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Fundamentals of
Human Resource
Management
Tenth Edition

David A. DeCenzo
Coastal Carolina University
Conway, SC

Stephen P. Robbins
San Diego State University
San Diego, CA

Tenth Edition Contributor

Susan L. Verhulst
Des Moines Area Community College
Ankeny, IA

John Wiley & Sons, Inc.


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DeCenzo, David A, Robbins, Stephen P.
Fundamentals of Human Resource Management—10th ed.
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Printed in the United States of America
10 9 8 7 6 5 4 3 2 1


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Brief Contents
PA RT 1

UNDERSTANDING HRM

Chapter 1

The Dynamic Environment of HRM 2

Chapter 2

Fundamentals of Strategic HRM 28

PART 2

THE LEGAL AND ETHICAL CONTEXT OF HRM

Chapter 3

Equal Employment Opportunity 56

Chapter 4

Employee Rights and Discipline 84

PART 3

STAFFING THE ORGANIZATION

Chapter 5

Human Resource Planning and Job Analysis 110

Chapter 6

Recruiting

Chapter 7

Foundations of Selection 154

PART 4

132

TRAINING AND DEVELOPMENT

Chapter 8

Socializing, Orienting, and Developing Employees 182

Chapter 9

Managing Careers

PART 5

208

MAINTAINING HIGH PERFORMANCE

Chapter 10

Establishing the Performance Management System 230

Chapter 11

Establishing Rewards and Pay Plans 260

Chapter 12

Employee Benefits 286

Chapter 13

Ensuring a Safe and Healthy Work Environment

PART 6
Chapter 14

312

LABOR–MANAGEMENT ENVIRONMENTS

Understanding Labor Relations and Collective Bargaining 340
Endnotes 367
Glossary 389
Company Index 395
Subject Index 398
v


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Contents
Employee Involvement 20

PART 1
UNDERSTANDING HRM

How Organizations Involve Employees 20
Employee Involvement Implications for HRM 20
Other HRM Challenges 21

Chapter 1
The Dynamic Environment of HRM 2

Recession 21

Off Shoring 21
Mergers 22

Learning Outcomes 2

A Look at Ethics 22

Introduction

Summary 23

4

Understanding Cultural Environments 4
The Changing World of Technology

5

Demonstrating Comprehension: Questions
for Review 24

What Is a Knowledge Worker? 6

Key Terms 24

How Technology Affects HRM Practices 6

HRM Workshop

Recruiting 7

Employee Selection 7
Training and Development 7
Ethics and Employee Rights 7
Motivating Knowledge Workers 7
Paying Employees Market Value 8
Communications 8
Decentralized Work Sites 8
Skill Levels 8
A Legal Concern 8

ETHICAL ISSUES IN HRM: Invasion of Privacy? 9
WORKPLACE ISSUES: We Are Now Entering
the Blogosphere 10
Workforce Diversity 10

25

Linking Concepts to Practice: Discussion Questions 25
Developing Diagnostic and Analytical Skills 25
Case 1: Work/Life Balance at Baxter 25
Working with a Team: Understanding Diversity Issues 25
Learning an HRM Skill: Guidelines for Acting Ethically 26
Enhancing Your Communication Skills 26

Chapter 2
Fundamentals of Strategic HRM 28
Learning Outcomes 28
Introduction

30

Why Is HRM Important to an Organization? 30

The Workforce Today 10
DID YOU KNOW?: Chief Diversity Officer 11
How Diversity Affects HRM 11
WORKPLACE ISSUES: Diversity Awareness 12
What Is a Work/Life Balance? 12
DID YOU KNOW?: Looking at the Future of HRM 13
DID YOU KNOW?: International Diversity 14
The Labor Supply 14

The Strategic Nature 32
The HRM Functions 33
Staffing Function 34
Training and Development Function 35
Motivation Function 36
Maintenance Function 37
How External Influences Affect HRM 38

Do We Have a Shortage of Skilled Labor? 14

The Dynamic Environment of HRM 38

Why Do Organizations Lay Off Employees during
Shortages? 15

Laws and Regulation 38

How Do Organizations Balance Labor Supply? 15

Management Thought 39

Issues Contingent Workers Create for HRM 16
Continuous Improvement Programs 18

vi

DID YOU KNOW?: A Management Recap 31

Labor Unions 38
Structure of the HRM Department 40
Employment 40

Work Process Engineering 19

Training and Development 41

How HRM Can Support Improvement Programs 19

Compensation and Benefits 42

How HRM Assists in Work Process Engineering 19

Employee Relations 42


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Top Management Commitment 43
Effective Upward Communication 43
Determining What to Communicate 44
Allowing for Feedback 44
Information Sources 44

WORKPLACE ISSUES: HRM Certification 44
Is a Career in HRM for Me? 45
ETHICAL ISSUES IN HRM: Purposely Distorting
Information 46
Does HRM Really Matter? 46
HR Trends and Opportunities 47
Outsourcing 47
Professional Employer Organization (PEO) 47
Shared Services 47
HRM in an Entrepreneurial Enterprise 48
HRM in a Global Environment 48
HR and Corporate Ethics

49

The Americans with Disabilities Act of 1990 62
The Civil Rights Act of 1991 63
The Family and Medical Leave Act of 1993 63
Uniformed Services Employment and Reemployment Rights
Act of 1994 64
Relevant Executive Orders 64

Guarding Against Discrimination Practices 65
DID YOU KNOW?: Is a Problem Brewing? 66
Determining Potential Discriminatory Practices 66
The 4/5ths Rule 66
Restricted Policy 66
Geographical Comparisons 67
McDonnell-Douglas Test 67

Responding to an EEO Charge 67
Business Necessity 68
Bona Fide Occupational Qualifications 68
Seniority Systems 68

Selected Relevant Supreme Court Cases 69

Summary 50

Cases Concerning Discrimination 69

Demonstrating Comprehension: Questions
for Review 51

Cases Concerning Reverse Discrimination 71

ETHICAL ISSUES IN HRM: English-Only Rules 72

Key Terms

Enforcing Equal Opportunity Employment 72

51

HRM Workshop

52

Linking Concepts to Practice: Discussion Questions 52
Developing Diagnostic and Analytical Skills 52
Case 2: Nine-to-Five No More 52
Working with a Team: Making a Layoff Decision 52
Learning an HRM Skill: HR Certification 53
Enhancing Your Communication Skills 54

The Role of the EEOC 72
Office of Federal Contract Compliance Program
(OFCCP) 73
Current Issues in Employment Law 74
What Is Sexual Harassment? 74
Are Women Reaching the Top of Organizations? 75
DID YOU KNOW?: EEOC Reaches Out to Young Workers 76
HRM in a Global Environment 78
Summary 79

