FILE - 20210225 - 095140 - MBA Human Resource Management

HUMAN RESOURCE
MANAGEMENT
MBA 409
A STUDY GUIDE
M. Girard, Ph.D.
2000
About the Author
The Author of this Study guide, Maureen Girard, lives in Clearwater, Florida and is a
professor of Business Psychology at Schiller International University in Dunedin,
Florida.
Dr. Girard earned her Ph.D. in Psychology from Walden University in Minneapolis,
Minnesota, USA. In addition, she holds a Master of Science degree in Managerial
Technology from Johnson and Wales University, Providence, Rhode Island, USA, and
a Bachelor of Science degree in Health Care Science from St. Joseph’s College in
Windham, Maine, USA.
Dr. Girard had many years of professional experience counseling groups and families
as well as giving workshops in forensic counseling.
Among her notable publications is “Tuition Reimbursement: An Unused Benefit”, The Florida
Nurse, April 1992.
Dr. Girard has been included in the 20th Edition (1997) of Who’s Who of American
Women.
COURSE NUMBER: MBA 409
CREDITS: 3
COURSE TITLE: Human Resource Management
PRE-REQUISITES: Graduate Standing

American City University Human Resource Management
American City University Human Resource Management 1
COURSE OUTLINE
LESSON TITLE PAGE

COURSE OVERVIEW 1
1 INTRODUCTION 3
2 EXTERNAL CONDITIONS 7
3 ORGANIZATIONAL CONDITIONS 15
4 EMPLOYEE CHARACTERISTICS 23
5 PLANNING AND EVALUATION 27
6 EXTERNAL RECRUITING 35
7 EXTERNAL EMPLOYEE SELECTION 39
8 SEPARATIONS, REDUCTION AND RETENTION 45
9 INTERNAL STAFFING AND CAREERS 53
10 TRAINING AND DEVELOPMENT 57
11 THE PAY SYSTEM 63
12 INDIVIDUAL PAY 69
13 BENEFITS 77
14 UNIONS 83
15 EMPLOYEE RELATIONS 89
16 THE EVOLVING HUMAN RESOURCE
MANAGEMENT PROFESSION 95
GLOSSARY 101
FINAL PROJECT 105
PRACTICE TESTS 107
REFERENCES 115
2 American City University Human Resource Management
GUIDANCE FOR DISTANCE LEARNING
This self-directed learning modality is a challenge and it will give you the opportunity to
continue with your other activities. It also requires self-discipline and motivation. Other students
who have successfully completed distance learning programs have found the following advice
helpful.
1. Think about your daily routine and identify time that is available for study.
2. Develop a realistic study schedule.
3. Refer to this schedule and advise the people you live with of this quiet time.
4. Follow the schedule.
5. Set aside a suitable place for study. It should be quiet, adequately lighted, and properly
ventilated.
6. Work each day until you have completed one practical task during each study period.
7. Read the entire study guide for each lesson before beginning the textbook reading
assignment.
8. Concentrate on understanding the material as a unified whole rather than viewing it one
concept at a time.
9. Take notes as you would in a classroom. This will help you focus on the subject matter.
10. When possible, try to relate what you are reading to actual situations in your own profession
or personal experiences.
PROCEDURE
The main reading in this course will be the textbook. You are also expected to read
the study guide and key points associated with each lesson. It is advisable to read the key
points before reading the chapter in the text. Included at the beginning of each lesson in the
study guide you will see questions that will help you focus on the presented material. It is
advisable to write down the answers because this will be an additional learning aid. As you
know, there will be no formal lectures in this course. The study guide will guide you through the
course, acting, in part, as your tutor. You will need to take responsibility for your own learning.
American City University Course Overview 1
HUMAN RESOURCE MANAGEMENT

COURSE OVERVIEW
Text
Milkovich, George T. and John W. Boudreau, Human Resource

Management , 8th ed. Chicago: Irwin McGraw-Hill, 1997.
Introduction
The study of human resource management is vital to any
organization because human resources deals with the most important
component of any organization---people. It is people who will make or
break an organization. It is the human resource function that enforces an
organization's values and beliefs. It is also the human resource manager
and/or the human resource department that is uniquely positioned to
ensure ethical behavior throughout the organization.
The study of human resource management is of vital concern to

anyone who works in a managerial capacity because managing human
resources impacts every aspect of the day-to-day management of each
department within every organization.
Human resource management is commonly divided into five

general areas: staffing, development, compensation management,
employee/labor relations, and maintenance of corporate culture.
Grading
Your online facilitator will determine the grading criteria for

this course at the beginning of the semester.
American City University Lesson One 3
LESSON 1
INTRODUCTION
LEARNING OBJECTIVES
At the completion of the lesson, the student should be able to:
1. List the main functions of human resource management.
2. Summarize the concepts of equity and efficiency as they apply to

human resource management.
3. Explain the organizational changes that are currently affecting the

practice of human resources management.
Focus Questions
1. What are the main functions of human resource management?
2. How do the terms equity and efficiency effect the practice of

human resource management?
3. What changes are currently inspiring the function of human resource

management?
KEY POINTS AND COMMENTARY
The Basic Activities of Human Resource Management

The importance of staffing cannot be exaggerated. It is the
people within the organization who will eventually determine the health
and viability of the organization. Providing AND retaining the proper

people is an HR responsibility.
The concept of staff development is undergoing rapid transformation

because of the change in organizational practices. No longer does staff
development simply mean supplying a rigid type of orientation and
periodic planned training. It is more likely to consist of setting up a
mentor program with training for the mentors, as well as the new workers.
Periodic training sessions may now mean assisting the employees in
shifting from a more formal setting to a learning organization.
Managing compensation includes monitoring the competition's pay

scales and benefit packages, as well as designing the pay scales. Benefit
packages have radically changed from vacation time, health insurance,
and sick days and now may include "cafeteria benefits," multiple health
care options, compensation for learning and tuition reimbursement.
The employee/labor relations function of HR includes the provision

of fair and equitable treatment for all employees and may also include
labor relation activities such as contract negotiation and, in some cases,
collective bargaining.
Maintenance of corporate culture is also part of the global

functioning of human resources. It is in the management of human
resources that the shaping of the criteria for promotion, disciplinary
action, and firing are determined. Orientation and staff development are
also human resource functions. It is within these functions that
organizational culture is changed or maintained because these activities
integrate the values and objectives of the organization.
Equity and Efficiency

All functions dealing with people must also be administered in a fair
and equitable manner. In other words, both the procedures and the
decisions of HRM must be fair and equally applied across all levels of the
organization.
These procedures and decisions must also be efficient and reflect

the aims of the organization. Integrating equity and efficiency can be
difficult because they may conflict with one another.
American City University Lesson One 5
The decisions made in the human resource management area affect

all the stakeholders of an organization. A stakeholder is any person or
group affected by the organization.
The stakeholders of most organizations would include:
employees, stockholders, managers, consumers, unions, regulatory

agencies, and neighbors.
The employees certainly want good working conditions, equitable

compensation, and job security. The managers wish to meet the
objectives set by the organization. Consumer's interests want
economically priced quality goods and/or services. Stockholders are
looking for return on their investments. Unions and regulatory agencies
strive to protect the interests of the workers and neighbors are concerned
with pollution/toxic issues and traffic control.
It is easy to see how the interests of these groups may come into
conflict. For example, stockholders may advocate reduction in labor
costs through reduction in the total workforce and/or wages and benefits.
This will conflict with the interests of the workers. The managers' desire
to meet organizational objects may conflict with the workers' desire for
higher wages and better benefits. It is the HRM function to balance these
needs in the rapidly changing world of organizations.
Although the ultimate responsibility for HR management belongs to

the operating managers, the human resource professional is in the unique
role to advise and counsel in order to ensure that decisions are tailored to
the circumstances.
The Changing World of Organizations

Reorganization, downsizing, rightsizing, or whatever term is used
means the trend is for less bureaucracy and more personal accountability.
This has resulted in a change from multi-layered management structures
to leaner and flatter organizational design. This has impacted on the
human resource management function and forced organizations to
practice strategic staffing. In other words, the hiring and retention of

employees is now driven by the overall strategic plan of the organization.
The impact of technology has also greatly affected how

organizations deal with people. Not only has technology-displaced
workers, it has forced organizations to redesign jobs and seek
"knowledge" workers. This has made long-standing hiring criteria
unacceptable. It has also forced organizations to update their training
methods.
The major shifts in organizational design and operation have

changed the "deal" between the employee and the employer. The "deal"
between the employer and the employee used to mean that if the
employee was loyal, worked hard, and did a good job, the employer would
provide a secure position with steady pay increases and financial
security.
The world has changed. The new "deal" asks the employee to
develop needed competencies; apply them effectively; and, remain
flexible in work assignments. In exchange, the organization will support
skill development; recognize contributions and pay fairly.
7merican City University Lesson Two
LESSON 2
EXTERNAL CONDITIONS
LEARNING OBJECTIVES
At the completion of the lesson, the student should be able to :
1. Describe the role of government in the practice of human resource

management.
2. Discuss the role of diversity in the modern organization.
3. Explain the main characteristics necessary for workers in an

international business environment.
Focus Questions
1. What role does government have in the practice of human resource

management?
2. What is meant by diversity and how can an organization achieve it?
3. What are the main characteristics that HRM should seek for workers
in an international business environment?
The Role of the Government in Human Resource Management

The government is a basic external factor that effects the practice
of HRM through the enactment of laws. In the United States, there are a
numerous laws intended to protect the workers. Among these

employment legislative acts are laws that prevent discrimination.
It is against US Federal law to discriminate against anyone on

the basis of: race, sex, age, religion, national origin, marital status,
physical or mental disability, being a disabled veteran or Vietnam-era
veteran, or being pregnant.
According to the Civil Rights Act (1991), individuals are permitted to

sue for punitive damages in cases of discrimination. Furthermore,
discrimination does not have to be intentional to be illegal.
Title VII of the Civil Rights Act does permit certain exceptions:

Work-related requirements are allowed if those requirements are
necessary and a normal part of the job.

Bona fide occupational qualifications such as mandatory licenses for
certain professions--law, medicine, engineering, nursing, clinical social
work etc.

Seniority systems are accepted if they were not created to
discriminate,

Preferential-treatment for those groups who have been victims of
discrimination.
Compliance to the law is regulated (in the United States) by the

Equal Employment Opportunity Commission. In order to avoid legal
action, organizations must carefully analyze their practices of hiring,
training, and promoting to insure that they are in complete conformity with
these laws.
Diversity is a Positive Challenge

Mere compliance with the law is not sufficient to actually create an
organization that values true diversity. Diversity takes a number of forms:
gender, age, level of perceived capabilities (disabilities), culture,

education, and, language.
Diversity is also good for organizations. No longer is it possible for

large business firms to remain competitive without considering
globalization as a positive objective. As globalization increases, both
domestic and foreign firms find themselves increasingly interdependent
on markets, sourcing, and customers. Language differences,
understanding the nuances of cultural variation, and establishing good
faith with both foreign investors and customers now demands workforce
diversity.
The special advisor to the Asia Pacific Foundation of Canada,

Sandra Wilking, is cited in a recent study as stating that many Canadian
businesses are losing opportunities in the Asia Pacific region due to their
concerns about language differences, culture, and business practices. 1 .
Assuming that one's regional or national practices will be understood in
other cultures is false and self-defeating. Such an attitude is also very
expensive.
Even misunderstandings cost money. The Canadian province of

British Columbia lost a 3 billion dollar high-tech project that would have
created over 3,000 jobs because the prospective Asian investors chose
California, citing newspaper accounts of racism in British Columbia as the
reason for their choice. 2
The positive rewards of diversity are not limited to those areas

attempting to attract foreign investment or to those companies who
engage in global pursuits. Even organizations that remain domestic in
nature benefit from diversity.
The benefit of employing a diverse workforce in the

tourist/hospitality industry is obvious. For example, foreign tourists often
require guides who speak their language; senior citizens may enjoy
having other senior citizens for tour guides, and so forth. Healthcare
organizations also benefit from diversity. Understanding patients who
speak another language is a necessity. Other vital health-care concerns
may involve cultural practices. Having someone on staff who understands
these practices may be vital in caring for a patient. For example, in the
southern United States it is not uncommon to find pregnant rural women
eating laundry starch for its' supposed "good effects". In reality, this
practice may cause anemia and endanger both the unborn child, as well
as, the mother. Without the presence of a culturally aware staff person,
this practice may not even be suspected by people who are not familiar
with local culture.
Diversity also brings other rewards. It expands an organization's

horizons and allows the organization-increased opportunities. Some of
these opportunities may be quite unexpected. The case of the Chinese
lady who worked as a chemist at Torinno Food Company provides a good
example of this type of situation. She was a member of a product
development group who was trying to solve a flavoring problem
associated with the development of a new soup. Following a number of
scientific attempts to solve this dilemma, the lady broke all the rules of
her white, male-dominated group by simply going to the kitchen and
utilizing her knowledge of Chinese cooking to solve the problem. 3
The Scope of Diversity

The importance of diversity is increasing due to a number of factors
including the increasing numbers of women working outside of the home.
A little over 30 years ago, married women made up 32 percent of the
American work force; but that figure changed to 60 percent by 1990. 4 At
the same time, women with children under 6 years of age are the fasting
growing segment within the U.S. workforce. 5 Other countries also report
increases in the female work force.
The presence of older people working past what was considered

retirement age is another aspect of diversity. As general sanitation
practices and medical technology have improved, the age customarily
considered appropriate for retirement has risen due to workers in good
health and able to make positive contributions to the organization.
The globalization of the world economy also has a positive effect on

diversity. National borders are no longer considered the defining scope
of an organization's boundaries. Bavarian Motor Works (BMW), a German
automobile maker, builds cars in the United States. American companies
such as Gillette, Coca-Cola, and International Business Machines (IBM)
receive over 60 percent of their income from overseas sales. 6 In addition,
globalization and improved means of transportation have resulted in
increasing geographic mobility. This mobility has, in turn, resulted in
cross-cultural exchanges and language diversity.
Stages Leading to True Organizational Diversity

1. Exclusionary Organizations -Although illegal in many parts of
the world, this type of system still exists. The status quo is
maintained and all elements of the work force remain stationary.
This will not work in today's environment. In addition to the real
possibility of legal action, these organizations deprive
themselves of available talent and customers.
2. Club Organizations -This type of organization closely resembles

the exclusionary type; but such organizations may allow a "token"
minority as long as the individual is "deemed to have the 'right'
credentials and perspectives." 7 It is not hard to imagine what
attitudes permeate such an organization.
3. Compliance Organizations - These organizations meet the

letter-not the spirit of the law.
4. Affirmative Action Organizati ons -This type of organization is

proactive in its outlook and recruits minorities and women.
5. Redefining Organizations - This type of organization is a step

from the affirmative action type because it is willing to look at its'
core values and recognizes the importance of diversity in
meeting the goals of the organization.
6. Multicultural Organizations -This type of organization has "an

ongoing commitment to eliminate social oppression throughout
the organization." 8
Conditions Necessary for an Organization

to Make the Shift to a Multicultural Orientation
1. The leadership must understand that a diverse workforce will embody

different perspectives and approaches to work, and must truly value
variety of opinion and insight.
2. The leadership must recognize both the learning opportunities and the
challenges that the expression of different perspectives presents for an
organization.
3. The organizational culture must create an expectation of high

standards of performance from everyone.
4. The organizational culture must stimulate personal development.
5. The organizational culture must encourage openness.
6. The culture must make workers feel valued.
7. The organization must have a well-articulated and widely understood

mission.
8. The organization must have a relatively egalitarian, non-bureaucratic

structure. 9
Global Human Resource Management

The external environment affecting human resource management
differs from country to country. As the world economy becomes more
global, it is essential for those involved with human resource management
to be aware of local laws and customs that will impact their organizations.
This demands flexibility and the sensitivity to be able to adjust to
conditions that may be very different from those in their homeland.
Selection and Training of Workers for International Business

