee Engagement and Performance 330

• IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE: Employee Engagement at Rio Tinto 330

Actions That Foster Engagement 331 CA REER MANAGEMENT 332

Careers Terminology 332 Careers Today 332 Psychological Contract 332 The Employee's Role in Career Management 333 The Employer's Role in Career Management 334 Employer Career Management Options 334 The Manager's Role 335 Improving Performance Through HRIS: Integrating Talent Management and Career and Succession Flanning 337

EM'y.OYEE UFE CYCLE CAREER MANAGEMENT 337 Making Promotion Decisions 337

• KNOW YOUR EMPLOYMENT LAW: Establish Clear Guidelines for Managing Promotions 338

Practical Considerations 339 Diversity Counts: The Gender Gap 339 Managing Transfers 340 Managing Retirements 340

MANAWNG DISMISSALS 341 Grounds for Dismissal 341

• KNOW YOUR EMPLOYMENT LAW: Termination at Will 342 Avoiding Wrongful Discharge Suits 343 Supervisor Liability 344 The Exit Process and Termination Interview 344 Layoffs and the Plant Closing Law 345 Adjusting to Downsizings and Mergers 346

CHAPTER SECTION SUMMARIES 346 DISCUSSION QUESTIONS 347 INDIVIDUAL AND GROUP ACTIVITIES 347 EXPERIENTIAL EXERCISE 348 VIDEO CASE: VIDEO TITLE: EMPLOYEE ENGAGEMENT (PTC) 348 VIDEO CASE: VIDEO TITLE: EMPLOYEE SEPARATION (GORDON LAW GROUP) 348 APPLICATION CASE: GOELECTRIX 349 CONTINUING CASE: CARTER CLEANING COMPANY 349

CONTENTS 19

TRANSLATING STRATEGY INTO HR POLICIES AND PRACTICES CASE: IMPROVING PERFORMANCE AT THE HOTEL PARIS 349 KEY TERMS 350 ENDNOTES 350 APPENDIX FOR CHAPTER 10 MANAGING YOUR CAREER AND FINDING A JOB 353

PART FOUR COMPENSATION 360

1 1 Estabiishing Strategie Pay Plans 360 BASIC FACTORS IN DETERMINING PAY RATES 362

Aligning Total Rewards with Strategy 362 Equity and Its Impact on Pay Rates 362 Legal Considerations in Compensation 363

• KNOW YOUR EMPLOYMENT LAW: The Workday 364 • KNOW YOUR EMPLOYMENT LAW: The Independent Contractor 366

Union Influences on Compensation Decisions 367 Pay Policies 367

• IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: Wegmans Foods 368 • IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE: Compensating Expatriate Employees 368 JOB EVALUATION METHODS 369

Compensable Factors 370 Preparing for the Job Evaluation 370 Job Evaluation Methods: Ranking 371 Job Evaluation Methods: Job Classification 372 Job Evaluation Methods: Point Method 372 Computerized Job Evaluation; 373

HOW TO CREATE A MARKET-COMPETITIVE PAY PLAN 373 1. Choose Benchmark Jobs 374 2. Select Compensable Factors 374 3. Assign Weights to Compensable Factors 374 4. Convert Percentages to Points for Each Factor 375 5. Define Each Factor's Degrees 375 6. Determine for Each Factor Its Factor Degrees' Points 375 7. Review Job Descriptions and Job Specifications 375 8. Evaluate the Jobs 376 9. Draw the Current (Internal) Wage Curve 377

10. Conduct a Market Analysis: Salary Surveys 377 11. Draw the Market (External) Wage Curve 378 12. Compare and Adjust Current and Market Wage Rates for Jobs 379 13. Develop Pay Grades 379 14. Establish Rate Ranges 380 15. Address Remaining Jobs 381 16. Correct Out-of-Line Rates 381

• IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS AND ENTREPRENEURS: Developing a Workable Pay Plan 382 PRICING MANAGERIAL AND PROFESSIONAL JOBS 382

What Determines Executive Pay? 383 Compensating Executives and Managers 383 Compensating Professional Employees 384 Improving Performance Through HRIS: Payroll Administration 384