PART 2

THE LEGAL AND ETHICAL CONTEXT
OF HRM

Demonstrating Comprehension: Questions
for Review 80
Key Terms

80

HRM Workshop

81

Linking Concepts to Practice: Discussion Questions 81

Chapter 3
Equal Employment Opportunity 56
Learning Outcomes 56
Introduction 58
Laws Affecting Discriminatory Practices 58
The Importance of the Civil Rights Act of 1964 59

Developing Diagnostic and Analytical Skills 81
Case Application 3-A: Diversity Is the New Color
This Year 81
Case Application 3-B: When Oversight Fails 81
Working with a Team: What’s Your Perception? 82
Learning an HRM Skill: Investigating a Harassment
Complaint 82
Enhancing Your Communication Skills 83

Affirmative Action Plans 59

DID YOU KNOW?: Suggestions for Recruiting Minorities
and Women 60
Adverse Impact 61

Chapter 4
Employee Rights and Discipline 84

What Other Laws Affect Discrimination Practices? 61
Age Discrimination in Employment Act of 1967 62
The Pregnancy Discrimination Act of 1978 62

Learning Outcomes 84
Introduction

86


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Employee Rights Legislation and the HRM
Implications 86
The Privacy Act of 1974 86

PART 3
STAFFING THE ORGANIZATION

The Fair Credit Reporting Act of 1974 87
The Drug-Free Workplace Act of 1988 87
The Polygraph Protection Act of 1988 88
The Worker Adjustment and Retraining Notification
Act of 1988 88
Current Issues Regarding Employee Rights 90
Drug Testing 90
DID YOU KNOW?: Why Organizations Conduct
Drug Tests 91

Chapter 5
Human Resource Planning and Job
Analysis 110
Learning Outcomes 110
Introduction

112

An Organizational Framework 112

Honesty Tests 92

ETHICAL ISSUES IN HRM: Competitive Intelligence 114

Whistle-Blowing 92

Linking Organizational Strategy to Human Resource
Planning 115

Employee Monitoring and Workplace
Security 93
DID YOU KNOW?: By the Numbers 93
Workplace Romance 94
The Employment-at-Will Doctrine 95
Exceptions to the Doctrine 96
Contractual Relationship 96
Statutory Considerations 96
Public Policy Violation 96
Implied Employment Contract 96
Breech of Good Faith 97

Discipline and Employee Rights 97
What Is Discipline? 97
WORKPLACE ISSUES: Managers Should Be Prepared before
Disciplining Employees 98
Factors to Consider When Disciplining 98
Disciplinary Guidelines 99
Disciplinary Actions 101
Written Verbal Warning 101
Written Warning 102
Suspension 102

Dismissal 103

Summary 104

Assessing Current Human Resources 115
Human Resource Information Systems 115
Succession Planning 116

Determining the Demand for Labor 117
Predicting the Future Labor Supply 117
Where Will We Find Workers? 118
Matching Labor Demand and Supply 118
Job Analysis 120
Job Analysis Methods 120
Observation Methods 120
Individual Interview Method 120
Group Interview Method 120
Structured Questionnaire Method 120
Technical Conference Method 120
Diary Method 121

Structured Job Analysis Techniques 121
O*NET and the Department of Labor 121
Position Analysis Questionnaire 122

Purpose of Job Analysis 123
Job Descriptions 123
Job Specifications 123
Job Evaluations 124

Demonstrating Comprehension: Questions
for Review 105

The Multifaceted Nature of Job Analysis 124

Key Terms

Job Enrichment 125

106

HRM Workshop

107

Linking Concepts to Practice: Discussion
Questions 107
Developing Diagnostic and Analytical Skills 107
Case Application 4-A: Casino Has No Sense of Humor
Regarding “Dilbert” Comic 107
Case Application 4-B: Off-the-Job Behaviors 107
Working with a Team: Dealing in Gray
Areas 108
Learning an HRM Skill: Guidelines for Counseling
Employees 108
Enhancing Your Communication Skills 109

Job Design 125
Flexible Work Schedules 126
Job Design and Teams 127

Summary 127
Demonstrating Comprehension: Questions
for Review 128
Key Terms

129

HRM Workshop

130

Linking Concepts to Practice: Discussion Questions 130
Developing Diagnostic and Analytical Skills 130
Case Application 5: Turnover and Morale Problems
at TSA 130


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Working with a Team: Job Analysis Information 130

Learning an HRM Skill: Conducting the Job Analysis 131

Case Application 6-A: Policing Paradise: How the Honolulu
Police Department Developed Its Brand 151

Enhancing Your Communication Skills 131

Case Application 6-B Priority Staffing 151
Working with a Team: A Question of Effective
Recruiting 152

Chapter 6
Recruiting

Learning an HRM Skill: Writing a Job Advertisement 152

132

Enhancing Your Communication Skills 152

Learning Outcomes 132
Introduction

134

Recruiting Goals 134

Chapter 7
Foundations of Selection 154

Factors That Affect Recruiting Efforts 134
DID YOU KNOW?: Something for Everyone 135
Constraints on Recruiting Efforts 135
Organizational Image 135
Job Attractiveness 136
Internal Organizational Policies 136
Government Influence 136
Recruiting Costs 136

DID YOU KNOW?: Employment Branding 136
DIVERSITY ISSUES IN HRM: Job Advertisements
and EEO 137
Recruiting Sources 137
The Internal Search 137
Employee Referrals and Recommendations 138
External Searches 139
Advertisements 139
Employment Agencies 140
Schools, Colleges, and Universities 142
Job Fairs 143
Professional Organizations 143
Unsolicited Applicants 143

Learning Outcomes 154
Introduction

156

The Selection Process 156
Initial Screening 156

Completing the Application Form 157
DIVERSITY ISSUES IN HRM: Interview Questions 158
Key Issues 159
Weighted Application Forms 159
Successful Applications 159

Preemployment Testing 160
Performance Simulation Tests 160
Work Sampling 160
Assessment Centers 160
Testing in a Global Arena 160

DID YOU KNOW?: Too Much Information 161
Comprehensive Interviews 161
Interview Effectiveness 162

Interview Issues 162
Interview Bias 162

Online Recruiting 143

DID YOU KNOW?: Steps for Effective Interviewing 162

Effective Recruiting 144

ETHICAL ISSUES IN HRM: The Stress Interview 163

Recruitment Alternatives 145
Temporary Help Services 145
Employee Leasing 145

Independent Contractors 145
Workplace Issues: “Best Practice” Ideas Applicable
to Recruitment and Hiring 146

The Behavioral Interview 164

Realistic Job Previews 164
Conditional Job Offers 165
Background Investigation 165
Medical/Physical Examination 167

