Giáo trình Human resource management 12e by konopaske ivancevich

TWELFTH
E DI T ION

HUMAN RESOURCE MANAGEMENT

The 12th Edition of H UM A N R ESO U RC E M A N AG E M E NT,
by John M. Ivancevich and Robert Konopaske, emphasizes managerial
responsibilities and actions pertaining to HRM activities while focusing
on HRM practices in “real” organizational settings and situations.
This managerial orientation shows how HRM is relevant to managers
in every unit, project, or team. Constantly faced with HRM issues,
challenges, and decisions, managers must be problem solvers who can
deftly apply HRM concepts, procedures, models, tools, and techniques.
HIGHLIGHTS OF THIS EDITION INCLUDE:

• A new feature, Your Career Matters, that helps readers apply
chapter material to improving their own careers
• An HR Challenge describing a short workplace situation, which
is introduced at the beginning of each chapter and revisited
throughout, to emphasize the application of HRM techniques
• Application cases and experiential exercises at the end of each
chapter reflecting HRM issues, concerns, and problems facing
organizations of various sizes and across a variety of industries
• Increased discussion of demographic changes at work, global
issues, ethical issues, and technology and family/life balance
issues throughout the book.

To learn more about this text, please visit:
W W W.MHHE.COM/IVANCEVICH12E
I VANC EV IC H
KONOPASK E

HUMAN RESOURCE MANAGEMENT
ISBN 978-0-07-802912-7
MHID 0-07-802912-0

90000

EAN

T WE L FTH E DI T ION

www.domorenow.com

&

ROBE RT KONOPASKE

780078 029127
www.mhhe.com

MD DALIM #1174746 12/19/11 CYAN MAG YELO BLK

9

J OH N M I VANC EV IC H


iva29120_fm_i-xviii.indd Page i 1/13/12 8:41 AM user-f462

/202/MH01165/iva29120_disk1of1/iva29120_pagefiles

Human
Resource
Management
Twelfth Edition

John M. Ivancevich
Cullen Professor of Organizational
Behavior and Management
C.T. Bauer College of Business
University of Houston

Robert Konopaske
Associate Professor of Management
McCoy College of Business Administration
Texas State University


iva29120_fm_i-xviii.indd Page ii 1/11/12 9:45 AM user-f462

/202/MH01165/iva29120_disk1of1/iva29120_pagefiles

HUMAN RESOURCE MANAGEMENT
Published by McGraw-Hill/Irwin, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the
Americas, New York, NY, 10020. Copyright © 2013, 2010, 2007, 2004, 2001, 1998, 1995, 1992, 1989, 1986,
1983, 1979 by The McGraw-Hill Companies, Inc. All rights reserved. Printed in the United States of America.
No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database
or retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not
limited to, in any network or other electronic storage or transmission, or broadcast for distance learning.
Some ancillaries, including electronic and print components, may not be available to customers outside the

United States.
This book is printed on acid-free paper.
1 2 3 4 5 6 7 8 9 0 QDB/QDB 1 0 9 8 7 6 5 4 3 2
ISBN 978-0-07-802912-7
MHID 0-07-802912-0
Vice president and editor-in-chief: Brent Gordon
Editorial director: Paul Ducham
Executive director of development: Ann Torbert
Managing developmental editor: Laura Hurst Spell
Editorial coordinator: Jonathan Thornton
Vice president and director of marketing: Robin J. Zwettler
Marketing director: Amee Mosley
Marketing manager: Donielle Xu
Vice president of editing, design, and production: Sesha Bolisetty
Senior project manager: Dana M. Pauley
Buyer II: Debra R. Sylvester
Senior designer: Matt Diamond
Senior photo research coordinator: Jeremy Cheshareck
Photo researcher: Jeremy Chesahreck
Media project manager: Suresh Babu, Hurix Systems Pvt. Ltd.
Cover design: Matt Diamond
Interior design: Matt Diamond
Typeface: 10/12 Times New Roman
Compositor: Aptara®, Inc.
Printer: Quad/Graphics
Library of Congress Cataloging-in-Publication Data
Ivancevich, John M.
Human resource management / John M. Ivancevich, Robert Konopaske.—12th ed.
p. cm.
Includes index.

ISBN 978-0-07-802912-7 (alk. paper)—ISBN 0-07-802912-0 (alk. paper)
1. Personnel management. 2. Personnel management—Case studies. I. Konopaske, Robert. II. Title.
HF5549.I88 2013
658.3—dc23
2011050957

www.mhhe.com


iva29120_fm_i-xviii.indd Page iii 1/11/12 9:45 AM user-f462

/202/MH01165/iva29120_disk1of1/iva29120_pagefiles

To
Dana Louise Ivancevich
Our sun, mountain, and water.
To
My Loving and Supportive Wife, Vania.


iva29120_fm_i-xviii.indd Page iv 1/11/12 9:45 AM user-f462

/202/MH01165/iva29120_disk1of1/iva29120_pagefiles

Dedication
John (Jack) M. Ivancevich
(August 16, 1939–October 26, 2009):

In Memoriam.
Hugh Roy and Lillie Cranz Cullen Chair and Professor of Organizational Behavior and

Management, C.T. Bauer College of Business, University of Houston; BS from Purdue
University, and MBA and DBA from the University of Maryland.

iv

The management discipline lost a passionate and award-winning educator, and an influential leader with an incomparable work ethic and sense of integrity. Jack led by example and
those of us who were fortunate enough to know him were inspired to work harder and
reach higher than we ever thought possible.
Jack was committed to higher education and the creation and dissemination of management knowledge. He was comfortable in the classroom and would encourage students to
think critically about the concepts and theories of organizational behavior and management and apply them to their lives. Jack had an “open door” policy, and spent countless
hours helping students and answering their questions. His reputation as a tough teacher
was softened by his appreciation for the need of many students to balance a desire for
education with a full-time job and family demands. Among Jack’s most valued honors was
the Ester Farfel Award for Research, Teaching, and Service Excellence, the highest honor
bestowed to a University of Houston faculty member.
Complementing his passion for teaching, Jack loved to write books. He tried to write at least
300 days a year, averaging about 1,200 words per day. Over a 40-year period, Jack reached well
over a million students by authoring or co-authoring 88 books about various aspects of management and organizational behavior. Currently in its twelfth edition, Human Resource Management continues to be well received by students and instructors alike. After working as a
contributor on the previous three editions of HRM, it is an honor to become a co-author on the
twelfth edition. A sample of Jack’s other textbooks include the award-winning Organizations:
Behavior, Structure, Processes (co-authored with Robert Konopaske, James L. Gibson, and
James H. Donnelly); Organizational Behavior and Management (co-authored with Robert
Konopaske and Michael T. Matteson); Global Management and Organizational Behavior (coauthored with Robert Konopaske); Management and Organizational Behavior Classics
(co-authored with Michael T. Matteson); Fundamentals of Management: Functions, Behavior,
Models (co-authored with James L. Gibson and James H. Donnelly); and Management: Quality
and Competitiveness (co-authored with Peter Lorenzi, Steven Skinner, and Philip Crosby).
Jack was not only an accomplished educator and book author, but he was also a prolific
and respected researcher. Well known for his highly disciplined work ethic, Jack authored
or co-authored some 160 research articles that were published in such journals as Academy
of Management Journal, Academy of Management Review, Administrative Science Quarterly, Journal of Applied Psychology, and Harvard Business Review. His research was influential and explored a range of management and organizational behavior topics, including

job stress, white-collar crime, diversity management, global assignments, job loss, absenteeism, job satisfaction, goal setting, job performance, training method effectiveness, and
organizational climate. The diversity of Jack’s research reflected the complex and interrelated
nature of management issues in organizations. In 2000, in recognition of publishing a
substantial number of refereed articles in Academy of Management journals, Jack was
inducted into the Academy of Management’s Journals Hall of Fame as one of the first 31
charter members. This is an impressive achievement when considering that in 2000, the
Academy of Management had approximately 13,500 members.