CONTEMPORARY TOPICS IN COMPENSATION 385 Competency-Based Pay 385

• IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE: JLG's Skill-Based Pay Program 386

Broadbanding 386 Talent Management and Actively Managing Compensation Allocations 388 Comparable Worth 388 Diveristy Counts: The Pay Gap 388 Board Oversight of Executive Pay 388 Total Rewards, Recognition, and Employee Performance 389

CHAPTER SECTION SUMMARIES 389 DISCUSSION QUESTIONS 390 INDIVIDUAL AND GROUP ACTIVITIES 391 EXPERIENTIAL EXERCISE 391 VIDEO CASE: VIDEO TITLE: FLANNING (TWZ ROLE PLAY) 392 APPLICATION CASE: SALARY INEQUITIES AT ASTRAZENECA 392 CONTINUING CASE: CARTER CLEANING COMPANY 392 TRANSLATING STRATEGY INTO HR POLICIES AND PRACTICES CASE: IMPROVING PERFORMANCE AT THE HOTEL PARIS 393 KEY TERMS 394 ENDNOTES 394

Pay for Performance and Financial Incentives 398 MONEY'S ROLE IN MOTIVATION 400

Incentive Pay Terminology 400 Linking Strategy, Performance, and Incentive Pay 400 Motivation and Incentives 400

• KNOW YOUR EMPLOYMENT LAW: Employee Incentives and the Law 402 INDIVIDUAL EMPLOYEE INCENTIVE AND RECOGNITION PROGRAMS 402

Piecework 402 Merit Pay as an Incentive 403 Diversity Counts 404 Incentives for Professional Employees 404 Nonfinancial and Recognition-Based Awards 405 Social Media and HR 405

• IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS AND ENTREPRENEURS 406

Job Design 406 • IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: Can Financial and Nonfinancial Incentives Boost Performance in a Fast-Food Chain? 406 INCENTIVES FOR SALESPEOPLE 407

Salary Plan 408 Commission Plan 408 Combination Plan 408 Maximizing Sales Results 408 Sales Incentives in Action 409 Improving Performance Through HRIS: How Effective Are Your Incentives? 409

INCENTIVES FOR MANAGERS AND EXECUTIVES 410 Strategy and the Executive': Long-Term and Total Rewards Package 410 Short-Term Incentives and the Annual Bonus 411 Strategie Long-Term Incentives 413

• IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE 413 Some Other Executive Incentives 415

TEAM AND ORGANIZATION-WIDE INCENTIVE PLANS 415 How to Design Team Incentives 415 Evidence-Based HR: Inequities That UndercutTeam Incentives 416 Profit-Sharing Plans 416 Scanion Plans 417 Other Gainsharing Plans 417

CONTENTS 21

At-Risk Pay Plans 418 Employee Stock Ownership Plans 418 Incentive Plans in Practice: Nucor 419

CHAPTER SECTION SUMMARIES 419 DISCUSSION QUESTIONS 420 INDIVIDUAL AND GROUP ACTIVITIES 420 EXPERIENTIAL EXERCISE 420 VIDEO CASE: VIDEO TITLE: MOTIVATION (TWZ ROLE-PLAY) 421 VIDEO CASE: VIDEO TITLE: MOTIVATING EMPLOYEES THROUGH COMPANY CULTURE (ZAPPOS) 421 APPLICATION CASE: GYC FINANCIAL ADVISORY PTE. LTD. 422 CONTINUING CASE: CARTER CLEANING COMPANY 422 TRANSLATING STRATEGY INTO HR POLICIES AND PRACTICES CASE: IMPROVING PERFORMANCE AT THE HOTEL PARIS 423 KEY TERMS 424 ENDNOTES 424

Benefits and Services 428 INTRODUCTION: THE BENEFITS PICTURE TODAY 430

Policy Issues 430 PAY FOR TIME NOT WORKED 431

Unemployment Insurance 431 Vacations and Holidays 432

• KNOW YOUR EMPLOYMENT LAW: Some Legal Aspects of Vacations and Holidays 433 Sick Leave 433 Social Media and HR 433

• IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: Controlling Sick Leave 433 Leaves and the Family and Medical Leave Act 434

• KNOW YOUR EMPLOYMENT LAW: FMLA Guidelines 434 Severance Pay 435 Supplemental Unemployment Benefits 437

INSURANCE BENEFITS 437 Workers' Compensation 437 Hospitalization, Health, and Disability Insurance 438

• KNOW YOUR EMPLOYMENT LAW: The Legal Side of Health Benefits 439 Improving Performance: Trends in Employer Health-Care Cost Control 441

• IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: The Doctor Is on the Phone 442 Long-Term Care 443 Life Insurance 443 Benefits for Part-Time and Contingent Workers 443

• IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE: Multinational Insurance Benefits Risk Pooling 443 RETIREMENT BENEFITS 444

Social Security 444 Pension Plans 444

• KNOW YOUR EMPLOYMENT LAW: Pension Flanning and the Law 445 Pensions and Early Retirement 446 Improving Performance Through HRIS: Online Benefits Management Systems 446

PERSONAL SERVICES AND FAMILY-FRIENDLY BENEFITS 447 Personal Services 447 Family-Friendly (Work-Life) Benefits 448 Other Personal Services Benefits 449 Diversity Counts: Domestic Partner Benefits 449 Executive Perquisites 449

FLEXIBLE BENEFITS PROGRAMS 449 The Cafeteria Approach 450

22 CONTENTS

• IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS AND ENTREPRENEURS: Benefits and Employee Leasing 451

Flexible Work Schedules 451 • IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE: NES Rentals 451 CHAPTER SECTION SUMMARIES 452 DISCUSSION QUESTIONS 453 INDIVIDUAL AND GROUP ACTIVITIES 453 EXPERIENTIAL EXERCISE 454 VIDEO CASE: VIDEO TITLE: PAY FOR PERFORMANCE AND FINANCIAL INCENTIVES (JOIE DE VIVRE HOSPITALITY) 454 APPLICATION CASE: STRIKING FOR BENEFITS 454 CONTINUING CASE: CARTER CLEANING COMPANY 455 TRANSLATING STRATEGY INTO HR POLICIES AND PRACTICES CASE: IMPROVING PERFORMANCE AT THE HOTEL PARIS 455 KEY TERMS 456 ENDNOTES 456

PART FIVE ENRICHMENT TOPICS IN HUMAN RESOURCE MANAGEMENT 460

14 Ethics, Employee Relations, and Fair Treatment at Work 460 BASICS OF ETHICS AND FAIR TREATMENT AT WORK 462

The Meaning of Ethics 462 Ethics and the Law 462 Ethics, Public Policy, and Employee Rights 462 Workplace Unfairness 463 Why Treat Employees Fairly? 463

9 IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE: The Foxconn Plant in Shenzhen, China 464

Bullying and Victimization 465 WH AT SHAPES ETHtCAL BEHAVIOR AT WORK? 465

The Person (What Makes Bad Apples?) 466 Which Ethical Situations Make for Bad (Ethically Dangerous) Situations? 466 What Are the "Bad Barrels"?—The Outside Factors That Mold Ethical Choices 466 In Summary: Some Guidelines to Keep in Mind When Managing Ethical Behavior at Work 468

• IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS AND ENTREPRENEURS: Small Business Ethics 469 USING HUMAN RESOURCE MANAGEMENT TOOLS TO PROMOTE ETHICS AND FAIR TREATMENT 469

Selection Tools 470 Training Tools 470 Improving Performance Through HRIS: Complying with Sarbanes-Oxley 470 Performance Appraisal Tools 471 Employee Privacy Policies 471 Social Media and HR 472

• KNOW YOUR EMPLOYMENT LAW: Electronic Monitoring 472 • IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: Monitoring and Profits 473

Reward and Disciplinary Systems 473 MANAGING EMPLOYEE DiSCIPLINE 473

The Three Pillars 473 Diversity Counts: Comparing Males and Females in a Discipline Situation 474

• IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS AND ENTREPRENEURS: Disciplining an Employee 474