No matter what type of training is planned, the first consideration

must be the proper selection of suitable workers. Only those individuals
who are flexible will have an ability to adapt to a culture that may be far
different from the home situation.
In addition to flexibility, the primary quality for selection of workers

in an international environment must be the ability to convey respect for
others. This attribute is essential when dealing with people who may
have a far different value system. Although many countries exhibit
certain similarities, the host country may be far different from the home
country. The contrasts between the cultures may "feel" far different from
the written word in textbooks.
American City University Lesson Three 15
ORGANIZATIONAL CONDITIONS
LEARNING OBJECTIVES
1. Briefly describe the main elements that effect organizational

structure.
2. Explain the emerging types of organizational structures.
3. Define what is meant by job design and job enrichment?
Focus Questions
1. Give a brief description of the main elements that determine

organizational structure.
2. Explain the emerging types of organizational structures.
3. What is meant by job design and job enrichment and what are some
of the possible problems associated with these terms?
General Considerations Affecting Human Resource Management

Numerous factors within the organization effect the process of
human resource management. In addition to the obvious importance of
the financial health of the organization, the structure and strategy of the
organization are vital considerations.
The Structure of Modern Organizations

The world of organizations is changing due to the characteristics of
the workers, technology, and the external environment. For example, in
many areas routine and repetitive tasks have been taken over by
technology. Customers are more savvy--they demand quality. The global
economy has changed the concept of competition. No longer are your
competitors the business down the road or in the next town. Today, the
competition may be a continent away. These changes are reflected in the
structure of organizations. The formal, almost rigid, organization of
yesterday have been gradually replaced by other models that can respond
quicker and more efficiently to the changing global economy.
Organizational Structure
Organizational structure concerns how the positions in an
organization are arranged and how job tasks are grouped, divided and
coordinated. It is the organizations structure that determines how this
interaction takes place. Within this framework, there are six major
elements to consider:
1. Work specialization,
2. Chain of command,
3. Span of control,
4. Centralization/decentralization,
5. Departmentalization,
6. Normalization.
1. Work specialization refers to how tasks are divided into individual

jobs. In theory, the more specialized the job, the more efficient the
process. The usual example given to explain this is the assembly line.
On an assembly line, each worker performs one small function of the
process--turning a screw, attaching a part, and so forth. The work can
be repetitive and boring. This type of activity is usually confined to

those organizations that specialize in activities that are standardized,
such as manufacturing and the production and serving of fast foods.
2. Chain of command refers to the number of authority levels within an

organization. In this concept, there is a clear definition of authority
and this authority flows from the top, one level at a time and
communication within the organization is done through established
channels.
3. Span of control refers to the number of workers who are responsible

to one supervisor. An organization with a wide span of control has
many workers reporting to a single supervisor. Based on the chain of
command and the span of control, organizations are said to have either
a tall or flat structure. A tall structure has many layers of authority
(long chain of command) and short spans of control and a flat structure
is reversed---short chain of command and a wide span of control.
4. Centralization and decentralization refer to the decision-making

process. In highly centralized organizations, the decision-making
power is made at the top levels. In decentralized organizations, the
decision-making is distributed among some of the lower levels within
the organization. In a centralized organization, there tends to be
closer control over operations and uniformity of policies, procedures,
and practices. In a decentralized organization, decision-making tends
to be faster and the decisions are usually better adapted to local
conditions.
5. Departmentalization refers to the manner in which jobs are grouped.

This functional principle relates to grouping several or many positions
doing similar tasks into departments or units. For example, in a
hospital, the cooks, dishwashers, food delivery people, nutritionists,
and dietitians may all be grouped into the food service department.
6. Formalization is simply a way of referring to the degree to which job

descriptions are standardized and formal rules are applied. In other
words, do the workers have any discretion over their own working
environment?
Emerging forms of Organization Structure

Team structured organizations have emerged as one of the most
popular modern organizational format. A team is more than a group of
individuals who happen to work together toward a common goal. Teams,
like groups, have their own identity and focus on winning. They are often
cross-functional. This cross-functional approach breaks down
departmental barriers. Usually, teams are self-managed. Unlike traditional
organizations that feature specialized jobs and procedural rules, the
team-organization members have broadly define jobs. This structure
requires the workers to be generalists, as well as competent in their
particular specialties. 1 0 Teams either make their own decisions or have
considerable influence on organizational decisions. Thus, a team-based
organization usually has a flat structure with a short span of control.
The Study of Teams Has Produced Four Main Lessons . 1 1
1. "Significant performance challenges energize teams regardless of

where they are in the organization." 1 2 Organizational teams are not
social clubs. They continually focus on performance.
2. "Organizational leader can foster team performance best by building a

strong performance rather than by establishing a team-promoting
environment alone." 1 3
3. "Biases toward individualism exist but need not get in the way of
performance." 1 4 In other words, teams are not social groups or
committees.
4. "Discipline--both within the team and across the organization--creates

the conditions for team performance." 1 5 Teamwork is hard work.
In addition to the team-based structure, the matrix design, with its

structure determined by both product and function, has emerged as a very
workable and profitable form of organization. Due to this design, workers
may find themselves reporting to two different supervisors. Although the
potential for confusion exists, matrix organizations are inclined to have
high level of performance when dealing with a complex, creative project.

16
The virtual organization, also known as the network or modular

organization, is another structural form that responds to contemporary
conditions. This model consists of a small core organization that
outsources many major functions. Viewed from a structural perspective,
virtual organizations are highly centralized, with few or no departments.
Closely allied to the virtual organization, is the emerging shamrock

design advocated by Charles Handy. The structure of the shamrock
consists of three distinct parts , "each with a different kind of
commitment to the organization, a different contractual arrangement, a
different set of expectations." 1 7 The first of these three parts is the core
which is "composed of well-qualified people, professionals, or technicians
or managers.... They will work long and hard, but in return they want not
only proper rewards in the present but some guarantee for their
future...Life in the core...is going to resemble that in consulting firms,
advertising agencies, and professional partnerships." 1 8
The next part of this shamrock is the contractual fringe . "This

group is made up of both individuals and organizations.... The individuals
will be self-employed professionals or technicians.... Whether it be
organizations or individuals...the organizational principle remains the
same--they are paid for results not for time...[this] means that the central
organization can exercise control only by specifying the results, not by
overseeing the methods." 1 9
The third part of this shamrock consists of a flexible labor force .

These people choose to work part-time. "They have skills which can be
developed, commitment to give, talents and energies to offer...they do not
necessarily hanker after careers or promotion; they have interests and
concerns beyond the job...If the flexible labor force is seen to be a
valuable part of the organization, then the organization will be prepared
to invest in them, to give them status and some privileges (including paid
holidays and sick leave entitlement)." 2 0
The web is another emerging organizational structure. Using this

design, the organizational chart shows information flowing in all directions
with the center of the web sending and receiving information from all
points in the organization. Using this design, information can flow freely
in all directions. Tom's of Maine, a company that specializes in
environmentally friendly personal care products, uses this circular design

which offers an egalitarian and open method for conducting business. 2 1
Job Design and Job Descriptions

The idea of job design had its origin in Taylor's scientific
management movement. This eventually developed into what we know
call, job engineering. The main components of the job engineering view
of job design are concerned with work measurement and process. This
model is basically focused on the product, process, design, and methods
rather than on either the human side of organizations or quality. This way
of looking at work assumed that each job would be highly specialized and
each worker would be involved with such a highly specialized job. In a
highly industrialized environment where specialized skills resulted in
higher payment to the workers, this type of job design was viewed as
beneficial. For example, many steel processing companies were
physically divided into highly specialized units such as blast furnaces and
steel-rolling mills. Workers in such units were also highly specialized with
each job being very specific to one part of the work process. This was
seen as beneficial to both the company and the worker. The workers were
paid according to specific skill ability and the company viewed this
arrangement as very efficient because, although the needed skills were
very specialized, they were relatively easy to learn. In addition, having
highly skilled workers in such a environment was also beneficial from a
health and safety point of view due to the high-risk atmosphere existing in
a plant that utilized blast furnaces and high-speed machinery.
Eventually, it was realized that this highly specialized system

was being negatively impacted by the human element. The workers were
getting bored, tired, and stressed. This, in turn, was leading to lower
productive, absenteeism, and high turnover. The response to these
problems was job enlargement and job rotation. Job enlargement is the
horizontal expansion of jobs that increases diversity, and job rotation
moves workers into different jobs. Neither of these tactics challenges
workers or provides much meaning.
The next step was job enrichment.

The components of this motivating method are:
1. Combination of tasks. Existing fractionalized tasks were combined to

form a larger module of work requiring increased skill variety and task
identity.
2. Creation of natural work units. Assigning tasks that form a

meaningful and identifiable "complete entity" in order to increase
employee "ownership" of the work and to help the workers to view their
efforts as meaningful and vital rather than boring and irrelevant.
3. Establish client relationships. Establishing direct relationships

between the workers and the end users, because this develops
autonomy and feedback for the worker.
4. Vertical expansion of jobs. Giving employees responsibilities and

controls that formerly belonged to management.
5. Open feedback channels. Feedback provides confirmation of a job

"well-done," as well as helps the worker to progress to higher levels of
performance. 2 2
Job Enrichment and Personal Perception

Although this job enrichment model is designed to maximize
productivity, it fails to consider the effect of the individual's perception of
the job or task and the impact of social interaction toward that attitude.
For example, Mary has been a nurse in the intensive care unit (ICU) for
five years. Her job requires a high skill level and demands excellence in
a variety of tasks. Her work gives her a great deal of autonomy and is
highly significant to her clients. Working in the ICU also provides
excellent feedback because the results of her work are directly and
clearly manifest through the improved condition of her patients.
Considering that Mary's job provides all the elements needed to conform
to the job enrichment model, Mary should be a productive and happy
worker. Mary hates her job. She stated, "This job is boring--I do the
same stuff day in and day out. I take blood pressures. I hang blood. I
monitor this and that system. Even though I may spend time reassuring
the patients and their families, I'm just another body around here. I avoid
tired doctors who bark at me without even using my name. I could do this
job half-asleep." Her co-worker, Bill, is new at this job. He loves it. In
this example we have two people who are performing basically the same
job; but, one hates and the other loves it. The difference between these
two workers has nothing to do with the actual job, itself. The difference
exists in how each perceives it. This perceptive view of job design is
called the social processing information (SIP) model. 2 3 This model looks
to social cues provided by co-workers, supervisors, friends, family, or
clients. The important role of personal perception and social clues in job
satisfaction has been confirmed by research. 2 4
Problems With Job Design and Job Description

A careful reading of the above material makes it self-evident that
traditional job design and methods of job descriptions may not be
effective in a climate of change. Obviously, specific job qualifications and
mandatory licenses can't be ignored; but, modern organizations require
much more than a license and/or the ability to perform a certain, specified
job. According to Champy, modern employers are asking perspective
employees about:
*Your ability to communicate. Can you be clear about what you want
and need? Can you be persuasive, or even eloquent--in selling
situations, in teamwork, in service situations? Can you teach or mentor
others?
*Your interpersonal savvy. Can you trust and respect people of

different backgrounds....? Are you a good judge of character....?
*Your self-confidence. Can you make decisions? How do you make

decisions--impulsively or deliberately? Can you take initiative? Can you
ask for help? Can you give help?
*Your resourcefulness and adaptability. Are you self-reliant? Reliant

on others? Or (preferably) both?....What's your instinctive response to
change? What's your educated response to change?
*Leadership qualities. Can you listen? Can you speak so that others
listen? Can you win authority from others? Can you judge and reward the
people you work with on the basis of their performance...? 2 5
American City University Lesson Four 23
LESSON 4
EMPLOYEE CHARACTERISTICS
LEARNING OBJECTIVES
1. List how workers, management, and the organization utilize

performance assessments.
2. Give a brief explanation concerning the ways that criteria can be

contaminated.
3. Be able to list the main sources of rating errors.
Focus Questions
1. What are the ways that workers, management, and the organization
utilize performance assessments?
2. What are the ways criteria can be contaminated?
3. What are the main sources of rating errors?
LESSON COMMENTARY
The Importance of Performance Assessment
Performance assessments are used by both workers and

management.
Performance assessments are used by the workers to:
1. Advance their careers;
2. Obtain higher pay and/or benefits; and,
3. Provide feedback to help improve job performance.
Performance assessments are used by management to:
1. Make promotion decisions;
2. Make demotion or termination decisions; and,
3. Give workers constructive feedback in order to improve

performance.
Performance assessments are used by the organization to:
1. Assess the productivity of individuals and their various work units

or departments;
2. Validate the process of personnel selection and placement

methods;
3. Recognize outstanding workers:
4. Motivate workers;
5. Provide a written source of information for training needs; and,
6. Evaluate the effectiveness of organizational procedures such as

training programs and planned change.
Criterion Relevance
Assessment of performance should be relevant and based on job
analysis. That is, the criteria used to assess worker performance should
be based on what the actual job requires. For example, a bookkeeper
American City University Lesson Four 25
might be assessed on accuracy; but it would not be job-specific to rate a

bookkeeper on behavior linked to customer service skills such as
friendliness, professional appearance and so forth.
Contamination of Criteria
26
There are three common types of criterion contamination.
1. Opportunity bias --occurs when workers have different or unequal

opportunities for success. For example, an automobile salesperson
assigned to an economically depressed geographical area would not
have the same opportunity as another salesperson assigned to a more
affluent territory.
2. Group characteristic bias --occurs when the characteristics of the

group affect performance of the individual. For example, if the group
itself sets informal norms of production, it is almost impossible to
accurately assess the individual within the group.
3. Knowledge of predictor bias --occurs when the rater allows

knowledge of the worker to affect the rating. For example, a lawyer
being assessed should be judged on the quality of work produced and
not by the college where he/she studied law.
Rating Errors to Avoid

Performance rating errors are related to the faulty perception of the
rater.
The most common errors are:
1. Halo effect --this occurs when one positive trait influences the
entire rating process. For example, a good-looking employee is
judged on appearances rather than performance;
2. Leniency- severity errors--occur when raters fail to make

meaningful distinctions between workers, but rate everyone at
the extremes of the rating scales. Leniency may involve a
personal relationship between the rater and the person being
evaluated or be a product of the supervisor wishing for all the

employees to be highly rated in order to reflect on his or her own
abilities.
3. Central tendency errors --occur when the rater tends to give

everyone a similar rating--neither very good or very bad.
4. Similar-to-me errors --occur when the rater identifies with the

person being rated. The rater evaluates the worker in terms of
how similar the worker's job or methods are to those he/she has
or how personally similar the employee is to himself/herself. 2 7
5. Social influence errors --occur when there are social

relationships between the rater and the employee. Studies have
shown that employees who have good relationships with their
supervisors were rated higher even when the objective measures
of performance did not reflect this standard. 2 8
6. Context errors-occur when an employee is rated in the context

of others or on the basis of previous ratings. 2 9
American City University Lesson Five 27
LESSON 5
PLANNING AND EVALUATION
LEARNING OBJECTIVES
At the completion of this lesson, the student should be able to:
1. Give a brief definition of what is meant by job analysis and be able to

demonstrate its application.
2. Define what is meant by assessing and analyzing the internal resource

supply and be able to list the techniques used to determine this.
3. Be able to give a short explanation and provide an example of

accreditation.
Focus Questions
1. What is meant by job analysis? Using a job that you are familiar with,
provide an example of a job description with job specifications.
2. Define what is meant by assessing and analyzing the internal resource

supply and list the techniques used to determine this.
3. Give a short explanation and provide an example of accreditation.
Assessing and Analyzing Internal Human Resources Supply

In order to meeting the strategic plan of the organization, the HRM
function involves assessing and analyzing the internal resource supply.
This involves:

Determining how many of the current employees will be available;

Where they will probably be; and,

What characteristic they will have.
The techniques used to make these determinations involve:

Skill inventories that show current skill development and possibly
project future skill levels;

Replacement charts that list individuals ready to move into particular
jobs; and,

Transitional matrices that use past probabilities of movement to
forecast where current employees will be in the future.
Planning is the process which involves assessing the gap between

where we are and where we plan to be. Evaluation is the process used to
measure the outcomes that reflect the original objectives.
Human resources planning is the managerial process that

attempts to ensure that the right numbers and types of workers are in the
right place at the right time doing the right job at the right price in order
to add value to the organization. Human resource planning is a process
of building the future of the organization.
Current Assessment
Human resource planning involves assessing the current human
resources needs. This usually involves job analysis. Jobs within the
organization should be analyzed to determine what behaviors are
necessary to perform each job--what are the minimal skills essential to
properly execute the necessary behavior for a job? For example, in the
Research and Design Department(R&D), what are the necessary
academic and/or other professional qualifications that differentiate a

senior researcher from an entry-level researcher?
Job analysis produces the information necessary to draw up a job

description and job specification. A job description is a clearly written
statement of what a particular jobholder does, how it is done, and the
conditions of employment.
For example, a job description of a nursing position in a critical care

unit might consist of a list of duties expected such as:
1. Observation of current patient condition.
2. Administration of medication under physician supervision.
3. Care planning for each patient.
4. Changing dressings as needed.
5. Turning and positioning of patients.
6. Monitoring and adjusting IV medications and blood products.
The job specifications within that unit would differentiate the various
levels of nursing practice. For example, an entry-level nursing job in a
hospital critical care unit might consist of the following items.
1. Possession of the required license.
2. Possession of a CPR certificate.
3. Two or more use of recent hospital experience.
4. The ability to read monitoring equipment.
5. The availability to work varied shifts.
6. The willingness to participate in on-going staff development.