iva29120_fm_i-xviii.indd Page v 1/11/12 9:45 AM user-f462

/202/MH01165/iva29120_disk1of1/iva29120_pagefiles

Dedication

v

In addition to teaching, writing books, and conducting research, Jack applied his knowledge of organizational behavior and management to the several leadership positions he
held since joining the University of Houston faculty in 1974. In 1975, he was named chair
of the Department of Organizational Behavior and Management, and in the following year,
Jack became the associate dean of research for the College of Business Administration at
UH. In 1979, Jack was awarded the Hugh Roy and Lillie Cranz Cullen Chair of Organizational Behavior and Management, among the most prestigious positions at the University
of Houston. From 1988 to 1995, he served as dean of the UH College of Business Administration. In 1995, Jack was named UH executive vice president for academic affairs and
Provost, a position he held for two years. Through visionary, performance-driven, and
principled leadership, Jack left a lasting and meaningful imprint on the entire University of
Houston community, including internal constituents like fellow administrators, deans,
program directors, faculty, staff, and students, as well as external stakeholders like legislators, donors, alumni, and area company executives. His accomplishments were even more
extraordinary given the fact that Jack continued to teach classes, write books, and publish
research articles while holding these myriad leadership positions.
Jack made innumerable contributions to all facets of higher education, all of which will be

felt for years to come. Perhaps one of Jack’s greatest and longest-lasting legacies will be
from the many individuals he mentored during his 45 years in higher education. As busy as
he was throughout his entire career, Jack was extremely generous with his time and made it
a priority to mentor a large number of individuals, including current and former students,
junior faculty, colleagues from the publishing industry, and many others. He wanted people
to succeed and would do everything he could to help them accomplish their goals. Jack
would often invite younger faculty members to collaborate with him on research projects. As
a member of 80 doctoral and master’s committees, Jack relished his role as mentor and
would spend hours with graduate students, helping and guiding them through the process of
conducting original research for their theses or dissertations. Jack was always willing to
make phone calls and write detailed letters of recommendation on behalf of his students to
help them get hired or, later in their careers, get promoted or be awarded tenure. He invested
heavily in these individuals and expected hard work and commitment to excellence in return.
Many of these former graduate students are professors at universities and colleges throughout the United States and now find themselves mentoring and inspiring their own students.
On a personal note, Jack was my mentor, colleague, and friend. Words cannot capture how
grateful and honored I feel to have worked so closely with him on several textbooks and research projects over the past 10 years. We became acquainted in 1999 after Jack agreed to be
my dissertation chair at the University of Houston. Given Jack’s stature and commanding presence, I was a little intimidated by him in the beginning but quickly realized he was a “gentle
giant” who could switch rapidly between discussions of research, books, academic careers,
teaching, and the importance of being a good family man and father, and achieving balance in
one’s life. Jack was a great storyteller and especially liked relating tales of his early years on
the south side of Chicago. He taught me many things; some lessons were passed along during
thoughtful conversations but most came by observing him in action. Jack taught me to take life
“head on” with a strong, positive, and can-do attitude while never losing sight of the importance of being a loving and committed husband and father. He will be sorely missed by all of
us who were fortunate to have been touched by his warm friendship and guided by his generous spirit. Jack is survived by his wife of 37 years, Margaret (Pegi) Karsner Ivancevich; son
Daniel and wife Susan; daughter Jill and husband David Zacha, Jr.; and grandchildren Kathryn
Diane and Amanda Dana Ivancevich, and Hunter David Michael, Hailey Dana, and Hannah
Marie Zacha. Jack was preceded in death by his beloved daughter Dana, and by his first wife,
Diane Frances Murphy Ivancevich.
Robert Konopaske

iva29120_fm_i-xviii.indd Page vi 1/11/12 9:45 AM user-f462

/202/MH01165/iva29120_disk1of1/iva29120_pagefiles

Preface
Managers are aware that HRM is a strategic function that must play a vital role in the success of organizations. HRM is no longer an afterthought, a limited service, or a unit to be
tolerated. It is an active participant in charting the strategic course an organization must
take to remain competitive, productive, and efficient.
This twelfth edition of Human Resource Management—like the earlier editions—takes
a managerial orientation; that is, HRM is viewed as relevant to managers in every unit,
project, or team. Managers constantly face HRM issues, challenges, and decision making.
Each manager must be a human resource problem solver and diagnostician who can deftly
apply HRM concepts, procedures, models, tools, and techniques. This book pays attention
to the application of HRM approaches in real organizational settings and situations.
Realism, currentness, understanding, and critical thinking are cornerstones in each edition
of this text.
Human resource management is clearly needed in all organizations. Its focal point
is people; people are the lifeblood of organizations. Without them, there is no need for
computer systems, compensation plans, mission statements, programs, strategic planning
or procedures. Because HRM activities involve people, the activities must be finely tuned,
properly implemented, and continuously monitored to achieve desired outcomes. The
uniqueness of HRM lies in its emphasis on people in work settings and its concern for the
well-being and comfort of the human resources in an organization. This edition focuses on
(1) managers and leaders with the responsibility to optimize performance and do what is
ethically correct; (2) employees (e.g., engineers, clerks, software programmers, designers,
machinists, chemists, teachers, nurses) who perform the work; and (3) HRM specialists
who advise, support, and aid managers and nonmanagers in their work.
Students and faculty identify readability as a key strength of this book. This book also
remains current, thorough, and relevant. But it was never intended to be an encyclopedia or

a compendium of human resource management tools, laws, or ideas. Instead, the intent
was to provide a book that instructors and students could learn from and that would stimulate their own ideas, while keeping them up to date on HRM theory and practice.

Pedagogical Features
In order to make the book relevant, interesting, scholarly, and practical, a number of pedagogical procedures were adopted and strengthened with each new edition. Each chapter
contains most of the following elements:

vi

• Brief list of behavioral learning objectives and an outline of the chapter.
• Your Career Matters—a new feature that helps readers apply chapter material to
improving their own careers.
• HR Challenge—a short situation emphasizing applied HRM techniques and issues that
introduces each chapter and is further developed at various points in the chapter and at
its conclusion.
• HR Journal—a brief news story or best-in-class example about an actual company,
technique, or group of people.
• HR Memo—a margin item that highlights a statistic, fact, historical point, or relevant
piece of information.
• The most recent statistics and data available on topics covered in the chapter.


iva29120_fm_i-xviii.indd Page vii 1/13/12 8:39 AM user-f462

/202/MH01165/iva29120_disk1of1/iva29120_pagefiles

Preface vii

• More scenarios including small- and medium-sized companies.
• Increased discussion of demographic changes at work, global issues, ethical issues, and

technology and family–life balance issues.
• The law and its impact on HRM is introduced to illustrate why managers must be up to
date and knowledgeable about legal matters.
• Chapter Summary—a handy, concise reference to the chapter’s main points.
• List of Key Terms (plus a comprehensive glossary of key terms at the end of the book).
• Questions for Review and Discussion.
• Application case(s) and/or experiential exercises—reflecting HRM issues, concerns,
and problems faced in organizations of various sizes and in a wide array of industries.

