fundamentals of human resource management 11th edition DeCenzo

11TH EDITION

Fundamentals of
Human Resource Management
DAVID A. DeCENZO

STEPHEN P. ROBBINS

SUSAN L. VERHULST


This page is intentionally left blank


Job
b Analysis
An
nalysi
sis i

Fundamentals
of Human
Resource
Management
David A. DeCenzo
Coastal Carolina University
Conway, SC

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

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

Eleventh
Edition


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Library of Congress Cataloging-in-Publication Data
DeCenzo, David A.
Fundamentals of human resource management / David A. DeCenzo, Stephen P. Robbins,
Susan L. Verhulst. -- 11th ed.

p. cm.
Includes index.
ISBN 978-0-470-91012-2 (paper/website) 1. Personnel management. I. Robbins, Stephen P.,
1943- II. Verhulst, Susan L. III. Title.
HF5549.D396 2013
658.3--dc23
2012030735
ISBN 978-0-470-91012-2 (Main Book)
ISBN 978-1-118-37968-4 (Binder-Ready Version)
Printed in the United States of America
10 9 8 7 6 5 4 3 2 1


Brief Contents
Part 1 UNDER S TANDI N G HR M
01 The Dynamic Environment of HRM 3
02 Functions and Strategy 29
Part 2 THE LEGAL AN D E T HI C AL C O N T E XT O F HR M
03 Equal Employment Opportunity 57
04 Employee Rights and Discipline 91
Part 3

S TAF F ING THE O R G AN I Z AT I O N

05 Human Resource Planning and Job Analysis 119
06 Recruiting 141
07 Foundations of Selection 163
Part 4 TR AINING AND DE VE L O P ME N T
08 Socializing, Orienting, and Developing Employees 193
09 Managing Careers 221

Part 5
10
11
12
13

M AINTAINING HI G H P E R F O R MAN C E
Establishing the Performance Management System 243
Establishing Rewards and Pay Plans 275
Employee Benefits 301
Ensuring a Safe and Healthy Work Environment 331

Part 6 LAB OR -MANAG E ME N T E N VI R O N ME N T S
14 Understanding Labor Relations and Collective Bargaining 359
Endnotes 384
Glossary 408
Company Index 415
Subject Index 417

iii


Contents
Part 1

01

How HRM Can Support Improvement Programs 19
How HRM Assists in Work Process Engineering 20
Employee Involvement 20

UNDER S TANDING HRM

The Dynamic Environment
of HRM

3

Learning Outcomes 2
Introduction 4
Understanding Cultural Environments 4
The Impact of Technology 5
What Is a Knowledge Worker? 6
How Technology Affects HRM Practices 6
Recruiting 7
Employee Selection 7
Training and Development 7
Ethics and Employee Rights 7
Motivating Knowledge Workers 8
Paying Employees Market Value 8
Communications 8
Decentralized Work Sites 8
Skill Levels 8
A Legal Concern 9

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

Mergers 22
A Look at Ethics 22
Summary 23
Demonstrating Comprehension: Questions for Review 24
Key Terms 24
HRM Workshop 25
Linking Concepts to Practice: Discussion
Questions 25
Making a Difference: Service Learning Projects 25
Developing Diagnostic and Analytical Skills 26
Case 1: A War for Talent 26
Working with a Team: Understanding Diversity
Issues 26
Learning an HRM Skill: Guidelines for Acting
Ethically 27
Enhancing Your Communication Skills 27

Ethical
Issues in HRM: Invasion of Privacy? 9
E
th
Contemporary
Connection: We Are Now Entering
C
on
the Blogosphere 10

Workforce Diversity 10
The Workforce Today 10
Div

Diversity
Topics: Chief Diversity Officer 11

How Diversity Affects HRM 11
Diversity
D
iv
Topics: Valuing a Diverse Workplace 12
Contemporary
Connection: 2020 Vision 13
C
on

What Is a Work/Life Balance? 13
Diversity
D
iv
Topics: Glass Ceiling Still a Barrier for
Women Globally 14

02

Functions and Strategy

Learning Outcomes 28
Introduction 30
Why Is HRM Important to an Organization? 30
The Strategic Nature 31
Tips
Ti

T
ips For Success: Reviewing the Functions of
Management 32

The Labor Supply 14

The HRM Functions 32

Do We Have a Shortage of Skilled Labor? 14
Why Do Organizations Lay Off Employees during
Shortages? 15
How Do Organizations Balance Labor Supply? 15
Issues Contingent Workers Create for HRM 16
Continuous Improvement Programs 18

Staffing Function 34
Training and Development Function 36
Motivation Function 36
Maintenance Function 37
How External Influences Affect HRM 38

Work Process Engineering 19
iv

The Dynamic Environment of HRM 38
Laws and Regulation 38

29

Contents

Labor Unions 38
Management Thought 40
Structure of the HR Department 40

Religious Discrimination 59
National Origin Discrimination 60
Sex or Gender Discrimination 60
EEOA/EEOC 62

Employment 41
Training and Development 41
Compensation and Benefits 42
Employee Relations 43

Contemporary
Connection: Discrimination Claims
C
on
Going Up 62
Relevant Executive Orders 63
Age Discrimination in Employment Act of 1967 63
Equal Pay Act 64
Pregnancy Discrimination 64
The Americans with Disabilities Act of 1990 and
The ADA Amendments Act of 2008 65
The Civil Rights Act of 1991 66
The Family and Medical Leave Act of 1993
(FMLA) 66

