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Chapter 1. Human Resource Management: Gaining a Competitive Advantage, 2
Enter the World of Business: Starbucks' HR Practices Ensure Its Brew Is a Winner, 3
Introduction, 4
What Responsibilities and Roles Do HR Departments Perform?, 5
What Competencies Do HRM Professionals Need?, 7
How Is the HRM Function Changing?, 9
The HRM Profession, 11
Competitive Challenges Influencing Human Resource Management, 13
The Sustainability Challenge, 13
Evidence-Based HR, 22
Competing through Sustainability Valero Energy Values Employees to Sustain Growth, 26
The Global Challenge, 39
Competing through Globalization Successful Management Requires International Experience, 41
The Technology Challenge, 43
Competing through Technology Gambling on Homegrown Human Resource Software Pays for Qualcomm, 50
Meeting Competitive Challenges through HRM Practices, 51
Organization of This Book, 54
A Look Back, 55
Summary, 55
Key Terms, 55
Discussion Questions, 56
Self-Assessment Exercise, 56
Exercising Strategy, 57
Managing People: From the Pages of BusinessWeek: An Extraordinary Stumble at Jet Blue, 57
Notes, 59
Part 1. The Human Resource Environment, 63
Chapter 2. Strategic Human Resource Management, 64
Enter the World of Business: Chrysler's Recovery and Transformation Plan, 65
Introduction, 66
What Is a Business Model?, 66
Competing through Technology Wal-Mart Leverages Technology to Lower Labor Costs, 68
What Is Strategic Management?, 68
Components of the Strategic Management Process, 69
Linkage between HRM and the Strategic Management Process, 71
Competing through Globalization Creating a “Buzz” in China, 72
Role of HRM in Strategy Formulation, 72
Strategy Formulation, 74
Strategy Implementation, 77
Competing through Sustainability Patagonia's Passion for the Planet Attracts Talent, 79
HRM Practices, 80
Strategic Types, 84
HRM Needs in Strategic Types, 85
Evidence-Based HR, 85
Directional Strategies, 86
Strategy Evaluation and Control, 90
The Role of Human Resources in Providing Strategic Competitive Advantage, 90
Emergent Strategies, 90
Enhancing Firm Competitiveness, 91
A Look Back, 92
Summary, 93
Key Terms, 93
Discussion Questions, 93
Self-Assessment Exercise, 94
Exercising Strategy, 94
Managing People: From the Pages of BusinessWeek: Is Dell Too Big for Michael Dell?, 95
Notes, 96
Chapter 3. The Legal Environment: Equal Employment Opportunity and Safety, 98
Enter the World of Business: Problems at Boeing, 99
Introduction, 100
The Legal System in the United States, 100
Legislative Branch, 100
Competing through Globalization Blind Feeding the Blind, 101
Executive Branch, 101
Judicial Branch, 102
Equal Employment Opportunity, 103
Constitutional Amendments, 103
Congressional Legislation, 105
Executive Orders, 109
Enforcement of Equal Employment Opportunity, 109
Equal Employment Opportunity Commission (EEOC), 110
Office of Federal Contract Compliance Programs (OFCCP), 111
Types of Discrimination, 112
Disparate Treatment, 113
Competing through Globalization Seeking Diversity in France, 114
Disparate Impact, 116
Reasonable Accommodation, 119
Competing through Technology Nontraditional Solutions to a Traditional Employment Problem, 121
Evidence-Based HR, 122
Retaliation for Participation and Opposition, 122
Current Issues Regarding Diversity and Equal Employment Opportunity, 123
Sexual Harassment, 123
Affirmative Action and Reverse Discrimination, 126
Outcomes of the Americans with Disabilities Act, 127
Employee Safety, 129
The Occupational Safety and Health Act (OSHA), 129
Safety Awareness Programs, 132
Competing through Sustainability The Gap Hopes Honesty Pays Off, 134
A Look Back, 135
Summary, 136
Key Terms, 136
Discussion Questions, 136
Self-Assessment Exercise, 137
Exercising Strategy, 137
Managing People: From the Pages of BusinessWeek: Brown v. Board of Education: A Bittersweet Birthday, 138
Notes, 140
Chapter 4. The Analysis and Design of Work, 142
Enter the World of Business: Designed to Be Number 1: Toyota and BMW, 143
Introduction, 144
Work-Flow Analysis and Organization Structure, 145
Work-Flow Analysis, 146
Competing through Technology Getting Outside the Office—For Good, 149
Organization Structure, 150