Parts and Appendixes
The twelfth edition consists of five parts, divided into 17 chapters, and four appendixes.
The appendix at the end of Chapter 1 discusses careers in HRM. Appendix A, “Measuring Human Resource Activities,” was originally prepared by Jac Fitz-Enz, PhD, president
of the Saratoga Institute. It has been updated with each edition. It spells out the reasons
why measurement is important and how a measurement system for the HRM unit can
be developed and styled. Appendix B, “Where to Find Information, Facts, and Figures
about Human Resource Management,” was originally prepared by Paul N. Keaton of
the University of Wisconsin–La Crosse, and has been updated for this edition. This
appendix provides valuable sources of information that are useful in HRM. Appendix C,
“Career Planning,” was prepared by the author of the text. It examines important steps
involved in career planning that each person must accept responsibility for and initiate
at the appropriate time. Each reader of the book must become actively involved in his
or her own career plan.

New and Strengthened Content Features
Each new edition involves major revisions, additions, deletions, and rewriting. Comments
by instructors, students, practitioners, researchers, consultants, legal experts, and colleagues are each taken seriously so that the twelfth edition is better, fresher, more valuable,
and current. It is estimated that over 3,000 changes were made in this edition. Instead of
detailing these changes a select few mentions will set the tone for your own perusal.
• The most up-to-date references and illustrative materials are incorporated. This is a book
for current and aspiring HR professionals, managers, and leaders. However, when earlier

citations were the best available they remain. Recent citations are not always the best or
the most relevant.
• A greater emphasis on managerial responsibilities and actions pertaining to HRM
activities is woven throughout the content and chapter elements.
• Recent company examples illustrate the challenges of managing human resources.
• Examples of shifting demographics, ethical issues, global challenges, and work–life
balance decisions are included.
• New learning objectives, end-of-chapter questions, and cases are incorporated.
• More examples are given of managing the decision making in solving HRM problems
and dealing with competitors, global issues, government regulations, labor issues, and
personal issues.


iva29120_fm_i-xviii.indd Page viii 1/13/12 8:39 AM user-f462

/202/MH01165/iva29120_disk1of1/iva29120_pagefiles

viii Preface

Resource Materials
A complete set of instructor’s resource materials is available with this text. The instructional
materials have been carefully updated and revised to complement the twelfth edition. The
following supplements are available via the Online Learning Center at www.mhhe.com/
ivancevich12e.

Instructor’s Manual and Test Bank
For each chapter, the instructor’s manual contains a list of learning objectives; a chapter
synopsis; a summary of the HR Challenge; presentation notes; teaching tips; answers to
questions for review and discussion; suggestions for additional questions, term paper
topics, and a group project; case and/or exercise notes; and answers to case questions. The

test bank consists of approximately 1,700 true/false, multiple-choice, and essay questions.
Each question is classified according to level of difficulty and includes a text page
reference.

PowerPoint® Slides
Numerous PowerPoint slides are provided, complementing the 17 chapters in the text.
These slides consist of both original lecture materials and key textual material.
Students—Visit the Student Resources section of the Online Learning Center (www.mhhe.
com/ivancevich12e) for self-grading quizzes and chapter review material. Additional
premium content is also available for online purchase, including Self-Assessment, Test
Your Knowledge, and Manager’s Hot Seat exercises.

The Manager’s Hot Seat Videos Online
See www.mhhe.com/MHS. In today’s workplace, managers are confronted daily with
issues like ethics, diversity, working in teams, and the virtual workplace. The Manager’s
Hot Seat videos allow students to watch as real managers apply their years of experience
to confront these issues. Students assume the role of manager as they watch the video and
answer multiple-choice questions that pop up, forcing them to make decisions on the spot.
They learn from the manager’s mistakes and successes, and then do a report critiquing the
manager’s approach by defending their reasoning. Reports can be e-mailed or printed out
for credit. These video segments are a powerful tool for this course that truly immerses
students in the learning experience.

Human Resource Management Video DVD Volume 3
This DVD provides 16 HRM-related videos, including one new video produced by the
SHRM Foundation (Once the Deal is Done: Making Mergers Work). Other new notable
videos available for this edition include Google Employee Perks, Zappos.com, and Recession Job Growth.


iva29120_fm_i-xviii.indd Page ix 1/11/12 9:45 AM user-f462

/202/MH01165/iva29120_disk1of1/iva29120_pagefiles

Acknowledgments
Helpful comments were provided for each edition by outstanding reviewers, many of whose
ideas and recommendations were used. Their promptness, tact, and knowledge of HRM
were certainly appreciated. The lead reviewers for the twelfth edition were:
Kevin Barksdale
Grand Canyon State University
Harry E. Fisher
Eureka College
Connie Nichols
Odessa College
James E. O’Neil
Keene State College
Mark Pendel
Ball State University

Mel E. Schnake
Valdosta State University
Naomi Werner
Bauer College of Business
Theodora P. Williams
Marygrove College
Lynn Wilson
St. Leo University

The following faculty members also provided feedback on previous editions and/or extensive
market information on the HRM discipline in general. They are to be commended for their
time and effort in providing us with feedback.

David A. Ainscow
National University
Benigno Alicea
University of Puerto Rico
Bryan K. Annable
Post University
Barry Armandi
SLTNY–Old Westbury
Vondra A. Armstrong
Pulaski Technical College
Tim Barnett
Louisiana Tech
Steven Bershire
Alaska Pacific University
Vicky K. Black
Oakland City University
Teresa Brady
Holy Family College
John C. Bucelato
Hampton University
John F. Burgess
Concordia University
G. W. Bush
Brandeis University
Charles Cambridge
California State University–Chico

Carol M. Carnevale
SUNY Empire State College
Anne Cowden

California State University–Sacramento
Janette Dozier
Tulane University
Nilgun Dungan
Minot State University
Norb Elbert
Bellarmine College
Richard J. Erickson
Southern College
Elizabeth Evans
Concordia University–Wisconsin
Karl M. Everett
Webster University
Michael Feldstein
Peace College
Robert J. Forbes
Oakland University
Larry Frazier
City University of Seattle
Robert Gatewood
University of Georgia
C. Josef Ghosn
Atlantic Union College

ix


iva29120_fm_i-xviii.indd Page x 1/11/12 9:45 AM user-f462

x

/202/MH01165/iva29120_disk1of1/iva29120_pagefiles

Acknowledgments

Perry Haan
Wilmington College
E. C. Hamm
Tidewater Community College
Carol Harvey
Assumption College
Nancy Hess
Bloomsburg University
Paul E. T. Jensen
Northwestern Polytechnic University
Harriet Kandelman
Barat College
George J. Karl III
Southern College
Paul N. Keaton
University of Wisconsin–La Crosse
Kenneth A. Kovach
University of Maryland
Leo A. Lennon
Webster University
Barry University
Robert Lewellen
Peru State College
Jerry Madkins
Tarleton State University

Daniel S. Marrone
SUNY–Farmingdate
Norman Mermetstein
Touro College
Linda Merrill
SUNY–Stony Brook
Tracy Miller
University of Dayton
Kenneth Mitchell
Harris–Stowe State College
Jonathan S. Monat
California State University–
Long Beach

