f- ^ ^ ^ tC^L X

Human ResourceManagement

R. WAYNE MONDY, SPHR

in collaboration with

JUDY BANDY MONDYMcNeese State University

Prentice HallBoston Columbus Indianapolis New York San Francisco Upper Saddle River

Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal TorontoDelhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo

XXIIPreface

Acknowledgments xxv

Strategic Human Resource Management:An Overview 3

Chapter Objectives 2HRM in Action: Not HR Branding, Employer

Branding 3Human Resource Management 4Human Resource Management Functions 5

Staffing 5

• Trends if Innovations: Measuring Quality of Hire inToday's Environment 6

Human Resource Development 6Compensation 7 /Safety and Health 7Employee and Labor Relations 7Human Resource Research 8Interrelationships of HRM Functions 8

Dynamic Human Resource Management Environment 8Legal Considerations 8Labor Market 9Society 9Unions 10Shareholders 10Competition 10Customers 10Technology 10Economy 11Unanticipated Events 11

How Human Resource Management Is Practiced in theReal World 11

HR's Changing Strategic Role: Who Performs theHuman Resource Management Tasks? 11

Human Resource Manager 12HR Outsourcing 12HR Shared Service Centers 13

Professional Employer Organizations(Employee Leasing) 13

Line Managers 14HR as a Strategic Partner 14A Strategic HR Example 16A Strategic HR Audit 16Human Capital Metrics 17Human Resource Designations 18Evolution of Human Resource Management: Moving

into Strategic HR 18Evolving HR Organizations 19Scope of This Book 20• A Global Perspective: Cultural Differences in

Global HR 22SUMMARY 23

KEY TERMS 24

QUESTIONS FOR REVIEW 24

HRM INCIDENT 1: HR AFTER A DISASTER 24

HRM INCIDENT 2: DOWNSIZING 25

NOTES 25

PART TWO: ETHICAL, SOCIAL,AND LEGAL CONSIDERATIONS 28

Business Ethics and Corporate SocialResponsibility 29

Chapter Objectives 28HRM in Action: Going Strategic with Corporate Social

Responsibility 29Ethics 30A Model of Ethics 31 ,Legislating Ethics 32• Ethical Dilemma: A Selection Quandary 33Code of Ethics 34Human Resource Ethics 3 5Ethics Training 36Professionalization of Human Resource Management 3 7

Society for Human Resource Management 38Human Resource Certification Institute 38

VI CONTENTS

American Society for Training andD evelopment 3 8

WorldatWork 38

Corporate Social Responsibility 39

• Trends if Innovations: Bayer Corporation: A Quality

Example of Corporate Social Responsibility 40

Stakeholder Analysis and the Social Contract 40

Obligations to Individuals 42

Obligations to Other Organizations 42

Obligations to Government 43

Obligations to Society in General 43Implementing a Corporate Social Responsibility