Recruiting: A Global Perspective 146

Job Offers 168

DID YOU KNOW?: Posting Online Résumés 147

The Comprehensive Approach 168

Your Own Job Search 147
Preparing Your Résumé 148
Some Final Remarks 149
Summary 149

150

HRM Workshop

Now It’s Up to the Candidate 169
Selection for Self-Managed Teams

170

Key Elements for Successful Predictors 170

Demonstrating Comprehension: Questions
for Review 150
Key Terms

WORKPLACE ISSUES: Avoiding Hiring Mistakes 169

151

Linking Concepts to Practice: Discussion Questions 151
Developing Diagnostic and Analytical Skills 151

Reliability 171
Validity 171
Content Validity 171
Construct Validity 172
Criterion-Related Validity 172

Validity Analysis 173


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Cut Scores and Their Impact on Hiring 173
Validity Generalization 175

Employee Development Methods 192

Selection from a Global Perspective 175
Final Thoughts: Excelling at the Interview 175
Summary 177
Demonstrating Comprehension: Questions
for Review 177
Key Terms

178

HRM Workshop

Employee Development 191
Job Rotation 193
Assistant-To Positions 193
Committee Assignment 193
Lecture Courses and Seminars 193
Simulations 193
Adventure Training 194

DID YOU KNOW?: Training Expenditures 194
179

Organization Development 195

Linking Concepts to Practice: Discussion
Questions 179
Developing Diagnostic and Analytical Skills 179
Case Application 7: Timing of the Job Offer 179
Working with a Team: Preparing for the Interview 179
Learning an HRM Skill: Creating Effective Interview
Questions 180
Enhancing Your Communication Skills 180

Change Is a Popular Topic

195

The Calm Waters Metaphor 195
The White-Water Rapids Metaphor 196

ETHICAL ISSUES IN HRM: OD Intervention 197
OD Methods 197
Organization Development 197
OD Techniques 197

WORKPLACE ISSUES: Playing Coach 198

PART 4

TRAINING AND DEVELOPMENT

A Special OD Case: The Learning Organization 199
Evaluating Training and Development Effectiveness 199
Evaluating Training 199
Performance-Based Evaluation Measures 200

Chapter 8
Socializing, Orienting, and Developing
Employees 182

Development 202

184

The Insider-Outsider Passage

International Training and Development Issues 201
Cross-Cultural Training 201

Learning Outcomes 182
Introduction

Post-Training Performance Method 200
Pre-Post-Training Performance Method 201
Pre-Post-Training Performance with Control Group
Method 201

184

Socialization 184
Assumptions of Employee Socialization 184
Socialization Strongly Influences Employee Performance
and Organizational Stability 184
Organizational Stability Also Increases through
Socialization 185
New Members Suffer from Anxiety 185
Socialization Does Not Occur in a Vacuum 185
Individuals Adjust to New Situations in Remarkably
Similar Ways 185

The Socialization Process 185
The Purpose of New-Employee Orientation 186
Learning the Organization’s Culture 187
The CEO’s Role in Orientation 187
HRM’s Role in Orientation 188
It’s All in Here: The Employee Handbook 188
Why Use an Employee Handbook? 188

Summary 203
Demonstrating Comprehension: Questions
for Review 203
Key Terms

204

HRM Workshop

205

Linking Concepts to Practice: Discussion Questions 205
Developing Diagnostic and Analytical Skills 205
Case Application 8-A: The Underrated Checklist: Five
Steps to Save Lives 205
Case Application 8-B: Delivering at UPS 205
Working with a Team: Orienting Employees 206
Learning an HRM Skill: Coaching Employees 206
Enhancing Your Communication Skills 207

Chapter 9
Managing Careers

208

Learning Outcomes 208

Employee Training 189

Introduction

DIVERSITY ISSUES IN HRM: Training and EEO 190

What Is a Career?

210
210

Determining Training Needs 190

Individual versus Organizational Perspective 211

Training Methods 191

Career Development versus Employee Development 211


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Career Development: Value for the Organization 211
Needed Talent Will Be Available 211
The Organization’s Ability to Attract and Retain Talented
Employees Improves 212
Minorities and Women Have Comparable Opportunities
for Growth and Development 212
Reduced Employee Frustration 212
Enhanced Cultural Diversity 212
Organizational Goodwill 212

Career Development: Value for the Individual 212
Mentoring and Coaching 213

ETHICAL ISSUES IN HRM: Special Mentoring Programs
for Women and Minorities 215
Traditional Career Stages 216
Exploration 216
Establishment 217
Mid-Career 218
Late Career 218
Decline (Late Stage) 218
DID YOU KNOW?: Where Are the Jobs? 219
Career Choices and Preferences 219
Holland Vocational Preferences 220
The Schein Anchors 221
The Myers-Briggs Typologies 221

WORKPLACE ISSUES: A Special Case of a Career:
Entrepreneurship 222
Enhancing Your Career

223

Summary 224
Demonstrating Comprehension: Questions
for Review 224
Key Terms

225

HRM Workshop

226

Linking Concepts to Practice: Discussion Questions 226
Developing Diagnostic and Analytical Skills 226
Case Application 9-A: A Fudge Career 226
Case Application 9-B: Funeral for My Career 226
Working with a Team: Career Insights 227
Learning an HRM Skill: Making a Career Choice 227
Enhancing Your Communication Skills 228

PART 5
MAINTAINING HIGH PERFORMANCE
Chapter 10
Establishing the Performance
Management System 230

Performance Management Systems 232
Purposes of a Performance Management System 232
ETHICAL ISSUES IN HRM: The Inaccurate Performance
Appraisal 233
DID YOU KNOW?: Facts on Performance Evaluations 234
Difficulties in Performance Management Systems 234
Focus on the Individual 234
Focus on the Process 235

Performance Management and EEO 235
The Appraisal Process 236
Establish Performance Standards 236
Communicate Expectations 236
Measure Actual Performance 236
Compare Actual Performance with Standards 237

Discuss the Appraisal with the Employee 237
Initiate Corrective Action if Necessary 237
Appraisal Methods 237
Evaluating Absolute Standards 237
Critical Incident Appraisal 238
Checklist Appraisal 238
Graphic Rating Scale Appraisal 238
Forced-Choice Appraisal 239
Behaviorally Anchored Rating Scales 240

Relative Standards Methods 241
Group Order Ranking 241
Individual Ranking 241
Paired Comparison 241

WORKPLACE ISSUES: Forced Rankings—Are They
Working? 242
Using Achieved Outcomes to Evaluate Employees 243
Common Elements in MBO Programs 243
Does MBO Work? 243