CONTENTS 23

MANAGING EMPLOYEE RELATIONS 476 What Is Employee Relation:? 476 Improving and Assessing Employee Relations Through Better Communications 476 Developing Employee Recognition/Relations Programs 477 Creating Employee Involvement Strategies 478 Social Media and HR 478

• IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: The Cost-Effective Suggestion System 479 CHAPTER SECTION SUMMARIES 479 DISCUSSION QUESTIONS 480 INDIVIDUAL AND GROUP ACTIVITIES 480 EXPERIENTIAL EXERCISE 481 VIDEO CASE: VIDEO TITLE: WHISTLEBLOWER ON THE NSA (ETHICS AND SOCIAL RESPONSIBILITY OF BUSINESS) 481 APPLICATION CASE: ENRON, ETHICS, AND ORGANIZATIONAL CULTURE 482 CONTINUING CASE: CARTER CLEANING COMPANY 482 TRANSLATING STRATEGY INTO HR POLICIES AND PRACTICES CASE: IMPROVING PERFORMANCE AT THE HOTEL PARIS 483 KEY TERMS 484 ETHICS QUIZ ANSWERS 484 ENDNOTES 484

Labor Relations and Collective Bargaining 488 THE LABOR MOVEMENT 490 • IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: The "Anti-Walmart" 490

Why Do Workers Organize? 490 What Do Unions Want? 491 The AFL-CIO and the SEIU 491

UNIONS AND THE LAW 492 Period of Strong Encouragement: The Norris-LaGuardia (1932) and National Labor Relations (or Wagner) Acts (1935) 492 Period of Modified Encouragement Coupled with Regulation: The Taft-Hartley Act (1947) 494 Unfair Union Labor Practices 494

THE UNION DRIVE AND ELECTION 495 Step 1. Initial Contact 495 Step 2. Obtaining Authorization Cards 496 Step 3. Hold a Hearing 497 Step 4. The Campaign 498 Step 5. The Election 498 Howto Lose an NLRB Election 499 Evidence-Based HR: What to Expect the Union to Do to Win the Election 500 The Supervisors Role 500

• KNOW YOUR EMPLOYMENT LAW: Rules Regarding Literature and Solicitation 501 Decertification Elections: Ousting the Union 501

• IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE: France Comes to the Workers' Aid 502 THE COLLECTIVE BARGAINING PROCESS 502

What Is Collective Bargaining? 502 What Is Good Faith? 502 The Negotiating Team 503 Costing the Contract 503 Bargaining Items 503 Building Negotiating Skills 503 Bargaining Hints 504 Impasses, Mediation, and Strikes 505

24 CONTENTS

Improving Performance Through HRIS: Unions Go High Tech 508 The Contract Agreement 508

DEALING WITH DISPUTES AND GRIEVANCES 508 Sources of Grievances 508 The Grievance Procedure 509 Guidelines for Handling Grievances 510

• IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS AND ENTREPRENEURS: How to Handle a Grievance Situation 510

Social Media and HR 510 THE UNION MOVEMENT TODAY AND TOMORROW 511

Card Check and Other New Union Tactics 511 Cooperative Clauses 512

CHAPTER SECTION SUMMARIES 513 DISCUSSION QUESTIONS 514 INDIVIDUAL AND GROUP ACTIVITIES 514 EXPERIENTIAL EXERCISE 515 VIDEO CASE: VIDEO TITLE: UNION-MANAGEMENT RELATIONS (UPS) 515 APPLICATION CASE: NEGOTIATING WITH THE WRITERS GUILD OF AMERICA 516 CONTINUING CASE: CARTER CLEANING COMPANY 516 TRANSLATING STRATEGY INTO HR POLICIES AND PRACTICES CASE: IMPROVING PERFORMANCE AT THE HOTEL PARIS 516 KEY TERMS 517 ENDNOTES 517

1 6 Employee Safety and Health 520 INTRODUCTION: SAFETY AND THE MANAGER 522

Why Safety Is Important 522 • IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: Improving Safety Boosts Profits 522

Managemente Role in Safety 522 • IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS AND ENTREPRENEURS: The Supervisors Role in Accident Prevention 523 MANAGER'S BRSEFING ON OCCUPATIONAL SAFETY LAW 523