Program 43

• A Global Perspective: MultinationalWhistle-blowing 44

SUMMARY 46

KEY TERMS 47

QUESTIONS FOR REVIEW 47

HRM INCIDENT 1: AN ETHICAL FLAW 47

HRM INCIDENT 2: "YOU CAN'T FIRE ME" 47

NOTES 48

Workforce Diversity, Equal EmploymentOpportunity, and Affirmative Action 51

Chapter Objectives 50

HRM in Action: Paternity Leave for Dad 51

Projected Future Diverse Workforce 52

Diversity and Diversity Management 53

Components of the Diverse Workforce 54

Single Parents and Working Mothers 54

Women in Business 54

Mothers Returning to the Workforce 55

Dual-Career Family 55

Workers of Color 56

Older Workers 56

People with Disabilities 57

Immigrants 57

Young Persons with Limited Education or Skills 57

Equal Employment Opportunity: An Overview 58

Laws Affecting Equal Employment Opportunity 58

Civil Rights Act of 1866 58

Equal Pay Act of 1963 59

Tide VII of the Civil Rights Act of 1964,Amended 1972 60

Age Discrimination in Employment Act of 1967,Amended in 1978 and 1986 62

Age Can Actually Be a Bona Fide OccupationalQualification 63

Rehabilitation Act of 1973 63

Pregnancy Discrimination Act of 1978 64

Immigration Reform and Control Actof 1986 64

Illegal Immigration Reform and ImmigrantResponsibility Actofl996 65

Americans with Disabilities Act of 1990 65

Civil Rights Act of 1991 66

Uniformed Services Employment and

Reemployment Rights Act of 1994 67

Veterans' Benefits Improvement Act of 2004 67

State and Local Laws 67Significant U.S. Supreme Court Decisions Affecting

Equal Employment Opportunity 68

Griggs v Duke Power Company 68

• Ethical Dilemma: What Was the RealMessage? 68

Albermarle Paper Company v Moody 69

Phillips v Martin Marietta Corporation 69

Espinoza v Farah Manufacturing Company 69

Dothard v Rawlingson 69

American Tobacco Company v Patterson 10O'Connor v Consolidated Coin Caterers

Corp. 70

Significant U.S. Supreme Court Decisions AffectingAffirmative Action 70

University of California Regents v Bakke 11

Adarand Constructors v Pena 11

Grutter v Bollinger 11

Gratz v Bollinqer 11o

Equal Employment Opportunity Commission 71Uniform Guidelines on Employee Selection

Procedures 73

Concept of Disparate Treatment 73

Concept of Adverse Impact 74

Additional Guidelines on Employment SelectionProcedures 75

Guidelines on Sexual Harassment 75

Guidelines on Discrimination Because ofNational Origin 77

• Trends & Innovations: Family ResponsibilitiesDiscrimination 18

Guidelines on Discrimination Because ofReligion 79

Affirmative Action: Executive Order 11246, as Amendedby Executive Order 11375 79

Affirmative Action Programs 80

• A Global Perspective: Global Equal EmploymentOpportunity 82

CONTENTS v i i

SUMMARY 84

KEY TERMS 85

QUESTIONS FOR REVIEW 85

HRM INCIDENT 1:1 FEEL GREAT 86

HRM INCIDENT 2: SO, WHAT'S AFFIRMATIVE ACTION? 86

NOTES 87

PART THREE: STAFFING 90

Job Analysis, Strategic Planning,and Human Resource Planning 91

Chapter Objectives 90HRM in Action: Social Networking: Getting to Know

Each Other 91Job Analysis: A Basic Human Resource Management

Tool 92Reasons for Conducting Job Analysis 93

Staffing 93Training and Development 93Performance Appraisal 94Compensation 94Safety and Health 94

Employee and Labor Relations 94Legal Considerations 95 ;

Types of Job Analysis Information 95Job Analysis Methods 96

Questionnaires 96Observation 96Interviews 96Employee Recording 96Combination of Methods 97

Conducting Job Analysis 98Job Description 98

Job Identification 98Date of the Job Analysis 99Job Summary 99Duties Performed 99Job Specification 100

Timeliness of Job Analysis 101Job Analysis for Team Members 101Job Analysis and the Law 102• Trends if Innovations: Talent Management 103Strategic Planning Process 104

Mission Determination 104

Environmental Assessment 105Objective Setting 105

Strategy Setting 105Strategy Implementation 106

Strategic Human Resource Planning 106Forecasting Human Resource Requirements 108

Zero-Base Forecasting 108Bottom-Up Approach 108Relationship between Volume of Sales and Number

of Workers Required 108Simulation Models 109

Forecasting Human Resource Availability 109Use of HR Databases 110Shortage of Workers Forecasted 110

Innovative Recruiting 110

Compensation Incentives 111Training Programs 111Different Selection Standards 111

• Ethical Dilemma: Which "Thinker"Should Go? Ill

Surplus of Employees Forecasted 112Restricted Hiring 112Reduced Hours 112Early Retirement 112