A nursing operational (shift) managerial position in the critical care unit

might consist of all of the above plus:
1. Possession of an earned degree in nursing.
2. Certification in Advanced Life Support.
3. Two or more years of current nursing experienced in a critical

care unit.
A nursing managerial position that involves total responsibility of

the unit on a 24-hour basis might include the standards for the above
positions plus:
1. Possession of an earned Masters' degree in Nursing

Management or similar field of study.
2. Two or more years of supervisory experience within a critical

care area.
3. Demonstrated ability to plan and execute financial affairs within a

health care setting.
4. Demonstrated ability to teach.
5. Demonstrated ability to coordinate a specific patient-care area

with other functions of the hospital.
Future Assessment
Future assessment of HR needs is determined by the objectives of
the organization and the anticipation of other forces that may impact the
organization.
Meeting the objectives of the organization involves strategic

planning. This planning requires both short-term and long-term goals,
broad programs and allocations designed to achieve these. Funds,
assets and people must be allocated or assigned to anticipated new
activities. Strategic needs must be analyzed, objectives agreed upon and
translated into everyday programs which involve operations' managers for

implementation. They must be communicated, resourced and controlled.
Information systems are needed with staff involved.
Strategic planning and management involves uncertainty, the non-

routine, complexity, organization wide implications, and significant rather
than small-scale change. Circumstances that mandate such planning are
driven by external and internal sources.
Certain principles should guide both the organization and those who
specifically deal with human resource management.
1. Human resource strategy must be anchored in the business strategy.
2. Human resource management is not about progress, it's about

relationships.
3. The human resource department must be known as an organization

that anticipates change and understands what is necessary to
implement it.
4. Human resources should be an outspoken advocate of employee

interests, yet it must understand that business decisions have to
balance a range of factors that often conflict with one another.
5. The effectiveness of HR depends on staying focused on issues rather

than personalities.
6. Human resource executives must accept that constant learning and

skill enhancement are essential to their being contributors to the
business.
30
External sources mandating change can originate as the result of

governmental regulations, competition, changing technology, or changing
customer needs. Internal sources may originate from the organization's
financial status, pressure from internal sources, perceived stagnation, or
the desire to improve quality.
Within the planning process, the cost must be estimated and figured
into the total plan. Human resources cost money; but effective human
resource planning adds value. Therefore, in addition to figuring the cost,
the value added should be calculated.
Assessing and Analyzing Internal Human Resources Supply

In order to meet the strategic plan of the organization, the HRM
function involves assessing and analyzing the internal resource supply.
This involves:

Determining how many of the current employees will be available;

Where they will probably be; and,

What characteristics they will have.
The techniques used to make these determinations involve :

Skill inventories that show current skill development and possibly
project future skill levels;

Replacement charts that list individuals ready to move into
particular jobs; and,

Transitional matrices that use past probabilities of movement to
forecast where current employees will be in the future.
Accreditation
Other forces may also drive an organization to change direction.
One of the most common forces is the pressure for accreditation.
Therefore, HRM planning and tactics may be in support of ISO 9000 or
other accreditation. The organization may forego short-term profits and
even seek further capital funds to secure this accreditation.
Accreditation may spread through the firm as policy, procedure and

controlling mechanisms. Even day-to day operations in the HR department
may be defined by specifications of standards and procedures e.g.
governing wage administration, delivery of training services, excellence in
recruiting or staff communication and consultation. Companies in pursuit
of accreditation require that employees need to be committed to this
process. Commitment to accreditation, or any long-term goals involves
total HRM participation because employees are not just members who are
pushed into doing something they do not want to do. A far-sighted
employer will invest to enhance the employer-employee relationship.
Employees want rewards - material and non-material - that satisfy.
HRM Statements and Lip-Service Only

Management's actions may not truly reflect what they say their HRM
strategy is. The danger is that declarations about human resource
intentions are only lip-service statements. Employees may see a disparity
between what is said and managerial action/ inaction.
Matters relating to the labor force may be lower down on the agenda
rather than being front running items - unless they are cost cutting items.
Yet managers may endeavor to define HRM strategies particularly where
there is a belief that investment in the quality and enthusiasm of the work
force will add to competitiveness, quality, and overall business
performance.
Companies that Value HRM Win

Domino's Pizza ads lead off with, "The Most Important Ingredient in
Our Pizzas Isn't Even On the Menu--It's the People Who Make Them."
Other leading organizations also realize this.
Prudential Resource Management's 10 HR Objectives are:
1. Foster open communication
2. Lead by example and assume personal responsibility
3. Understand client's needs

4. Create an environment that's free from fear
5. Reward and recognize individuals and teams
6. Work toward continuous improvement
7. Encourage education and development
8. Emphasize teamwork and share successes
9. Encourage innovation, creativity and empowerment

31
10. Measure performance and make decisions based on fact.
Since implementing these objectives as part of a total quality plan

throughout the entire organization, Prudential Resources Management
found that:
1. The number of clients it serves has nearly doubled
2. Overall client satisfaction increased almost 10%
3. Associate [employee] productivity jumped 5%

32
4. It increased its profits by 20%.
American City University Lesson Six 35
LESSON 6
EXTERNAL RECRUITING
LEARNING OBJECTIVES
1. List the common methods used for external recruitment.
2. Discuss the pros and cons of external recruitment.
Focus Questions
1. What are the common methods used to recruit new employees?
2. Briefly discuss the pros and cons of external recruitment.
The Process of Recruiting

The external staffing process begins with recruiting. The first step
in this process involves deciding what type of employee will best fit the
aims of the organization. This process should not be limited to the
"traditional" worker. Organizations that restrict themselves often miss the
well-qualified non-traditional applicant. This may be detrimental to the
organization because non-traditional workers may benefit the
organization. For example, myths surrounding the capabilities of the
older worker have proven to be wrong. "The belief that older workers
cause increased health-care costs--one of the most tenacious myths--has
proven to be unfounded." 3 3 In addition, the labor market is changing as
the number of older workers increases. This means that organizations

will be forced to employ more older workers in the future. The disabled
also constitute a pool of potential employees. The main consideration for
hiring an individual should be the ability to do the job--not the age,
disability, or national origin of the worker.
In some areas of the world a vital concern to the organization is the

possible charge of discrimination. For example, age, race, gender,
disability, pregnancy, religion, and country of national origin are all
forbidden to be used as criteria for employment in the United States. In
addition, organizations should strictly follow the immigration laws of their
country when recruiting.
Common Methods Used for External Recruiting

External candidates are recruited through a variety of methods, both
formal and informal. The informal methods of recruiting--referrals from
current and former employees and applicants who simply walk in and
apply has been shown to result in less employee turnover. 3 4 Some
organizations have used this informal system of recruitment and rewarded
their existing employees with money, free entertainment, extra days off,
and recognition in the company publication. Obviously, in order for a
employee referral system to work, organization members must like their
jobs.
The other low cost, in fact free, method of locating new employees
is walk-ins; but few organizations can rely on a supply of qualified walk-in
applicants. The most common method of external recruitment remains
advertising. Among the more common places utilized to advertise an open
position are:
1. Newspapers,
2. Trade journals,
3. Colleges,
4. Job fairs,
5. Cyberspace,
6. Employment agencies, and head-hunters.
American City University Lesson Six 37
In addition, another trend is to recruit new employees from among

those workers who are attached to the organization through a temp
agency.
Pros and Cons Often Associated with External Recruiting

Recruiting outside the organization tends to bring new ideas and
ways of doing things; but it is more expensive than internal recruitment
due to costs associated with the hiring process (such as checking
employment records and recommendations) and the necessity of training.
Reliable private employment agencies and headhunters lessen this
burden a bit because they usually have screened their applications; but
the use of private employment agencies and headhunters isn't cheap.
Finding and checking applicants is their business and they charge. The
use of governmental agencies such as state and federal job banks is
usually a free public service to both the applicants and the organization;
but, these agencies simply provide a referral service and do not
commonly screen applicants. Newspaper ads must be carefully worded in
order to attract the proper applicants. The same is true of ads in
cyberspace.
Trade journals and restricted cyberspace recruiting sites appeal to a

specific job market. For example, The New England Journal of Medicine,
JAMA, and The Lancet would be appropriate for attracting physicians. In
order to attract physicians within a certain special area of practice, it
might be wise to advertise in the journal read by that specialty. Although
there are general job sites, cyberspace also offers sites with the same
sort of specialization. For example, The Journal of Higher Education has
an employment section and a web employment site that breaks down
specific areas of college instruction.
The Aim of External Recruitment

The usual intention for external recruiting is to attract the largest
pool of qualified applicants. Those organizations with a good reputation
usually have little problem in finding qualified applicants. In fact, some
organizations have far too many applications for each available position.
American City University Lesson Seven 39
LESSON 7
EXTERNAL EMPLOYEE SELECTION
LEARNING OBJECTIVES
1. Identify the purpose of employee selection.
2. Demonstrate knowledge of the selection process.
3. Identify potentially damaging interviewing behavior.
4. Cite examples of common tests used in the selection of external

employees.
Focus Questions
1. What is the purpose of employee selection?
2. Briefly discuss the process commonly utilized in the selection of

external employees.
3. What strategies have been identified as potentially damaging to the

interviewing process?
4. Provide a brief description of tests commonly used in the external

selection process.
Employee Selection
Employee selection is the process of gathering the information from
the recruited applicants and choosing the candidates that are best suited
to the organizational needs.
It is very important that the criteria for selection matches the

organizational needs. The process usually begins with reading the
applicant's application for employment or resume. (Some organizations
require both.) The main purpose of both documents is to gather
information about the applicant. It is now common for some organizations
to request submission of either/or both documents electronically. This
allows the reviewer(s) to evaluate the applicants' data on education, work
experience, community activities, interests, publications, and so forth.
Some organizations prefer electronic submissions because this allows
them to scan multiple resumes or applications for specific items.
Applications should be restricted to those items that have been
determined to be job-related.
Some organizations use weighted application forms and biodata

instruments. A weighted application form assigns different weights to
each part of the information, according to the significance of each item
predicting job success. In general, the heaviest weights are assigned to
education and work experience. Biodata instruments measure
biographical information (including education and work history) and may
also contain items pertaining to the applicant's attitudes, values, likes and
dislikes. Biodata instruments are often difficult to develop and they are
usually used only for higher-level positions. Biodata instruments tend to
be much longer than standard application forms. The common format
used in biodata instruments is questions using a forced choice method.
The following are examples of possible biodata type questions.

Which of the following seems most important to you?
a) A pleasant home and family life.
b) A challenging and exciting job.
c) Being active and accepted in community affairs.
Do you usually do your best:
a) At whatever job you are doing
b) Only in what you are interested
c) Only when it is demanded of you
Biodata information may also be gathered in other ways such as

forms that require the applicant to write essay type answers. The
information can also be obtained through an interview.
Personnel Testing
The first consideration when considering test results must be--are
the results of this test going to predict job performance?
Tests may be administered individually or they may be administered

to a group. Although testing a group may be more cost-effective, some
types of tests require individual supervision. For example, tests that
measure driving ability using a driving simulator would be given to one
person at a time.
One of the most popular methods of testing involves the use of what
is called a paper-and-pencil format. These tests require some type of
written reply. Many of these tests can now be administered with the use
of a computer.
Examples of Standardized Tests Used in Employment Screening
Cognitive Ability Tests

Comprehensive Ability Battery -- a standardized testing
instrument that has 20 tests, each measuring a cognitive ability. Among
the aptitudes tested are: verbal ability, mathematical ability, memory,
clerical speed and accuracy, and the ability to organize data. 3 5
Wonderlic Personnel Test --a 50-item paper-and-pencil test

designed to measure the mental ability of job applicants. 3 6
Mechanical Ability Testing

Bennet Mechanical Comprehension Test -this is a 68 question
paper-and -pencil test that measures the ability to understand physical
and mechanical principals in practical situations. 3 7
Specific Job Skills and Knowledge Tests

Minnesota Clerical Assessment Battery(MCAB)- This is a
computer administrated set of tests that measures the applicant's ability
to type. proofread, and file. In addition the MCAB tests the applicant's
knowledge of business vocabulary, business math, and general clerical
knowledge. 3 8
Purdue Blueprint Reading Test --a multiple-choice test that

assesses the applicant's ability to read blueprints. 3 9
There are also a number of other testing instruments that are

designed to assess a variety of skills and skill levels.
Personality and Honesty Tests

Some personality tests are structured to measure certain
psychological characteristics. The characteristics measured are
considered to be predictors of job success in certain occupations.
The Myers-Briggs-Type- Indicator (MBTI) is one of the most widely

used tests of this type. The MBTI can be administrated either as a paper-
and-pencil test or it can be administrated with the use of a computer.
This test consists of 100 questions that measure the personality factors
that determine how the individual gathers, uses, and processes
information. The test does this by asking people how they would react in
a variety of particular situations. This test is not designed to uncover
psychological disturbances. 4 0
The Minnesota Multiphasic Personality Inventory (MMPI) is much

different than the MBTI because it is designed to discover
psychopathology rather than personality traits. The MMPI can be
administered either as a paper-and-pencil test or through the use of a
computer. It is a lengthy test that contains a number of scales that are
designed to measure pathology such as; depression, paranoia, anxiety,
addiction, schizophrenia, and lying. 4 1
Although this test is used for screening applicants for high-risk jobs
such as police officers and people working in nuclear facilities, it's true
validity for predicting job performance is very questionable. 4 2
Polygraph testing, commonly known as lie detectors, is designed to

measure physiological reactions such as blood pressure, respiration, and
sweating in response to a series of questions. Although there have been
many false positive results from such testing, it is still allowed for use
when testing employees about specific acts such as thefts and for
screening applications for jobs that involve public safety and sensitive
government positions. In 1988, the use of polygraph testing was severely
restricted by the US Federal government for general employment
screening.
Interviews
Interviews are the most widely used method for selecting
employees. Interview may be structured or non-structured. Structured
interviews use a set of standardized questions while an unstructured

interview may move from topic to topic, depending on the preference of
the person conducting the interview.
When conducting interviews, it is important for the interviewer to

keep two basic ideas in mind: Can the applicant do the work? and Will the
applicant do the work? 4 3
Follow-Up:References and Letters of Recommendation

The basic information that can be obtained by references and
recommendations are: employment and educational history, evaluations
of the applicant's character, evaluations of the applicant's job
performance, and the recommender's willingness to rehire the applicant.
44
American City University Lesson Eight 45
LESSON 8
SEPARATIONS, REDUCTION, AND RETENTION
LEARNING OBJECTIVES
1. Clarify the difference between an independent contractor and an

employee.
2. Identify the ways employees separate from organizations.
3. Discuss the problems associated with downsizing.
4. Analyze the discipline and termination of employees.
Focus Questions
1. List the factors that distinguish an independent contractor from an

employee.
2. What are the ways employees are separated from organizations?
3. Briefly discuss the problems associated with downsizing.
4. Provide a brief analysis of both the discipline and termination of

employees.
The Problem
In a perfect world, an organization would have the perfect number of
perfect employees doing the perfect job at the perfect time. This ideal
situation doesn't exist. Consequently, reality dictates that organizations
will reduce or change their workforce. This change or reduction results
from the decision and actions of either the employer or the employee.
This sounds rather simple; but, in practice, it may be more complicated
than it appears.
Who Is The Employee?