William Muller
University of Northern Iowa
Charles Noty
Roosevelt University
Allen Ogheneiobo
Miles College
Michael W. Popejoy
Palm Beach Atlantic College
Kathleen Premo
St. Bonaventure University
James D. Proffitt
Illinois College
Charles Rarick
Transylvania University
Dennis Rhodes
Drake University

Rajib Sanyal
Trenton State College
Michael Soltys
Allentown College
Chester S. Spell
Rutgers University
Diane M. Stagg
Parks College
David B. Stephens
Utah State University
Saia Swanepoet
Tednikan Prekna–South Africa
Dave Wilderman
Wabash Valley College
Carolyn Wiley
The University of Tennessee–Chattanooga
Laura Wolfe
Louisiana State University
Douglas S. Woundy
Virginia Military Institute

Peggy Adams is the organizer, home-based and virtual, as the administrative assistant, locator of data, word processing wizard, and interpreter of my numerous revisions.
This revision would be incomplete without Peggy’s prompt, accurate, and creative work,
patience, experience, and tolerance. Peggy always makes my revision work pleasant,
productive, and invaluable. She is a consummate professional who has enabled the author
to meet deadlines, complete thorough revisions, and provide top quality materials to the
publisher. I sincerely thank her for being a part of my team and for working so hard to
complete the revision of this book on time and always displaying a pleasant smile.

iva29120_fm_i-xviii.indd Page xi 1/11/12 9:45 AM user-f462

/202/MH01165/iva29120_disk1of1/iva29120_pagefiles

Brief Contents
vi

10 Compensation: An Overview

Acknowledgments ix

11 Compensation: Methods and
Policies 328

PART ONE

12 Employee Benefits and Services

Preface

Introduction to Human Resource
Management and the Environment

1

1

Human Resource Management

2

A Strategic Approach to Human Resource
Management 29

3

Legal Environment of Human Resource
Management: Equal Employment
Opportunity 64

4

2

Global Human Resource
Management 95

PART FOUR
Developing Human Resources

389

13 Training and Development

390

14 Career Planning and Development

432

PART FIVE
Labor–Management Relations and
Promoting Safety and Health 467

16 Managing Employee Discipline

127

5

Human Resource Planning

6

Job Analysis and Design

7

Recruitment 186

8

Selecting Effective Employees

17 Promoting Safety and Health

128
150

Rewarding Human Resources

Performance Evaluation and
Management 254

APPENDIXES
217

GLOSSARY

502

528

557
581

PHOTO CREDITS

PART THREE
9

358

15 Labor Relations and Collective
Bargaining 468

PART TWO
Acquiring Human Resources

297

591

253

INDEXES

593

xi


iva29120_fm_i-xviii.indd Page xii 1/11/12 9:45 AM user-f462

/202/MH01165/iva29120_disk1of1/iva29120_pagefiles

Contents
Preface

vi

Appendix 1A
Careers in HRM

Acknowledgments ix

Notes

PART ONE

Chapter 2

A Strategic Approach to Human Resource
Management 29

INTRODUCTION TO HUMAN
RESOURCE MANAGEMENT AND THE
ENVIRONMENT 1
Chapter 1
Human Resource Management

Efficiently Employing the Skills and Abilities of the
Workforce 11
Providing Well-Trained and Well-Motivated
Employees 12
Increasing Employees’ Job Satisfaction and
Self-Actualization 12
Achieving Quality of Work Life 12
Communicating HRM Policies to All Employees 12
Maintaining Ethical Policies and Socially Responsible
Behavior 13
Managing Change 13
Managing Increased Urgency and
Faster Cycle Time 13

Who Performs HRM Activities

14

Outsourcing 14
The Interaction of Operating and HR Managers
HRM’s Place in Management 15

HR Department Operations

16

HRM Strategy 16
Clarifying Meaningful HRM Objectives 17
HRM Policy 17
HRM Procedures 18
Organization of an HR Department 19

Summary 21
Key Terms 21
Questions for Review and Discussion
Application Case 1–1

22

The Human Resource Manager and Managing
Multiple Responsibilities 22
xii

A Model to Organize HRM 32
ARDM: A Diagnostic Approach to HRM
External Environmental Influences 34

2

A Brief History of Human Resource Management
Strategic Importance of HRM 7

HRM and Organizational Effectiveness 9
Objectives of the HRM Function 10
Helping the Organization Reach Its Goals 11

25

27

5

33

Government Law and Regulations 34
The Union 35
Economic Conditions 36
Competitiveness 37
Composition and Diversity of the Labor Force 38
Geographic Location of the Organization 41

Internal Environmental Influences
Strategy 42
Goals 43
Organization Culture 44
Nature of the Task 45
Work Group 46
Leader’s Style and Experience

42

46

Strategies HRM: An Important Key to Success
Strategic Challenges Facing HRM 48

Technology 48
Diversity: Building a Competitive Workforce 49
Caliber of the Workforce 52
Organizational Restructuring and Downsizing 53
Contingent Workers 53

People and the HRM Diagnostic Framework
15

47

Abilities of Employees 54
Employees’ Attitudes and Preferences
Motivation of Employees 54
Personality of Employees 55

Desirable End Results 55
Summary 56
Key Terms 58
Questions for Review and Discussion
Exercise 2–1
Dissecting the ARDM Model and Its
Application 58

Application Case 2–1
Gen Y Rocks the Business World

Notes

61

59

54

58

54


iva29120_fm_i-xviii.indd Page xiii 1/11/12 9:45 AM user-f462

/202/MH01165/iva29120_disk1of1/iva29120_pagefiles

Contents

Chapter 3
Legal Environment of Human Resource
Management: Equal Employment
Opportunity 64
How Did EEO Emerge?

The Expatriate Manager in the Multinational
Corporation 104
Selecting the Expatriate Manager 104
Culture Shock and the Expatriate Manager 106

Training the Expatriate Manager 107
Compensating the Expatriate Manager 109

67

Societal Values and EEO 67
Economic Status of Minorities: Before 1964
The Government 68

Host Country Nationals and the Global
Corporation 111
The Legal and Ethical Climate of
Global HRM 111
Labor Relations and the International
Corporation 113
Summary 115
Key Terms 116
Questions for Review and Discussion 116
Exercise 4–1

68

Equal Employment Opportunity Laws: Content and
Court Interpretations 68
Title VII of the 1964 Civil Rights Act 68
Title VII and Sexual Harassment 72
Title VII and Pregnancy Discrimination 74
Title VII and Religious Minorities 74
Title VII and “English-Only” Rules 75
Civil Rights Act of 1991 75

Executive Order 11246 (1965) 76
Equal Pay Act of 1963 76
Age Discrimination in Employment Act (ADEA)
of 1967 76
Americans with Disabilities Act (ADA) of 1990 77
Americans with Disabilities Act Amendments Act
(ADAAA) of 2008 78
State Laws 78

Enforcing the Law

xiii

Development of Global Managers

116

Exercise 4–2
Avoiding Costly International HRM Mistakes

117

Application Case 4–1
A One-Year Assignment to China: Go Solo or Bring the
Family? 118

Application Case 4–2
Reverse Offshoring: A New Source of Jobs for College
Graduates? 119

79

Notes

120

Equal Employment Opportunity Commission (EEOC) 79
The Courts 81

PART TWO

Affirmative Action in Organizations 83
What Is Affirmative Action? 83
Voluntary Affirmative Action Plans 83
Involuntary Affirmative Action Plans 83
Affirmative Action Issues 84