Downsizing 112Negative Aspects of Downsizing 113Outplacement 113

Succession Planning 114Disaster Planning 114Human Resource Information Systems 116Manager Self-Service '117Employee Self-Service 118Job Design Concepts 118

Job Enrichment 118Job Enlargement 119Reengineering 119

• A Global Perspective: India Getting the Job Done,but Differently 120

SUMMARY 121

KEY TERMS 123

QUESTIONS FOR REVIEW 123

HRM INCIDENT 1: A DEGREE FOR METER READERS 123

HRM INCIDENT 2; STRATEGIC HR? 124

NOTES 124

Recruitment 127Chapter Objectives 126HRM in Action: Using the CEO in the Recruitment

Process 127

vi i i CONTENTS

Recruitment Defined 128Alternatives to Recruitment 128

Outsourcing 129Contingent Workers 129Professional Employer Organizations

(Employee Leasing) 129

Overtime 130External Environment of Recruitment 130

Labor Market Conditions 130Legal Considerations 130

Promotion Policies 131Recruitment Process 132Internal Recruitment Methods 133

Job Posting and Job Bidding 134Employee Referrals 134

• Trends & Innovations: Twittering for theBest Recruit 135

External Recruitment Sources 136High Schools and Vocational Schools 136Community Colleges 136Colleges and Universities 137Competitors in the Labor Market 137Former Employees 137

• Ethical Dilemma: Unfair Advantage? 131Unemployed 138Military Personnel 138Self-Employed Workers 138Ex-Offenders 138

Online Recruitment Methods 139Internet Recruiter 140Virtual Job Fair 140Corporate Career Web Sites 140Jobs domain 140Weblogs (blogs for short) 140General-Purpose Job Board 141NACElink Network 141Niche Sites 141Contract Workers' Sites 142Hourly Workers' Job Sites 143

Traditional External Recruitment Methods 143Media Advertising 143Employment Agencies 144Recruiters 144Job Fairs 145Internships 145Executive Search Firms 145Professional Associations 146

Unsolicited Applicants 146Open Houses 146Event Recruiting 147Sign-on Bonuses 147Competitive Games 147

Going Paperless at Continental Airlines 148Tailoring Recruitment Methods to Sources 149

• A Global Perspective: U.S. Firms inVietnam 150

SUMMARY 151

KEY TERMS 151

QUESTIONS FOR REVIEW 152

HRM INCIDENT 1: A PROBLEM AD? 152

HRM INCIDENT 2:1 AM QUALIFIED, WHY NOT ME? 152

NOTES 153

Selection 157Chapter Objectives 156HRM in Action: Putting the Interviewee under

Pressure: The Stress Interview 157Significance of Employee Selection 158Environmental Factors Affecting the Selection

Process 159Other HR Functions 159Legal Considerations 159Speed of Decision Making 159Organizational Hierarchy 159Applicant Pool 159Type of Organization 160Probationary Period 160

Selection Process 160Preliminary Interview 161Review of Applications 162Review of Resumes 163Sending Resumes via the Internet 165

• Ethical Dilemma: Employee SelectionCriteria? 165

Selection Tests: Advantages and PotentialProblems 167

Advantages of Selection Tests 167Potential Problems of Selection Tests 168

Characteristics of Properly Designed SelectionTests 168

Standardization 168Objectivity 169Norms 169Reliability 169Validity (Job-Relatedness) 169

CONTENTS i x

Types of Validation Tests 170Criterion-Related Validity 170Content Validity 170Construct Validity 170

Types of Employment Tests 170Cognitive Aptitude Tests 170Psychomotor Abilities Tests 170Job-Knowledge Tests 171Work-Sample Tests 171Vocational Interest Tests 171Personality Tests 171

Unique Forms of Testing 172Genetic Testing 172Graphoanalysis (Handwriting Analysis) 172Polygraph Tests 173

