f- ^ ^ ^ tC^L X

Human Resource
Management
R. WAYNE MONDY, SPHR

in collaboration with
JUDY BANDY MONDY
McNeese State University

Prentice Hall
Boston Columbus Indianapolis New York San Francisco Upper Saddle River
Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto
Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo
Preface XXII Professional Employer Organizations
Acknowledgments xxv (Employee Leasing) 13
Line Managers 14
HR as a Strategic Partner 14
A Strategic HR Example 16
A Strategic HR Audit 16
Strategic Human Resource Management:
An Overview 3 Human Capital Metrics 17
Human Resource Designations 18
Chapter Objectives 2
Evolution of Human Resource Management: Moving
HRM in Action: Not HR Branding, Employer
Branding 3 into Strategic HR 18
Human Resource Management 4 Evolving HR Organizations 19
Human Resource Management Functions 5 Scope of This Book 20
Staffing 5 • A Global Perspective: Cultural Differences in
Global HR 22
• Trends if Innovations: Measuring Quality of Hire in
SUMMARY 23
Today's Environment 6
KEY TERMS 24
Human Resource Development 6
QUESTIONS FOR REVIEW 24
Compensation 7 /
HRM INCIDENT 1: HR AFTER A DISASTER 24
Safety and Health 7
HRM INCIDENT 2: DOWNSIZING 25
Employee and Labor Relations 7
NOTES 25
Human Resource Research 8
Interrelationships of HRM Functions 8
Dynamic Human Resource Management Environment 8 PART TWO: ETHICAL, SOCIAL,
Legal Considerations 8 AND LEGAL CONSIDERATIONS 28
Labor Market 9
Society 9 Business Ethics and Corporate Social
Unions 10 Responsibility 29
Shareholders 10 Chapter Objectives 28
Competition 10 HRM in Action: Going Strategic with Corporate Social
Customers 10 Responsibility 29
Technology 10 Ethics 30
Economy 11 A Model of Ethics 31 ,
Unanticipated Events 11 Legislating Ethics 32
• Ethical Dilemma: A Selection Quandary 33
How Human Resource Management Is Practiced in the
Real World 11 Code of Ethics 34
HR's Changing Strategic Role: Who Performs the Human Resource Ethics 3 5
Human Resource Management Tasks? 11 Ethics Training 36
Human Resource Manager 12 Professionalization of Human Resource Management 3 7
HR Outsourcing 12 Society for Human Resource Management 38
HR Shared Service Centers 13 Human Resource Certification Institute 38
VI CONTENTS
American Society for Training and
D evelopment 3 8
WorldatWork 38
Corporate Social Responsibility 39
• Trends if Innovations: Bayer Corporation: A Quality
Example of Corporate Social Responsibility 40
Stakeholder Analysis and the Social Contract 40
Obligations to Individuals 42
Obligations to Other Organizations 42
Obligations to Government 43
Obligations to Society in General 43
Implementing a Corporate Social Responsibility
Program 43
• A Global Perspective: Multinational
Whistle-blowing 44
SUMMARY 46
KEY TERMS 47
QUESTIONS FOR REVIEW 47
HRM INCIDENT 1: AN ETHICAL FLAW 47
HRM INCIDENT 2: "YOU CAN'T FIRE ME" 47
NOTES 48
Workforce Diversity, Equal Employment
Opportunity, and Affirmative Action 51
Chapter Objectives 50
HRM in Action: Paternity Leave for Dad 51
Projected Future Diverse Workforce 52
Diversity and Diversity Management 53
Components of the Diverse Workforce 54
Single Parents and Working Mothers 54
Women in Business 54
Mothers Returning to the Workforce 55
Dual-Career Family 55
Workers of Color 56
Older Workers 56
People with Disabilities 57
Immigrants 57
Young Persons with Limited Education or Skills 57
Equal Employment Opportunity: An Overview 58
Laws Affecting Equal Employment Opportunity 58
Civil Rights Act of 1866 58
Equal Pay Act of 1963 59
Tide VII of the Civil Rights Act of 1964,
Amended 1972 60
Age Discrimination in Employment Act of 1967,
Amended in 1978 and 1986 62
Age Can Actually Be a Bona Fide Occupational
Qualification 63
Rehabilitation Act of 1973 63
Pregnancy Discrimination Act of 1978 64
Immigration Reform and Control Act
of 1986 64
Illegal Immigration Reform and Immigrant
Responsibility Actofl996 65
Americans with Disabilities Act of 1990 65
Civil Rights Act of 1991 66
Uniformed Services Employment and
Reemployment Rights Act of 1994 67
Veterans' Benefits Improvement Act of 2004 67
State and Local Laws 67
Significant U.S. Supreme Court Decisions Affecting
Equal Employment Opportunity 68
Griggs v Duke Power Company 68
• Ethical Dilemma: What Was the Real
Message? 68
Albermarle Paper Company v Moody 69
Phillips v Martin Marietta Corporation 69
Espinoza v Farah Manufacturing Company 69
Dothard v Rawlingson 69
American Tobacco Company v Patterson 10
O'Connor v Consolidated Coin Caterers
Corp. 70
Significant U.S. Supreme Court Decisions Affecting
Affirmative Action 70
University of California Regents v Bakke 11
Adarand Constructors v Pena 11
Grutter v Bollinger 11
Gratz v Bollinqer 11
o
Equal Employment Opportunity Commission 71
Uniform Guidelines on Employee Selection
Procedures 73
Concept of Disparate Treatment 73
Concept of Adverse Impact 74
Additional Guidelines on Employment Selection
Procedures 75
Guidelines on Sexual Harassment 75
Guidelines on Discrimination Because of
National Origin 77
• Trends & Innovations: Family Responsibilities
Discrimination 18
Guidelines on Discrimination Because of
Religion 79
Affirmative Action: Executive Order 11246, as Amended
by Executive Order 11375 79
Affirmative Action Programs 80
• A Global Perspective: Global Equal Employment
Opportunity 82
 CONTENTS vii