Summary 86
Key Terms 87
Questions for Review and Discussion
Exercise 3–1

ACQUIRING HUMAN RESOURCES
Chapter 5
Human Resource Planning

Dissecting the Diagnostic Model and Its Application

88

Application Case 3–1
Sexual Harassment Cases Are Becoming More
Complex 90

Notes

128

Human Resource Planning 129
Strategic and Human Resource Planning
The HR Planning Process 131

87

92

130

Situation Analysis and Environmental Scanning 131
Forecasting Demand for Employees 131
Analyzing the Current Supply of Employees 135
Action Decisions in Human Resource Planning 137

Human Resource Information Systems

139

Employees’ Privacy, Identity Theft, and HRIS

Chapter 4

Global Human Resource Management
A Global Perspective

97

The Cultural Nature of Global HRM 99
The Concept of “Fit” in Global HRM 100
Multinational and Global Corporations 100

96

127

Summary 143
Key Terms 144
Questions for Review and Discussion
Application Case 5–1

144

Human Resource Planning and Virtual Human
Resource Management 145

Notes

146

142

iva29120_fm_i-xviii.indd Page xiv 1/11/12 9:45 AM user-f462

xiv

/202/MH01165/iva29120_disk1of1/iva29120_pagefiles

Contents

Chapter 6
Job Analysis and Design

Methods of Recruiting

150

The Vocabulary of Job Analysis 152
The Steps in Job Analysis 152
The Uses of Job Analysis 153
Who Should Conduct the Job Analysis?
The Use of Charts 154
Methods of Data Collection 156

Realistic Job Previews 202
Alternatives to Recruitment 203
Overtime 203
Outsourcing 204
Temporary Employment

154

Netiquette: Effectively Communicating with
E-Mail 207

160

Functional Job Analysis 160
Position Analysis Questionnaire 162
Management Position Description Questionnaire

Job Descriptions and Specifications

Application Case 7–1
E-Recruiting: Too Much of a Good Thing?
164

165

Job Analysis and Strategic Human Resource
Management 168
Competency Modeling 170

Job Design

170

Scientific Management and the Mechanistic
Approach 171
Job Enrichment: A Motivational Approach 172
Work–Family Balance and Job Design 173
Job Design in Teams 175

Summary 176
Key Terms 177
Questions for Review and Discussion
Application Case 6–1

177

Job Analysis: Assistant Store Managers at Today’s
Fashion 178

Application Case 6–2
Job Analysis and Maternity Leave: Calming the Boss’s
and Co-workers’ Nerves 180

Notes

181

Chapter 7
Recruitment

186

External Influences

204

Cost–Benefit Analysis of Recruiting 205
Summary 206

Key Terms 206
Questions for Review and Discussion 207
Exercise 7–1

Observation 156
Interviews 159
Questionnaires 159
Job Incumbent Diary or Log 159
Which Method to Use? 160

Specific Quantitative Techniques

195

Internal Recruiting 195
External Recruiting 196

189

Government and Union Restrictions 189
Labor Market Conditions 190
Composition of Labor Force and Location of
Organization 191

Interactions of the Recruit and the
Organization 191
The Organization’s View of Recruiting 191
The Potential Employee’s View of Recruiting 192

208

Application Case 7–2
Are New Recruits Looking for Work–Life Balance?

Notes

210

212

Chapter 8
Selecting Effective Employees
Influences on the Selection Process

217
218

Environmental Circumstances Influencing
Selection 218

Selection Criteria

219

Categories of Criteria 220
Reliability and Validity of Selection Criteria

The Selection Process

223

225

Step 1: Preliminary Screening 226
Step 2: Employment Interview 228
Step 3: Employment Tests 232
Step 4: Reference Checks and Recommendations
Step 5: Selection Decision 238
Step 6: Physical Examinations 239

Selection of Managers 240
Cost–Benefit Analysis for the Selection
Decision 243
Summary 243
Key Terms 244
Questions for Review and Discussion 244
Exercise 8–1
Posting Your Résumé Online

245

Application Case 8–1
Internet-Based Reference Checks:
A New Approach 245

Application Case 8–2
Online Résumés Are Here to Stay?

Notes

248

247

237


iva29120_fm_i-xviii.indd Page xv 1/11/12 9:45 AM user-f462

/202/MH01165/iva29120_disk1of1/iva29120_pagefiles

Contents

PART THREE

Internal Influences on Compensation

REWARDING HUMAN
RESOURCES 253
Chapter 9
Performance Evaluation and
Management 254

Compensation Decisions

The Case for Using Formal Evaluation

258

Purposes of Evaluation 258

Legal Implications of Performance Evaluations

Format of Evaluation

258

Establish Criteria 261
Set Policies on Who Evaluates, When, and
How Often 261
Who Should Evaluate the Employee? 262

The Comparable Worth Debate

Notes

264

Individual Evaluation Methods 264
Multiple-Person Evaluation Methods 270
Management by Objectives 273
Which Technique to Use 275

Potential Problems in Performance Evaluations

276

284

Selecting and Appraising Administrative Assistants at
Row Engineering 285

Application Case 9–1
Evaluating Store Managers at Bridgestone/Firestone
Tire & Rubber 287
The Politics of Performance Appraisal

Notes

Objective of Compensation 299
External Influences on Compensation

Determination of Individual Pay
Methods of Payment 331

330

Flat Rates 331
Payment for Time Worked 331
Variable Pay: Incentive Compensation
Ownership 342
People-Based Pay 343
Executive Pay 344
Pay Secrecy or Openness
Pay Security 348
Pay Compression 349

332

346

347

Summary 349
Key Terms 350
Questions for Review and Discussion
Application Case 11–1
Customizing Bonus Pay Plans

Notes

350

351

354

291

294

Chapter 10
Compensation: An Overview

322

325

Issues in Compensation Administration

Application Case 9–2

322

Chapter 11
Compensation: Methods and Policies

Opposition to Evaluation 276
System Design and Operating Problems 276
Rater Problems 276
The Halo Effect 277
Eliminating Rater Errors 279
Avoiding Problems with Employees 280

The Feedback Interview 281
Summary 283
Key Terms 284
Questions for Review and Discussion
Exercise 9–1

312

The Pay-Level Decision 312
Pay Surveys 313
The Pay Structure Decision 315
Delayering and Broadbanding 320
The Individual Pay Decision 321

Summary 321
Key Terms 322
Questions for Review and Discussion

Application Case 10–1

260

Selected Evaluation Techniques

307

The Labor Budget 309
Who Makes Compensation Decisions 309
Pay and Employees’ Satisfaction 309
Pay and Employees’ Productivity 310

Chapter 12
Employee Benefits and Services
297
299

The Labor Market and Compensation 299
Economic Conditions and Compensation 302
Government Influences and Compensation 302
Union Influences and Compensation 307

Background

358

360

Why Do Employers Offer Benefits and

Services? 360
Who Makes Decisions about Benefits?