Online Testing 173Assessment Centers 173Employment Interview 174

Interview Planning 174Content of the Interview 174Candidate's Role and Expectations 175

General Types of Interviews 176Unstructured Interview 176,

Structured Interview 176 /Behavioral Interview 177

Methods of Interviewing 178One-on-One Interview 178Group Interview 178Board (or Panel) Interview 178Multiple Interviews 178Realistic Job Preview 179

Potential Interviewing Problems 179Inappropriate Questions 179Premature Judgments 180Interviewer Domination 180Permitting Non-Job-Related Information 180Contrast Effect 180Lack of Training 180Nonverbal Communication 181

Concluding the Interview 181Pre-Employment Screening: Background

Investigations 181Pre-Employment Screening: Reference Checks 183Continuous Background Checks 183Negligent Hiring 184Negligent Referral 185Selection Decision 185

• Trends if Innovations: Hiring TemporaryExecutives 185

Medical Examination 186Notification of Candidates 186Applicant-Tracking System 187Metrics for Evaluating Recruitment/Selection

Effectiveness 187Turnover Rate 187Recruiting Costs 187Selection Rate 188Acceptance Rate 188Yield Rate 188

Cost/Benefit of Recruitment Sources andMethods 188

Time Required to Hire 188• A Global Perspective: Changing of the Guard: Will

the New Expatriates Step Forward? 189SUMMARY 190

KEY TERMS 192

QUESTIONS FOR REVIEW 192

HRM INCIDENT 1: A MATTER OF PRIORITIES 193

HRM INCIDENT 2: BUT I DIDN'T MEAN TO! 193

NOTES 193

PART FOUR: HUMAN RESOURCEDEVELOPMENT 196

Training and Development 197Chapter Objectives 196HRM in Action: High-Tech Videoconferencing 197Strategic Training and Development 198Factors Influencing Training and Development 199

Top Management Support 199Technological Advances 199

• Ethical Dilemma: Tough Side of Technology 200World Complexity 200Learning Styles 200Other Human Resource Functions 200

Training and Development Process 201

Determine Specific Training and DevelopmentNeeds 201

Establish Specific Training and DevelopmentObjectives 202

Training and Development Methods 202Instructor-Led 203Case Study 203Behavior Modeling 204Role-Playing 204

CONTENTS

Business Games 204In-Basket Training 204On-the-Job Training 204Job Rotation 205Internships 205Apprenticeship Training 205

Training and Development Delivery Systems 205

Corporate Universities 206Colleges and Universities 206Community Colleges 206Online Higher Education 206

Vestibule System 207Video Media 207E-Learning 207Simulators 208

Management Development 208Mentoring and Coaching 209Reverse Mentoring 210

Orientation 210Purposes of Orientation 211Responsibility for and Scheduling of

Orientation 211• Trends & Innovations: Onboarding (Executive

Orientation) 212OrientationatMonster.com 212

Implementing Training and DevelopmentPrograms 213

Metrics for Evaluating Training andDevelopment 213

Participants'Opinions 214Extent of Learning 214Behavioral Change 214Accomplishment of T&D Objectives 214Benchmarking 215

International ISO 9000 Quality Assurance TrainingStandards 215

Business/Government/Education Training Partnership:Workforce Investment Act 215

Organization Development: A Strategic HR Tool 215Survey Feedback 216Quality Circles 216Team Building 217Sensitivity Training 217

• A Global Perspective: Learning to Deal with CulturalDifferences 218

SUMMARY 219

KEY TERMS 220

QUESTIONS FOR REVIEW 220

HRM INCIDENT 1: TRAINING AT KELLER-GLOBE 220

HRM INCIDENT 2: CAREER VERSUS JOB SECURITY? 221

NOTES 221

Appendix Chapter 7: Career Planningand Development 224Job Security versus Career Security 224Career and Career Planning Defined 224Career Planning 225