Factors That Can Distort Appraisals 244
Leniency Error 244
Halo Error 245
Similarity Error 245
Low Appraiser Motivation 245
Central Tendency 245
Inflationary Pressures 246
Inappropriate Substitutes for Performance 246
Attribution Theory 246

Creating More Effective Performance Management
Systems 247
Use Behavior-Based Measures 248
Combine Absolute and Relative Standards 248
DID YOU KNOW?: The “Anywhere” Performance
Appraisal 248
Provide Ongoing Feedback 249
Use Multiple Raters 249

Learning Outcomes 230

Use Peer Evaluations 249

Introduction

360-Degree Appraisals 250

232


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WORKPLACE ISSUES: Team Performance Appraisals 250
Rate Selectively 251
Train Appraisers 251
The Performance Appraisal Meeting 251
International Performance Appraisal 253
Who Performs the Evaluation? 253
Evaluation Formats 253
DID YOU KNOW?: Performance Metrics in China 254
Summary 254
Demonstrating Comprehension: Questions
for Review 255
Key Terms

255

HRM Workshop

256

Linking Concepts to Practice: Discussion Questions 256
Developing Diagnostic and Analytical Skills 256
Case Application 10: Rank ’Em and Yank ’Em 256
Working with a Team: Behaviorally Anchored Rating
Scales 256
Working with a Team: The 360-Degree Performance
Appraisal 257
Learning an HRM Skill: Writing Appraisal
Comments 257

Enhancing Your Communication Skills 258

Compensation Surveys 270
Wage Curves 270
The Wage Structure 271

External Factors 272
Geographic Differences 272
Labor Supply 272
Competition 272
Cost of Living 272
Collective Bargaining 273
Communicating with Employees 273

Special Cases of Compensation 273
Incentive Compensation Plans 273
Individual Incentives 273
Group Incentives 274
Organization-Wide Incentives 274

Paying for Performance 275
Team-Based Compensation 276
Executive Compensation Programs 277
Salaries of Top Managers 277
Supplemental Financial Compensation 277
ETHICAL ISSUES IN HRM: Are U.S. Executives
Overpaid? 278
Supplemental Nonfinancial Compensation:
Perquisites 279
International Compensation

Chapter 11
Establishing Rewards and Pay
Plans 260

Base Pay 279
DID YOU KNOW?: Compensation in a Global
Environment 280
Differentials 280

Learning Outcomes 260

Incentives 280

Introduction

Assistance Programs 280

262

Intrinsic versus Extrinsic Rewards 262
ETHICAL ISSUES IN HRM: Salary Negotiation
and Discrimination 262

Summary 281
Demonstrating Comprehension: Questions
for Review 281

Financial versus Nonfinancial Rewards 263

Key Terms

Performance-Based versus Membership-Based
Rewards 263

HRM Workshop

Compensation Administration 264
Government Influence on Compensation
Administration 265
Fair Labor Standards Act 265
The Civil Rights and Equal Pay Acts 265

DID YOU KNOW?: The Minimum Wage Debate 267

279

282
283

Linking Concepts to Practice: Discussion Questions 283
Developing Diagnostic and Analytical Skills 283
Case Application 11: Re-Thinking Compensation
at First Merit Bank 283
Working with a Team: Understanding Incentive Plans 283
Learning an HRM Skill: Pay-for-Performance Goal Setting 284
Enhancing Your Communication Skills 284

Job Evaluation and the Pay Structure 267
Job Evaluation 267

Isolating Job Evaluation Criteria 268

Chapter 12
Employee Benefits 286

Job Evaluation Methods 268
Ordering Method 268
Classification Method 268
Point Method 269

Establishing the Pay Structure 270

Learning Outcomes 286
Introduction

288

Costs of Providing Employee Benefits 288
Contemporary Benefits Offerings 288


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ETHICAL ISSUES IN HRM: Domestic Partner Benefits 290
Legally Required Benefits 290
Social Security 290
Unemployment Compensation 291
DID YOU KNOW?: Look out for the Silver
Tsunami 291
Workers’ Compensation 292

xiii
HRM Workshop

309

Linking Concepts to Practice: Discussion Questions 309
Developing Diagnostic and Analytical Skills 309
Case Application 12: A Perky Way to Productivity 309
Working with a Team: Benefit Selections 309
Learning an HRM Skill: Calculating a Long-Term Disability
Payment 310
Enhancing Your Communication Skills 311

Family and Medical Leave Act 293
Voluntary Benefits 293
Health Insurance 293
Traditional Health Insurance 295
Health Maintenance Organizations 295
Preferred Provider Organizations 295
Point-of Service Plan 295
Consumer-Driven Health Plans 296
Employer-Operated Coverage 296

Health Insurance Continuation 296
The HIPAA Requirement 297

Retirement Benefits 297
WORKPLACE ISSUES: Flying High No More: Airline
Pensions Crash and Burn 298

Chapter 13
Ensuring a Safe and Healthy
Work Environment 312
Learning Outcomes 312
Introduction 314
The Occupational Safety and Health Act 314
OSHA Inspection Priorities 314
OSHA Record-Keeping Requirements 316
OSHA Punitive Actions 317
OSHA: A Resource for Employers 320

Defined Benefit Plans 299

Areas of Emphasis 320

Defined Contribution Plans 299

Education and Training 320

Money Purchase Pension Plans 299
Profit-Sharing Plans 299
Individual Retirement Accounts 299
401(k)s 300

Paid Time Off 300
Vacation and Holiday Leave 301
DID YOU KNOW?: Benefits Around the Globe 301
Disability Insurance Programs 302

Assisting Employers in Developing a Safer
Workplace 323
Management Commitment and Employee Involvement 323
Worksite Analysis 323
Hazard Prevention and Control 324

WORKPLACE ISSUES: OSHA’s Top Ten Violations 324
Training for Employees, Supervisors and Managers 325

Contemporary Health and Safety Issues 325
Workplace Violence 325

ETHICAL ISSUES IN HRM: Making Sick Leave a Required
Benefit? 302
Sick Leave 302
Short-Term Disability Plans 303
Long-Term Disability Plans 303

Indoor Air Quality 326
The Smoke-Free Environment 327
WORKPLACE ISSUES: Faith in the Slaughterhouse 327
Repetitive Stress Injuries 328