Top Management Commitment 43
Effective Upward Communication 43
Tips
T
ips For Success: HRM Certification 44
Determining What to Communicate 44
Allowing for Feedback 44
Information Sources 45

Is a Career in HR for Me? 45
Does HRM Really Matter? 45

Contemporary
Connection: When Our Troops
C
on
Come Home 68

Eth
Ethical
Issues in HRM: Purposely Distorting
Information 46

HR Trends and Opportunities 47
Outsourcing 47
Professional Employer Organization (PEO) 47
Shared Services 47
HRM in a Small Business 48
HRM in a Global Environment 48

HR and Corporate Ethics 49
Summary 50
Demonstrating Comprehension: Questions for Review 51
Key Terms 51
HRM Workshop 52
Linking Concepts to Practice: Discussion
Questions 52
Making a Difference: Service Learning Projects 52
Developing Diagnostic and Analytical Skills 52
Case 2: Hungry for Productivity—Frito-Lay Links
Strategy with Job Design 52
Working with a Team: Making a Layoff Decision 53
Learning an HRM Skill: HR Certification 54
Enhancing Your Communication Skills 54

Part 2

THE LEGAL AN D E T HI C AL
CONTEXT OF HR M

03

Equal Employment
Opportunity

Learning Outcomes 56
Introduction 58
Laws Affecting Discriminatory Practices 58
The Importance of the Civil Rights Act of 1964 58
Race and Color Discrimination 59

v

Uniformed Services Employment and Reemployment
Rights Act of 1994 (USERRA) 68
Genetic Information Nondiscrimination Act (GINA)
of 2008 69

Preventing Discrimination 69
Uniform Guidelines on Employee Selection Procedures 69
Ti
T
ips For Success: Is a Problem Brewing? 69
Tips

Determining Potential Discriminatory Practices 70
The 4/5ths Rule 70
Restricted Policy 71
Geographical Comparisons 71
McDonnell-Douglas Test 71
Affirmative Action Plans Affirmative Action 71
Tips
Ti
T
ips For Success: Suggestions for Recruiting
Minorities and Women 72

Responding to an EEO Charge 72
Business Necessity 72
Bona Fide Occupational Qualifications 72

Seniority Systems 73

Selected Relevant Supreme Court Cases 73
Cases Concerning Discrimination 73
Cases Concerning Reverse Discrimination 75
Enforcing Equal Opportunity Employment 76
The Role of the EEOC 76
C
on
Contemporary
Connection: EEOC Reaches Out
to Young Workers 77

57

Office of Federal Contract Compliance Program
(OFCCP) 78
Current Issues in Employment Law 78
Sexual Harassment 78
Eth
Ethical
Issues in HRM: How Bad Does it Have
to Be? 80

Comparable Worth and Equal Pay Issues 80


vi

Contents

Exceptions to the Doctrine 103

Sexual Orientation 82
English Only Laws and Policies 82
Appearance and Weight Discrimination 82
Ethical
Issues in HRM: English-Only Rules 83
E
th

HRM in a Global Environment 83
China 84
Canada 84
India 84
Australia 84
Germany 85
Summary 85
Demonstrating Comprehension: Questions for Review 86
Key Terms 86

Contractual Relationship 104
Statutory Considerations 104
Public Policy Violation 104
Implied Employment Contract 104
Breach of Good Faith 104
Discipline and Employee Rights 105

What Is Discipline? 105
Factors to Consider When Disciplining 105

Ti
T
ips For Success: What to Know before Disciplining
Tips
Employees 106

Disciplinary Guidelines 108
Disciplinary Actions 109
Written Verbal Warning 109
Written Warning 110
Suspension 110
Dismissal 110

HRM Workshop 87
Linking Concepts to Practice: Discussion
Questions 87
Making a Difference: Service Learning Projects 87
Developing Diagnostic and Analytical Skills 87
Case Application 3-A: Diversity Is
Fashionable 87
Case Application 3-B: When Oversight Fails 88
Working with a Team: What’s Your Perception? 88
Learning an HRM Skill: Investigating a Harassment
Complaint 88
Enhancing Your Communication Skills 89

04

Employee Rights and Discipline

Tips
Tips For Success: Are You Part of the Problem? 111
Ti

Summary 112
Demonstrating Comprehension: Questions for Review 114
Key Terms 114
HRM Workshop 115
Linking Concepts to Practice: Discussion
Questions 115
Making a Difference: Service Learning Projects 115
Developing Diagnostic and Analytical Skills 115
Case Application 4-A: Casino Has No Sense of
Humor 115
Case Application 4-B: Off-the-Job Behaviors 116
Working with a Team: Dealing in Gray Areas 116
Learning an HRM Skill: Guidelines for Counseling
Employees 117
Enhancing Your Communication Skills 117

91

Learning Outcomes 90
Introduction 92
Employee Rights Legislation and the HRM Implications 92
The Privacy Act 92
The Fair Credit Reporting Act 93
The Drug-Free Workplace Act 93
The Polygraph Protection Act 94
The Worker Adjustment and Retraining Notification

Act 94
Current Issues Regarding Employee Rights 96
Social Media 96
Drug Testing 98
C
Contemporary
on
Connection: Why Organizations
Conduct Drug Tests 99

Honesty Tests 99
Whistle-Blowing 100
Employee Monitoring and Workplace Security 100
Contemporary
Connection: By the Numbers 101
Con