Competing through Globalization Coordinating Work across Countries: How the Wires Get Crossed, 151
Job Analysis, 158
The Importance of Job Analysis to HR Managers, 158
The Importance of Job Analysis to Line Managers, 159
Job Analysis Information, 159
Job Analysis Methods, 161
Dynamic Elements of Job Analysis, 165
Job Design, 165
Evidence-Based HR, 166
Mechanistic Approach, 167
Competing through Sustainability A Flawed System for Finding Bad Apples, 168
Motivational Approach, 169
Biological Approach, 170
Perceptual–Motor Approach, 171
Trade-Offs among Different Approaches to Job Design, 172
A Look Back, 173
Summary, 174
Key Terms, 174
Discussion Questions, 174
Self-Assessment Exercise, 174
Exercising Strategy, 175
Managing People: From the Pages of BusinessWeek: Giving the Boss the Big Picture, 175
Notes, 178
Part 2. Acquisition and Preparation of Human Resources, 181
Chapter 5. Human Resource Planning and Recruitment, 182
Enter the World of Business: HR Recruiters at the Front Line of the Immigration Battle, 183
Introduction, 184
The Human Resource Planning Process, 185
Forecasting, 186
Evidence-Based HR, 187
Goal Setting and Strategic Planning, 190
Competing through Sustainability First Mover Advantage in Recruiting: Hiring Them in High School, 191
Program Implementation and Evaluation, 199
Competing through Globalization Why Labor Shortages Do Not Seem to Affect “The China Price”, 200
The Special Case of Affirmative Action Planning, 201
The Human Resource Recruitment Process, 202
Personnel Policies, 203
Recruitment Sources, 206
Competing through Technology The Next Generation of Web-Based Recruiting Tools, 211
Recruiters, 213
A Look Back, 216
Summary, 216
Key Terms, 216
Discussion Questions, 217
Self-Assessment Exercise, 217
Exercising Strategy, 217
Managing People: From the Pages of BusinessWeek: What's Really Propping Up the Economy, 218
Notes, 221
Chapter 6. Selection and Placement, 224
Enter the World of Business: Hiring Decisions: What You Don't Know Can Surely Hurt You, 225
Introduction, 226
Selection Method Standards, 227
Reliability, 227
Validity, 231
Generalizability, 235
Utility, 236
Legality, 237
Competing through Sustainability The Y2Gray Crisis: Making Sure It Won't Happen, 239
Types of Selection Methods, 241
Interviews, 241
References, Biographical Data, and Application Blanks, 243
Physical Ability Tests, 244
Competing through Technology Managing Your Digital Identity: “Dooce” and Don'ts, 245
Cognitive Ability Tests, 246
Personality Inventories, 248
Evidence-Based HR, 250
Work Samples, 251
Competing through Globalization International Programming Competitions: Just Fun and Games?, 252
Honesty Tests and Drug Tests, 253
A Look Back, 254
Summary, 256
Key Terms, 256
Discussion Questions, 256
Self-Assessment Exercise, 256
Exercising Strategy, 257
Managing People: From the Pages of BusinessWeek: White Men Can't Help It, 258
Notes, 259
Chapter 7. Training, 264
Enter the World of Business: Learning Isn't Perishable at Wegmans Food Markets, 265
Introduction, 266
High-Leverage Training Strategy: A Systematic Approach, 267
Designing Effective Training Activities, 269
Needs Assessment, 270
Organizational Analysis, 272
Person Analysis, 275
Task Analysis, 277
Ensuring Employees' Readiness for Training, 279
Competing through Sustainability Capitalizing on Local Talent, 283
Creating a Learning Environment, 283
Ensuring Transfer of Training, 285
Manager Support, 286
Selecting Training Methods, 290
On-the-Job Training (OJT), 294
Competing through Technology A Blended Approach to Learning May Be Most Beneficial, 304
Advice for Choosing a Training Method, 308
Evaluating Training Programs, 309
Evidence-Based HR, 313
Special Training Issues, 314
Cross-Cultural Preparation, 314
Competing through Globalization Language Training Helps World Business, 316
Managing Workforce Diversity, 319
Characteristics of Successful Diversity Efforts, 322
Socialization and Orientation, 326
Socialization, Orientation, and Onboarding Programs, 327
A Look Back, 330
Summary, 330
Key Terms, 330
Discussion Questions, 331
Self-Assessment Exercise, 332
Exercising Strategy, 332
Managing People: From the Pages of BusinessWeek: On-the-Job Video Gaming, 332
Notes, 333