This question may seem to be silly; but not answering it may result
in unfavorable consequences. The assumption that everyone who works
within an organization is actually an employee is wrong because some of
these so-called "employees" may, in truth, be classified as independent
contractors. Now, the employee situation may be a bit murky because the
reverse may also be true---those considered independent contractors
might, in truth, actually be employees. Confused? Microsoft was and the
U.S. Court of Appeals for the 9th Circuit found in favor of the so-called
"independent contractors." "According to the court, these so-called
independent contractors really were employees as a matter of law, and
should have been entitled to company benefits, including valuable stock
purchase and savings programs." 4 5 How can this differentiation be
determined?
In the United States, the Internal Revenue Service has developed

guidelines. These guidelines include factors such as: instructions,
training, integration of services rendered, the relationship of the worker to
the employer, the manner in which work hours are set, the manner in
which payment in made, and the way in which the relationship can be
terminated.

"A requirement that the worker must follow instruction on when, where
and how to perform his or her work, is evidence of control, which is
indicative of employee status." 4 6

"Integration focuses on the extent to which the services provided by
the worker are necessary to, and meld into, the overall business
operations of the employer. The fact that a worker's services are
highly integrated into the employer's business is indicative of the
employee status." 4 7

"The more training a worker receives, the more likely that the worker is
an employee." 4 8

"A continuing relationship between the worker and the employer is
evidence of an employer-employee relationship. Both the regularity
and duration of the relationship are taken into consideration." 4 9

"The fact that a worker is required to perform service during a set
hours is evidence of employee status." 5 0

"A worker who can be discharged at any time is usually perceived to be
an employee. An independent contractor can be discharged only for
failure to comply with the terms of his contract." 5 1

"A worker who may terminate his relationship with the employer at any
time evidences employee status. An independent contractor may
terminate his relationship upon the completion of the contract or upon
breach of the contract by the other party." 5 2
Although an organization utilizing independent contractors should

retain legal advice, the managers should be aware of the differences
between an independent contractor and an employee.
It is usually stated that separations may be either voluntary or

mandatory; but, even this simple concept may be hazy in the real world of
organizations because what might seem voluntary may be, in truth, forced
by the organization.
Retirement
In the past, retirement was a planned end to the worker's career.
This is no longer true. The organization may decide to reshape the
workforce as part of a reengineering program. In order to accomplish
this, the organization may offer some attractive early retirement
incentives or they may make working so difficult that early retirement
becomes very attractive to the targeted workers.
In the former situation, an organization may offer a lucrative deal

that allows the employee to leave the workplace in excellent financial
condition. In the later situation, the organization may open itself up to
litigation because of Age Discrimination in Employment Act.
In either situation, the organization may lose because older

employees have proven their value and worth to organizations.
Employee Quits
Resignation is considered a voluntary act; but resignation may not
be a true reality. How can an employer be sure that the employee
actually intends to quit? The answer is simple--have an exit interview and
get it in writing.
Termination of Employment by the Employer

Employers may fire a worker or termination may be the result of a
reduction in force (RIF). This reduction in force has been called a
number of things--downsizing, rightsizing, chain sawing, and so forth. No
matter what it's called, it means that the organization has decided that
reducing the workforce will be good for the organization.
Downsizing or Rightsizing or Making a Big Mistake

The text features a section (p.309) explaining how one CEO views
this situation. The CEO, known as "Chain Saw Al," because of his policy
of eliminating thousands of jobs, has now joined the ranks of the
unemployed, himself. "Chain Saw Al" Dunlap was removed as chairman
of Sunbeam Corporation by an unanimous vote of Sunbeam's board. "His

downfall can be traced to sales blunders when he was preoccupied last
winter with the triple takeover of Coleman, Signature Brands USA Inc. and
First Alert Inc." 5 3 Although Chain Saw Al is gone, it may be premature to
gloat over his loss because Dunlap left Sunbeam with "payment of a $2
million a year through January 2001 plus benefits for three years,
including country club membership, a car, health and dental premiums
and reimbursement for financial planning." 5 4
The effect of downsizing on the remaining employees can be

devastating because it violates both the worker's sense of security, as
well as the employee's desire for justice. 5 5 In addition to the adverse
effect of downsizing on the employees, downsizing may be bad for the
organization.
The most obvious ill effect is, of course, the lowered morale among
the surviving workers. Lowered morale leads to poorer commitment and
decreased productivity. In short, the organization eventually loses.
"A survey by the American Management Association found that only

45% of downsized companies reported any increase in operating profits
(the main reason for making the cuts in the first place), while 67% had to
make a second or even a third round of cuts." 5 6
Rather than glut the workforce, the Japanese have developed another
system. "The first thing they do when they need to cut costs is to cut the
salaries of the top managers. Then, if that doesn't fill the gap, they move
down to cut middle management salaries. If that still doesn't do it they cut
supervisory salaries.
Only after management has taken pay cuts do they begin to look at
eliminating front line hourly employees. If there is a way for everybody to
take a pay cut without loosing people they will try to do that. Only as a
last resort will they begin to drop people. 57
Termination
Obviously, some employees will need to be terminated. It makes no
sense to retain an employee who doesn't do the job; but terminating an
employee may eventually have a very negative impact on the
organization. The primary negative impact may be caused by the

perceptions of the person terminated. If the terminated employee views
the action as unfair or unjust and then communicates this to the other
employees, there may be unrest and lost of morale. Financially, the
organization must also protect itself against lawsuits.
How to Discipline an Employee

Nobody wants to be the "hatchet man." Even discussing poor
performance with an employee is distasteful to most managers.
Nevertheless, this nasty job must be done. There is a right way and a
wrong way to discipline. Of course, the wrong way is to be unfair; so, the
obvious first step in establishing a fair discipline policy is to have a clear
and unmistakable set of standards. These standards should be in writing
and every employee should be provided with a copy.
In addition to the written standards, there should be a clearly written

policy stating how these standards will be applied and the managers
should be accountable for their actions or lack of action with regard to
enforcing the organizational policies. In other words, managers should
apply the policies to each and every employee without playing favorites
and without discrimination.
The first step in the disciplinary process is usually the interview.

The recommended criteria that should be applied are:
1. The employee must be forewarned of the status of the interview-not

simply called in and told, out of the blue, that it is a formal
disciplinary hearing.
2. The employee must be told in advance what the complaint is, and
be given sufficient time to prepare a response.
3. At the interview the employee must be given adequate opportunity

to provide an explanation.
4. The employee should have the choice of being accompanied by

either a colleague or a union representative. 5 8
In addition, all the necessary preparation should be done prior to

the interview. This means that the investigation should be complete with
all the statements and documentation finished. The employee should

have had formal notification in time to prepare a response.
Termination
When actually considering termination, the employer should
consider:
1. What incidents have resulted in termination in the past? And do

these examples indicate that discharge is appropriate in this
situation?
2. If past practice indicates that termination is inappropriate, is the

current situation clearly[italics in the original] distinguishable from
past incidents?
3. If past practice indicates that discharge is inappropriate, have new

polices or procedures been announced (well in advance of the
current situation) that fairly alerted the affected employee to the
employer's new approach?
4. Did the employee to be terminated have a fair chance to learn of the

new policies or procedures? 5 9
Final Consideration
Failure to follow proper procedure may result in considerable
financial loss to the organization. The failure to have written company
policy stating that insubordination is a just cause for termination, cost
Lincoln Tile Company 10K in legal fees and failure to document harsh,
rude behavior cost an electronics manufacturer 100K in legal fees. 6 0
The actual termination may not be the end of the problems. A

recent Supreme Court (US) action ruled that a dismissed employee had
the right to initiate a second suit against an employer even though the
first legal action found that the employer had dismissed him with just
cause. This second suit was the follow-up to a poor recommendation. 6 1
American City University Lesson Nine 53
LESSON 9
INTERNAL STAFFING AND CAREERS
LEARNING OBJECTIVES
1. Demonstrate an understanding of the methods commonly used to

select internal candidates.
2. Identify the practices frequently used to recruit internal employees.
3. Give a brief explanation of the purposes that determine an

organization's reason to plan overseas assignments.
Focus Questions
1. What are the methods commonly used to select internal candidates?
2. What are the practices frequently used to recruit internal employees?
3. Briefly explain what purposes determine an organization's decision to

plan overseas assignments.
Does "Internal Staffing" Equal Promotion?

The easiest way to answer this question is to say, "sometimes." In
clerical and administrative areas, this may be correct; but in other areas it
may not be correct.
Due to the fact that many middle management positions have been
eliminated and the team concept is now a reality, internal staffing may
mean assignment to a cross-functional team. For example, a person from
marketing may be reassigned to a cross-functional team that is involved
with developing and marketing a new or improved product. This contrasts
with the older method of simply promoting people within each department.
Of course, promotions still occur and promotions must reflect both

the best interests of the organization, as well as reflect fairness or equity.
Obviously, the best person should be chosen.
Why Internal Staffing

Promoting from within the organization can be either a very good
move or a very bad move. It's good when it shows the workforce that
doing a good job brings rewards. It motivates. It's bad when it is viewed
as unfair to the others.
There are a number of ways to select internal candidates. One is

by seniority--the person longest on the job gets the rewards. This doesn't
always have a good effect on the organization because longevity does not
equal competence. Longevity may simply mean that the senior people
know how to survive.
The other criteria, often employed in internal staffing decisions, is

perceived competence. The candidate has the best track record. This,
too, may be a faulty way to make a staffing decision because it fails to
take all factors into consideration. For example, the person with the best
track record may have maxed out--that is, that person may be doing the
best job that they are capable of doing. Maybe, it is good to sometimes
take a chance with someone who is seen as having the best potential
rather than someone who may be at the top level of their performance
capabilities.
Another way to select candidates is to rely on what is known as

"office politics." This method of selection is often based on "who you
know" rather than on "what you know." It is viewed as unfair by most of
those who were not selected. "Political decisions encourage hypocrisy,
secrecy, deal making, rumors, power brokers, self-interests, image-
building, self-promotion, and cliques--not a receipt for effective team
work." 6 2
American City University Lesson Nine 55
It also may work against the organization. "Politics will always be a

part of organizations as long as people are involved. Organizations that
are overrun with politics, however, will sooner or later take their place
among the also-rans." 6 3
The way to eliminate this type of faulty selection is to be open

concerning staffing questions. Eliminate secret deals. Go public with the
reasons for a particular person being selected. Be honest.
Internal vs. External Staffing

External staffing is usually utilized when there are no satisfactory
internal candidates. The presence of no suitable internal candidates may
simply be the nature of the organization or it may reflect a faulty system
of training and development.
Some organizations rely on external staff for high-level positions.

They feel that this practice somehow brings "new blood" into the
organization. Those organizations are usually fond of restructuring and
organization members are aware that they may have a short lifetime with
the organization. Those organizations who must rely on external staffing
because they can't find suitable candidates may have over-looked their
own policies and procedures. Have they done enough to help their
workers develop talent? Do they reward learning? Are evaluations fair?
Does the method used to evaluate workers truly reflect their abilities, as
well as, their shortcomings?
In the imperfect world we live in, there are other factors that must
be considered. Some people don't care. No matter how an organization
attempts to motivate workers, there will always be those people who will
not respond. In such cases, an organization should reconsider their
hiring methods and polices so they can minimize this problem.
In general, a strategy to promote from within usually works better

for a number of reasons. The most outstanding reason is that internal
promotion provides incentive and motivates others. 6 4
Career Paths
The old assumption was that a person would join an organization
and eventually climb the career ladder in his or her chosen occupation.
This is history. Today, people may change companies a number of times.
Not only do they change companies, they may change occupations.
Some people wait for early retirement and then return to school;
but, others opt for change much earlier. The new field may be a
reflection of their "older" occupation. For example, a chemist may leave
an organization and teach chemistry. Some people follow their dreams
and finally do what they always wanted to do. So, today, we find lawyers
becoming farmers; teachers joining marketing organizations; nurses
teaching college; or executives becoming clergy. Obviously, provisions
must be made for financial needs and sometimes further education is
necessary.
There Are Differences

Although meandering career paths are common in the United States
and Canada, this is far from the norm in other places. In spite of the
economic problems, Japan still maintains an employment system that is
structured toward lifetime stability with one organization. It works. The
reasons given for success of this system range from the accountability of
managers to the alignment of worker's interests with the interests of their
employers. In short, Japanese organizations can be viewed as a family.
65
The employment situation in Mexico reflects other influences.