SUMMARY 84 Strategy Setting 105

KEY TERMS 85 Strategy Implementation 106
QUESTIONS FOR REVIEW 85 Strategic Human Resource Planning 106
HRM INCIDENT 1:1 FEEL GREAT 86 Forecasting Human Resource Requirements 108
HRM INCIDENT 2: SO, WHAT'S AFFIRMATIVE ACTION? 86 Zero-Base Forecasting 108
NOTES 87 Bottom-Up Approach 108
Relationship between Volume of Sales and Number
of Workers Required 108
PART THREE: STAFFING 90 Simulation Models 109
Forecasting Human Resource Availability 109
Job Analysis, Strategic Planning, Use of HR Databases 110
and Human Resource Planning 91 Shortage of Workers Forecasted 110
Chapter Objectives 90 Innovative Recruiting 110
HRM in Action: Social Networking: Getting to Know Compensation Incentives 111
Each Other 91
Training Programs 111
Job Analysis: A Basic Human Resource Management
Different Selection Standards 111
Tool 92
• Ethical Dilemma: Which "Thinker"
Reasons for Conducting Job Analysis 93
Should Go? Ill
Staffing 93
Surplus of Employees Forecasted 112
Training and Development 93
Restricted Hiring 112
Performance Appraisal 94
Reduced Hours 112
Compensation 94
Early Retirement 112
Safety and Health 94
Downsizing 112
Employee and Labor Relations 94
Negative Aspects of Downsizing 113
Legal Considerations 95 ;
Outplacement 113
Types of Job Analysis Information 95
Succession Planning 114
Job Analysis Methods 96
Disaster Planning 114
Questionnaires 96
Human Resource Information Systems 116
Observation 96
Manager Self-Service '117
Interviews 96
Employee Self-Service 118
Employee Recording 96
Job Design Concepts 118
Combination of Methods 97
Job Enrichment 118
Conducting Job Analysis 98
Job Enlargement 119
Job Description 98
Reengineering 119
Job Identification 98
• A Global Perspective: India Getting the Job Done,
Date of the Job Analysis 99
but Differently 120
Job Summary 99
SUMMARY 121
Duties Performed 99
KEY TERMS 123
Job Specification 100
QUESTIONS FOR REVIEW 123
Timeliness of Job Analysis 101
HRM INCIDENT 1: A DEGREE FOR METER READERS 123
Job Analysis for Team Members 101
HRM INCIDENT 2; STRATEGIC HR? 124
Job Analysis and the Law 102
NOTES 124
• Trends if Innovations: Talent Management 103
Strategic Planning Process 104 Recruitment 127
Mission Determination 104 Chapter Objectives 126
Environmental Assessment 105 HRM in Action: Using the CEO in the Recruitment
Objective Setting 105 Process 127
viii CONTENTS
Recruitment Defined 128
Alternatives to Recruitment 128
Outsourcing 129
Contingent Workers 129
Professional Employer Organizations
(Employee Leasing) 129
Overtime 130
External Environment of Recruitment 130
Labor Market Conditions 130
Legal Considerations 130
Promotion Policies 131
Recruitment Process 132
Internal Recruitment Methods 133
Job Posting and Job Bidding 134
Employee Referrals 134
• Trends & Innovations: Twittering for the
Best Recruit 135
External Recruitment Sources 136
High Schools and Vocational Schools 136
Community Colleges 136
Colleges and Universities 137
Competitors in the Labor Market 137
Former Employees 137
• Ethical Dilemma: Unfair Advantage? 131
Unemployed 138
Military Personnel 138
Self-Employed Workers 138
Ex-Offenders 138
Online Recruitment Methods 139
Internet Recruiter 140
Virtual Job Fair 140
Corporate Career Web Sites 140
Jobs domain 140
Weblogs (blogs for short) 140
General-Purpose Job Board 141
NACElink Network 141
Niche Sites 141
Contract Workers' Sites 142
Hourly Workers' Job Sites 143
Traditional External Recruitment Methods 143
Media Advertising 143
Employment Agencies 144
Recruiters 144
Job Fairs 145
Internships 145
Executive Search Firms 145
Professional Associations 146
Unsolicited Applicants 146
Open Houses 146
Event Recruiting 147
Sign-on Bonuses 147
Competitive Games 147
Going Paperless at Continental Airlines 148
Tailoring Recruitment Methods to Sources 149
• A Global Perspective: U.S. Firms in
Vietnam 150
SUMMARY 151
KEY TERMS 151
QUESTIONS FOR REVIEW 152
HRM INCIDENT 1: A PROBLEM AD? 152
HRM INCIDENT 2:1 AM QUALIFIED, WHY NOT ME? 152
NOTES 153
Selection 157
Chapter Objectives 156
HRM in Action: Putting the Interviewee under
Pressure: The Stress Interview 157
Significance of Employee Selection 158
Environmental Factors Affecting the Selection
Process 159
Other HR Functions 159
Legal Considerations 159
Speed of Decision Making 159
Organizational Hierarchy 159
Applicant Pool 159
Type of Organization 160
Probationary Period 160
Selection Process 160
Preliminary Interview 161
Review of Applications 162
Review of Resumes 163
Sending Resumes via the Internet 165
• Ethical Dilemma: Employee Selection
Criteria? 165
Selection Tests: Advantages and Potential
Problems 167
Advantages of Selection Tests 167
Potential Problems of Selection Tests 168
Characteristics of Properly Designed Selection
Tests 168
Standardization 168
Objectivity 169
Norms 169
Reliability 169
Validity (Job-Relatedness) 169