Part 3. Assessment and Development of HRM, 339
Chapter 8. Performance Management, 340
Enter the World of Business: Lions … Tigers … and Bears … and Performance Management, 341
Introduction, 342
The Practice of Performance Management, 343
An Organizational Model of Performance Management, 344
Purposes of Performance Management, 346
Strategic Purpose, 346
Administrative Purpose, 347
Competing through Globalization Going Global Requires a New Performance Management System, 348
Developmental Purpose, 348
Performance Measures Criteria, 351
Strategic Congruence, 351
Validity, 352
Reliability, 353
Acceptability, 353
Specificity, 354
Competing through Sustainability Strict Emphasis on Short-Term Goals Jeopardizes Long-Term Company Health, 355
Approaches to Measuring Performance, 355
The Comparative Approach, 356
The Attribute Approach, 359
The Behavioral Approach, 362
The Results Approach, 367
Evidence-Based HR, 370
The Quality Approach, 370
Choosing a Source for Performance Information, 375
Managers, 375
Peers, 377
Subordinates, 377
Self, 378
Customers, 378
Competing through Technology Going Paperless Increases the Effectiveness of Performance Management, 380
Rater Errors in Performance Measurement, 381
Reducing Rater Errors, 382
Appraisal Politics, 382
Performance Feedback, 383
The Manager's Role in an Effective Performance Feedback Process, 383
What Managers Can Do to Diagnose Performance Problems and Manage Employees' Performance, 385
Diagnosing the Causes of Poor Performance, 385
Actions for Managing Employees' Performance, 387
Developing and Implementing a System That Follows Legal Guidelines, 388
Use of Technology for Performance Management: Electronic Monitoring, 389
A Look Back, 390
Summary, 391
Key Terms, 391
Discussion Questions, 391
Self-Assessment Exercise, 391
Exercising Strategy, 392
Managing People: From the Pages of BusinessWeek: Cracking the Whip at Wyeth, 392
Notes, 395
Chapter 9. Employee Development, 398
Enter the World of Business: Grit, Sweat, Heavy Equipment, and Employee Development Needed to Finish Projects on Time, 399
Introduction, 400
The Relationship between Development, Training, and Careers, 400
Development and Training, 400
Development and Careers, 401
Approaches to Employee Development, 403
Formal Education, 404
Competing through Technology E-Learning Helps Build Management Talent, 408
Evidence-Based HR, 409
Assessment, 409
Job Experiences, 417
Competing Through Globalization Going around the World Develops Leadership Skills, 424
Interpersonal Relationships, 424
Competing through Sustainability Mentoring Programs Have Potential to Pay Individual, Corporate, and Societal Dividends, 428
Career Management and Development Planning Systems, 429
Special Issues in Employee Development, 433
Melting the Glass Ceiling, 433
Succession Planning, 436
Helping Managers with Dysfunctional Behaviors, 438
A Look Back, 439
Summary, 439
Key Terms, 440
Discussion Questions, 440
Self-Assessment Exercise, 440
Exercising Strategy, 441
Managing People: From the Pages of BusinessWeek: How to Groom the Next Boss, 441
Notes, 442
Chapter 10. Employee Separation and Retention, 446
Enter the World of Business: Is Employee Privacy Going Up in Smoke?, 447
Introduction, 448
Managing Involuntary Turnover, 449
Competing through Sustainability Laws with Unintended Consequences: Is It Legal to Fire Anyone?, 451
Principles of Justice, 453
Progressive Discipline and Alternative Dispute Resolution, 454
Employee Assistance and Wellness Programs, 455
Outplacement Counseling, 456
Competing through Globalization Reclaiming the Lost Generation, 457
Managing Voluntary Turnover, 458
Process of Job Withdrawal, 459
Job Satisfaction and Job Withdrawal, 461
Sources of Job Dissatisfaction, 462
Competing through Technology Best Buy Breaks the Clock, 466
Measuring and Monitoring Job Satisfaction, 470
Survey-Feedback Interventions, 471
A Look Back, 475
Summary, 475
Key Terms, 476
Discussion Questions, 476
Self-Assessment Exercise, 476
Exercising Strategy, 477
Managing People: From the Pages of BusinessWeek: Getting Out of Dodge, 478
Notes, 479
Part 4. Compensation of Human Resources, 483
Chapter 11. Pay Structure Decisions, 484
Enter the World of Business: Toyota Sweats U.S. Labor Cost, 485