Workplace Romance 102
The Employment-at-Will Doctrine 103

Part 3

05

S TAF F I N G T HE O R G AN I Z AT I O N

Human Resource Planning
and Job Analysis

Learning Outcomes 118

Introduction 120
An Organizational Framework 120
E
Ethical
th
Issues in HRM: Shades of Green 121

Linking Organizational Strategy to Human Resource
Planning 122
Assessing Current Human Resources 122
Human Resource Information Systems 123
Succession Planning 124

Determining the Demand for Labor 124
Ti
T
ips For Success: Where the Jobs Are 125
Tips

119


Contents

Predicting the Future Labor Supply 125
Where Will We Find Workers? 126
Matching Labor Demand and Supply 126
The Job Analysis Process 128

Organization Image 143

Job Attractiveness 143
Internal Organizational Policies 144
Legal Influence 144
Tips
Tips For Success: Employment Branding 144
Ti

Job Analysis Methods 128
Observation Method 128
Individual Interview Method 128
Group Interview Method 128
Structured Questionnaire Method 128
Technical Conference Method 128
Diary Method 128

Diversity
Topics: Job Advertisements and EEO 145
D
iv
Recruiting Costs 145

Recruiting Sources 145
The Internal Search 146
Employee Referrals and Recommendations 146
External Searches 147

Structured Job Analysis Techniques 129
O*NET and the Department of Labor 129
Position Analysis Questionnaire 130

Advertisements 147
Employment Agencies 148
Schools, Colleges, and Universities 150
Job Fairs 151
Professional Organizations 151
Unsolicited Applicants 152

Purpose of Job Analysis 131
Job Descriptions 131
Essential Functions 132
Job Specifications 132
Job Evaluations 132

Online Recruiting 152

The Multifaceted Nature of Job Analysis 132
Job Design 133
Job Enrichment 133
C
on
Contemporary
Connection: Measuring Results,
Not Face Time 134

Flexible Work Schedules 135
Job Design and Teams 135
Summary 136
Demonstrating Comprehension: Questions for Review 137
Key Terms 137

Linking Concepts to Practice: Discussion
Questions 138
Making a Difference: Service Learning Projects 138
Developing Diagnostic and Analytical Skills 138
Case Application 5: Turnover and Morale
Problems at TSA 138
Working with a Team: Job Analysis Information 139
Learning an HRM Skill: Conducting the Job
Analysis 139
Enhancing Your Communication Skills 139

Recruiting

Learning Outcomes 140
Introduction 142
Recruiting Goals 142
Factors That Affect Recruiting Efforts 142
Tips
Tips For Success: Something for Everyone 143

Constraints on Recruiting Efforts 143

Employer Websites 152
Job Boards 152
Social Media 152
Specialized Job Boards 152

Effective Recruiting 153
Recruitment Alternatives 153
Temporary Help Services 153

Employee Leasing 153
Tips
Ti
T
ips For Success: “Best Practice” Ideas Applicable
to Recruitment and Hiring 154
Independent Contractors 154

Recruiting: A Global Perspective 154
Your Own Job Search 155

HRM Workshop 138

06

vii

141

Tips For Success: Posting Online Résumés 156
Ti
Tips

Preparing Your Résumé 156
Making Social Media Work for You 156
Summary 157
Demonstrating Comprehension: Questions for Review 158
Key Terms 158
HRM Workshop 159
Linking Concepts to Practice: Discussion Questions 159

Making a Difference: Service Learning Projects 159
Developing Diagnostic and Analytical Skills 159
Case Application 6-A: Policing Paradise: How
the Honolulu Police Department Developed Its
Brand 159
Case Application 6-B Priority Staffing 160
Working with a Team: A Question of Effective
Recruiting 160
Learning an HRM Skill: Writing a Job
Advertisement 160
Enhancing Your Communication Skills 161


viii

Contents

07

Foundations of Selection

163

Learning Outcomes 162
Introduction 164
The Selection Process 164
Initial Screening 164
Completing the Application Form 165

Selection from a Global Perspective 185

Final Thoughts: Excelling at the Interview 186
Summary 187
Demonstrating Comprehension: Questions for Review 188
Key Terms 188
HRM Workshop 189
Linking Concepts to Practice: Discussion
Questions 189
Making a Difference: Service Learning Projects 189
Developing Diagnostic and Analytical Skills 189
Case Application 7: Timing of the Job Offer 189
Working with a Team: Preparing for the Interview 190
Learning an HRM Skill: Creating Effective Interview
Questions 190
Enhancing Your Communication Skills 190

Key Issues 165
Tips
T
ips For Success: Too Much Information 166
Weighted Application Forms 166
Successful Applications 167

Pre-employment Testing 167
Performance Simulation Tests 168
Work Sampling 168
Assessment Centers 168
Testing in a Global Arena 168

Comprehensive Interviews 168
D

iv
Diversity
Topics: Interview Questions 169
Interview Effectiveness 170
Ti
T
ips For Success: Steps for Effective Interviewing 170
Tips
R
ea HR Encounters: Interview Headaches 171
Real
First Impressions 171
Impression Management 171
E
th
Ethical
Issues in HRM: The Stress Interview 172
Interviewer Bias 172
The Behavioral Interview 172
T
ips For Success: Professionalism on the Phone 173
Tips