OSHA Standards and Record Keeping 523 Inspections and Citations 524 Responsibilities and Rights of Employers and Employees 527

• IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS AND ENTREPRENEURS: Free On-Site Safety and Health Services 528 WHAT CAUSES ACCIDENTS? 529

What Causes Unsafe Conditions? 529 What Causes Unsafe Acts? 529

HOW TO PREVENT ACCIDENTS 530 Reducing Unsafe Conditions 530 Diversity Counts: Protect! ng Vulnerable Workers 535 Reducing Unsafe Acts 535 Reducing Unsafe Acts Through Screening 536 Reducing Unsafe Acts Through Training 536 Improving Performance Through HRIS: Online Safety Training 536 Reducing Unsafe Acts Through Posters, Incentives, and Positive Reinforcement 536

• IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: Using Positive Reinforcement 537 Reducing Unsafe Acts by Fostering a Culture of Safety 537 Reducing Unsafe Acts by Creating a Supportive Environment 537 Reducing Unsafe Acts by Establishing a Safety Policy 537 Reducing Unsafe Acts by Setting Specific Loss Control Goals 537 Reducing Unsafe Acts Through Behavior-Based and Safety Awareness Programs 538 Reducing Unsafe Acts Through Employee Participation 538 Conducting Safety and Health Audits and Inspections 538

CONTENTS 25

• IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE: Safety at Saudi Petrol Chemical 539

Controlling Workers' Compensation Costs 540 • IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: Reducing Workers' Compensation Claims 540 WORKPLACE HEALTH HAZARDS: PROBLEMS AND REMEDIES 540

Chemicals and Industrial Hygiene 540 • KNOW YOUR EMPLOYMENT LAW: Hazard Communication 541

Asbestos Exposure at Work and Air Quality 541 Alcoholism and Substance Abuse 542 Stress, Burnout, and Depression 543 Solving Computer-Related Ergonomie Problems 545 Repetitive Motion Disorders 545 Infectious Diseases 545 Workplace Smoking 546

OCCUPATIONAL SECURITY AND RISK MANAGEMENT 546 Enterprise Risk Management 546 Preventing and Dealing with Violence at Work 546

• IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS AND ENTREPRENEURS: Guidelines for Firing a High-Risk Employee 548

Setting Up a Basic Security Program 548 Basic Prerequisites for a Crime Prevention Plan 549 Company Security and Employee Privacy 549 Business Continuity and Emergency Plans 550 Social Media and HR 550 Terrorism 550

CHAPTER SECTION SUMMARIES 551 DISCUSSION QUESTIONS 551 INDIVIDUAL AND GROUP ACTIVITIES 552 EXPERIENTIAL EXERCISE 552 VIDEO CASE: VIDEO TITLE: SAFETY (CALIFORNIA HEALTH FOUNDATION) 556 VIDEO CASE: VIDEO TITLE: SAFETY (CITY OF LOS ANGELES) 556 APPLICATION CASE: A SAFE AND HEALTHY KITCHEN AT EDMUND CAFä 557 CONTINUING CASE: CARTER CLEANING COMPANY 557 TRANSLATING STRATEGY INTO HR POLICIES AND PRACTICES CASE: IMPROVING PERFORMANCE AT THE HOTEL PARIS 558 KEY TERMS 559 ENDNOTES 559

Managing Global Human Resources 564 THE MANAGER S GLOBAL CHALLENGE 566 • IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE: Unionizing Walmart Stores in China 566

What Is International Human Resource Management? 566 ADAPTING HUMAN RESOURCE ACTIVITIES TO INTERCOUNTRY DIFFERENCES 566

How Intercountry Differences Affect Human Resource Management 566 Cultural Factors 567 Economic Systems 568 HR Abroad Example: The European Union 568 HR Abroad Example: China 569

• IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS AND ENTREPRENEURS: Comparing Small Businesses, HR Practices in the United States and China 569 STAFFING THE GLOBAL ORGANIZATION 570

International Staffing: Home or Local? 570 • IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: Reducing Expatriate Costs 571

• IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE: What Human Resource Management Can Do to Facilitate Offshoring Operations 571