Introduction, 486
Equity Theory and Fairness, 487
Developing Pay Levels, 488
Market Pressures, 488
Employees as a Resource, 490
Deciding What to Pay, 490
Market Pay Surveys, 490
Developing a Job Structure, 492
Developing a Pay Structure, 493
Conflicts between Market Pay Surveys and Job Evaluation, 496
Monitoring Compensation Costs, 497
Globalization, Geographic Region, and Pay Structures, 498
Evidence-Based HR, 499
The Importance of Process: Participation and Communication, 500
Participation, 501
Communication, 501
Competing through Technology UW Salary Data Taken Offline, 502
Current Challenges, 502
Problems with Job-Based Pay Structures, 502
Responses to Problems with Job-Based Pay Structures, 503
Can the U.S. Labor Force Compete?, 505
Competing through Globalization Big Blue Shift: IBM Documents Give Rare Look at Sensitive Plans on “Offshoring”, 507
Executive Pay, 509
Competing through Sustainability No Hair Shirts, but Still …, 510
Government Regulation of Employee Compensation, 512
Equal Employment Opportunity, 512
Minimum Wage, Overtime, and Prevailing Wage Laws, 515
A Look Back, 516
Summary, 516
Key Terms, 517
Discussion Questions, 517
Self-Assessment Exercise, 517
Exercising Strategy, 518
Managing People: From the Pages of BusinessWeek: How Rising Wages Are Changing the Game in China, 518
Notes, 520
Chapter 12. Recognizing Employee Contributions with Pay, 522
Enter the World of Business: Employers Increasingly Favor Bonuses to Raises, 523
Introduction, 524
How Does Pay Influence Individual Employees?, 524
Reinforcement Theory, 525
Expectancy Theory, 525
Agency Theory, 525
Competing through Globalization SAP Dangles a Big, Fat Carrot, 527
How Does Pay Influence Labor Force Composition?, 528
Programs, 528
Merit Pay, 530
Evidence-Based HR, 534
Individual Incentives, 536
Profit Sharing and Ownership, 536
Competing through Sustainability Tech Companies Give Stock-Options Value, and Actually Survive, 537
Gainsharing, Group Incentives, and Team Awards, 541
Balanced Scorecard, 543
Managerial and Executive Pay, 544
Process and Context Issues, 546
Employee Participation in Decision Making, 546
Communication, 547
Pay and Process: Intertwined Effects, 547
Organization Strategy and Compensation Strategy: A Question of Fit, 548
Competing through Technology Google Will Let Employees Sell Vested Options, 549
A Look Back, 550
Summary, 550
Key Terms, 551
Discussion Questions, 551
Self-Assessment Exercise, 551
Exercising Strategy, 551
Managing People: From the Pages of BusinessWeek: The Art of Motivation, 552
Notes, 555
Chapter 13. Employee Benefits, 558
Enter the World of Business: The Boss Taketh Away and the Boss Giveth, 559
Introduction, 560
Reasons for Benefits Growth, 561
Benefits Programs, 564
Social Insurance (Legally Required), 565
Private Group Insurance, 567
Competing through Technology To Retain Valued Women Employees, Companies Pitch Flextime as Macho, 568
Evidence-Based HR, 570
Retirement, 572
Competing through Sustainability A Passion for the Planet, 573
Pay for Time Not Worked, 579
Competing Through Globalization Multicountry Benefits Require Delicate Touch: Understanding Local Differences Is Critical, 580
Family-Friendly Policies, 582
Managing Benefits: Employer Objectives and Strategies, 583
Surveys and Benchmarking, 583
Cost Control, 584
Nature of the Workforce, 590
Communicating with Employees, 590
General Regulatory Issues, 594
Nondiscrimination Rules and Qualified Plans, 594
Sex, Age, and Disability, 594
Monitoring Future Benefits Obligations, 595
A Look Back, 595
Summary, 596
Key Terms, 596
Discussion Questions, 596
Self-Assessment Exercise, 597
Exercising Strategy, 597
Managing People: From the Pages of BusinessWeek: Get Healthy—Or Else: Inside One Company's All-Out Attack on Medical Costs, 598
Notes, 601
Part 5. Special Topics in Human Resource Management, 603
Chapter 14. Collective Bargaining and Labor Relations, 604
Enter the World of Business: Streamlined Model: Engine of Change, 605
Introduction, 607
The Labor Relations Framework, 607
Evidence-Based HR, 609
Goals and Strategies, 611
Society, 611
Management, 612
Labor Unions, 613
Union Structure, Administration, and Membership, 614