Realistic Job Previews 173
Conditional Job Offers 174
Background Investigation 174
Medical/Physical Examination 177
Job Offers 177
The Comprehensive Approach 178
Now It’s Up to the Candidate 178

Tips For Success: Avoiding Hiring Mistakes 179
Tips

Selection for Self-Managed Teams 180
Con
Contemporary
Connection: What Were They
Thinking? 180

Key Elements for Successful Predictors 181
Reliability 181
Validity 182
Content Validity 182
Construct Validity 182
Criterion-Related Validity 182

Validity Analysis 183
Cut Scores and Their Impact on Hiring 184
Validity Generalization 185

Part 4

08

T R AI N I N G AN D DE VEL O P M E N T

Socializing, Orienting, and
Developing Employees

193

Learning Outcomes 192
Introduction 194
The Outsider–Insider Passage 194
Socialization 194
Assumptions of Employee Socialization 194
Socialization Strongly Influences Employee
Performance and Organizational Stability 194
Organizational Stability Also Increases through
Socialization 195
New Members Suffer from Anxiety 195
Socialization Needs to be Consistent with
Culture 195
Individuals Adjust to New Situations in Remarkably
Similar Ways 195

The Socialization Process 196
Tips For Success: Orientation Checklist 197
Ti
Tips

The Purpose of New-Employee Orientation 197
Learning the Organization’s Culture 198
R
Real
ea HR Encounters: HR’s Role in Creating and
Sustaining Culture 198

The CEO’s Role in Orientation 199
HRM’s Role in Orientation 199

It’s All in Here: The Employee Handbook 200
Div
Diversity
Topics: Training, Development, and
EEO 200

Why Use an Employee Handbook? 201
Employee Training 201
Determining Training Needs 202


Contents

Training Methods 203

What Is a Career? 222

On-the-Job Training Methods 203
Off-the-Job Training Methods 204

Individual versus Organizational Perspective 223
Career Development versus Employee Development 223
Career Development: Value for the Organization 223

Employee Development 205
Employee Development Methods 205

Needed Talent Will Be Available 223
The Organization’s Ability to Attract and Retain
Talented Employees Improves 224

Minorities and Women Have Comparable
Opportunities for Growth and Development 224
Reduced Employee Frustration 224
Enhanced Cultural Diversity 224
Organizational Goodwill 224

Job Rotation 205
Assistant-To Positions 205
Committee Assignment 206
Lecture Courses and Seminars 206
Simulations 206
Contemporary
Connection: Training
C
on
Expenditures 206

Career Development: Value for the Individual 224
Mentoring and Coaching 225

Adventure Training 207

Organization Development 207
Change Is a Popular Topic 208

Eth
Ethical
Issues in HRM: Mentoring Programs for
Women and Minorities 227

The Calm Waters Metaphor 208
The White-Water Rapids Metaphor 209

Traditional Career Stages 228
Exploration 229
Establishment 229

OD Methods 210
Organization Development 210
OD Techniques 210

R
ea HR Encounters: Encouraging Managers 229
Real

Ethical
Issues in HRM: OD Intervention 210
Eth

The Learning Organization 211
Evaluating Training and Development Effectiveness 212
Evaluating Training 212
Performance-Based Evaluation Measures 213
Post-Training Performance Method 213
Pre–Post-Training Performance Method 213
Pre–Post-Training Performance with Control
Group Method 213

HRM Workshop 217
Linking Concepts to Practice: Discussion

Questions 217
Making a Difference: Service Learning Projects 217
Developing Diagnostic and Analytical Skills 217
Case Application 8-A: The Underrated Checklist:
Five Steps to Save Lives 217
Case Application 8-B: Delivering at UPS 218
Working with a Team: Orienting Employees 218
Learning an HRM Skill: Coaching Employees 218
Enhancing Your Communication Skills 219

Learning Outcomes 220
Introduction 222

Contemporary
C
on
Connection: Where Are the
Jobs? 231

Holland Vocational Preferences 232
The Schein Anchors 234
The Myers-Briggs Typologies 234

Cross-Cultural Training 214
Development 215
Summary 215
Demonstrating Comprehension: Questions for Review 216
Key Terms 216

Managing Careers

Mid-Career 230
Late Career 230
Decline (Late Stage) 231

Career Choices and Preferences 232

International Training and Development Issues 214

09

ix

221

T
Ti
ips For Success: Entrepreneurship: Building Your
Tips
Own Career 234
Tips For Success: Internships: Experience at
Ti
Tips
Work 236

Taking Responsibility for Building Your Career 236
Summary 237
Demonstrating Comprehension: Questions for
Review 238

Key Terms 238
HRM Workshop 239
Linking Concepts to Practice: Discussion
Questions 239
Making a Difference: Service Learning
Projects 239
Developing Diagnostic and Analytical Skills 239
Case Application 9-A: Reducing Turnover at the
Top 239
Working with a Team: Career Insights 240
Learning an HRM Skill: Making a Career
Choice 240
Enhancing Your Communication Skills 241


x

Contents

Part 5

MAINTAINING HIGH
PERFO RM ANC E

10

Establishing the Performance
Management System

243

Learning Outcomes 242
Introduction 244
Performance Management Systems 244
Purposes of a Performance Management System 244
C
on
Contemporary
Connection: Abolish Performance
Appraisals? 245