WORKPLACE ISSUES: Leaving It Up to You: Paid Time Off

Leave (PTO) 303

Stress 328

Survivor Benefits 304

DID YOU KNOW?: Employees Wasting Time at Work 330

Common Causes of Stress 329

Group Term Life Insurance 304

Symptoms of Stress 331

Travel Insurance 304

Reducing Stress 331

Employee Services and Family-Friendly Benefits 304

A Special Case of Stress: Burnout 331

An Integrative Perspective on Employee Benefits 305

Causes and Symptoms of Burnout 331
Reducing Burnout 332

Flexible Spending Accounts 305
Modular Plans 306
Core-Plus Options Plans 306

Employee Assistance Programs 332
A Brief History of EAPs 332

Summary 307

EAPs Today 333

Demonstrating Comprehension: Questions
for Review 308

Wellness Programs/Disease Management 333

Key Terms 308

ETHICAL ISSUES: Smokers and the Obese Need
Not Apply 334


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International Safety and Health 334

WORKPLACE ISSUES: The Union Drive 351

International Health Issues 335

Objective and Scope of Collective Bargaining 351

International Safety Issues 336

Collective-Bargaining Participants 352

Summary 336

The Collective-Bargaining Process 352

Demonstrating Comprehension: Questions
for Review 337
Key Terms

337

HRM Workshop

338

Preparing to Negotiate 352
Negotiating at the Bargaining Table 353
Contract Administration 353

Failure to Reach Agreement 354

Linking Concepts to Practice: Discussion Questions 338

Strikes versus Lockouts 355

Developing Diagnostic and Analytical Skills 338

Impasse-Resolution Techniques 355

Working with a Team: Health and Safety 338

ETHICAL ISSUES IN HRM: The Striker Replacement
Dilemma 356

Learning an HRM Skill: Developing Safety Skills 339

Critical Issues for Unions Today

Case Application 13: Protection OSHA Style 338

Enhancing Your Communication Skills 339

356

Union Membership: Where Have the Members
Gone? 357
WORKPLACE ISSUES: The Union Summer 358

PART 6
LABOR–MANAGEMENT
ENVIRONMENTS

Labor-Management Cooperation 358
Public Sector Unionization 359
Unionizing the Nontraditional Employee 359
DID YOU KNOW?: Is There Addition by
Subtraction? 360

Chapter 14
Understanding Labor Relations
and Collective Bargaining 340

International Labor Relations 360

Learning Outcomes 340

Demonstrating Comprehension: Questions for
Review 363

Introduction

342

Why Employees Join Unions 343
Higher Wages and Benefits 343

Differing Perspectives Toward Labor Relations 361
The European Community 362

Summary 362

Key Terms

363

HRM Workshop

364

Greater Job Security 343

Linking Concepts to Practice: Discussion Questions 364

Influence Over Work Rules 343

Developing Diagnostic and Analytical Skills 364

Compulsory Membership 343
Dissatisfaction with Management 345
Labor Legislation 346

Case Application 14: “Save Money. Live Better.”
Wal-Mart and Unions Interpret the Slogan
Differently. 364
Working with a Team: Handling a Grievance 364

The Wagner Act 346

Learning an HRM Skill: Negotiation Skills 365

The Taft-Hartley Act 346

Enhancing Your Communication Skills 365

Other Laws Affecting Labor-Management
Relations 347

Endnotes 367

DIVERSITY ISSUES IN HRM: Unions and EEO 348
The Railway Labor Act of 1926 348
Landrum-Griffin Act of 1959 348
Executive Orders 10988 and 11491 348
Racketeer Influenced and Corrupt Organizations
Act (RICO) of 1970 349
Civil Service Reform Act of 1978 349

Unionizing Employees 349
Collective Bargaining 350

Glossary 389
Company Index 395
Subject Index 398


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Preface
The sailing crew on the cover faces many of the same goals and challenges as any organization in our unpredictable business environment. Success and possibly survival
depend on a well designed boat with a carefully selected and thoroughly trained crew
that understands the strategy of the race. They must be able to quickly adjust the sails,
rigging, and rudder to keep moving forward and somehow gain a competitive advantage. Some external factors such as the competition may be visible and predictable, but
invisible factors such as the wind and waves may be unpredictable and require minor
adjustments or a major change in strategy.
When organizations face challenges such as an economy in recession, they depend on
thoroughly trained professionals who react quickly to the changes in the
environment and create strategies for success. Human Resource ManageLike a crew sailing an ocean race, success
ment (HRM) is responsible for carefully selecting and training people with
and possibly survival depends on a good
the necessary skills to pursue the strategy effectively. Some external factors can be predicted; others, such as the collapse of large banks and
crew that understands the strategy and can
insurance companies, can seemingly come out of nowhere. The challenges
adapt quickly to the unpredictable
have been coming fast and furious recently as organizations struggle to
environment.
adjust strategy in the face of a tumbling stock market, widespread layoffs,
bankruptcies of companies once considered to be icons in their industries,
an increasingly global environment, changes brought by a new U.S. president, and technology that has made social networking a mainstream tool for business—just to name a few!
Welcome to the tenth edition of Fundamentals of Human Resource Management. It is
truly an exciting time to be studying Human Resource Management. We appreciate
that you are taking time to read this preface to get a better understanding of the text
and the resources for learning it includes.

About the Book
Students taking an HRM class are very likely to be taking it as an elective class or a first
class toward an HRM major. Both of these groups need a strong foundation book that
provides the essential elements of HRM as well as a clear understanding of how HRM
links with business strategy. It is becoming increasingly important for employees on every
level of the organization to understand HRM elements such as recruitment, training,
motivation, retention, safety, and the legal environment. These fundamentals will not create experts in HRM, yet for those who wish to become experts, this book will provide that
strong foundation upon which additional coursework in HRM can be built. The objectives and content in this text have been created to be compatible with the content areas
and curriculum templates developed and suggested by the Society of Human Resource
Management (SHRM). The minimum HR content areas as identified by SHRM include:
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■
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■
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Compensation, benefits, and total rewards
Employee and labor relations
Employment law
History of HR and its role
HR and globalization
HR and mergers and acquisitions
HR and organizational strategy
Human resource information systems (HRIS)

Measuring HR outcomes and the bottom line
Occupational health, safety, and security
Performance appraisal and feedback
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Recruiting and selection
Workforce planning and talent management

Content of the text has also been developed to provide a background in the functional areas identified by the HR Certification Institute (HRCI) for the exams for certification for Professional in Human Resources (PHR), Senior Professional in Human
Resources (SPHR) and Global Professional in Human Resources (GPHR).
Our goal has been to produce a text that addresses these critical foundations of
HRM, yet provide the most current reference possible for the dynamic present and
unpredictable future environment of HRM. All research has been updated and examples have been kept as current as possible considering the timeline necessary for publishing a textbook. Some examples will undoubtedly change quickly and unexpectedly. Please consider this an opportunity to research how and why these changes took
place and their implications for HRM. Many sources for research and updates have
been included in the chapter content and HRM Workshop learning activities.