Management Values and International Staffing Policy 572 Ethics and Codes of Conduct 573 Selecting International Managers 573 Diversity Counts: Sending Women Managers Abroad 575 Avoiding Early Expatriate Returns 575

• IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS AND ENTREPRENEURS: Some Practical Solutions to the Expatriate Challenge 576 TRAINING AND MAINTAINING EMPLOYEES ABROAD 576

Orienting and Training Employees on International Assignment 576 Performance Appraisal of International Managers 577 Compensating Managers Abroad 577 Labor Relations Abroad 579 Terrorism, Safety, and Global HR 580 Repatriation: Problems and Solutions 580 Social Media and HR 581 Improving Performance Through HRIS: Taking the HRIS Global 581

MANAGING HR LOCALLY: HOW TO PUT INTO PRACTICE A GLOBAL HR SYSTEM 581

Developing a More Effective Global HR System 582 Making the Global HR System More Acceptable 582 Implementing the Global HR System 583

CHAPTER SECTION SUMMARIES 583 DISCUSSION QUESTIONS 584 INDIVIDUAL AND GROUP ACTIVITIES 584 EXPERIENTIAL EXERCISE 585 VIDEO CASE: VIDEO TITLE: GLOBAL HR MANAGEMENT (JOBY) 585 APPLICATION CASE: EUROPE—IT S ALL ABOUT PERSPECTIVES 585 CONTINUING CASE: CARTER CLEANING COMPANY 586 TRANSLATING STRATEGY INTO HR POLICIES AND PRACTICES CASE: IMPROVING PERFORMANCE AT THE HOTEL PARIS 586 KEY TERMS 587 ENDNOTES 587

Managing Human Resources in Small and Entrepreneurial Firms 590 THE SMALL BUSINESS CHALLENGE 592

How Small Business Human Resource Management Is Different 592 Diversity Counts 593 Why HRM Is Important to Small Businesses 593

• IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: The Dealership 593 USING INTERNET AND GOVERNMENT TOOLS TO SUPPORT THE HR EFFORT 593

Complying with Employment Laws 594 Employment Flanning and Recruiting 595 Social Media and HR 595 Employment Selection 596 Employment Training 597 Employment Appraisal and Compensation 599 Employment Safety and Health 599

LEVERAGING SMALL SIZE WITH FAMILIARITY, FLEXIBILITY, FAIRNESS, AND INFORMALITY 599

Simple, Informal Employee Selection Procedures 599

CONTENTS

• IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS AND ENTREPRENEURS: A Streamlined Interviewing Process 599

Flexibility in Training 600 Flexibility in Benefits and Rewards 601 Fairness and the Family Business 602

USING PROFESSIONAL EMPLOYER ORGANIZATION 603 How Do PEOs Work? 603 Why Use a PEO? 603 Caveats 603

MANAGING HR SYSTEMS, PROCEDURES, AND PAPERWORK 604 Introduction 604 Basic Components of Manual HR Systems 604 Automating Individual HR Tasks 605 Human Resource Information Systems (HRIS) 606 Improved Transaction Processing 606 Online Self-Processing 606 Improved Reporting Capability 606 HR System Integration 606 HRIS Vendors 606 HR and Intranets 606

CHAPTER SECTION SUMMARIES 607 DISCUSSION QUESTIONS 607 INDIVIDUAL AND GROUP ACTIVITIES 608 EXPERIENTIAL EXERCISE 608 VIDEO CASE: VIDEO TITLE: MANAGING HUMAN RESOURCES IN ENTREPRENEURIAL FIRMS (BLACKBIRD GUITARS) 608 APPLICATION CASE: NETFLIX BREAKS THE RULES 608 CONTINUING CASE: CARTER CLEANING COMPANY 609 TRANSLATING STRATEGY INTO HR POLICIES AND PRACTICES CASE: IMPROVING PERFORMANCE AT THE HOTEL PARIS 609 ENDNOTES 610

APPENDICES

APPENDIX A PHR® and SPHR® Knowledge Base 612

APPENDIX B Comprehensive Cases 621

Glossary 636

Name/Organization Index 644

Subject Index 656