Leniency Error 258
Halo Error 258
Similarity Error 259
Low Appraiser Motivation 259
Central Tendency 259
Inflationary Pressures 259
Inappropriate Substitutes for Performance 260
Attribution Theory 260
Creating More Effective Performance Management
Systems 261
Use Behavior-Based Measures 261
Contemporary
Connection: The “Anywhere”
Con
Performance Appraisal 262

Difficulties in Performance Management Systems 246
Focus on the Individual 246
Focus on the Process 247

Ethical
Issues in HRM: “That’s Not Fair!” When
E
th
Performance Appraisals Go Wrong 247

Combine Absolute and Relative Standards 262
Provide Ongoing Feedback 263
Use Multiple Raters 263
Use Peer Evaluations 263
Tips
Tips For Success: Team Performance Appraisals 264
Ti

Performance Management and EEO 248
The Appraisal Process 248
Establish Performance Standards 248
Communicate Expectations 249
Measure Actual Performance 249
Compare Actual Performance with Standards 249
Discuss the Appraisal with the Employee 249

360-Degree Appraisals 264

Rate Selectively 264
Train Appraisers 265
The Performance Appraisal Meeting 265
International Performance Appraisal 267
Who Performs the Evaluation? 267
Tips For Success: Performance Metrics in

Ti
Tips
China 268

C
on
Contemporary
Connection: The Feedback Fix 250

Initiate Corrective Action if Necessary 250
Appraisal Methods 250
Evaluating Absolute Standards 251
Critical Incident Appraisal 251
Checklist Appraisal 251
Graphic Rating Scale Appraisal 251
Forced-Choice Appraisal 252
Behaviorally Anchored Rating Scales 253

Summary 268
Demonstrating Comprehension: Questions for Review 269
Key Terms 269
HRM Workshop 270
Linking Concepts to Practice: Discussion
Questions 270
Making a Difference: Service Learning Projects 270
Developing Diagnostic and Analytical Skills 270
Case Application 10: Growing Pains at Modern
Office Supply 270
Working with a Team: Behaviorally Anchored
Rating Scales 272

Working with a Team: The 360-Degree Performance
Appraisal 272
Learning an HRM Skill: Writing Appraisal
Comments 272
Enhancing Your Communication Skills 273

Relative Standards Methods 254
Group Order Ranking 254
Individual Ranking 254
Contemporary
Connection: Forced Rankings:
Con
Are They Working? 255
Paired Comparison 255

Using Achieved Outcomes to Evaluate Employees 255
Common Elements in MBO Programs 256
Specific Goals 256
Participative Decision Making 256
Specific Time Period 256
Performance Feedback 256

Does MBO Work? 256
Contemporary
C
on
Connection: Facts on Performance
Evaluations 257

Factors That Can Distort Appraisals 257

11

Establishing Rewards and Pay
Plans

Learning Outcomes 274
Introduction 276
Intrinsic versus Extrinsic Rewards 276

275


Contents

Ethical
E
th
Issues in HRM: Salary Negotiation and
Discrimination 276

Financial versus Nonfinancial Rewards 277
Performance-Based versus Membership-Based
Rewards 277
Compensation Administration 278
Government Influence on Compensation Administration 278

Summary 295
Demonstrating Comprehension: Questions for Review 296
Key Terms 296

HRM Workshop 297
Linking Concepts to Practice: Discussion
Questions 297
Making a Difference: Service Learning Projects 297
Developing Diagnostic and Analytical Skills 297
Case Application 11: What is Fair at Exactitude
Manufacturing? 297
Working with a Team: Understanding Incentive
Plans 298
Learning an HRM Skill: Pay-for-Performance Goal
Setting 298
Enhancing Your Communication Skills 299

E
th
Ethical
Issues in HRM: The Secret Paycheck 279
Fair Labor Standards Act 281
C
on
Contemporary
Connection: The Minimum Wage
Debate 281
The Civil Rights and Equal Pay Acts 282

Job Evaluation and the Pay Structure 282
Job Evaluation 282
Isolating Job Evaluation Criteria 283
Job Evaluation Methods 283
Ordering Method 283

Classification Method 283
Point Method 284

Establishing the Pay Structure 284
Compensation Surveys 284
Wage Curves 285
The Wage Structure 285

External Factors 286
Geographic Differences 286
Labor Supply 286
Competition 286
Cost of Living 287
Collective Bargaining 287
Communicating with Employees 287

Special Cases of Compensation 287
Incentive Compensation Plans 287
Individual Incentives 287
Group Incentives 288
Organization-Wide Incentives 288

Paying for Performance 289
Team-Based Compensation 290
Executive Compensation Programs 291
Salaries of Top Managers 292
Supplemental Financial Compensation 292
Eth
Ethical
Issues in HRM: Are U.S. Executives

Overpaid? 292

Supplemental Nonfinancial Compensation:
Perquisites 293
International Compensation 293
Base Pay 294
Differentials 294
Con
Contemporary
Connection: Compensation in a
Global Environment 295

Incentives 295
Assistance Programs 295

xi

12

Employee Benefits

301

Learning Outcomes 300
Introduction 302
Costs of Providing Employee Benefits 302
Contemporary Benefits Offerings 302
Ethical
Issues in HRM: Domestic Partner Benefits 304
Eth

Legally Required Benefits 304
Social Security 304
Unemployment Compensation 305
Contemporary
Connection: Look out for the Silver
Con
Tsunami 306

Workers’ Compensation 306
Rea HR Encounters: Abusing Worker’s
Real
Compensation 307