Several Content Topics New in This Edition
Ninety percent of the chapters have completely new opening vignettes to add interest
and application of concepts as well as end-of-chapter case applications that challenge a
student’s understanding of the chapter’s material. Updates and additions to research,
current example, and assignments are too numerous to mention. New topics and other
substantial additions to the text include:
New to Chapter 1: International diversity; HRM challenges
New to Chapter 2: In the name of strategy; Increased emphasis on link between HR
and business strategy; HR careers; Outsourcing HR
New to Chapter 3: Small business and the USERRA and VIBA; Recruiting diversity;
English-only rules; EEOC and younger workers
New to Chapter 4: Chapter title changed to “Employee Rights and Discipline”;
Communication moved to Chapter Eight; Employee discipline; Employee dismissal;
Company monitoring of employees; Workplace romance and fraternization policies
New to Chapter 5: Department of Labor O*NET database and content model;
Turnover at transportation; Communication skills activity
New to Chapter 6: Employment branding
New to Chapter 7: Acceptable and unacceptable interview questions; Facebook and
LinkedIn; Effective interviewing; Creating effective interview questions activity
New to Chapter 8: Employee handbook section moved from Chapter 4
New to Chapter 9: Career; Growing/declining jobs
New to Chapter 10: Technology in the appraisal process; Creating a performance appraisal team activity; How to write effective appraisal comments
New to Chapter 11: Salary negotiation and discrimination; Violations of Fair Labor
Standards Act; Merit pay learning activity
New to Chapter 12: Social Security and the “Silver Tsunami”; Reducing health-care costs
for employers; Decline of defined benefit retirement plans; Paid time off (PTO)
New to Chapter 13: OSHA assistance to employers; OSHA’s top ten violations
New to Chapter 14: Increased coverage and illustration of right-to-work laws;
Wal-Mart and unions

Features to Encourage Learning
Our experience has shown us that students are more likely to read a text when the reading is straightforward and conversational, the topics flow logically, and the authors
make extensive use of examples to illustrate concepts. Students also remember and
understand the concepts and practices most clearly when they are illustrated through


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examples, so we’ve used a wealth of examples to clarify ideas and build interest. The last
year has provided unusual challenges to providing current examples. The financial crisis and recession that descended on the United States in the fall of 2008 saw the failure
or bankruptcy of companies that were formerly considered to be well run and highly
admired. Human Resource professionals worried about attracting enough qualified
talent were suddenly faced with laying off thousands of workers, and possibly eliminating their own positions. The world has not stopped changing as this text goes into
print. As you discover that the circumstances of a particular company have changed
dramatically since the text was published, please consider it an opportunity to research
and learn why the change occurred and the role HR has in the change.
We have also tried to write this edition in a clear, concise, and conversational style.
Students taking the class online may appreciate a text that is more conversational since
they usually do not have regular face-to-face interaction with faculty or classmates.
These factors guided us in developing this text as a highly effective learning tool. Let’s
take a look as some of the features of the text that facilitate learning:

Learning Outcomes
Learning outcomes identify specifically what the reader should gain after reading the
chapter. These outcomes are designed to focus students’ attention on major topics
within each chapter. Each outcome is a key learning component for our readers. Learning outcomes were carefully examined and updated for this tenth edition.

Chapter Summaries
Just as outcomes tell the readers where they are going, chapter summaries remind readers where they have been. Each chapter of the book concludes with a concise summary
directly linked to the learning outcomes identified at the beginning of each chapter.

Key Terms
Throughout the chapter, key terms are highlighted where they first appear in the text
and are defined in the margin as well as in the Glossary section in the back of the book.
Key terms are also listed at the end of each chapter as a reminder of the major terms
defined in the material just read.

Review and Discussion Questions
Every chapter in this book contains a set of review and discussion questions. If students
have read and understood the concepts of the chapter, they should be able to answer the
review questions. These reading-for-comprehension questions are drawn directly from
the chapter material. The discussion questions go beyond comprehension. They’re
designed to foster higher order thinking skills by requiring readers to apply, integrate,
synthesize, or evaluate an HRM concept. The Linking Concepts to Practice discussion
questions will allow students to demonstrate that they not only know the facts in the
chapter, but they can also use those facts to deal with more complex issues. They also
make great “lecture break” discussion questions for small or large groups.

HRM Workshop
It’s not enough to just know about Human Resource Management. Students entering
HRM today need a variety of skills for career success. The HRM Workshop sections at the

end of each chapter are designed to help students build analytical, diagnostic, teambuilding, investigative, presentation, communication, and writing skills. We address these
skill areas in several ways. A section called “Developing Diagnostic and Analytical Skills”

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includes current case studies of real companies with questions designed to build critical
thinking and decision-making skills along with diagnostic and analytical skills. “Working
with a Team” includes thought-provoking scenarios for team discussions in class or team
projects outside of class. A section called “Learning an HRM Skill” includes skill-building
activities that concentrate on the personal competencies necessary for HRM career success as identified by the Society of Human Resource Management (SHRM). Finally,
“Enhancing Your Communication Skills” includes activities that develop important
research, writing, and presentation skills. Many of these activities include short research
papers or class presentations using presentation software or short videos found online.

PowerPoint
One piece of feedback we received from students was that many of their professors were
using PowerPoint slides and students were spending considerable time copying the slides.

They requested that we help them take better notes by including on our Web site copies
of the slides a professor may use. Accordingly, we’ve provided these PowerPoint slides that
accompany each chapter on the student companion site.

Supplemental Material
This book is supported by a comprehensive learning package that helps instructors create a motivating environment and provides students with additional instruments for
understanding and reviewing major concepts. The following resources can be found on
the instructor and student companion sites at www.wiley.com/college/decenzo.

Instructor’s Resource Guide
This includes, for each chapter, a chapter overview, a description of additional features
within the chapter, a chapter outline, additional lecture and activity suggestions,
answers to class exercises, answers to case applications, and additional review and discussion questions.

PowerPoint
A robust set of PowerPoint slides developed to help enhance your lectures are provided
for each chapter. An image bank, containing all of the illustrations from the text, is also
provided for inclusion in PowerPoint presentations. The slides have also been provided
in handout form on the student companion site.

Test Bank
This resource contains approximately eighty questions per chapter, including multiple
choice, true/false, matching, and completion questions.

Computerized Test Bank
This test bank, powered by Diploma, allows instructors to customize quizzes and
exams for each chapter.

Video Package
Students rarely follow current events in newspapers or from traditional evening news

shows on television. Many depend upon online sources that may only include headlines or
cable shows such as Comedy Central’s The Daily Show. A DVD has been developed for this


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xix

course that contains a selection of film clips that relate to various topics throughout
the text. These can be used to introduce topics, provide group activities during class, or
provide background for class discussion. A learning guide for the videos is available on
the instructor companion Web site.