Career Planning: Self-Assessment 225Using the Web for Self-Assessment Assistance 227Using the Web for Career-Planning

Assistance 228Career Paths and Career Development 228Career Development Methods 229

Manager/Employee Self-Service 229Discussions with Knowledgeable Individuals 229Company Material 230Performance-Appraisal System 230Workshops 230

Career Paths 230Traditional Career Path 230Network Career Path 231Lateral Skill Path 231Dual-Career Path 231Adding Value to Your Career 232Demotion 232Free Agents (Being Your Own Boss) 232

Developing Unique Segments of the Workforce 232Baby Boomers 233

Generation X Employees 233Generation Y Employees 234Generation I (Google Generation) as Future

Employees 234

KEY TERMS 235

NOTES 235

Performance Managementand Appraisal 237

Chapter Objectives 236HRM in Action: Productivity and Emotional

Intelligence 237Performance Management 238Performance Appraisal 239Use of Performance Appraisal 239

Human Resource Planning 239Recruitment and Selection 240Training and Development 240

CONTENTS XI

Career Planning and Development 240Compensation Programs 240Internal Employee Relations 240Assessment of Employee Potential 241

• Trends if Innovations: Performance Management,Appraisal, and Layoffs 241

Performance Appraisal Environmental Factors 242Performance Appraisal Process 242Establish Performance Criteria (Standards) 243

Traits 243Behaviors 244Competencies 244Goal Achievement 244Improvement Potential 245

Responsibility for Appraisal 245Immediate Supervisor 245Subordinates 245Peers and Team Members 246Self-Appraisal 246Customer Appraisal 247

Appraisal Period 247Performance Appraisal Methods 247

360-Degree Feedback Evaluation Method 247Rating Scales Method 248Critical Incident Method 250Essay Method 250Work Standards Method 251Ranking Method 251Forced Distribution Method 251Behaviorally Anchored Rating Scale Method 252Results-Based System 253

Use of Computer Software 253Problems in Performance Appraisal 253

Appraiser Discomfort 253Lack of Objectivity 2 54Halo/Horn 254Leniency/Strictness 254Central Tendency 255

Recent Behavior Bias 255Personal Bias (Stereotyping) 255Manipulating the Evaluation 255Employee Anxiety 256

• Ethical Dilemma: Abdication of Responsibility 256Characteristics of an Effective Appraisal System 257

Job-Related Criteria 257Performance Expectations 257Standardization 257

Trained Appraisers 257Continuous Open Communication 258Conduct Performance Reviews 258Due Process 258

Legal Implications 258Appraisal Interview 259

Scheduling the Interview 259Interview Structure 260Use of Praise and Criticism 260Employees' Role 260Concluding the Interview 261

• A Global Perspective: Two Cultures' Views ofPerformance Appraisal 261

SUMMARY 262

KEY TERMS 263

QUESTIONS FOR REVIEW 263

HRM INCIDENT 1: THESE THINGS ARE A PAIN 263

HRM INCIDENT 2: PERFORMANCE APPRAISAL? 264

NOTES 264

PART FIVE: COMPENSATION 266

Direct Financial Compensation 267Chapter Objectives 266HRM in Action: Outrageous Severance Pay? 267Compensation: An Overview 268Equity in Financial Compensation 269Determinants of Direct Financial Compensation 270Organization as a Determinant of Direct Financial

Compensation 271Compensation Policies 271Organizational Level 272Ability to Pay 272

Labor Market as a Determinant of Direct FinancialCompensation 272

Compensation Surveys 273Expendiency 274Cost of Living 274Labor Unions 274Economy 275Legislation 275

Job as a Determinant of Direct FinancialCompensation 276

Job Evaluation 276Ranking Method 277Classification Method 277Factor Comparison Method 277

xii CONTENTS

Point Method 278

Point-Method Example 279

Hay Guide Chart-Profile Method (Hay)