Types of Validation Tests 170
Criterion-Related Validity 170
Content Validity 170
Construct Validity 170
Types of Employment Tests 170
Cognitive Aptitude Tests 170
Psychomotor Abilities Tests 170
Job-Knowledge Tests 171
Work-Sample Tests 171
Vocational Interest Tests 171
Personality Tests 171
Unique Forms of Testing 172
Genetic Testing 172
Graphoanalysis (Handwriting Analysis) 172
Polygraph Tests 173
Online Testing 173
Assessment Centers 173
Employment Interview 174
Interview Planning 174
Content of the Interview 174
Candidate's Role and Expectations 175
General Types of Interviews 176
Unstructured Interview 176,
Structured Interview 176 /
Behavioral Interview 177
Methods of Interviewing 178
One-on-One Interview 178
Group Interview 178
Board (or Panel) Interview 178
Multiple Interviews 178
Realistic Job Preview 179
Potential Interviewing Problems 179
Inappropriate Questions 179
Premature Judgments 180
Interviewer Domination 180
Permitting Non-Job-Related Information 180
Contrast Effect 180
Lack of Training 180
Nonverbal Communication 181
Concluding the Interview 181
Pre-Employment Screening: Background
Investigations 181
Pre-Employment Screening: Reference Checks 183
Continuous Background Checks 183
Negligent Hiring 184
Negligent Referral 185
Selection Decision 185
CONTENTS ix
• Trends if Innovations: Hiring Temporary
Executives 185
Medical Examination 186
Notification of Candidates 186
Applicant-Tracking System 187
Metrics for Evaluating Recruitment/Selection
Effectiveness 187
Turnover Rate 187
Recruiting Costs 187
Selection Rate 188
Acceptance Rate 188
Yield Rate 188
Cost/Benefit of Recruitment Sources and
Methods 188
Time Required to Hire 188
• A Global Perspective: Changing of the Guard: Will
the New Expatriates Step Forward? 189
SUMMARY 190
KEY TERMS 192
QUESTIONS FOR REVIEW 192
HRM INCIDENT 1: A MATTER OF PRIORITIES 193
HRM INCIDENT 2: BUT I DIDN'T MEAN TO! 193
NOTES 193
PART FOUR: HUMAN RESOURCE
DEVELOPMENT 196
Training and Development 197
Chapter Objectives 196
HRM in Action: High-Tech Videoconferencing 197
Strategic Training and Development 198
Factors Influencing Training and Development 199
Top Management Support 199
Technological Advances 199
• Ethical Dilemma: Tough Side of Technology 200
World Complexity 200
Learning Styles 200
Other Human Resource Functions 200
Training and Development Process 201
Determine Specific Training and Development
Needs 201
Establish Specific Training and Development
Objectives 202
Training and Development Methods 202
Instructor-Led 203
Case Study 203
Behavior Modeling 204
Role-Playing 204
 CONTENTS