Student Web Quizzes
Online quizzes, varying in level of difficulty, are designed to help students evaluate
their individual chapter progress. Here, students will have the ability to test themselves
with fifteen questions per chapter.

WileyPLUS
This online course management system provides an integrated suite of teaching and
learning resources, along with a complete online version of the text, in one easy-to-use
Web site. WileyPLUS will help you create class presentations, create assignments, automate the assigning and grading of homework or quizzes, track student progress, and

administer your course. It also includes pre- and post-lecture quizzes, flashcards of key
terms, and more. For more information, go to www.wiley.com/college/wileyplus.

Acknowledgments
Getting a finished book into a reader’s hands requires the work of many people. The
authors do their part by efficiently developing an outline, thoroughly researching topics, writing about the topics, and developing learning activities. We would like to recognize just a few of the people who contributed to this text.
First are our reviewers. Authors cannot survive without good feedback from reviewers. Ours were outstanding, and we appreciate the feedback they gave us. We do recognize that the book before you is better because of the insight they provided. We’d like to
recognize reviewers of this edition: Norman Foy, Mercy College; Cathy Daly, Cal State
Sacramento; Barbara Blissert, Mills College; Teresa Palmer, Illinois State University;
Eugene Garaventa, College of Staten Island; Carolyn Waits, Cincinnati State University;
Joyce Guillory, Austin Community College; Diane Regal, Sullivan County Community
College; Robert Perkins, Mercer University; Carol A. Spector, University of North
Florida; and Kim Lukaszewski, SUNY, New Paltz.
A book doesn’t simply appear automatically on bookstore shelves. It gets there
through the combined efforts of many people. For us, this is the outstanding publishing team at John Wiley & Sons, consisting of George Hoffman, Publisher; Lise Johnson,
Acquisitions Editor; Susan McLaughlin, our very gifted and patient editor; Carissa
Doshi Marker, Assistant Editor; Sarah Vernon, Senior Editorial Assistant; and Sandra
Dumas, Senior Production Editor. Others deserving special mention for their contributions are Brenda Moorehead and RaeAnn Guns.
Last, we want to acknowledge a few people individually.
From Dave: To my wife, Terri, for all her support and love. And to my children—
Mark, Meredith, Gabriella, and Natalie—thank you for all you do. You continue to
be the “light of my life.”
From Steve:

To Laura for all that she brings to my life.

From Susan: To my husband John, my daughter Katie, and my Mom. Thanks
for your love and endless support.

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Practice the Concepts

More Cases and Articles

/>COMPREHENSIVE COMPANION WEBSITE
INCLUDING:
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PowerPoint slides

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Crossword Puzzles

■

Self Scoring quizzes

■

Team Fun! Case applications

■

Essential Website links for research and study

■

Videos

■

Test Bank

■

Instructor’s Guide

■

Computerized Test Bank

■

Video Teaching Notes

■

Web Quizzes

BUSINESS EXTRA SELECT
Do you use readings or cases in your Human Resource Management

class?
Business Extra Select (www.wiley.com/college/bxs) enables
you to add copyright-cleared articles, cases, and readings from
such leading business resources as INSEAD, Ivey, Harvard Business School Cases, Fortune, The Economist, The Wall Street Journal,
and more.
You can create your own custom CoursePack, combining these
resources with content from DeCenzo and Robbins’ Fundamentals
of Human Resource Management, Tenth Edition, your own content
(such as lecture notes), and any other third-party content. Or you
can use or edit the ready-made CoursePack.

Uses Real Companies
7-Eleven
Abercrombie & Fitch
American Express
Apple Computer
AT&T
Baxter International
Best Buy
Boeing
CitiGroup
Coca Cola
Domino’s
Dow Chemical
DuPont
Ebay
Federal Express

Ferrari
Ford Motor Company

Four Seasons Resorts
General Electric
General Motors
Hewlett-Packard
Honolulu Police
Department
IBM
John Deere
Johnson & Johnson
K-mart
Levi-Strauss
Mars Company
McDonald’s

Motorola
Nabisco
Nike
Oracle
Otis Elevator
Principal Financial Group
Priority Staffing
Proctor & Gamble
Remington
San Diego Zoological
Society
Sears
Siemens
Southwest Airlines
Starbucks

Sun Microsystems
Target
The Home Depot
Transportation Safety
Administration
Tropicana
Unilever
UPS
Volvo
Wal-Mart
Whirlpool Corp.
Winn-Dixie Stores, Inc.
Xerox
And much more!


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About the Authors
DAVID A. DECENZO received his Ph.D. from West Virginia University. He is the president at Coastal Carolina University. His major teaching and research interests focused
on the general areas of human resource management, management, and organizational
behavior. He has published articles in such journals as Harvard Business Review, Business
Horizons, Risk Management, Hospital Topics, and Performance and Instruction.
Dr. DeCenzo has spent the past two-plus decades writing textbooks. His books

include Supervision Today and Fundamentals of Management with Stephen Robbins;
Human Relations with Beth Silhanek; Essentials of Labor Relations (1992) with Molly
Bowers; and Employee Benefits (1990) with Stephen Holoviak. These books are used widely
at colleges and universities in the United States, as well as schools throughout the world.
Dr. DeCenzo also has industry experience as a corporate trainer, and has served as
a consultant to a number of companies. He also serves on the Board of Directors of the
AVX Corporation.
STEPHEN P. ROBBINS received his Ph.D. from the University of Arizona. He previously
worked for the Shell Oil Company and Reynolds Metals Company and has taught at
the University of Nebraska at Omaha, Concordia University in Montreal, the University
of Baltimore, Southern Illinois University at Edwardsville, and San Diego State University. Dr. Robbins’s research interests have focused on conflict, power, and politics in
organizations, behavioral decision making, and the development of effective interpersonal skills. His articles on these and other topics have appeared in such journals as
Business Horizons, California Management Review, Business and Economic Perspectives, International Management, Management Review, Canadian Personnel and Industrial Relations, and
Journal of Management Education.
Dr. Robbins is a best-selling textbook author in the areas of management and organizational behavior. His books have sold in excess of three million copies and are currently used by students in more than a thousand U.S. colleges and universities, and have
been translated into sixteen languages.
Dr. Robbins also actively participates in masters’ track competition. Since turning
fifty in 1993, he has set numerous indoor and outdoor age-group world sprint records.
He has won more than a dozen indoor and outdoor U.S. championships at 60 m, 100 m,
200 m, and 400 m, and won seven gold medals at World Masters Championships. In
2005, he was inducted into the Masters Track & Field Hall of Fame.
Tenth Edition Contributor SUSAN L. VERHULST received her M.B.A. from Drake
University. She is a Professor of Management at Des Moines Area Community College
where she has received the “Distinguished Teaching Award.” Susan teaches human
resource management and management classes and has researched, developed, and
taught online courses in management and human resource management. Her previous
work with John Wiley & Sons includes developing “Lecture Launcher” DVDs and
instructor’s guides in the areas of management and organizational behavior. She is a
member of the Society of Human Resource Management.