Family and Medical Leave Act 307
Voluntary Benefits 307
Health Insurance 309
Traditional Health Insurance 310
Health Maintenance Organizations 310
Preferred Provider Organizations 310
Point-of-Service 310
Consumer Driven Health Plan 310
Employer-Operated Coverage 312
Health Insurance Continuation 312
The HIPAA Requirement 312
Real
R
ea HR Encounters: Whiteboard Puts a Face on the
Cost of Health Insurance 312
Patient Protection and Affordable Care Act 313

Retirement Benefits 313
E
th
Ethical
Issues in HRM: Airline Pensions Crash and
Burn 314

Defined Benefit Plans 315
Defined Contribution Plans 315


xii

Contents

Money Purchase Pension Plans 316
Profit-Sharing Plans 316
Individual Retirement Accounts 316
401(k)s 316

Paid Time Off 317
Vacation and Holiday Leave 317
Disability Insurance Programs 318
Sick Leave 318
Short-Term Disability Plans 319
Long-Term Disability Plans 319
Ethical
Issues in HRM: Making Sick Leave a
Eth

Required Benefit? 319
Contemporary
Connection: Leaving It Up to You:
Con
Paid Time Off Leave (PTO) 320

Survivor Benefits 320
Group Term Life Insurance 320
Travel Insurance 321
Employee Services and Family-Friendly Benefits 321
An Integrative Perspective on Employee Benefits 321
Flexible Spending Accounts 321
Modular Plans 323
Core-Plus Options Plans 323
Benefits in a Global Environment 323
Summary 324
Demonstrating Comprehension: Questions for Review 325
Key Terms 326
HRM Workshop 326
Linking Concepts to Practice: Discussion
Questions 326
Making a Difference: Service Learning Projects 326
Developing Diagnostic and Analytical Skills 327
Case Application 12: Perks and Profits 327
Working with a Team: Benefit Selections 327
Learning an HRM Skill: Calculating a Long-Term
Disability Payment 328
Enhancing Your Communication Skills 329

13

Ensuring a Safe and Healthy Work
331
Environment

Learning Outcomes 330
Introduction 332
The Occupational Safety and Health Act 332
OSHA Inspection Priorities 332
Eth
Ethical
Issues in HRM: Legacy of a Tragedy 334

OSHA Record Keeping Requirements 335
Tips For Success: When OSHA Comes to Call 338
Tips

OSHA Punitive Actions 339
OSHA: A Resource for Employers 339

Areas of Emphasis 340
Education and Training 340
Assisting Employers in Developing a Safer Workplace 340
Management Commitment and Employee
Involvement 340
Worksite Analysis 341
Hazard Prevention and Control 341
Contemporary
Connection: OSHA’s Top Ten
C

on
Violations 342
Training for Employees, Supervisors and
Managers 342
Contemporary Health and Safety Issues 343

Workplace Violence 343
Indoor Air Quality 344
The Smoke-Free Environment 344
Repetitive Stress Injuries 345
C
ur
Current
Connection: Faith in the Slaughterhouse 345

Stress 346
Common Causes of Stress 347
Symptoms of Stress 348
Contemporary
Connection: Is “Cyberloafing”
C
on
Really a Good Thing? 349

Reducing Stress 349
A Special Case of Stress: Burnout 349
Causes and Symptoms of Burnout 350
Reducing Burnout 350
Employee Assistance Programs 350

A Brief History of EAPs 351
EAPs Today 351
Wellness Programs/Disease Management 351
E
th
Ethical
Issues in HRM: Smokers and the Obese
Need Not Apply 352

International Safety and Health 353
International Health Issues 353
International Safety Issues 354
Summary 354
Demonstrating Comprehension: Questions for
Review 355

Key Terms 355
HRM Workshop 356
Linking Concepts to Practice: Discussion
Questions 356
Making a Difference: Service Learning Projects 356
Developing Diagnostic and Analytical Skills 356
Case Application 13: Protection OSHA-Style 356
Working with a Team: Health and Safety 357
Learning an HRM Skill: Developing Safety
Skills 357
Enhancing Your Communication Skills 357


Contents

Part 6

Strikes versus Lockouts 372

LAB OR -MANAG E ME N T
ENVIR ONMENTS

14

Understanding Labor Relations
and Collective Bargaining

E
th
Ethical
Issues in HRM: The Striker Replacement
Dilemma 373
Impasse-Resolution Techniques 374
359

Learning Outcomes 358
Introduction 360
Why Employees Join Unions 361
Higher Wages and Benefits 361
Greater Job Security 361
Influence Over Work Rules 361
Compulsory Membership 361
Dissatisfaction with Management 363
Labor Legislation 363

The Wagner Act 363
The Taft-Hartley Act 364
D
iv
Diversity
Topics: Unions and EEO 365

Other Laws Affecting Labor-Management Relations 365
The Railway Labor Act of 1926 365
Landrum-Griffin Act of 1959 366
Executive Orders 10988 and 11491 366
Racketeer Influenced and Corrupt Organizations
Act (RICO) of 1970 366
Civil Service Reform Act of 1978 366

Unionizing Employees 367
Tips For Success: The Union Drive 368
Tips

Collective Bargaining 369
Objective and Scope of Collective Bargaining 369
Collective Bargaining Participants 369
The Collective-Bargaining Process 370
Preparing to Negotiate 370
Negotiating at the Bargaining Table 370
Contract Administration 371