Business Games 204 HRM INCIDENT 1: TRAINING AT KELLER-GLOBE 220

In-Basket Training 204 HRM INCIDENT 2: CAREER VERSUS JOB SECURITY? 221
On-the-Job Training 204 NOTES 221
Job Rotation 205
Internships 205
Appendix Chapter 7: Career Planning
and Development 224
Apprenticeship Training 205
Job Security versus Career Security 224
Training and Development Delivery Systems 205
Career and Career Planning Defined 224
Corporate Universities 206
Career Planning 225
Colleges and Universities 206
Career Planning: Self-Assessment 225
Community Colleges 206
Using the Web for Self-Assessment Assistance 227
Online Higher Education 206
Using the Web for Career-Planning
Vestibule System 207
Assistance 228
Video Media 207
Career Paths and Career Development 228
E-Learning 207
Career Development Methods 229
Simulators 208
Manager/Employee Self-Service 229
Management Development 208
Discussions with Knowledgeable Individuals 229
Mentoring and Coaching 209
Company Material 230
Reverse Mentoring 210
Performance-Appraisal System 230
Orientation 210
Workshops 230
Purposes of Orientation 211
Career Paths 230
Responsibility for and Scheduling of
Traditional Career Path 230
Orientation 211
Network Career Path 231
• Trends & Innovations: Onboarding (Executive
Orientation) 212 Lateral Skill Path 231
OrientationatMonster.com 212 Dual-Career Path 231
Implementing Training and Development Adding Value to Your Career 232
Programs 213 Demotion 232
Metrics for Evaluating Training and Free Agents (Being Your Own Boss) 232
Development 213 Developing Unique Segments of the Workforce 232
Participants'Opinions 214 Baby Boomers 233
Extent of Learning 214 Generation X Employees 233
Behavioral Change 214 Generation Y Employees 234
Accomplishment of T&D Objectives 214 Generation I (Google Generation) as Future
Benchmarking 215 Employees 234
International ISO 9000 Quality Assurance Training KEY TERMS 235
Standards 215 NOTES 235
Business/Government/Education Training Partnership:
Workforce Investment Act 215 Performance Management
Organization Development: A Strategic HR Tool 215 and Appraisal 237
Survey Feedback 216 Chapter Objectives 236
Quality Circles 216 HRM in Action: Productivity and Emotional
Team Building 217 Intelligence 237
Sensitivity Training 217 Performance Management 238
• A Global Perspective: Learning to Deal with Cultural Performance Appraisal 239
Differences 218 Use of Performance Appraisal 239
SUMMARY 219 Human Resource Planning 239
KEY TERMS 220 Recruitment and Selection 240
QUESTIONS FOR REVIEW 220 Training and Development 240
 CONTENTS XI