Mexican organizations are paternal in nature. "Managers tend to ignore
workers who criticize others or who take their complaints to the union
because these workers do not exhibit the spirit of cooperation that
Mexican society rewards." 6 6
American City University Lesson Ten 57
LESSON 10
TRAINING AND DEVELOPMENT
LEARNING OBJECTIVES
1. Explain why orientation is vital to an organization.
2. Demonstrate understanding of the factors that determine the

motivation to learn.
3. Communicate knowledge concerning various methods of delivering

employee training.
Focus Questions
1. Why is orientation vital to an organization?
2. Explain what factors determine an individual's motive to learn.
3. Give a brief explanation of the various training methods used to deliver

employee training programs.
Orientation
Training and development begins as soon as the hiring process is
complete. Orientation is often neglected but is vital to both the
organization and the individual. It is common for organizations to have a
"sink or swim" attitude toward new employees. Somehow, the idea that
the best way for new employees to learn the job is for them to "get right in
there and do it." This is unfortunate because it is the orientation process
that introduces the new worker to both the organization and possibly the
job, itself.
At best, new employees may sense that they aren't valuable enough
for the organization to take the time to do more than show them where the
lunchroom and the bathroom are. Poorly planned or nonexistent
orientation can place the organization in a very bad position.
Organizations that must comply with exacting legal requirements may find
themselves closed due to the actions of employees. For example,
workers in health care organizations must work within very structured
legal limits set by law. Failure to comply may mean a fine or even
closure. Such things as "abuse" are defined by law and may mean
something quite different to those not familiar with the legal requirements.
What might seem perfectly OK may, in fact, be seen as abuse. Such
things as the use of restraints for the disorientated client and even the
use of side-rails on hospital beds could fit the legal definition of abuse.
Some organizations may feel that a properly conducted orientation

is costly both in actual money and in the loss of productivity resulting
from time away from the actual job; but these organizations should take
another look at the potential savings resulting from a proper orientation.
For example, at IBM's higher-end computer manufacturing facility, it is
estimated that a mistake caused by poorly trained worker on the assembly
line can cost from $10K to $100K in damages. 6 7
Training Programs
Training and development programs should not be limited to
orientation; but should be a part of the organizational strategy. Training
programs can take a variety of forms and can include a multitude of
subjects. Training programs can also be offered to various groups within
the organization or be individualized.
Training can have many different aims:
1. Training can be mandated by law. Training that is mandated by law

can be found in a variety of occupations---physicians to airline pilots
must undergo a fixed amount of training in order to maintain their
licenses.
2. Training can used to facilitate a strategic plan such as implementing

a team structure.
3. Training can be used to upgrade worker skills.
Identifying Training Needs

In order to meet the requirements of the organization, the training
needs must be identified. This is done by: organizational analysis, task
analysis, and person analysis.
Organizational Analysis
This process involves a broad overview of training needs that will be
reflected in both the short-term goals and long-term goals of the
organization. This includes a determination of what units in the
organization will require training. For example, if the organization is
planning to upgrade their accounting procedures, then the accounting
department would obviously require training.
The organization must also include a plan to determine what type of

training will be most effective to meet the strategic plans of the
organization. This might include the possibility that training will allow
workers to be able to transfer their skills into other areas. Chevron USA
provides an excellent example of how cross training benefits both the
organization and the worker. "Houston-based Chevron Production Co.
was one of the first to come up with an idea: mixing and matching
employees from one unit with another." 6 8 This mixing was facilitated by
cross training so that employees working in one unit of the company
would have the skills needed in another unit. "For the period of highest
intensity, May 1992 to May 1993, 1,050 individuals were redeployed,
spanning job categories as broad as geologists, engineers, technicians,
pilots, secretaries, information-systems specialists, offshore-oil platform

workers and even more." 6 9 This fitted the strategic planning of the
company, as well as enabled the organization to save $25 million dollars
and retain valuable workers.
Task Analysis
This process starts with information obtained from a detailed job
analysis and it involves identifying what knowledge, skills, and abilities
(KSAs) are needed to perform a specific job in an effective manner. This
knowledge then must be translated into how the knowledge and skill
requirements can be incorporated into training programs.
Person Analysis
This part of the analysis involves looking at the qualities of the
individuals who will do or who are doing the work described in the job
analysis. For existing workers, the use of interviews, observations, and
review of performance appraisals will provide guidance. For new workers,
a review of existing skills, as well as information obtained from the
employee selection process, will also be helpful in determining the
training needs. Another avenue of information that is often overlooked is
the workers themselves. Ask them what they need. Also, ask the
supervisors what they feel are the training needs.
Establish Training Objectives

Like established goals, training objectives must be specific and
measurable rather than vague. For example, a goal to simply "raise the
standards of production," is vague and not measurable. A goal to
"increase the production of auto fans by 20% within 120 days" is a
specific and measurable goal. Likewise, a goal for communication
training to "improve communication between the management and the
workers" is vague and not measurable. If this goal was changed to,
"decrease employee grievances by 30 percent over a period of 6 months,"
the training goal is concrete and measurable.
Delivery of Training
The actual training can be delivered in a number of places using
varied methods. The place and method of training depends on both the
needs of the learners and the capabilities of the organization. In
addition, the training can be provided by the organization, or the training
can be provided by outside sources.
No matter what method of delivery or what place is chosen for

training, the bottom line remains---training should be an ongoing function
of any viable organization.
American City University Lesson Eleven 63
LESSON 11
THE PAY SYSTEM
LEARNING OBJECTIVES
1. List the objectives of a pay system.
2. Critically examine the basic assumptions usually given when

discussing the external competitiveness of pay systems.
3. Be able to explain job evaluation methods used to set worker's pay.
Focus Questions
1. List the objectives of a pay system.
2. Clarify why the assumptions associated with the concept of external

competitiveness of pay systems may not be a compelling factor.
3. What is meant by the term job evaluation? What methods are

commonly used to evaluate jobs?
What is Compensation
It sounds simple--for performing a stated job, a person is
compensated. In practice, compensation comes in a number of forms--
money, benefits, and other forms of compensation that are not based on
financial rewards. Such things as executive parking places, access to
cultural and sporting events, a window in the office, and office with a
view, membership in a prestigious country club, educational opportunities,
or even that over-used word--empowerment constitute forms of
compensation.
Policy and Pay Decisions

Policy and pay decisions are structured to achieve the objectives of
the pay system. The pay system is structured to achieve the objectives of
the organization. The objectives of the organization, in turn, reflect the
organization's culture, strategic plan, and mission.
The usual approach to structuring a pay system is to consider its

external competitiveness, internal alignment, and employee contributions.
External Competitiveness
External competitiveness simply means that the organization
considers what other organizations doing the same business pay their
workers. The objectives of this consideration are quite simple and involve
the following assumptions.
1. The rate of pay must be enough to attract and retain employees.
2. The cost of labor effects the pricing of goods and/or services.
3. This cost must be factored in to maximize the organization's efficiency.
In other words, cheaper labor costs raise profits.
Now, let's look at this entire concept from a different viewpoint.
Let's question these assumptions.
Assumption #1
The rate of pay must be enough to attract and retain employees.
Obviously, few people are going to work and/or stay with an

organization that pays poorly; but is the rate of pay the primary concern
for most people? The answer is ambiguous--it depends. Some job
candidates are looking beyond the money figure. "First, with restructuring
and rightsizing, candidates who are planning their careers may seek
career growth and development in an organization other than their current
organization." 7 0 Other candidates, as well as, present employees view job
security as paramount. In dual career families, the ability to stay together
in the same geographic location may be the dominant value. Still others
may view the entire compensation package rather that simply considering
the money.
Assumptions 2 and 3
 The cost of labor effects the pricing of goods and/or services.
 This cost must be factored in to maximize the organization's

efficiency. In other words, cheaper labor costs raise profits.
This assumption means, "the higher the pay level, the higher the
labor costs." 7 1 In other words, the more money spent on paying
employees the higher the labor costs become. This is wrong because it
combines two concepts, labor rates and labor costs, into one idea. Let's
split these concepts and look at each one.
Labor rate is calculated by dividing the entire salary by time worked.

For example, a person earning $1,000 per week and working a standard
week of 40 hours is being paid at the labor rate of $25 per hour.
Calculating the labor cost is much more complicated because labor costs
consider productivity.
Let's look at an example.

New United Motor Manufacturing, the joint venture between

Toyota and General Motors based in Fremont, California, paid
the highest wage in the automobile industry when it began
operations in the mid-1980s, and it also offered a guarantee of
secure employment. With productivity some 50% higher than
at comparable GM plants, the venture could afford to pay 10%
more and still come out ahead. 7 2
Looking at the Competition

When comparing the wages offered by the competition, it is vital to
also consider productivity. The bottom line remains cost per unit
produced or cost for unit of service provided.
When doing a comparison survey, it is also important to consider

turnover, because turnover is expensive due to training costs and other
factors. There is also another reason to factor in turnover--why are
workers leaving. Let's assume that the company being surveyed is paying
workers at approximately the same rate as other comparable
organizations. Obviously, if the company is experiencing a turnover rate
that exceeds the industry norm, something else is wrong. Determining
what the company is doing wrong may help your organization's
competitive advantage.
Conducting a survey of another company is not that complicated a

procedure. Many companies publicly publish their data. In addition,
much of this information is available through consulting firms or available
databases. Smaller organizations often rely on personal visits and word
of mouth for some of this information. Another source that is often
overlooked is HR recruiting internet sites. General recruitment sites like
the Monster Board publish salary figures in order to attract candidates.
Specialized HR sites often give very detailed information. These sites
exist for a variety of occupations---from college professors to
pediatricians.
Internal Alignment
This simply means that pay is based on what the job is worth to the
organization. There are a number of factors to consider when making this
determination. These factors differ from industry to industry. In some
industries, worth may be mandated by law. For example, in the nursing
home industry, the number and qualifications of the workers are
mandated by state law, so worth is calculated by the usual local rate of
pay for the occupation and the credentials of the worker. In this industry,
the pay rate of certified nursing assistants is customarily about half of the
pay of a registered professional nurse, and the pay rate of a practical
nurse is about a third less than that of a professional nurse. Of course,
supply and demand in the local area also must be considered.
Internal equity is also considered in this process. A pay structure is

considered to have internal equity if higher pay is based on skill and/or
knowledge, the desirability of place of performance, and the job's worth to
the organization.
So, this means, if we use our example of the nursing home, that the
higher pay awarded to the registered professional nursing positions meets
two of the above criteria---greater level of skills/higher knowledge and the
worth to the organization.
Organizations also use job-based structures to determine pay. This

type of job evaluation can be done using a point method based on the
activities of the job and the skills required to perform these activities.
This is done by using the job analysis and assigning points to each
activity based on how that activity affects the organization. Therefore,
those activities viewed as valuable to the organization will be assigned a
higher rating.
Parting Thoughts
Setting pay rates can be complicated and cumbersome. The
essential thing that must be remembered is---nothing happens in a
vacuum. Pay rates are influenced by numerous factors including the
market. The more a skill is valued, the higher the rate of pay. Combine
this with availability and another factor emerges--if the skill is highly
valued and there is a short supply of people possessing this skill, the rate
of pay is even higher.
The position of the organization also influences pay. If the

organization is the only employer in the geographic area that demands a
particular skill, the rate of pay may be lower than it is in other geographic
areas. In addition, the position of the organization within the particular
industry also affects pay rates. For example, when IBM dominated the
computer market, their pay structure focused on internal equity rather
than the external market. "It is hard to emphasize market
competitiveness in compensation when a company is larger than its seven
biggest rivals combined." 7 3
American City University Lesson Twelve 69
LESSON 12
INDIVIDUAL PAY
LEARNING OBJECTIVES
1. List the methods commonly used to set pay.
2. Discuss the pros and cons of merit-based pay systems.
3. Be able to explain newer methods of setting pay such as

broadbanding.
Focus Questions
1. List the common methods used to set pay.
2. Discuss the pros and cons of merit-based pay systems.
3. What is meant by broadbanding?
What is Needed
In order to realistically set wages, the employer needs to have a
clear understanding of the real worth of various jobs within the
organization. In addition, the employer must understand the labor
market. Combining the real worth of a job with the strategic plan of the
organization and considering the effect of the competition, the employer
is armed with a realistic method to set wages and wage-earning policy. 7 4
Methods of Determining Worker's Wages

Wages may be based on flat rate model, a structured model with
variations; or they may be based on a variable model.
Flat rate pay systems usually result from collective bargaining

agreements. Within flat rate systems, there are differences; but these
differences are not reflected in the pay system. Under this type of
system, performance differences do not result in pay differences.
Pay using a structured model is commonly based on the

establishment of pay ranges. This is done by grouping different jobs that
are considered the same for pay purposes. In order to establish pay
ranges, a minimum and a maximum amount must be established. The
maximum is the highest amount of money that the organization is willing
to pay for jobs in the particular category and the minimum is the lowest
amount. The midpoint between within in the range generally corresponds
with the employer's pay policy line. The policy line is usually set to
correspond with what the competition pays for jobs considered similar.
Each grade within the range has its own pay rate.
The advantage of this type of pay system is predictability and its

control function. The employees know what they are earning now and can
project their future earnings, and the organization has control over the
maximum amount spent for payroll. Its disadvantage to the workers is
that no matter how good a job they do, their pay will never exceed the
maximum. The organizational disadvantages are twofold: there is no real
mechanism to motivate the worker within such a fixed system and this
type of pay arrangement may get expensive because of its structure. For
example, within the grading system, there is usually a method to increase
compensation over time. If this progression is tied to time, it means that
the longer an individual is with the organization, the higher the earnings.
If this progression is tied to productivity, the cost may not be as high as
the cost based on seniority.
Merit Pay
Merit pay means that pay increases are based on the individual's
productivity. This system requires a method to determine what behaviors
translate into money. In other words, what activities or behaviors should
be financially rewarded and how much should that award be. Obviously,
financial rewards such as merit pay are inevitably tied to performance

appraisals.
In a prior unit, we discussed the possible pit falls that can be

encountered in the process of performance appraisals. So, linking pay
increases to appraisals may not be fair. The other problem inherent in
merit pay increases involves the reason that merit increases are used.
The basic assumption underlying the use of merit increases is quite
simple---money motivates. In other words, if certain behaviors are
rewarded with money, workers will be motivated to change their behavior
in order to earn the money tied to the behavioral change.
Does It Work?
The best answer is -- maybe. One of the problems with this system
is timing. Often, performance appraisals do not correspond with the
accounting systems. This means that the workers don't see the effect of
the appraisal for some time and the hoped for motivational effect may be
lost. The way to "fix" this is obviously to adjust the timing of raises so
that workers can clearly see that behavioral change is linked to financial
reward.
Inherent in financial rewards is the amount. Is the increase in

productivity worth the effort? Again, the answer is--maybe. If the amount
is not viewed as "worth it" by the employee, the answer is of course, no.
The Downside of Merit-Based Increases

For the organization, the financial downside of merit raises is time.
As the base salary increases with the merit raise, the cost to the
organization is compounded. An employee earning $20,000 a year who
receives a 5% increase now has a base salary of $21,000. This person
then receives 2 more 5% increases. The base salary is now $23,152.50.
This may not seem to be a great deal of money; but, when this type of
action is repeated a number of times with a varying amount of money, the
cost to the organization can be considerable over time.
Another problem is liability. If merit raises are not viewed as

equitable, the organization may be held liable. If merit raises are seen as
discriminatory, the consequences may be considerable. 7 5
Other Problems That May be Associated With Merit Pay

The use of variable compensation is nothing new. It has long been
employed in sales. In some organizations the pay for the sales force
was/is based on the number of sales. This can lead to problems. The
most common problem may be what many of us call, "high pressure
techniques." This type of pressure may actually turn customers away.
For example:
Sears was forced to eliminate a commission system at its

automobile stores in California when officials found
widespread evidence of consumer fraud. Employees, anxious
to meet quotas and earn commissions on repair sales, were
selling unneeded services to unsuspecting customers.
Similarly, in 1992, the Wall street Journal reported that
Highland Superstores, an electronics and appliance retailer,
eliminated commissions because they had encouraged such
aggressive behavior on the part of salespeople that customers
were alienated. 7 6
Teams and Merit Pay