Failure to Reach Agreement 372

xiii

Critical Issues for Unions Today 374
Union Membership: Where Have the Members Gone? 374
C
on
Contemporary
Connection: The Union Summer 375

Labor-Management Cooperation 375
Public Sector Unionization 376
C
on
Contemporary
Connection: Union Split Creates
“Change to Win” 376

International Labor Relations 377
Differing Perspectives toward Labor Relations 379
The European Union 379
Summary 380
Demonstrating Comprehension: Questions for Review 380
Key Terms 381
HRM Workshop 381
Linking Concepts to Practice: Discussion
Questions 381
Making a Difference: Service Learning Projects 381
Developing Diagnostic and Analytical Skills 382
Case Application 14: Manager’s Concerns Spiral
as Video Goes Viral 382
Working with a Team: Handling a Grievance 382

Learning an HRM Skill: Negotiation Skills 383
Enhancing Your Communication Skills 383

Endnotes 384
Glossary 408
Company Index 415
Subject Index 417


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Preface
The sailing crews on the cover face many of the same goals and challenges as any organization in an 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 in order to
win the race. External factors may be visible and predictable, but invisible factors like the
wind and waves may be unpredictable and require minor adjustments or a major change
in strategy.
When organizations face challenges they depend on thoroughly trained professionals who react quickly to the changes in the environment and create strategies for success.
Human Resource Management (HRM) is responsible for carefully selecting
and training people with the necessary skills to pursue the strategy effecLike a crew sailing an ocean race,
tively. Some external factors can be predicted; others, such as the collapse
success and possibly survival depend
of large banks and insurance companies, can seemingly come out of
on a good crew that understands the
nowhere. The challenges have been coming fast and furious recently as
organizations struggle to adjust strategy in the face of an unpredictable
strategy and can adapt quickly to the
stock market, a sluggish economic recovery, an increasingly global environunpredictable environment.

ment, instability in the Eurozone and other global economies, changes
brought by elections worldwide, and technology that has made social networking a mainstream tool for business—just to name a few!
Welcome to the eleventh 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 either as an elective or a first
class toward an HRM major. Both of these groups need a strong foundation book that
provides the essential elements of HRM and relevant applications of HR principles 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:
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
■
■

xv

xvi

Preface

Human resource information systems (HRIS)
Measuring HR outcomes and the bottom line
■ Occupational health, safety, and security
■ Performance appraisal and feedback
■ Recruiting and selection
■ Workforce planning and talent management
■
■

The content of the text has 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 provides 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 begin with new opening vignettes to add interest and
application of concepts as well. End-of-chapter case applications that challenge a student’s understanding of the chapter’s material are also included. Updates and additions
to research, current examples, and assignments are too numerous to mention. New topics and other substantial additions to the text include:
Suggested service learning activities designed to make a positive difference in the
world, while increasing students’ ability to apply HR functions and student

employability.
■ Examination of the impact of social media in recruiting, selection, employee
rights, and discipline.
■ The impact on the economy and economic recovery on HR including rebuilding
a workforce.
■ Updates on HR as a career including pay and employment opportunities.
■ Updated coverage of Global HR practices.
■ Major revisions to Chapter 3 on Equal Employment Opportunity focuses on the
increasingly complex application of discrimination laws including retailiation.
■ New discussion on slackers in the workplace—how to reduce, eliminate, or not
hire them in the first place.
■ Updated discussion of flexible work scheduling.
■ New look at executive compensation and benefits.
■ Americans with Disabilities Act coverage has been updated.
■ New discussion of changes to employee health plans and evolving healthcare
legislation.
■ Significant overhaul of Chapter 13 on safety and OSHA.
■ Updates on unions, labor relations, mediation, and scrutiny of public employee
unions
■

New to Chapter 1: New chapter opener on how HR handles natural disasters and
global upheaval. New feature on the future of Global HR, updated treatment on
labor shortages, new end of chapter case on HR in the Navy.
New to Chapter 2: Updated explanation of Strategic HR, expanded coverage of
Shared Services, new end of chapter case on how organizational mission and
strategy are linked to job design at Frito-Lay.
New to Chapter 3: Extensively revised to include a new opener on Retaliation, new section on the protections in Title VII of the Civil Rights act, updated coverage of EEOC
role and most common claims filed, updated examples for age discrimination,

Preface

expanded coverage of the Lilly Ledbetter Fair Pay Act, added coverage of ADA
Amendments Act of 2008, expanded coverage of FMLA, and a new section on
Genetic Information Nondiscrimination Act (GINA).
New to Chapter 4: New chapter opener on unique employee discipline issues.
Updated coverage of laws that protect employee rights in the workplace, extensive
coverage of Social Media in Current Issues section, new Contemporary Connection box concerning managers who are insecure about using discipline policies.
New to Chapter 5: New opener on NASA changes and how they affect HR, new Ethical Issues on Green Jobs and how they are defined, update on HRIS technology
and Saas (Software as a Service), new feature on hard to fill jobs, new Contemporary Connection feature on non-traditional schedules.
New to Chapter 6: Extended coverage of online recruiting efforts, new coverage of
recruiting effectiveness, new section on using social media to the job seeker’s
advantage.
New to Chapter 7: New chapter opener on employee selection procedures at Bon
Ton Department Stores. New Contemporary Connection feature on professionalism on the phone, expanded and updated coverage of I-9 forms and Employment
Eligibility Verification, expanded coverage of Negligent Hiring,
New to Chapter 8: New chapter opener on a unique and successful Welfare-to-Work
program. New features on the best practices in onboarding new employees and
orientation checklists. New section on training methods.
New to Chapter 9: Increased coverage of internships. New learning activities and
new case on career development at Newell Rubbermaid.
New to Chapter 10: New student-centered examples, expanded coverage of unethical practices and discrimination during performance appraisals, new Workplace
Issues on HR movement to eliminate traditional appraisals in favor of better communication and frequent feedback, and Millenials’ need for constant feedback.
New Case Application that outlines the issues an organization encounters when
the performance appraisal process is neglected.
New to Chapter 11: Updated coverage of the Lilly Ledbetter Fair Pay Act, new Workplace Issues on unpaid internships, updated coverage of Executive Compensation
and Golden Parachutes. New coverage on hardship differentials in compensation
for expat employees. New Case Application that focuses on a company that
realigns compensation to fit organizational strategy with mixed results.