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To:

Our Readers

From:

Dave DeCenzo, Steve Robbins, and Susan Verhulst

Subject:

How to Get the Most Out of This Text

All authors of a textbook generally include a preface that describes why they wrote the
book and what’s unique about it, and then thank a lot of people for the role they
played in getting the book completed. Well, we’re no different. We just did that, too.
But it has become crystal clear to us that two things are common about a book’s preface. First, it’s usually written for the professor, especially one who’s considering selecting the book. Second, students usually don’t read the preface. That’s unfortunate
because it often includes information that students would find useful.
As authors, we do listen to our customers. And many of ours have told us that
they’d enjoy some input from us. So we’ve written this memo. Our purpose is to

provide you with our ideas about the book, how it was put together, and more important how you can use it to better understand the field of HRM and do better in this
class!
This book was written to provide you with the foundations of HRM. Whether you
intend to work in HRM or not, most of these elements will affect you at some point in
your career. How? Take, for example, the performance appraisal. Although you might
not currently be in a position to evaluate another individual’s work performance, if
you are working, you’re more than likely to have your performance appraised. For that
matter, each time you take an exam in a class, your performance is being evaluated.
Consequently, it’s important for you to have an understanding of how it should work,
and the potential problems that may exist.
We begin Part 1 of this book with an emphasis on providing you with an overview
of the ever-changing world of work and the effect it is having on HRM. With that as a
foundation, we then proceed to introduce you to HRM, its approach, the link to organizational strategy, and the different roles HR plays. In Part 2, we turn our attention
to the laws that affect HRM activities. Much of how HRM operates is guided by legislation and court decisions that prohibit practices that adversely affect certain groups
of people. Without a good understanding of these laws, an organization’s
performance can suffer, and the organization can be vulnerable to costly lawsuits. Part
2 ends with a discussion of several areas focusing on employee rights.
Parts 3 through 5 provide coverage of the fundamental activities that exist in
HRM. Part 3 explores the staffing function, with discussions on employment recruiting and selection. Part 4 addresses means for socializing, training, and developing
employees. Part 5 looks at how organizations encourage high performance by evaluating, paying, and rewarding its employees. Much of the discussion in Parts 2
through 5 reflects typical activities in an organization that is not unionized. When
a union is present, however, many of these practices might need modification to
comply with another set of laws. As such, we reserved the final chapter for dealing
with labor-management relations.
While we are confident that completing the 14 chapters contained in this book
will provide the fundamentals of HRM, a text has to offer more. It should not only
cover topics (we hope, in an interesting and lively way), it should also assist in the
learning process. It should be written in such a way that you can understand it, it
keeps your attention, and it provides you an opportunity for feedback. We think we’ve
met each of these goals. Of course, only you can be the judge of our claim. But let’s

look at how we arrived at our conclusion.
To be understandable and lively means that we need to communicate with you.
We make every attempt in this text to have it sound as if we were in front of your class
speaking with you. Writing style is important to us. We use examples whenever possible—
real companies, so you can see that what we talk about is happening in the real world.
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TO OUR READERS

In the past, people using our books have indicated that our writing style does help
hold their attention. But although good communication is critical, is only half of the
equation. The ultimate tests for you are: Does the book help you do well on exams?
Does it help prepare you for a job?
We start every chapter with learning outcomes. We view these as the critical learning points. They present a logic flow from which the material will be presented. If you
can explain what is proposed in each learning objective, you’ll be on the right track to
understanding the material. But memory sometimes fools us. We read the material,
think we understand it, see how the summaries directly tie the learning outcomes
together, then take the exam and receive a grade that is not reflective of what we knew
we knew. We have given a lot of thought to that issue, and think we’ve come up with
something that will help—putting a feedback test on www.wiley.com/college/decenzo,
the Web site that supports our book!

The typical textbook ends each chapter with a set of review questions. Sometimes,
your tests look much like these types of questions. But exams also have a tendency to
emphasize multiple-choice questions. So we’ve included sample test questions on our
Web site (www.wiley.com/college/decenzo) to help you prepare for exams in this class.
These questions are actual questions that we’ve used to test our students’ understanding of the material. If you can correctly answer these questions, then you’re one step
closer to enhancing your understanding of HRM. Recognize, of course, that these are
only a learning aid. They help you to learn but don’t replace careful reading or intensive studying. And don’t assume that getting a question right means you fully understand the concept covered. Why? Because any set of multiple-choice questions can
only test a limited range of information. So don’t let correct answers lull you into a
sense of false security. If you miss a question or don’t fully understand why you got
the correct response, go back to the material in the chapter and reread the material.
Learning, however, goes beyond just passing a test. It also means preparing yourself to perform successfully in tomorrow’s organizations. You’ll find that
organizations today require their employees to work more closely together than at any
time in the past. Call it teams, horizontal organizational structures, matrix
management, or something similar, the fact remains that your success will depend on
how well you work closely with others. To help model this group concept for you, we
have included class exercises in this text. Each of these team experiential learning
efforts is designed to highlight a particular topic in the text and give you an opportunity to work in groups to solve the issue at hand.
One last thing before we close: What can you take out of this course and use in
the future? Many business leaders have complained about how business schools train
their graduates. Although business schools have made many positive
accomplishments, one critical component appears lacking—practical skills. The skills
you need to succeed in today’s business environment are increasing. You must be able
to communicate (both verbally and in a written format), think creatively, make good
and timely decisions, plan effectively, and deal with people. In HRM, we have an
opportunity to build our skills bank. As you go through this text, you’ll find a dozen
or more practical skills that you can use on your job. We hope you give them special
attention, practice them often, and add them to your repertoire. We’ve also included
suggestions for writing and presentation assignments that cover an important aspect
of the chapter’s material. Look at these as a learning tool, not as an assignment that
you have to do. We think you’ll find working on these will help prepare you for

dealing with the kinds of writing requests you get on the job.
Finally, if you’d like to tell us how we might improve the next edition of this book,
we encourage you to write Dave DeCenzo at Coastal Carolina University, P.O. Box
261954, Conway, SC 29528; or email him at To those of you
who have done so in the previous editions, we appreciate you taking the time to write
us. Thanks for helping us out.

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