"There is no guarantee that the decision to use team pay will
produce targeted results." 7 7 The reason for this is obvious--it may not be
equitable because all members of the team may not be functioning at the
level that deserves a merit increase.
Companies that use a merit-based system may have a problem

associating employee behavior with financial awards. For example, it is
relatively simple to pay an individual on the basis of sales closed; but how
do you calculate the worth of the clerical staff?
Another problem with variable pay involves the inability of the

workers to associate behavior with the financial aspect of variable pay. In
short, many people don't understand the relationship between what they
do and how they are paid for doing it. In is important for organizations
employing this method of incentive compensation to clearly communicate
both the method of payment and the exact criteria used to judge the
behavior that merits the increase.
Skill-Based Pay
The basic concept of this method of payment is quite simple--
worker's pay increases with the addition of skills. "The emphasis is on
skill mastery rather than on job performance, which is the focus of more
traditional pay plans, such as merit pay." 7 8 This type of incentive pay
increase plan may be easier to administrate because the criteria is easier
to measure. This type of pay also increases the flexibility of the workers
and makes them more valuable to the organization. The downside of this
arrangement to the employee is that once he or she has all the skills that
the organization needs or offers, there are few if any opportunities to
progress. The downside to the organization is twofold--"Skill-based pay
organizations thus tend to have higher pay rates than organizations with
other compensation methods...and employees are not producing while
they are in training to acquire new skills." 7 9
Broadbanding
In the older forms of established salary ranges, there may be many
pay grades within a specific category. The use of broadbanding limits the
number of possible pay grades with one minimum and one maximum.
This provides more flexibility to both the workers and management.
"Broadbands help eliminate the obsession with grades and, instead,
encourage employees to move to jobs where they can develop in their
careers and add value to the organization....Broadbands allow
organizations greater flexibility in recognizing the
individual....Broadbands actually increase employees' opportunities to
advance by opening new career paths." 8 0
In the older system of compensation, pay increases were often tied

to promotions and promotions meant assuming a managerial role.
Downsizing has eliminated this possibility in many organizations. The use
of broadbanding removes the barriers to higher compensation by
providing the ability of lateral mobility. In addition, many workers are not
interested in assuming a managerial role; but, of course, would like to be
compensated for their skills and knowledge. For example, the way a
hospital formerly increased the pay for its workers was through
promotions to a managerial position within their specialty. This meant
that nurses would be removed from patient care in order to manage a
unit. Under a broadbanding arrangement, the nurses now can be
compensated for their skill and knowledge without being relegated to an
office.
Other Methods of Increasing Compensation

The other methods of increasing compensation are related to the
productivity of the organization. Gainsharing refers to the compensation
plan whereby a unit of a larger company, or the entire staff of a small
organization, share in the profits. The amount of the employee share is
commonly based on reaching a certain performance goal. Payment is
usually received in the form of bonuses.
The downside of this arrangement is the same as the downside for

group or team payments--every individual does not reach the same level
of performance.
Profit sharing is a payment plan whereby all the employees may

receive a share of an organization's profits. Again, the profit share may
be very small or not understood. This, of course, means that the
organization must be very clear in communicating how the behavior of the
employees has resulted in the profit sharing.
Other Ways to Increase Productivity

Although most people agree that individuals should be rewarded for
superior performance, we sometimes forget that awards do not have to be
based on salary increases or division of profits. Awards can be offered in
the form of recognition for a job well done. Award diners, mention in the
organization's newspaper, or even tickets to a sporting event or a
certificate for diner at a restaurant are all ways that an organization can
recognize outstanding performance
Final Thoughts
Compensation for high-placed executives is often criticized because
of the extreme differences between executive pay and the pay received
by the employees. Although CEOs are considered smarter and worthy of
high pay due to their value to the organization, the question remains.
"The Washington Post reports American firms pay huge

amounts of money to their executives to keep profits high,
even if it means downsizing. This pushes stock prices higher.
On the other hand, Japanese firms have been less willing to
fire workers and, as a consequence, their profits and stock
prices have suffered. Ira Kay, director of compensation
consulting at the management consulting firm Watson Wyatt
Worldwide, asks a very compelling question: 'Which would you
rather have your pension plan be, one that is secured by the
American stock market or one secured by the Japanese stock
market.'" 8 1
American City University Lesson Thirteen 77
BENEFITS
LEARNING OBJECTIVES
At the completion of this lesson, the student should be able to :
1. List and give a brief explanation of benefits that are mandated in the
United States.
2. Discuss the concept of a flexible benefit plan.
3. Demonstrate understanding of what is meant by family-friendly

benefits.
Focus Questions
1. List and give a brief explanation of benefits that are mandated in the
United States.
2. What is meant by a flexible benefit plan? Provide examples that

illustrate this concept.
3. . Give two examples of family-friendly benefits.
Benefit Plans
Another method organizations use to deal with people is to provide
a benefit plan. Most benefit programs are designed to increase employee
satisfaction and organizational commitment.
The most commonly offered benefits fall into the following categories:
1. Time off from work,
2. Insurance,
3. Programs that can be classified as "family friendly."
Time Off From Work

Time off from work can either be paid or unpaid. The usual paid
time off includes: vacations, days off, sick time, holiday time, and
personal days. Benefits in this area are quite varied and some of the
above periods away from work are by law or part of a collective
bargaining agreement. For example, most jobs in the United States are
considered non-exempt from the provisions of the Fair Labor Standards
Act (FLSA). This means that anyone who holds a position that is
considered non-exempt must be paid one-and-one-half times the base
wage for any hours worked over 40 in a single work week. The exempt
positions are closely regulated and include only those people who are
considered to be working in an executive capacity. In order for a position
to be qualified as "executive," the individual must devote at least 80% of
their time performing duties that would include managerial activities.
Managerial activities must include the ability to hire, fire, and promote.
Considering that the law mandates a higher compensation for work

over the standard 40 hour week, most organizations are usually quite
happy to provide days off to all employees.
Those organizations that are part of a collective bargaining

agreement must abide by the terms of the agreement for the length of the
contract.
Vacations, sick time, and personal days off are commonly referred
to as paid leave. Other categories of paid leave may include time off for
professional meetings or training, and bereavement time off. Some
organizations require a set time of employment before a worker can use
this time and be paid.
Some time off periods are mandated by law. Time off for jury duty,
military leave, and family leave fall into this category and failure to
comply with the law may result in serious penalties. 8 2 8 3
Time off to attend personal meetings and/or training may be

inherent in the job itself. For example, many licensed professionals such
as nurses, physicians, lawyers, and counselors, are legally mandated to
provide evidence of continuing education in their field. Many
organizations provide this type of training on-site or pay for this education
in order to insure that the organization is in total compliance with legal
requirements.
Insurance
There are many types of insurance and some types are legally
mandated. In the United States, Social Security, unemployment
compensation, and workers' compensation insurance are regulated by
law.
Under the provisions of the Social Security System, employers are

required to pay 6.2% on all employee incomes up to $61,200 and 1.46%
for the Medicare portion of Social Security. There is no income cap for
Medicare. Failure to be in total compliance with the law will result in
severe penalties.
Unemployment compensation is part of the Social Security Act.

Funding for this insurance program is provided by a payroll tax charged to
the employer. Because this program varies from state-to-state,
organizations need to understand the provisions of the state law in their
area.
Workers’ Compensation
Workers' compensation is another mandated employer-funded
insurance program. It is designed to cover work-related injuries and
conditions. It can also be a major expense to an organization. In order
to control costs in this area, an organization can take positive steps both
in preventing work-place injuries and illness and in controlling costs
associated with workman's' compensation claims.
Prevention starts with safety. The first step is the establishment of

a safety agenda that reviews past accidents and develops ways to
prevent future accidents. This committee should consist of both
management and workers and it should meet at least monthly. The

findings and recommendations of this committee should be communicated
to all the workers and also included in the orientation for new workers. 8 4
In the event of a claim, it is essential that fraud should be eliminated. In
order to do this, employers should look for the following signs:
1. Nobody saw the injury occur.
2. The plant in which an injured worker is employed is closing or is due

for a staff reduction.
3. The injured worker was on vacation or took time off immediately

preceding the reported accident.
4. The injury is alleged to have happened on either a Friday afternoon or

an early Monday morning.
5. The injured worker immediately retains an attorney.
6. The injured worker asks other employees how the workers'

compensation coverage works before reporting his or her injury.
7. The physician the employee chooses is not on the employer's posted

list.
8. A neighborhood check of the off-of-work employee finds that the

employee is seldom at home, appears muscular or tan, has grease
under his or her fingernails, etc.
9. The injured worker's treatment is reported to have taken place on

holidays or other days when the facilities would normally be closed.
10. The injured employee formerly worked for an insurance company.
11. The injured employee's salary is secondary income for the family.
Of course, these signals should be regarded as indicators, not final

criteria. If three or more indicators are present, the employer should
realize that the claim may very well be fraudulent. 8 5
Group health insurance is another well liked employee benefit. The

cost of group insurance is usually much less than the cost of individual
plans. The reason for this is that the risk is considered less due to the
fact that this risk can be spread throughout the group.
Many organizations lower the cost of this benefit by having the

employees pay a pre-determined amount of the total cost. This amount is
referred to as a co-payment. Even with the co-payment, the cost to the
employee usually remains lower than if the employee bought an individual
or family on his or her own.
According to the Consolidated Omnibus Reconciliation Act

(COBRA), which is in force in the United States, an employee is entitled
to remain on the group plan for a period of up to three years after
separation from the organization. This is intended to allow the former
employee to have uninterrupted health care coverage during a period
between jobs.
Organizations must be very careful in their administration of health

care plans due to the regulations of the law. The provisions of this act
"include termination of employment (for other than gross misconduct-
conduct), reduction of work hours, strike, temporary lay-off, employer-
approved leave of absence, or employer's Chapter 11 bankruptcy." 8 6
The law requires that an employer must give notice of COBRA's

existence and availability to each employee who meets the qualifying
conditions of the act. Failure to do so is a considered a breach of
employer fiduciary duty. 8 7
Other types of insurance benefits offered by organizations may

include pension plans, disability insurance, and insurance associated with
the profession of the employee such as professional malpractice
insurance.
Family-Friendly Benefits
Factors in people's life may conflict with working schedules. Such
factors may include: the presence of children and/or aging parents,
sickness in the home, outside activities, community responsibilities,
educational commitments, and even a second job.
Realistic employers must take this into consideration. Failure to

make provisions for such factors may result in increased absenteeism
and/or lowered job satisfaction. Lowered job satisfaction is a factor in
increased turnover and turnover can be very expensive for an
organization.
The term often associated with this concept is family-friendly

benefits and it includes features such as on-site childcare or child-care
allowances, flexible working hours, and compressed workweeks. Many
people consider this type of benefit one of the primary reasons to select
an organization. These types of benefits help workers to balance their
personal and working lives. Organizations that provide these benefits are
often cited as positive places to work. 8 8
Miscellaneous Types of Benefits

Some organizations offer mileage allowance, shift premiums,
relocation allowances and other types of benefits that may be associated
with the type of work performed.
International Differences in Benefits

There are wide differences in both fiscal compensation and benefits
offered to employees. In many areas, providing health care insurance is
not a function of the organization; but, it is considered to be a function
belonging to the government.
Benefit packages may be much more extensive than those

commonly offered to workers in the United States. For example,
Japanese workers receive family allowances, assistance for the

educational needs of their children, subsidized vacations, housing loans
or reduced rent in company owned apartments, reduced prices for food in
company owned or company subsidized stores, and possibly even
chauffeured cars. Also common are large end-of-the year bonuses.
These benefits are expected to be provided in Japan. Before rushing off
to seek work in a Japanese company, it might be well to remember that
these tax-free benefits must be balanced against the tax structure which
takes a much higher percentage of worker's earnings. In addition, in
some areas of the world, workers are protected from being laid off when
business profits decrease.
LESSON 14
UNIONS
LEARNING OBJECTIVES
1. Provide definitions for terms associated with collective bargaining.
2. Outline the process of unionization.
3. Be able to explain the issues that are negotiated in union contracts.
4. Express an understanding of international differences in labor

relations.
Focus Questions
1. Define the following terms:
a) Sweetheart contract,
b) Exclusive representation,
c) Federal Medication and Conciliation Service(FMCS),
d) Closed shop, and
e) Union shop.
2. What are the steps required for unionization?
3. Give a brief explanation of the issues commonly negotiated in union

contracts.
4. Compare and contrast two major differences in international labor

relations.
American City University Lesson Fourteen 85
Unions in the United States

Unions exist because workers wanted better working conditions and
a better standard of living. In the early days of the industrial revolution, it
was not uncommon to see companies exploiting workers and the presence
of extremely bad conditions at the workplace. For example, child labor
wasn't unusual at the start of the industrial revolution. A tour through
Slater's Mill in Pawtucket Rhode Island reveals how children were treated.
The machines used for spinning cotton thread in this now historical site
were made so that the small fingers of little children could quickly work
the cotton into useable thread. Severed fingers were all too common.
During the Depression, unions in the United States began to gain

power and in 1935, the National Labor Relations Act, commonly known as
the Wagner Act, became law. This act recognized unions as being
authorized representatives of employees and forced the employers to
bargain collectively with unions.
Collective Bargaining
Collective bargaining is a process that requires employers to
bargain with a union over such things as wages, job security, and working
conditions. The assumption being that the employees want union
representation.
The Process of Unionization

The process to obtain a union for purposes of collective bargaining
begins with authorization. This is done by getting the employees to sign
cards authorizing the union to represent their interests. It is against the
law in the United States for either management or the unions to threaten
employees.
The next step is validation of signatures. In other words, are the

cards signed by people who actually work at the site where unionization is
being initiated and have 30% of the workers signed the authorization
cards?
After the appropriate bargain unit has been determined, the next
step is an election. In order to win an election, a union must have 50% +
one vote.
The next procedure is negotiation of a contract. At this point, both

the employer and the employees are mandated to negotiate.
What is the Agenda for Union Contracts?

Historically, wages were the predominate issue; but, in today's
world of downsizing, the focus has shifted to job security. "Slow
economic growth and the threat of foreign competition...has made
companies less willing to grant costly wage and benefit increases,
regardless of how often unions ask for them. For unions, there's less
incentive for a quick return to the bargaining table if they can't easily
come away with economic gains. Thus, in exchange for signing longer
contracts, unions are asking for some promise of job security." 8 9
When All Else Fails---Strike--Do Strikes Work?

Strikes have been the traditional last weapon of unions.
Traditionally, strikes were called when bargaining failed. The issues were
usually related to wages and working conditions. Public sympathy
traditionally went to the workers.
Times have changed. The baseball strike of 1994-1995 received

little public support. The issues in that strike had nothing to do with
working conditions and the wages of professional baseball players did
nothing to arouse public support for their cause. The issues in that strike
were over disputes dealing with who got what share of the fortune made
in professional baseball. 9 0
The two-week strike by the Teamsters workers against United

Parcel Service (UPS) during the summer of 1997 didn't arouse much
public sympathy either. Many people were disgusted with this action
because UPS is viewed as the most competitive and best-paying

Teamsters employer. 9 1 Organizations that routinely used UPS for delivery
service simply changed companies and used another service.
During a strike, it is legal to hire replacement workers. In former

times, anyone who worked in this capacity was considered to be a form of
low-life. This, too, has changed. Companies routinely hire replacement
help without arousing public indignation.
The text mentions a presidential executive order banning any

company that hires replacement workers from doing business with the
government. The U.S. Appeals Court overturned that order. 9 2
The willingness of employers to replace striking workers with

permanent employers has weakened the position of unions; but it has
caused another form of worker protest--slowdowns. 9 3 For example, the
dockworkers slowdown at the ports of Los Angeles and Long Beach has
cost the shippers dearly, forced the use of alternate ports for loading and
unloading cargo, and made it necessary to speed up the transportation
once the ship is actually loaded. This is expensive. "Racing a huge
container ship from California to Hawaii can cost an additional $18,000 in
fuel alone. Hiring an extra longshore labor crew can cost between
$20,000 and $30,000 more." 9 4
The New Face of Labor

Ongoing investigation into labor racketeering has done nothing to
enhance the image of unions. Neither has the realization that unions
must stay in business so that union leaders have jobs. The power of
unions to control entire industries seems to be over. "The unions have
been slow to find their way in an increasingly globalized and digitized
economy. They’ve failed to organize most of the hundreds on non-union
auto assembly and parts factories that Japanese and German automakers
have opened from southern Ohio to Alabama. 9 5
Although the days of extreme power are basically gone, unions

remain. The focus of the largest union in the United States, the AFL-CIO
has turned to politics. "John J. Sweeney, the president of the labor
federation has stated his goal in stark terms: 'Reclaim our political power
and use it to reclaim our country.'" 9 6 The AFL-CIO...has launched an
unprecedented, $30 million organizing drive to replenish the dwindling
ranks of union members and thereby rebuild the political clout of the
national parent." 9 7
Another interesting development is the rise of a different category of

unionized worker--the professional. Years ago, it was unheard of for any
professional person to join a union. Today, many teachers are unionized.
The same holds true in other professions.
During the early 1980s, a number of hospitals in the Boston area

merged to form Brigham and Women's Hospital. When the nurses
realized that different areas of the hospital were paying nurses at
extremely different rates, the nurses receiving the lower salaries
approached the Massachusetts Nurses' Association. The MNA agreed to
be their bargaining agent. The nurses overwhelmingly supported this
action. Even the nurses receiving the higher wages joined in support of
those who they felt were being cheated. Once a contract was signed, the
salaries were adjusted and all the nurses were paid using the same salary
scale.
Nurses aren't the only health care providers who are involved with
collective bargaining--the physicians have joined them. The House of
Delegates of the American Medical Association (AMA) has voted in favor
of physician's right to bargain collectively when negotiating contracts for
managed care. This action was done despite the legal restraints that
have declared such an action by doctors to be a violation of the current
anti-trust laws. 9 8 Many orthopedists (bone surgeons) have taken this a
step farther and joined the AFL-CIO in protest over the negative effects of
current health care changes that they feel has made the quality of health
care deteriorate. 9 9
The 320 lawyers who work for the city of San Francisco are
considering joining the International Brotherhood of Teamsters in an
attempt to get a raise. 1 0 0
What Can Managers Do To Prevent Labor Problems?