Plan 281

Job Pricing 282

Pay Grades 282

Pay Ranges 283

Broadbanding 284

Single-Rate System 284

Adjusting Pay Rates 2 84

Employee as a Determinant of Direct FinancialCompensation 285

Job Performance—Performance-Based

Pay 285

Skills—Skill-Based Pay 286

Compentencies—Competency-Based Pay 287

Seniority 287

Experience 288

Organization Membership 288

Potential 288

Political Influence 288

Luck 288

Team-Based Pay 289

Company-Wide Pay Plans 289

Profit Sharing 290

Gainsharing 290

• Ethical Dilemma: Creative Accounting? 291

Professional Employee Compensation 291

Sales Representative Compensation 292

Contingent Worker Compensation 292

• Trends if Innovations: Are Top Executives

Paid Too Much? 293

Executive Compensation 293

Base Salary 294

Stock Option Plans 294

Short-Term Incentives or Bonuses 294

Performance-Based Pay 295

Executive Benefits (Perquisites) 295

Golden Parachutes 295

• A Global Perspective: China's Compensation

Problems 296

SUMMARY 297

KEY TERMS 298

QUESTIONS FOR REVIEW 298

HRM INCIDENT 1: A MOTIVATED WORKER! 299

HRM INCIDENT 2: THE CONTROVERSIAL JOB 299

NOTES 300

Benefits, Nonfinancial Compensation,and Other Compensation Issues 303

Chapter Objectives 302

HRM in Action: Unique Benefits 303

Benefits (Indirect Financial Compensation) 304

• Ethical Dilemma: A Poor Bid 305

Mandated (Legally Required) Benefits 306

Social Security 306

Unemployment Compensation 306

Workers' Compensation 306

Family and Medical Leave Act 307

Discretionary (Voluntary) Benefits 307

Payment for Time Not Worked 307

Paid Vacations 307

Sick Pay and Paid Time Off 309

Sabbaticals 309

Other Types of Payment for Time NotWorked 309

HealthCare 310

Managed-Care Health Organizations 310

Consumer-Driven Health Care Plans 311

• Trends if Innovations: On-Site Health Care 311

Major Medical Benefits 312

Dental and Vision Care 312

Long-Term Care 312

Life Insurance 313

Retirement Plans 313

Defined Benefit Plans 313

Defined Contribution Plans 313

Cash Balance Plans 314

Disability Protection 314

Employee Stock Option Plans 315

Supplemental Unemployment Benefits 315

Employee Services 315

Relocation Benefits 315

Child Care 316

Educational Assistance 316

Food Services/Subsidized Cafeterias 316

Financial Services 316

Legal Services 317

Scholarships for Dependents 317

Customized Benefit Plans 317

Premium Pay 318

Health Care Legislation 318

Consolidated Omnibus Budget ReconciliationAct 318

CONTENTS xi i i

Health Insurance Portability and AccountabilityAct 319

Employee Retirement Income SecurityAct 319

Older Workers Benefit Protection Act 319Pension Protection Act 320

Communicating Information About the BenefitsPackage 320

Nonfinancial Compensation 320Job Itself as a Nonfinancial Compensation

Factor 321Job Characteristics Theory 322

Skill Variety 322Task Identity 322Task Significance 322Autonomy 322Feedback 323

Job Environment as a Nonfinancial CompensationFactor 323

Sound Policies 323Capable Managers 323Competent Employees 324Congenial Co-workers 324Appropriate Status Symbols 324Working Conditions 324 ,

Workplace Flexibility (Work-Life Balance) 324Flextime 325Compressed Workweek 326Job Sharing 326Examples of Executive Job Sharing 326Two in a Box 327Telecommuting 327Part-Time Work 328

Other Compensation Issues 329Severance Pay 329Comparable Worth 329Pay Secrecy 330Pay Compression 330