National and International Unions, 614
Local Unions, 614
American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), 616
Union Security, 616
Union Membership and Bargaining Power, 618
Legal Framework, 622
Unfair Labor Practices—Employers, 623
Unfair Labor Practices—Labor Unions, 624
Enforcement, 624
Competing through Technology A Whole New Game Ball?, 625
Union and Management Interactions: Organizing, 626
Why Do Employees Join Unions?, 626
The Process and Legal Framework of Organizing, 627
Union and Management Interactions: Contract Negotiation, 632
The Negotiation Process, 632
Management's Preparation for Negotiations, 633
Negotiation Stages and Tactics, 634
Bargaining Power, Impasses, and Impasse Resolution, 635
Management's Willingness to Take a Strike, 635
Impasse Resolution Procedures: Alternatives to Strikes, 636
Union and Management Interactions: Contract Administration, 637
Grievance Procedure, 637
Competing through Globalization Rumbles over Labor Reform: Beijing's Proposed Worker Protections Are Giving Multinationals the Jitters, 638
New Labor–Management Strategies, 640
Labor Relations Outcomes, 643
Strikes, 643
Wages and Benefits, 644
Productivity, 644
Competing through Sustainability Model Partnership: Automakers, Labor Could Learn from Harley-Davidson's Kansas City Operation, 645
Profits and Stock Performance, 646
The International Context, 647
The Public Sector, 648
A Look Back, 649
Summary, 650
Key Terms, 650
Discussion Questions, 650
Self-Assessment Exercise, 650
Exercising Strategy, 651
Managing People: From the Pages of BusinessWeek: Twilight of the UAW, 652
Notes, 653
Chapter 15. Managing Human Resources Globally, 656
Enter the World of Business: Global Sourcing of Talent: IBM's Dilemma, 657
Introduction, 658
Current Global Changes, 659
European Economic Community, 659
North American Free Trade Agreement (NAFTA), 660
The Growth of Asia, 660
General Agreement on Tariffs and Trade (GATT), 660
Factors Affecting HRM in Global Markets, 661
Culture, 662
Evidence-Based HR, 666
Education–Human Capital, 666
Political–Legal System, 667
Economic System, 668
Competing through Globalization VW's 28-Hour Work Week Goes Kaput, 669
Managing Employees in a Global Context, 670
Types of International Employees, 670
Levels of Global Participation, 670
Competing through Sustainability CEOs Begin to Embrace Sustainability, 673
Managing Expatriates in Global Markets, 674
Competing through Technology IBM Leverages Technology to Match Employees to Projects, 678
A Look Back, 686
Summary, 686
Key Terms, 687
Discussion Questions, 687
Self-Assessment Exercise, 687
Exercising Strategy, 688
Managing People: From the Pages of BusinessWeek: The Toyota Way to No. 1, 688
Notes, 690
Chapter 16. Strategically Managing the HRM Function, 692
Enter the World of Business: IBM's HR Function Restructures to Support the Business, 693
Introduction, 694
Activities of HRM, 694
Strategic Management of the HRM Function, 694
Building an HR Strategy, 697
The Basic Process, 697
Involving Line Executives, 699
Characterizing HR Strategies, 699
Competing through Globalization Citigroup Matches Human Capital to Revenues, 700
Measuring HRM Effectiveness, 700
Approaches for Evaluating Effectiveness, 701
Improving HRM Effectiveness, 706
Restructuring to Improve HRM Effectiveness, 706
Outsourcing to Improve HRM Effectiveness, 708
Improving HRM Effectiveness through Process Redesign, 709
Competing through Technology CIGNA's HR Uses Technology and Outsourcing to Deliver, 710
Improving HRM Effectiveness through Using New Technologies—HRM Information Systems, 712
Software Applications for HRM, 717
Improving HRM Effectiveness through New Technologies—E-HRM, 717
Competing through Sustainability Tech Companies Go Green, 721
The Future for HR Professionals, 721
A Look Back, 722
Summary, 723
Key Terms, 723
Discussion Questions, 724
Self-Assessment Exercise, 724
Exercising Strategy, 725
Managing People: From the Pages of BusinessWeek: Saving Starbucks' Soul, 726
Notes, 728
Appendix: Human Resource Certification Institute PHR/SPHR Test Specifications, 729
Glossary, 735
Photo Credits, 745
Name and Company Index, 746
Subject Index, 758

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