The first thing all parties should do is be honest. Liars get caught
and trust is lost. The second thing is for management to realize is that
aggressive downsizing may eventually hurt the organization. The actions
of "Chain Saw Al" Dunlap is a good example of how an organization
suffered. Dunlap's last employer, Sunbeam Corporation, finally dismissed
"Chain Saw Al" after the company stock sank and sales went down
following a total drop in confidence.
The world of organizations is becoming different. "American workers

want cooperation, shared decision-making, and independence in
workplace relations. In the face of changing markets, technological
advances, and an increasingly interconnected global economy, union
leaders are wrestling with issues of company competitiveness as well as
winning security, adequate wages, and benefits for their members." 1 0 1
LESSON 15
EMPLOYEE RELATIONS
LEARNING OBJECTIVES
1. List the important features of a quality of work life program.
2. Explain why dual-career couples may experience family/job conflicts.
3. List the causes of health and safety hazards at the workplace.
4. Outline what is meant by employee-management cooperation.
5. Express a clear understanding of what is meant by an employee

assistance program (EAP).
6. Recognize the work-place manifestations of substance abuse.
Focus Questions
1. List the important features of a quality of work life program.
2. What is meant by family/job conflicts and what can be done to ease

this conflict?
3. List the causes of health and safety hazards at the workplace.
4. Outline the features associated with an employee-management

cooperation program.
5. What is an employee assistance program(EAP)?
6. Workers who abuse substances often exhibit certain behaviors at the

workplace. List these behaviors.
American City University Lesson Fifteen 91
People Are Vital

Nobody disputes that people who work in an organization are the
organization's greatest asset. It is people who made the decisions,
allocate resources, operate the equipment, interact with customers, plan
strategy, and develop systems. In fact, it's people who determine if the
organization will prosper. Dealing with these people is considered one of
the main functions of the human resource management department.
Employee Involvement
Obviously, employees are involved in every aspect of the
organization; but, questions remain--how much involvement is necessary;
what kind of involvement works; and, how much involvement can there be
before this involvement could be considered a risk?
The term, "quality of work life"(QWL) usually is given a rather broad

meaning to include: compensation and benefits; the opportunity to
participate and advance in the organization; job security; characteristics
(culture) of the organization; and, the quality of the interactions between
organizational members. In fact, quality of work life (QWL) involves all
aspects of life at work.
The 8 important features of a quality of work life program are:
1. Adequate and fair compensation.
2. Safe and healthy working conditions.
3. Opportunity to use and develop worker capabilities that leads to

worker's control over their jobs and autonomy.
4. Opportunity for continued growth.
5. Job security and the chance for advancement

6. Equal opportunity for all workers.
7. Balance of life between work and other pursuits.
8. Maintenance of organizational social responsibility, including ethical

organizational practices in all areas -- such as employment, marketing,
ecological needs and so forth. 1 0 2
Employee-Management Cooperation
The word "committee" wasn't used for this section header because
the term "committee" often invokes an image of people sitting around a
table discussing issues because they feel that this is the proper thing to
do. Such type of activity often fails to accomplish anything and, in fact, is
often the subject of jokes. "What is a camel? A horse put together by a
committee."
Cooperation involves an entirely different image. The word,

"cooperation," implies working together to achieve a common, profitable
solution.
The text states that, "Many companies have backed away from
supporting such initiatives because they feel that this might "risk
challenges by the NLRB." 1 0 3 This attitude may be totally without factual
reality because "case law provides no support for the exaggerated claims
that decisions of the National Labor Relations board are stifling the
development of participative management." 1 0 4 The literature is replete
with studies of ventures that have taken unions and employers beyond
collective bargaining and worker participation programs into co-
management, such as Saturn, NUMMI, Xerox, Levi Strauss, etc.
10 strategies for creating co-management share basic elements :

Strong local unions actively involved with plant-level management

Decentralized innovation and problem solving

Comprehensive information sharing

Union participation in decisions concerning new technology, facilities
design, job content

Active employee involvement in decision-making rather than a reliance
upon union officials and managers

Extensive use of work teams with supervisors serving as facilitators

Expanded job content with substantial cross-training

Considerable investment in new technology

Compensation linked to training and skill attainment

Creation of a core work force with enhanced employment security and
full benefits. 1 0 5
Employee Assistance Programs(EAPs)

'Employee Assistance Programs' is a broad term that covers
programs designed to help employees that have personal or family
difficulties. These programs may be on-site or may be contracted with
outside vendors.
In some cases, they are mandated. The Drug Free Workplace Act of
1988 states that all federal US employees, as well as all employees
working for companies that have a government contract, must have
access to EAP services. Obviously, this act covers many organizations;
but, many companies have found that EAP services do much more than
fulfill a governmental mandate.
The primary reason that EAPs were initially established was to deal
with employees who have substance abuse problems. Substance abuse,
even away from the workplace, is a serious problem considering that the
usual figure given is 15%. This means that 15% of the workforce is under
the influence of either alcohol or another drug on any given day. 1 0 6
The common signs of a substance abuse problem include:
1. Increased absenteeism and tardiness, especially on Mondays and

Fridays, and before and after holidays.
2. Frequent unreported "emergencies"
3. Frequent, colds, flu viruses, upset stomach, headaches, and so forth
4. Higher than average accident rates on and off the job
5. Displays of anger or anxiety including unexplainable medical

conditions (anxiety often is manifested by conditions that don't seem to
have a biological basis)
6. A tendency to overreact to real or imagined criticism
7. A tendency to be either overly withdrawn or overly talkative.
In addition to substance abuse problems, most EAPs also deal with

other situations including management conflicts. EAPs have also
broadened their scope of activities to handle complex personal and family
difficulties such as finding caregivers for aged family members and
providing services for employees that are victims of domestic abuse. 1 0 7
EAPs also provide education to help employees either recognize or deal
with personal and family problems.
LESSON 16
THE EVOLVING HUMAN RESOURCE

MANAGEMENT PROFESSION
LEARNING OBJECTIVES
1. Identify today's best human resource practices.
2. Outline human resources principles for building the future.
3. Express an understanding of what can be done to prevent failed

international assignments.
Focus Questions
1. What are today's best human resource practices?
2. Outline human resources principles for building the future.
3. What can be done to prevent failed international assignments?
The Employee-Employer Contract

At the very beginning of this course, we discussed the changing
contract between employee and employer. The old contract implied that if
employees did a reasonably good job, they could depend on job security
and periodic raises. If employees did a superior job, they could be
American City University Lesson Sixteen 97
reasonably sure of promotion, in addition to raises and job security. This

is no longer true.
The best that companies can now offer prospective employees

is something like the following: 'We cannot guarantee you a
job forever, not even for the next five years, but we can
guarantee that however long you stay with us, when we lay
you off, we'll do it in such a way that you'll want to come
back--if we ever have a job for you to come back to.' 1 0 8
This "new contract" also involves human resource management. No

longer is HRM an administrative function--it is an integral component of
the organization's strategic plan.
Today's best human resource management practices have been outlined

as;
Values : A constant focus on adding value rather than just doing and
administrative series of tasks. There is also an ongoing attempt to
balance the human with the financial values.
Commitment: A long-term dedication to core strategy.
Culture: Proactive application of the organization's culture.
Collaboration: A high level of both cooperation and involvement within

all sections of the organization to work in a collective manner, enhancing
efficiency and cohesiveness.
Innovation and risk : There is a willingness to risk shutting down existing

systems in order to restart them in a totally different manner while
learning from failure.
109
Competitive passion: A constant search for improvement.
The Future of Human Resource Management

This very changing world of organization demands a constant
looking toward the future. The orientation to future development must be
shared by human resource management. In order to be orientated in this
manner, it is essential to never be complacent with the present. Other
principles for building the future include:
1. Human resource strategy must be anchored in the organization's

overall strategy.
2. Human resource management is about people-not programs.
3. The human resource management department must be proactive in

its understanding of change and ways to implement it.
4. While being an outspoken advocate of the interests of the

employees, the human resource management department must
understand that business decisions must balance a whole range of
factors that may conflict with each other.
5. The effectiveness of human resources depends upon staying

focused on issues rather than on personalities.
6. Human resource management must accept that constant learning

and skill enhancement are essential to being contributors to the
business. 1 1 0
Putting Change to Work

Survival of an organization may depend on effective human
resource management. In order to be effective HRM must utilize
technology to enhance performance. The establishment of human
resource information systems( HRI S ) eliminates useless repetition and
enhances communication.
In addition to HRIS maintaining and processing data, technology

can also be used for orientation and training. Pilgrim Nuclear Power
Plant located in Plymouth, Massachusetts utilizes an interactive laser-disc
program for orientation and training. Pilgrim's program utilizes advanced
technology that allows orientees to virtually tour the entire plant without
risk of nuclear exposure.
American Airlines uses computers to train flight, attendants, ticket

agents, and other workers. American's flight-attendant program is a
perfect example of how sophisticated interactive systems can be. The
seven-week course, which accommodates about 60 students at a time,
includes conventional films, videos and lectures. Twenty percent of the
time is spent in front of a Macintosh computer, equipped with a Sony
Videodisc player, touch-screen monitor and headphones. Viewing video
clips, graphics and text off the LP-sized platter, students learn about
different planes, seating arrangements, food storage and preparation
policies, emergency procedures and scores of other topics. When it
comes time to take a test, the computer administers it. the instructor can
access results instantly from a separate terminal on the same network. 1 1 1
Human resource management also uses technology to recruit and

communicate. Earlier in the course, we discussed the use of the Int er net
for recruiting. The use of Int ra nets for communication is also showing
good results. Organizational HR int ra nets may allow workers to access
their benefits and update information. For example, HRIS can track
vacation time within a department or team and the workers can easily see
what time is available. HRIS can also track insurance benefits, sick time,
payroll information, and training materials.
Another vital human resources function that seldom receives any

recognition is development and execution of an emergency plan. Of
course, nobody wants to think about emergencies; but a functioning plan
may save lives and money.
At the very least, a corporate emergency-survival plan must

reflect a thorough analysis of all its business functions.
Consider all operational systems that, if disrupted, have the
potential to result in lost revenue, capital outlay for
construction and replacement of lost equipment, increased
paperwork and stress or, at its most extreme, business
closure. 1 1 2
Although communication is the first priority, it's not the only

essential element of a disaster plan. After a major crisis, employees may
need assistance with necessities such as finding somewhere to live,

afood and water.
When hurricane Andrew hit the Miami area with devastating winds,
Burger King was able to provide services to its workers. Dennis Liberson,
former vice president of human resources for Burger King Corp. provides
a good example of what can be done to help.
300 of the 700 corporate employees were left homeless and

30 restaurants in southern Florida were battered.... Although
Burger King's buildings were at Andrew's mercy, its internal
structure was protected by a well-conceived disaster plan that
went into effect immediately.... Burger King met the challenge
head on. As employees started returning to work, they found
a staffed Winnebago at the entrance to headquarters. Staff
members kept track of who was reporting in, took information
from them about their individual needs and entered that into
an employee-needs data base, To help with temporary
housing, company representatives secured banks of hotel
rooms and placed deposits on dozens of apartments. 1 1 3
Hopefully, none of us will ever face such an emergency; but, nobody

can ever be sure. Being prepared with a well-thought out plan is much
better than loosing a business and maybe loosing lives.
International Human Resource Management

The world is facing a global economy. For human resource
management, this means that people are moving from their home
countries. The implications of this shift are numerous--everything from
housing to legal regulations must be considered. The following is an
example of what can happen if human resources doesn't do it’s job.
A manager from Thailand leaves his temporary assignment in

Boston to visit his homeland for several weeks. It's in the
middle of winter. To save money and energy, he completely
turns off the heat in his house. When he returns, he discovers
frozen water in the toilet bowl and the pipes. No one thought
to teach him how to close up a house during the winter
season...Damage to the rental property, leased to his

employer, was $5,000. 1 1 4
Help with finding schools for the children, obtaining work visas for
spouses or older children, and providing English lessons for the entire
family are examples of services that may be required.
Organizations that send their own nationals to other countries face

a different set of problems. These organizations must provide cross-
cultural training for their expatriates. They also may have to provide
support when the worker returns to the home country. Many people
stress the initial cultural shock; but forget that the shock returning to the
homeland may be even more severe.
Another factor for human resources is the possibility of a failed

global assignment. Failed assignments are costly both in terms of
financial and human loss. The best policy is prevention. Suggestions
given to prevent failed assignments include:

Structure assignments clearly; develop clear reporting relationships
and job responsibilities.

Create clear job objectives.

Develop performance measurements based on objectives.
Use effective, validated selection and screening criteria. These

would include both technical and personal attributes.

Prepare expatriates and families for assignment, including full
briefings, and cultural and language training.

Develop continuing support for all involved.

Create a vehicle for ongoing communication with the expatriate.

Anticipate repatriation.