New to Chapter 12: Coverage of Michelle’s Law updated to show influence on the
Affordable Care Act, Social Security and Silver Tsunami discussions updated, and
new section on employer efforts to cut healthcare costs.
New to Chapter 13: New Contemporary Connection feature on the Triangle Shirtwaist Factory Fire in 1911 and its continuing impact on employee safety. Expanded
coverage of the General Duty Clause and its importance. Coverage of OSHA top
ten violations, workplace violence, smoke free environment coverage, and cyberloafing updated.
New to Chapter 14: New chapter opener on public opinion of unions and the rights
of public sector unions. Railway Labor Act section expanded, union organizing
efforts coverage updated and expanded, new section on unions in China, two new
learning activities added. New Case Application that looks at issues employers
encounter when workers are considering talking to union organizers.

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 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 U.S. Presidential
election, political challenges to the Affordable Care Act (Obamacare), and the political
and economic future of several countries including Greece, Italy, Spain, Ireland and Egypt

xvii


xviii

Preface

are among the issues that remain unsettled as this text goes into print. You will probably
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 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 eleventh 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
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. “Making a Difference: Service Learning Activities” is a
new addition to the HRM Workshop for the 11th edition. Suggestions are included with
the hopes that students will develop and participate in activities that make a difference
in their community or the world. They require application of human resource management concepts and have the added benefit of enhancing students’ resume and employability. A section called “Developing Diagnostic and Analytical Skills” consists of 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” is comprised of skillbuilding 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 writing


Preface

short research papers or creating class presentations using presentation software or
short videos found online.
PowerPoint
One piece of feedback we received was that many of professors were using PowerPoint
slides and students were spending considerable time copying the slides. Students
requested that we help them take better notes by including copies of the slides on our
website. 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 a chapter overview, description of additional features within the chapter,

chapter outline, additional lecture and activity suggestions, answers to class exercises,
answers to case applications, and additional review and discussion questions for each
chapter.
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
A DVD has been developed for this course that contains a selection of video 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 website.
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.

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: Denise H. Barton, Wake Technical Community College;

xix


xx

Preface

Mary Anne Edwards, College of Mount Saint Joseph; Laurie Giesenhagen, California State
University-Fullerton; Kelly Anne Grace, Georgia Institute of Technology; Jennie Johnson,
University of Texas-Brownsville; Gundars Kaupins, Boise State University; Margaret
Rechter, University of Pittsburgh, Greensburg; Valerie L. Robinson, Bakersfield College;
Andrea Smith-Hunter, Siena College; Gary Stroud, Franklin University; Peter Szende,
Boston University; Kostas Voutsas, Dickinson State University.
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; Lisé Johnson,
Acquisitions Editor; Susan McLaughlin, our very gifted and patient editor; Brian Baker,
Project Editor; Melissa Solarz, Editorial Assistant; and Joel Balbin, Associate Production
Manager. Brenda Moorehead also deserves a special thanks for generously sharing experience and knowledge that was woven into many chapters, especially the thoroughly
revised Chapter 13. The management and human resource management students of Des
Moines Area Community College also deserve a big thank you for their endless supply of
issues, examples and suggestions.
Last, we want to acknowledge a few people individually.
From Dave: To my wife, Terri, for all her support and love—and for simply putting up
with me. And to my children—Mark, Meredith, Gabriella, and Natalie—thank you for
all you do. It gives me great pride to say I am your father. You each have made me very
proud in your own special way by the person you have become. 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 endlessly supportive husband John, my amazingly talented
daughter Katie, and my wonderful Mom. I love you all more than I can say.


About the Authors
Courtesy of Costal Carolina University

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 focus 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.

Courtesy of Stephen P. Robbins

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 the world’s number one selling textbook author in the areas of management and organizational behavior. His books have sold in excess of six million copies;
are currently used by students in more than 1,500 U.S. colleges and universities; and have
been translated into nineteen 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;
and won eighteen national championships and twelve world titles. In 2005, he was
inducted into the Masters Track & Field Hall of Fame.

Courtesy of Paul Blaser, Blaser Photography

SUSAN L. VERHULST, PHR 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 being a contributing author to Fundamentals of Human Resource Management
10th edition and instructor’s guides in the areas of management and organizational
behavior. She is a member of the Society of Human Resource Management and has
achieved Professional in Human Resources (PHR) certification through the HR Certification Institute.

xxi


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 fourteen 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.
xxii


To Our Readers

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. 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 website 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
website (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 false sense of 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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