• A Global Perspective: Expat Lifestyle Is Not What ItUsed to Be 331

SUMMARY 332

KEY TERMS 333

QUESTIONS FOR REVIEW 333

HRM INCIDENT 1: FLEXTIME 334

HRM INCIDENT 2: A BENEFITS PACKAGE DESIGNEDFOR WHOM? 334

NOTES 335

PART SIX: SAFETY AND HEALTH 338

A Safe and Healthy WorkEnvironment 339

Chapter Obj ectives 338HRM in Action: Dominant Crime of the Twenty-First

Century: Identity Theft 339Nature and Role of Safety and Health 340Occupational Safety and Health Administration 341Safety: The Economic Impact 342Focus of Safety Programs 3 42

Unsafe Employee Actions 343Unsafe Working Conditions 343Developing Safety Programs 343

• Ethical Dilemma: Illegal Dumping 343Accident Investigation 345Evaluation of Safety Programs 345

Repetitive Stress Injuries 347Ergonomics 347

Congress and OSHA 348Ergonomics Payoff 348

Workplace Violence 348Vulnerable Employees 349Legal Consequences of Workplace

Violence 349Individual and Organizational Characteristics to

Monitor 349Preventive Actions 3 50

Domestic Violence 351Nature of Stress 351

Potential Consequences of Stress 352Stressful Jobs 352Organizational Factors 353Personal Factors 353General Environment 3 54

Managing Stress 354Burnout 355• Trends if Innovations: Some Are Paid to Be Healthy;

Some Have to Pay Because They AreUnhealthy 356

Wellness Programs 357Physical Fitness Programs 358Substance Abuse 358

Alcohol Abuse 359Drug Abuse 359

Substance-Abuse-free Workplace 359Implementing a Drug-Testing Program 361

x i v CONTENTS

Employee Assistance Programs 3 62

Smoke-free Workplaces 363

• A Global Perspective: Global Safely Programs 364

SUMMARY 365

KEY TERMS 366

QUESTIONS FOR REVIEW 366

HRM INCIDENT 1 : WHAT A CHANGE! 367

HRM INCIDENT 2: A COMMITMENT TO SAFETY? 367

NOTES 368

PART SEVEN: EMPLOYEE AND LABOR

Labor Unions and CollectiveBargaining 371

Chapter Objectives 370HRM in Action: Change to Win Coalition 371Union Objectives 372Organized Labor's Strategies for a Stronger

Movement 3 72Strategically Located Union Members 373Organizing Several Big Companies at Once 373Pulling the Union Through 373Political Involvement 373Union Salting 374Flooding the Community 3 74Public Awareness Campaigns 374Building Organizing Funds 3 74

• Ethical Dilemma: A Strategic Move 315Organizing through the Card Check 375

Why Employees Join Unions 375Dissatisfaction with Management 375Social Outlet 3 76Opportunity for Leadership 376Forced Unionization 377Peer Pressure 377

Union Structure 377Local Union 377National Union 378American Federation of Labor and Congress of

Industrial Organizations (AFL-CIO) 378Establishing the Collective Bargaining Relationship 379

Signing of Authorization Cards 380Petition for Election 381Election Campaign 381

• Trends & Innovations: The Two-Tier Wage SystemReturns 382

Election and Certification 3 82

Collective Bargaining 382Collective Bargaining Process 383Psychological Aspects of Collective Bargaining 3 84Preparing for Negotiations 3 84Bargaining Issues 387

Recognition 387Management Rights 387Union Security 388Compensation 389Grievance Procedure 3 89Employee Security 389Job-Related Factors 389

Negotiating the Agreement 390Breakdowns in Negotiations 391

Third-Party Intervention 391Union Strategies for Overcoming Negotiation

Breakdowns 392Management Strategies for Overcoming

Negotiating Breakdowns 394Ratifying the Agreement 395Administration of the Agreement 395Collective Bargaining in the Public Sector 396Union Decertification 396