Consider developing a mentor program that will help monitor the
assignment and provide resources to intervene if there's trouble. 1 1 5
GLOSSARY
Affirmative action-a voluntary organizational tactic to develop policies that attempt to

ensure that jobs are made available to qualified persons regardless of sex, age, race,
or ethnic background
Behavior modeling training-a training technique that exposes trainees to role models
of exceptional ability and then allows the trainees to practice these behaviors.
Behaviorally anchored rating scales(BARS)-a performance evaluation and appraisal

method using a rating scale that labels behavior as poor, average, or good.
Chain of command-refers to the number of authority levels within an organization
Criterion-a measure of job success, usually related to performance
Departmentalization refers to the manner in which jobs are grouped.
Downsizing-a term used to explain the strategy of reducing a company's workforce in

order to improve organizational efficiency and/or competitiveness.
Employee assistance programs(EAPs)-programs offering counseling for a variety of

problems, especially problems associated with drug and alcohol abuse.
Empowerment-the process by which organizational members are able to increase their

sense of power and enlarge their scope of personal control over the work environment.
Equal Employment Opportunity Commission(EEOC)-a agency of the United States

federal government that was created to protect against discrimination in employment.
Evaluation is the process used to measure the outcomes that reflect the original
objectives
Feedback-part of the communication process that acknowledges that a message has

been received and understood
A flat structure has a short chain of command and a wide span of control.
Flextime-a working schedule that allows an employee a certain number of work hours
that can be arranged to suit the need of the employee.
American City University Glossary 103
Formalization is a way of referring to the degree to which job descriptions are

standardized and formal rules are applied..
Glass ceiling-unspoken limitations placed on women and minorities which prevent

them from reaching high-level positions in a company
Halo effect-is a social perception that creates an overall positive evaluation of a person
based on one known characteristic or trait
Human resources planning is the managerial process that attempts to ensure that the
right numbers and types of workers are in the right place at the right time doing the right
job at the right price in order to add value to the organization.
Integrity tests-measures of honest/dishonest attitudes and/or behavior
Job analysis-the systematic study of the tasks, duties, and responsibilities of a specific
job.
Job description-a detailed classification of job tasks, procedures, and responsibilities,

as well as, the tools/equipment used and the expected end product.
Job enlargement-the expansion of a job to include additional and more varied work
Job enrichment-refers to the redesigning of jobs to give workers greater responsibility

in the planning, performance, and evaluation of their work.
Job evaluation-the assessment of the relative value of a job in order to determine the
appropriate compensation
Knowledge-based pay-a system of compensation based on worker knowledge and

skills
Lecture-a training method in which an expert provides information in a classroom

setting
Mentoring-a training program in which an experienced worker serves as an advisor
Modeling-refers to learning that occurs by observing and imitating the behavior of

others
Occupational Safety and Health Administration(OSHA)-an agency of the United

States federal government that administers and enforces health and safety standards
at the workplace
Performance appraisals-refers to the process of judging a worker's job performance

Planning is the process which involves assessing the gap between where we are and
we plan to be.
Profit-sharing-a payment system that allows employees to share in an organization's

profits
Quality of work life-the total state of all aspects of work
Realistic job previews(RJPs)-an honest presentation given to applicants that truthfully

depicts both the good and the bad of a job
Recruitment-the process by which an organization attracts new workers
Span of control refers to the number of workers who are responsible to one
supervisor.
A stakeholder is any person or group affected by the organization.
A tall structure has many layers of authority and a long chain of command).
Team structured organizations utilize a team-based form of work rather than a

departmental approach.
Work specialization refers to how tasks are divided into individual jobs.
Workspace design-the design and arrangement of equipment, space, and machinery

within the work environment
American City University Glossary 105
American City University Final Project 107
FINAL PROJECT
Your online facilitator will assign a final project during the course of the
semester. Therefore it is of great importance to ‘attend’ every session and pay
close attention.
American City University Practice Tests 109
PRACTICE TESTS
Your online facilitator will discuss assignments and practice quizzes during the
course of the semester. Therefore it is of great importance to ‘attend’ every
session and pay close attention.
American City University References 111
1REFERENCES
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3 Thomas, David and Robin J. Ely, "Making Differences Matter: A New Paradigm of Managing Diversity," Harvard Business Review,
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4 U.S. Bureau of the Census, Statistical Abstracts of the United States : 1992 (Washington: Government Printing Office, 1991), p. 387.
5 Elliott,V and A, Orgera, "Competing For and With Workforce 2000," HR Focus, June 1993, 3.
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9 Thomas, David and Robin J. Ely, "Making Differences Matter: A New Paradigm For Managing Diversity," Harvard Business Review,
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12.Ibid., 12.
13. Ibid., 13.
14. Ibid., 13.
15. . Ibid., 14.
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19.Ibid., 96.
20. Ibid., 99, 100
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22. Hackman, J. Improving Life at Work, ed.J. Hackman and J Suttle (Glenview, I: Scott, Foresman, 1977), 136-40.
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1997): 87.
31. Laabs, Jennifer. "Prudential Measures HR With a Total-quality Yardstick ," Personnel Journall (April 1995): 139-143.
32. Ibid.
33. Solomon, C., "You're Going to Need Them-Unlock the Potential of Older Workers," Personnel Journal, (October 1995), 56+.
34. Rynes, S.L. (1991). "Recruitment, job choice, and post-hire consequences: A call for new research directions, In M.D. Dunnette and
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35. Hakstian, A. & Cattel, R.(1977-1982)"Comprehensive Ability Battery." Champaign, IL: Institute for Personality and Ability Testing.
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37. Bennet, G. (1980). "Bennett Mechanical Comprehension Test." San Antonio TX: The Psychological Corporation.
38. Vale, C. & Prestwood J.(1987). "Minnesota Clerical Assessment Battery."San Antonio TX: The Psychological Corporation.
39. Ownes, G. & Arnold B. (1958). "Purdue Bluepring Reading Test." West Lafayette, IN: Purdue University.
40. McCrae, R. & Costa, P. "Reinterpreting the Myers-Briggs Type Indicator for the Perspective of the Five-Factor Model of
Personality," Journal of Personality , (March 1989), 17-40.
41. User's Guide for the Minnesota Report: Personnel Selection Systems.(1984). Minneapolis, MN: University of Minnesota Press.
42. Cortina, J., Doherty, M. , Schmitt, N, Kaufman, G. & Smith R.. The "Big Five" personality factors in the IPI and MMPI: Predictors of
police performance. Personnel Psychology(1992), 45: 119-140.
43. Goodale, J. "Effective employment interviewing." In R. Eder & G. Ferris (Eds.) The Employment Interview: Theory,
Research, and Practice.(1989). Newbury Park, CA: Sage.
44. Casico, W.(1987) Applied Psychology in Personnel Management(3rd Ed.). Englewood Cliffs NJ: Prentice -Hall.
45. Goldberg, A. "Top 8 Legal Issues Affecting HR," HR Focus (Dec 1997): S1(3).
46. Simon, H. "When is an Independent Contractor Actually an Employee?. Workforce, September 1997: S 6-7.
47. Ibid.
48. Ibid.
49. Ibid.
50. Ibid.
51. Ibid.
52. Ibid.
53. Wilson, K. "Sunbeam Corp. Fires Chairman," The Associated Press (June 15 1998).
54. Ibid.
55. Winston, T. & Tang, T. "Downsizing and the Impact on Survivors--a Matter of Justice," Employment Relations Today, (Summer
1996); 33(9)
56. "Upsizing: After a Decade of Telling Companies to Shrink, Management Theorists Have Started to Sing the Praises of Corporate
Growth," The Economist ,(Feb 10, 1996).
57. Blanchard, K. "Alternatives to Downsizing," Manage (july 1995): 11(2).
58. Fowler, A. "How to Conduct a Disciplinary Interview," People Management (Nov 1996): 40+.
59.Springer, B. "Terminating Problem Employees," Public Management (April 1996):16-17.
60. "Wrongful-Termination Suits: Legal Affairs. Inc. (April 1996): 11.
61. Rankin, K. "What Do You Think of Your Fired Employees?(Be Nice)," Discount Store News (March 3 1997): 14
62. Graham, G. "Eliminate Office Politics and End Many Problems in Companies," Kemper Business Journal , (Feb 9 1998).
63. Ibid.
64. Chan, W. "External Recruitment Versus Internal Promotion," Journal of Labor Economics,(Oct. 1996): 55+
65. Gingleton, E. "Jobs for Life-Why Japan Won't Give Them Up." Fortune (March 20 1995): 119+
66. Schuler, R., Jackson, S. Jackofsky, E. & Slocum, J. "Managing Human Resources in Mexico: A Cultural Understanding", B usiness
Horizons (May-June 1996): 55+.
67. DeAngelis, T. "New Tests Allow Takers to Tackle Real Life Problems," APA Monitor 25, 14-15.
68.Flynn, G. "New Skills Equal New Opportunities, "Personnel Journal" (June 1996): 77-79.
69. Ibid.
70. Nutter, R. "Salaries Aren't What They Once Were Cracked Up to Be." Journal of Health Care Marketing, (Summer 1996):21.
71. Milkovich, G. & Boudreau, J. Human Resource Management (8th. Ed.). Chicago: Irwin, 466.
72.Pfeffer, J. Six Dangerous Myths About Pay. Harvard Business Review, (May/June 1998):109+
73.Richter, A. "Compensation Management and Cultural Change at IBM: Paying the People in Black at Big Blue", Compensation and
Benefits Review.(May/June 1998): 5+
74. Liccione. W. and Strathmann, C. "Strategic Job Value: Blending the Strategic and Market Values of Jobs." Compensation and
Benefits, (Spring 1995):1+.
75.Flynn, G. "Your Grand Plan for Incentive Compensation May Yield a Grand Lawsuit." Workforce (July 1997): 89+.
76. Pfeffer, J. "Six Dangerous Myths About Pay," Harvard Business Review, (May-June 1998): 109+
77.Seaman, R. "Case Study: Rejuvenating an Organization with Team Pay, "Compensation and Benefits Review, " (Sept-Oct 1997):
25+.
78. Knouse, S. "Variations on Skill-Based Pay for Total Quality Management, " SAM Advanced Management Journal, (Winter 1995):
34+
79. Ibid.
80. Reissman, L. "Nine Common Myths About Broadbands," HRMagazine,(Aug 1995): 79+.
81. Falconi, R. "Does Your Boss Make Too Much?" Financial Executive (Sept-Oct 1996): 16+
82. Coil J. & Rice, C. "The Jury is Out: Dealing With Employee Absences for Jury Duty." Employment Relations Today, (Spring 1996):
97+
83. Evans, B. "Understanding Military Leave Laws." Supervision(Nov 1997): 14+
84. Lorenz, C. "Nine Practical Suggestions for Streamlining Workers' Compensation Costs" Compensation and Benefits Review, (May-
June 1995): 40-44.
85.Ibid.
86. Gregg, R. "If You Don't Watch Our, COBRA Might Bite Your Business." South Florida Business Journal, (July 4, 1997): 20.
87. "Court Holds That Employer Breached Fiduciary Duty by Failing to Provide a COBRA Notice to a Terminated Employee." Tax
Management Planning Journal,(April 3, 1998): 94-95.
88. "Family-friendly Workplace (US Dept of Labor Awards 1996 Corporate Citizen Award to Ceridian Corporate, " Industry Week,(Sept
16, 1996): 9.
89. Caudron, S. "The Changing Union Agenda." Personnel Journal, (March 1995): 42+
90. Staudohar, P."The Baseball Strike of 1994-95." Monthly Labor Review, (March 1994):21+
91. "Putting UPS at Risk,(Editorial). Journal of Commerce and Commercial, (Aug 7, 1997): 8A
92. Miller, W. "Big Victory." Industry Week, (Feb 19, 1996):69.
93. Epstein, G. "The Rise of Replacement Workers Discourages Strikes, but Spurs Other Forms of Labor Strife." Baron's(May
9, 1995): 30.
94.Kanter, L. "Dock Workers Stage Slowdown, Ports Pay Price." Los Angeles Business Journal, (Jan 13, 1997): 1+.
95.Lippert, J. "Soldidarity...For a While: Unions Have Promoted Decent Wages, Safer Workplaces-but Their Power is Ebbing." Ward's
Auto World, (May 1996): 107+
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97. Ibid.
98. Johnsson, J."Physicians Want to Collectively Bargain: AMA to Further the Quest." American Medical News, (July 7, 1997): 3+
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100. Murstiner, M. "Lawyers Could Get Ally in Wage Fight: Teamsters." San Francisco Business Times, (Feb. 3, 1995):3+.
101.Miller, R."Employee Participation and Contemporary Labor Law in the US." Industrial Relations Journal, (June 1996):166+
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Press 1975) 91-104.
103.Milkovich, G. and Boudreau, J. Human Resource Management (eighth edition,1997).Chicago: Irwin: p.610.
104.Miller, R. "Employee Participation and Contemporary Labor Law in the US". Industrial Relations Journal, (June 1996): 166+
105.Ibid.
106.Rosen,R. and Berger, L. The Healthy Company(1991). New York: G.P.Putnam's Sons.p.174.
107. Solomon,C. "Talking Frankly About Domestic Violence." Personnel Journal(April 1995): 62-72.
108.Champy, J. Reengineering Management . New York: Harper Business, (1995): 176.
109. Fits-enz, J. The Truth About Best Practices: What They Are and How to Apply Them. Human Resource Management , (Spring
1997): 97+.
110. Ehrlich, C. Human Resource Management: A Changing Script for a Changing World. Human Resource Managment , (Spring
1997): 85+.
111. Greengard, Samuel. How Technology Is Advancing HR. Personnel Journal, (September 1993): 80-90.
112.Solomon, Charlene. Bracing For Emergencies. Personnel Journal (April 1994); 74-83.
113. Ibid.
114.Copeland, Anne. Helping Foreign Nationals Adapt to the U.S. Personnel Journal, (February 1995): 83-87.
115. Solomon, Charlene. Danger Below! Spot Failing Global Assignments. Personnel Journal, (November 1966): 78-85.

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HUMAN RESOURCE

COURSE TITLE: Human Resource Management

PRE-REQUISITES: Graduate Standing

LESSON TITLE PAGE

GUIDANCE FOR DISTANCE LEARNING

HUMAN RESOURCE MANAGEMENT

Milkovich, George T. and John W. Boudreau, Human Resource

The study of human resource management is of vital concern to

Human resource management is commonly divided into five

Your online facilitator will determine the grading criteria for

At the completion of the lesson, the student should be able to:

1. List the main functions of human resource management.

2. Summarize the concepts of equity and efficiency as they apply to

3. Explain the organizational changes that are currently affecting the

1. What are the main functions of human resource management?

2. How do the terms equity and efficiency effect the practice of

3. What changes are currently inspiring the function of human resource

KEY POINTS AND COMMENTARY

The Basic Activities of Human Resource Management

and viability of the organization. Providing AND retaining the proper

The concept of staff development is undergoing rapid transformation

Managing compensation includes monitoring the competition's pay

The employee/labor relations function of HR includes the provision

Maintenance of corporate culture is also part of the global

Equity and Efficiency

These procedures and decisions must also be efficient and reflect

The decisions made in the human resource management area affect

The stakeholders of most organizations would include:

employees, stockholders, managers, consumers, unions, regulatory

The employees certainly want good working conditions, equitable

Although the ultimate responsibility for HR management belongs to

The Changing World of Organizations

practice strategic staffing. In other words, the hiring and retention of

The impact of technology has also greatly affected how

The major shifts in organizational design and operation have

At the completion of the lesson, the student should be able to :

1. Describe the role of government in the practice of human resource

2. Discuss the role of diversity in the modern organization.

3. Explain the main characteristics necessary for workers in an

1. What role does government have in the practice of human resource

2. What is meant by diversity and how can an organization achieve it?

KEY POINTS AND COMMENTARY

The Role of the Government in Human Resource Management

numerous laws intended to protect the workers. Among these

It is against US Federal law to discriminate against anyone on

According to the Civil Rights Act (1991), individuals are permitted to

Compliance to the law is regulated (in the United States) by the

Diversity is a Positive Challenge

gender, age, level of perceived capabilities (disabilities), culture,

Diversity is also good for organizations. No longer is it possible for

The special advisor to the Asia Pacific Foundation of Canada,

Even misunderstandings cost money. The Canadian province of

The positive rewards of diversity are not limited to those areas

The benefit of employing a diverse workforce in the

Diversity also brings other rewards. It expands an organization's

The Scope of Diversity

The presence of older people working past what was considered

The globalization of the world economy also has a positive effect on

Stages Leading to True Organizational Diversity

2. Club Organizations -This type of organization closely resembles

3. Compliance Organizations - These organizations meet the

4. Affirmative Action Organizati ons -This type of organization is

5. Redefining Organizations - This type of organization is a step