Mandated Benefits Programs

361

Unemployment Insurance 362
Social Security 363
Workers’ Compensation 364

360

328

xv


iva29120_fm_i-xviii.indd Page xvi 1/11/12 9:45 AM user-f462

xvi

/202/MH01165/iva29120_disk1of1/iva29120_pagefiles

Contents

Voluntary Benefits

366

Introduction to Training

Compensation for Time Off 366
Paid Holidays 367
Paid Vacations 367
International Vacation Benefits 368
Personal Time Off 368
Sick Leave 368
Family Leave 369
Maternity and Parental Leave 369
Employer-Purchased Insurance 370
Health Insurance 370
Life Insurance 372
Disability Income Replacement Insurance

Income in Retirement

Managing the Training Program

On-the-Job Training 403
Case Method 405
Role-Playing 405
In-Basket Technique 406
Management Games 406
Behavior Modeling 407
Outdoor-Oriented Programs 407
Which Training and/or Development Approach Should
Be Used? 408

373

376

Management Development: An Overview
What Is Management Development?
Goal Setting 415
Behavior Modification

Step 1: Set Objectives and Strategies for Benefits
Step 2: Involve Participants and Unions 380
Step 3: Communicate Benefits 380
Step 4: Monitor Costs Closely 380

379

382

385

Assessing Training Needs

PART FOUR
DEVELOPING HUMAN RESOURCES 389
390

393

Goals of Orientation 394
Who Orients New Employees?
Orientation Follow-Up 395

394

422

423

Summary 424
Key Terms 425
Questions for Review and Discussion
Exercise 13–1

426

426

Application Case 13–1
Dunkin’ Donuts and Domino’s Pizza: Training for
Quality and Hustle 426

Notes

428

Chapter 14
Career Planning and Development
The Concept of Career

Introduction to Orientation

417

Criteria for Evaluation 422
A Matrix Guide for Evaluation

Cost–Benefit Analysis of Benefits 380
Summary 381
Key Terms 382
Questions for Review and Discussion 382
Application Case 12–1

Chapter 13
Training and Development

415

Development: Team Building 421
Evaluation of Training and Development
378

414

414

Development: Individual Techniques

Flexible Benefits Plans and Reimbursement
Accounts 378
Managing an Effective Benefits Program 379

Notes

399

Training and Development Instructional
Methods 403

373

Stock Ownership Plans 376
Education Programs 376
Preretirement Programs 377
Child Care 377
Elder Care 377
Financial Services 377
Social and Recreational Programs

Benefits Are Vanishing

397

Determining Needs and Objectives 399
Choosing Trainers and Trainees 403

Retirement Income from Savings and Work 373
Individual Retirement Accounts (IRAs) 373
SEP (Simplified Employee Pension) IRAs 374
401(k) Plans 374

Employee Services

395

Goals of Training 396
Learning Theory and Training
Training Activities 398

432

434

Career Stages 436
Career Choices 438

Career Development: A Commitment 442
Career Development for Recent Hirees 443
Causes of Early Career Difficulties 443
How to Counteract Early Career Problems

444

Career Development during Midcareer

446

The Midcareer Plateau 446
How to Counteract Midcareer Problems
Preretirement Problems 448

447

iva29120_fm_i-xviii.indd Page xvii 1/11/12 9:45 AM user-f462

/202/MH01165/iva29120_disk1of1/iva29120_pagefiles

www.downloadslide.net
Contents

How to Minimize Retirement Adjustment
Problems 448

Career Planning and Pathing

Collective Bargaining 480
Prenegotiation 481
Selecting the Negotiators 481
Developing a Bargaining Strategy 482
Using the Best Tactics 483
Reaching a Formal Contractual Agreement
Contract Ratification 484

449

Career Planning 449
Career Pathing 451

Career Development Programs: Problems and
Issues 452
Managing Dual Careers 452

Career Planning and Equal Employment
Opportunity 454
Downsizing and Job Loss 455

Summary 459
Key Terms 460
Questions for Review and Discussion
Exercise 14–1
My Career Audit

Failure to Reach Agreement

Notes

Administering the Contract
460

487

Discipline 487
Grievances 487
Arbitration 489

461

The Changing Climate of Unionization in the
United States 490

461

464

Union Membership Trends 490
Global Unionization 491
Union Organizing Trends 491

PART FIVE
LABOR–MANAGEMENT RELATIONS
AND PROMOTING SAFETY AND
HEALTH 467

Summary 493
Key Terms 494
Questions for Review and Discussion
Exercise 15–1
Reporting on Labor Unions

Union–Management Contract Negotiations

470

National Labor Relations Act (Wagner Act) 472
Labor Management Relations Act
(Taft-Hartley Act) 473
Labor–Management Reporting and Disclosure Act
(Landrum-Griffin Act) 473

473

Federation of Unions 473

Intermediate Union Bodies 474
National Unions 475
Local Unions 475

The Union Organizing Campaign 475
Authorization Card Campaign and Union
Certification 476

477

Levels of Union Security 478
Right-to-Work Requirements 478

Public Employee Associations
Background 479
Public Sector Labor Legislation

479
480

495
495

Application Case 15–1

Early Collective Action and Union Formation
Labor Legislation Overview 472

Structure and Management of Unions

494

Exercise 15–2

Chapter 15
Labor Relations and Collective
Bargaining 468

Union Security

484

Strikes 485
Lockouts 485
Permanent Replacements 486
Third-Party Intervention 486

Application Case 14–1
The Dual-Career Couple

484

Boeing’s Decision to Build the 787 Dreamliner in
South Carolina: Good Business Decision or Union
Busting? 498

Notes

499

Chapter 16
Managing Employee Discipline
Categories of Difficult Employees

502

504

Category 1: Ineffective Employees 504
Category 2: Alcoholic and Substance-Abusing
Employees 505
Category 3: Participants in Theft, Fraud, and Other
Illegal Acts 507
Category 4: Rule Violators 509

The Discipline Process 512
Approaches to Discipline 514
The Hot Stove Rule 514
Progressive Discipline 514
Positive Discipline 515

The Disciplinary Interview: A Constructive
Approach 516

xvii


iva29120_fm_i-xviii.indd Page xviii 1/11/12 9:45 AM user-f462

/202/MH01165/iva29120_disk1of1/iva29120_pagefiles

www.downloadslide.net
xviii

Contents

Legal Challenges to Discipline and Termination 517
Employment at Will 517
Alternative Dispute Resolution

519

Summary 521
Key Terms 521
Questions for Review and Discussion
Exercise 16–1
Making Difficult Decisions

Evaluation of Safety and Health Programs 549
Summary 550
Key Terms 551
Questions for Review and Discussion 551
Exercise 17–1

522

522

Preparing for an OSHA Inspection

Application Case 16–1
The High Cost of Theft and Fraud

Notes

Indoor Environmental Quality (IEQ) 544
HIV-AIDS in the Workplace 546
Cumulative Trauma Disorders (CTDs) 548

Campus Food Systems

525

Notes

Chapter 17
Promoting Safety and Health

528

Background 529
Causes of Work-Related Accidents and Illnesses
Who Is Involved with Safety and Health? 532
Governmental Responses to Safety and Health
Problems 543
OSHA Safety Standards 534
OSHA Inspections 536
OSHA Record Keeping and Reporting
OSHA: A Report Card 537

536

Organizational Responses to Safety and
Health Issues 538
Safety Design and Preventive Approaches 538
Inspection, Reporting, and Accident Research 538
Safety Training and Motivation Programs 539

Preventive Health Programs: A Wellness
Approach 539
Safety and Health Issues 541
Stress Management 542
Violence in the Workplace

543

551

Application Case 17–1

523

532

552

554

Appendix A
Measuring Human Resource

Activities 557
Appendix B
Where to Find Information, Facts, and
Figures about Human Resource
Management 563
Appendix C
Career Planning
Glossary