Decertification Procedure 397Management and Decertification 397

Unions Today 398• A Global Perspective: The ICFTU Says Union

Organizing Can Be Dangerous 399

SUMMARY 400

KEY TERMS 401

QUESTIONS FOR REVIEW 402

HRM INCIDENT 1 : BREAK DOWN THE BARRIER 402

HRM INCIDENT 2: YOU ARE OUT OF WHAT? 403

NOTES 403

Appendix Chapter 12: History of Unions in theUnited States 405Labor Movement Before 1930 405Labor Movement After 1930 406

Anti-Injunction Act (Norris-LaGuardia Act),1932 406

National Labor Relations Act (Wagner Act),1935 406

Labor Management Relations Act (Taft-HartleyAct), 1947 408

Labor-Management Reporting and Disclosure Act(Landrum-Griffin Act), 1959 409

KEY TERMS 409

NOTES 409

CONTENTS xv

Internal Employee Relations 411Chapter Objectives 410

HRM in Action: Worker Retention 411

Internal Employee Relations Defined 412

Employment at Will 412

Discipline and Disciplinary Action 414

Disciplinary Action Process 414

Approaches to Disciplinary Action 415

Hot Stove Rule 415

Progressive Disciplinary Action 416

Disciplinary Action without Punishment 417

Problems in the Administration of DisciplinaryAction 418

• Ethical Dilemma: To Fire or Not to Fire 419

Grievance Handling Under a Collective BargainingAgreement 420

Grievance Procedure 420

Arbitration 421

Proof That Disciplinary Action Was Needed 422

Grievance Handling in Union-Free Organizations 422

Ombudspersons 42 3

Alternative Dispute Resolution 423

Termination 424

• Trends & Innovations: Outsourcing Terminations 425

Termination of Employees at Various Levels 42 5

Termination of Nonmanagerial/NonprofessionalEmployees 42 5

Termination of Executives 426

Termination of Middle and Lower-Level Managersand Professionals 427

Termination Software 427

Demotion as an Alternative to Termination 427

Transfers 428

Promotions 42 8

Resignations 429

Analyzing Voluntary Resignations 429

Attitude Surveys: A Means of Retaining Quality

Employees 430

Advance Notice of Resignation 43 0

Retirements 431

• A Global Perspective: Help for Expats: A Buddy

Helps Find the Way 432

SUMMARY 433

KEY TERMS 434

QUESTIONS FOR REVIEW 434

HRM INCIDENT 1: SHOULD HE BE FIRED? 435

HRM INCIDENT 2: TO HECK WITH THEM! 435

NOTES 436

PART EIGHT: OPERATING IN A GLOBALENVIRONMENT 438

Global Human Resource Management 439Chapter Objectives 438

HRM in Action: Global Bribery 43 9

Evolution of Global Business 440

Global Strategic Human Resource Management 442

Global Staffing 442

Types of Global Staff Members 443

Approaches to Global Staffing 443

Selecting Expatriates 444

Background Investigation 445

Hiring Temps in Japan 445

• Trends if Innovations: American Companies Hiring

Foreign-Born Executive 446

Global Human Resource Development 446

Expatriate Training and Development 446

Pre-Move Orientation and Training 447Continual Development: Online Assistance and

Training 447

Repatriation Orientation and Training 447

Global E-learning 448

Global Compensation 449

Compensation for Host-Country Nationals 449

Expatriate Compensation 450

Unique Benefits in Japan 450

Global Safety and Health 450

Global Health Care Legislation 451

Global Employee and Labor Relations 451

Global Legal and Political Factors 452

• Ethical Dilemma: Mordita 453

Virtual Teams in a Global Environment 454

SUMMARY 455

KEY TERMS 456

QUESTIONS FOR REVIEW 456

HRM INCIDENT 1; THE OVERSEAS TRANSFER 456

HRM INCIDENT 2: WAS THERE ENOUGH

PREPARATION? 457

NOTES 457

GLOSSARY 461

NAME INDEX 471

COMPANY INDEX 477

SUBJECT INDEX 480