571

581

Photo Credits
Name Index

591
593

Company Index
Subject Index

601
603


iva29120_ch01_001-028.indd Page 1 12/6/11 10:35 AM user-f462

/202/MH01165/iva29120_disk1of1/iva29120_pagefiles

www.downloadslide.net

Introduction to
Human Resource
Management and the
Environment

1

Part

Human resource management (HRM) is the effective management of people at work.
HRM examines what can or should be done to make working people more productive and
satisfied. This book has been written for individuals interested in learning about people
working within organizations. Its goal is to help develop more effective managers and staff
specialists who work directly with the human resources of organizations.
Part One consists of four chapters. Chapter 1, “Human Resource Management,” introduces the reader to HRM and careers in HRM. The diagnostic approach is introduced in
Chapter 2, “A Strategic Approach to Human Resource Management.” Chapter 2 also reviews behavioral science perspectives on managing people and shows how knowledge of
these can be used to influence employee effectiveness. In addition, the chapter discusses
the ways managers use knowledge of environmental factors—diversity of the labor force,
technological change, globalization, government regulations, and union requirements—to
influence employee performance. Chapter 3, “Legal Environment of Human Resource
Management: Equal Employment Opportunity,” describes the influences of the legal environment on HRM. A number of major laws and regulations are discussed in this chapter, as
well as throughout the book. Chapter 4, “Global Human Resource Management,” discusses
HRM in the era of globalization. The “global enterprise” and the interdependence of
nations have become a reality. Global mass markets, intense competition, and market
freedom have fostered an international interest in managing human resources.


iva29120_ch01_001-028.indd Page 2 12/6/11 10:35 AM user-f462

/202/MH01165/iva29120_disk1of1/iva29120_pagefiles

www.downloadslide.net

Chapter

1

Human Resource
Management
Learning Objectives
After studying this chapter you should be able to:
1.

Describe the fundamental aspects of human resource management.

2.

Describe the strategic importance of human resource management
(HRM) activities performed in organizations.

3.

Give examples of career opportunities available in the HRM field.

4.

Compare the role that specialists and operating managers play in
performing HRM activities.

5.

Summarize the main objectives pursued by HRM units in organizations.


iva29120_ch01_001-028.indd Page 3 12/6/11 10:35 AM user-f462

HR Challenge

/202/MH01165/iva29120_disk1of1/iva29120_pagefiles

www.downloadslide.net

Don Brokop has, over the past several years, proved himself an outstanding shift supervisor
at the Melody Machine Products Corp. plant in South Chicago. He has worked every shift,
likes people, and recently was the winner of the Outstanding Plant Manager award. Don,
now 41 years old, is beginning to look closely at his career plans. He believes that he needs
to gain some experience in jobs other than production.
Last week a position opened at the plant for an assistant director of human resources. At
first, Don gave no thought to the position, but later he asked his boss, Marty Fogestrom,
about it. Marty encouraged Don to think his plans through and to consider whether he
wanted to work in the area of human resource management.
Don talked with plant colleagues about the new position, searched through online versions of HR Magazine, The Wall Street Journal, and BusinessWeek, read over some HR job
postings on www.monster.com and www.hotjobs.com, and found a number of interesting
news items concerning human resource management. He discovered that many different
careers existed in this field. He realized that he had not really understood the job done by
Melody’s department of human resources. What struck him most was that issues, problems,
and challenges concerning people are what human resources are about.
Here are a few of the news items that caught his eye:1

• During the height of a previous economic downturn, Ben Cheever lost his job as an
editor at Reader’s Digest. He decided to write a book (Selling Ben Cheever: Back to Square
One in a Service Economy). In response to his sudden job loss he offered advice to others
who had lost their jobs: (1) you are not your job title, (2) get past the shame barrier,
(3) keep in touch with those in your network, and (4) always have a plan. In a nutshell—
don’t be shy; don’t be ashamed; take action with confidence.
• The Web is a great place for HR managers and those interested in HRM to find suggestions, best-in-class examples, and resources. A favorite site of those in the know is www.
shrm.org. SHRM, or the Society for Human Resource Management, is a well-known
global professional HR organization with over 250,000 members in 140 countries. It
offers a free job hunting portal (see “SHRM’s HR Jobs”).
• Training is a HRM activities. In 2010, U.S. firms spent a total of $52.8 billion on training.
In good and bad economic times the top firms stick with training and the message it
sends about valuing people. Some of the top annual training budgets are found at
IBM—$1 billion; Ford Motor—$500 million; Intel—$319 million; and Boeing—$250 million.
Companies continue to stress the importance of training as a competitive business
advantage.
• The number of companies offering employees online access to HR functions such as
benefits enrollment, family status changes, and changes to 401(k) contributions is
increasing. A survey conducted by Towers Perrin indicated 60 percent of employers
reported that they allow employees to complete their benefits enrollment and to perform other HR functions online. These findings show a 30 to 50 percent increase across
companies in one year.
• Many companies praise the benefits of telecommuting (employees who work at home
on a regular basis) such as lower real estate costs, reduced turnover, increased productivity, and an increased ability to comply with workplace laws (e.g., Americans with
Disabilities Act and Family and Medical Leave Act). However, a study of managers and
employees by Boston College Center for Work & Family found some telecommuting
disadvantages. It found that telecommuters work more, rate their work–life balance
satisfaction lower, believe they have worse relationships with their managers and coworkers, and are less committed to their job. The pros and cons of telecommuting need
to be studied over long time periods.
• The most family friendly workplaces have some common elements, according to this
year’s Working Mother magazine (www.workingmother.com) list of the 100 best

(continued on next page)
3


iva29120_ch01_001-028.indd Page 4 12/6/11 10:35 AM user-f462

HR Challenge

/202/MH01165/iva29120_disk1of1/iva29120_pagefiles

www.downloadslide.net
(continued)

companies to work for. These include offering perks and benefits that workers value,
including child care, company culture, work–life balance, flextime, and telecommuting (on a part-time basis). A few of the 2010 Working Mother 100 best companies
include Bank of America, Discovery Communications, and PricewaterhouseCoopers.
At Bank of America, employees have a large say in defining how they get their jobs
done. At Discovery Communications, new moms are given nine weeks (with full pay)
to stay at home with the newborn. PWC chose several fast-track female leaders for
a new Breakthrough Leadership Development program.
• Don Tapscott, internationally recognized consultant, has been talking about a new
knowledge-based economy for years. Microsoft, he says, has almost missed the environmental shift. The firm’s management was clinging to the view that it was a PC (personal
computer) firm, ignoring the Web and its potential. It was not money that turned
Microsoft around but human capital (knowledge). Brain power is what Tapscott claims
saved Microsoft and makes it a major force in the 21st-century economy.
Don Brokop thought about his recent conversations, his career plans, the news stories,
and the challenges of moving from production to human resource management. He
thought his experience in first-line management would be helpful if he was fortunate
enough to land the job, but he wondered if he was qualified for this kind of job. Otherwise,
he was confident and considered his college education and experience invaluable. He

wanted new challenges. Then he learned through the grapevine that the job was his if he
wanted to make the move. If you were Don, would you be likely to make this kind of career
shift? Don’s decision will be presented at the end of this chapter.

4

People, human talent, employees are assets not liabilities, being in the people business—
these words and thoughts are common in modern society. Don Brokop is considering the
challenges associated with this new wave of professional treatment and concern for people
within organizations. Organizations are definitely in the people business—Don certainly
saw this after only a quick review of a few news stories.
This book will focus on people and optimizing performance in organizational settings. The
entire book will be concerned with the employees of organizations—the sales associates, website designers, software engineers, supervisors, managers, and executives. Small, medium, and
large organizations, such as MicroTech, IBM, Kroger Supermarket, Procter & Gamble, MerckMedco, CVS Pharmacies, eBay, and GAP understand clearly that to grow, prosper, and remain
healthy they must optimize the return on investment of all resources—financial and human.
When an organization is really concerned about people, its total philosophy, culture, and
orientation will reflect this belief. In this book, human resource management (HRM)
is specifically charged with programs concerned with people—the employees. Human
resource management is the function performed in organizations that facilitates the most
effective use of people (employees) to achieve organizational and individual goals.
Whether a human resource management function or department even exists in a firm, every
manager must be concerned with people.
Terms such as personnel, human resource management, industrial relations, and employee development are used by different individuals to describe the unit, department, or
group concerned about people. The term human resource management is now widely used,
though a few people still refer to a personnel department. In order to be current, the term
human resource management will be used throughout the book. It is a term that reflects the
increased concern that both society and organizations have for people. Today, employees—
the human resource—demand more of their jobs and respond favorably to management
activities that give them greater control of their lives.2

iva29120_ch01_001-028.indd Page 5 12/6/11 10:35 AM user-f462

/202/MH01165/iva29120_disk1of1/iva29120_pagefiles

www.downloadslide.net
Chapter 1

Human Resource Management

5

Human resource management (HRM) consists of numerous activities, including
1.
2.
3.
4.
5.
6.
7.
8.

Equal employment opportunity (EEO) compliance.
Job analysis.
Human resource planning.
Recruitment, selection, motivation, and retention.
Performance evaluation and compensation.
Training and development.
Labor relations.
Safety, health, and wellness.

These activities are topics of various chapters in this book. They also appear as elements
in the model of the HRM function that is used throughout the text. (This model is described in Chapter 2.)
The following five descriptions of the HRM unit should be stressed at the outset:
1. It is action-oriented. Effective HRM focuses on action rather than on record-keeping,
written procedures, or rules. Certainly, HRM uses rules, records, and policies, but
it stresses action as it partners with operating and business managers within the organization. HRM emphasizes the solution of employment problems to help achieve organizational objectives and facilitate employees’ development and satisfaction.
2. It is people-oriented. Whenever possible, HRM treats each employee as an individual
and offers services and programs to meet the individual’s needs. McDonald’s, the
fast-food chain, has gone so far as to give an executive the title vice president of
individuality.
3. It is globally oriented. HRM is a globally oriented function or activity; it is being practiced in India, Poland, and China. Many organizations around the world treat people
fairly, with respect, and with sensitivity. Thus, American practitioners can review bestin-class HRM practices from around the world to determine if some principles can be
applied or modified to work in the United States.
4. It is future-oriented. Effective HRM is concerned with helping an organization achieve
its objectives in the future by providing for competent, well-motivated employees. Thus,
human resources need to be incorporated into an organization’s long-term strategic plans.
5. It is strategically oriented. Effective HRM practices should support the organization’s
business strategy. For example, if an organization plans to expand into China and India,
then HR managers must plan on hiring employees with the appropriate language, culture, and international business skills and experiences.
The HR Journal on HRM 2.0 suggests several trends that HRM professionals must address
as they craft high-impact talent management practices to help their organizations succeed.

A Brief History of Human Resource Management
The history of HRM can be traced to England, where masons, carpenters, leather workers,
and other craftspeople organized themselves into guilds. They used their unity to improve
their work conditions.3
The field further developed with the arrival of the Industrial Revolution in the latter
part of the 18th century, which laid the basis for a new and complex industrial society. In
simple terms, the Industrial Revolution began with the substitution of steam power and

machinery for time-consuming hand labor. Working conditions, social patterns, and the


iva29120_ch01_001-028.indd Page 6 12/6/11 10:35 AM user-f462

/202/MH01165/iva29120_disk1of1/iva29120_pagefiles

www.downloadslide.net
6

Part One

Introduction to Human Resource Management and the Environment

HR Journal HRM 2.0: Which of the Following HRM-Related Trends Are True?
True or false: Social media and networking sites like
Facebook, Twitter, and Linkedln are changing the
ways HR professionals conduct recruiting and other
HR-related activities.
True or false: In 2010, approximately 100,000 individuals filed charges of discrimination with the U.S.
Equal Employment Opportunity Commission. This
represented a 25 percent increase over the number
of charges filed in 2000.
True or false: The Society of Human Resource Management continues to be the largest HR association
in the world with over 250,000 members from
140 countries.
True or false: Many HR professionals from companies
of all sizes believe that intense global competition
and the emergence of developing markets like
Brazil, India, and China are creating the need for

employees with cross-cultural and international
business knowledge.
True or false: At many workplaces, there can be up to
four distinct generations working side by side—the
traditionalists, baby boomers, Generation Xs, and
Millennials (or Generation Ys)—which can lead in
some instances to misunderstandings and frustration.
True or false: Some companies outsource significant
parts of the HR function to organizations like IBM,
Accenture, Convergys, and Hewitt in order to gain
efficiencies and lower costs.
True or false: By 2016, the U.S. Bureau of Labor
Statistics predicts that the labor force will be much

more diverse with an increasing number of older
workers, women, and Hispanic and Asian Americans
entering the workforce.
True or false: More and more employees are trying
to achieve better work–life balance and are attracted
to organizations that offer job sharing, flextime,
and/or telecommuting work arrangements.
All of these HRM-related trends are true. HRM professionals, in order to be successful and have impact, need
to understand and respond to these trends as they develop and implement initiatives and program within
their organizations.
As these trends suggest, the field of HRM has come a
long way from the days when it was considered a purely
bureaucratic and administrative function in organizations where records were kept and payroll checks were
issued. In contrast, HRM professionals of today have to
manage not only the operational, day-to-day aspects of
HRM but also to partner with the business leaders of the

organization in order to provide value added insight and
suggestions that support the organizational culture and
strategic direction of the firm.
Sources: Adapted from Jennifer Schramm (June 2011), “Think
Globally,” HR Magazine, pp. 156–57; Adrienne Fox (May 2011),
“Mixing It Up,” HR Magazine, pp. 22–27; Charge Statistics FY 1997
Through FY 2010 ( accessed on June 22,
2011); Mitra Toosi, (November 2007), “Labor Force Projections
to 2016-More Workers in Their Golden Years,” Monthly Labor Review, U.S. Bureau of Labor Statistics ( accessed
on June 22, 2011); Ed Frauenheim (2009), “Xerox-ACS Deal Latest
Shake-up in HR0 Market,” Workforce Management, pp. 15–16.

division of labor were significantly altered. A new kind of employee—a boss, who wasn’t
necessarily the owner, as had usually been the case in the past—became a power broker in
the new factory system. With these changes also came a widening gap between workers
and owners.
Scientific management and welfare work represent two concurrent approaches that
began in the 19th century and, along with industrial psychology, merged during the era
of the world wars.4 Scientific management represented an effort to deal with inefficiencies in labor and management primarily through work methods, time and motion
study, and specialization. Industrial psychology represented the application of psychological principles toward increasing the ability of workers to perform efficiently and
effectively.
The renowned father of scientific management was Frederick W. Taylor. An engineer at
Midvale Steel Works in Philadelphia from 1878 to 1890, he studied worker efficiency and
attempted to discover the “one best way” and the one fastest way to do a job. He summarized scientific management as (1) science, not rules of thumb; (2) harmony, not discord;
(3) cooperation, not individualism; and (4) maximum output, not restricted output.5