Career Planning and Development 240 Trained Appraisers 257

Compensation Programs 240 Continuous Open Communication 258
Internal Employee Relations 240 Conduct Performance Reviews 258
Assessment of Employee Potential 241 Due Process 258
• Trends if Innovations: Performance Management, Legal Implications 258
Appraisal, and Layoffs 241 Appraisal Interview 259
Performance Appraisal Environmental Factors 242 Scheduling the Interview 259
Performance Appraisal Process 242 Interview Structure 260
Establish Performance Criteria (Standards) 243 Use of Praise and Criticism 260
Traits 243 Employees' Role 260
Behaviors 244 Concluding the Interview 261
Competencies 244 • A Global Perspective: Two Cultures' Views of
Goal Achievement 244 Performance Appraisal 261
Improvement Potential 245 SUMMARY 262
Responsibility for Appraisal 245 KEY TERMS 263
Immediate Supervisor 245 QUESTIONS FOR REVIEW 263
Subordinates 245 HRM INCIDENT 1: THESE THINGS ARE A PAIN 263
Peers and Team Members 246 HRM INCIDENT 2: PERFORMANCE APPRAISAL? 264
Self-Appraisal 246 NOTES 264
Customer Appraisal 247
Appraisal Period 247
Performance Appraisal Methods 247 PART FIVE: COMPENSATION 266
360-Degree Feedback Evaluation Method 247
Direct Financial Compensation 267
Rating Scales Method 248
Chapter Objectives 266
Critical Incident Method 250
HRM in Action: Outrageous Severance Pay? 267
Essay Method 250
Compensation: An Overview 268
Work Standards Method 251
Equity in Financial Compensation 269
Ranking Method 251
Determinants of Direct Financial Compensation 270
Forced Distribution Method 251
Organization as a Determinant of Direct Financial
Behaviorally Anchored Rating Scale Method 252
Compensation 271
Results-Based System 253
Compensation Policies 271
Use of Computer Software 253
Organizational Level 272
Problems in Performance Appraisal 253
Ability to Pay 272
Appraiser Discomfort 253
Labor Market as a Determinant of Direct Financial
Lack of Objectivity 2 54 Compensation 272
Halo/Horn 254 Compensation Surveys 273
Leniency/Strictness 254 Expendiency 274
Central Tendency 255 Cost of Living 274
Recent Behavior Bias 255 Labor Unions 274
Personal Bias (Stereotyping) 255 Economy 275
Manipulating the Evaluation 255 Legislation 275
Employee Anxiety 256 Job as a Determinant of Direct Financial
• Ethical Dilemma: Abdication of Responsibility 256 Compensation 276
Characteristics of an Effective Appraisal System 257 Job Evaluation 276
Job-Related Criteria 257 Ranking Method 277
Performance Expectations 257 Classification Method 277
Standardization 257 Factor Comparison Method 277
xii CONTENTS

Point Method 278 Benefits, Nonfinancial Compensation,

Point-Method Example 279 and Other Compensation Issues 303
Hay Guide Chart-Profile Method (Hay) Chapter Objectives 302
Plan 281 HRM in Action: Unique Benefits 303
Job Pricing 282 Benefits (Indirect Financial Compensation) 304
Pay Grades 282
• Ethical Dilemma: A Poor Bid 305
Pay Ranges 283
Mandated (Legally Required) Benefits 306
Broadbanding 284
Social Security 306
Single-Rate System 284
Unemployment Compensation 306
Adjusting Pay Rates 2 84
Workers' Compensation 306
Employee as a Determinant of Direct Financial
Family and Medical Leave Act 307
Compensation 285
Discretionary (Voluntary) Benefits 307
Job Performance—Performance-Based
Payment for Time Not Worked 307
Pay 285
Skills—Skill-Based Pay 286 Paid Vacations 307
Compentencies—Competency-Based Pay 287 Sick Pay and Paid Time Off 309
Seniority 287 Sabbaticals 309
Experience 288 Other Types of Payment for Time Not
Worked 309
Organization Membership 288
HealthCare 310
Potential 288
Managed-Care Health Organizations 310
Political Influence 288
Consumer-Driven Health Care Plans 311
Luck 288
• Trends if Innovations: On-Site Health Care 311
Team-Based Pay 289
Company-Wide Pay Plans 289 Major Medical Benefits 312
Profit Sharing 290 Dental and Vision Care 312
Gainsharing 290 Long-Term Care 312
• Ethical Dilemma: Creative Accounting? 291 Life Insurance 313
Professional Employee Compensation 291 Retirement Plans 313
Sales Representative Compensation 292 Defined Benefit Plans 313
Contingent Worker Compensation 292 Defined Contribution Plans 313
• Trends if Innovations: Are Top Executives Cash Balance Plans 314
Paid Too Much? 293 Disability Protection 314
Executive Compensation 293 Employee Stock Option Plans 315
Base Salary 294 Supplemental Unemployment Benefits 315
Stock Option Plans 294 Employee Services 315
Short-Term Incentives or Bonuses 294 Relocation Benefits 315
Performance-Based Pay 295 Child Care 316
Executive Benefits (Perquisites) 295 Educational Assistance 316
Golden Parachutes 295 Food Services/Subsidized Cafeterias 316
• A Global Perspective: China's Compensation Financial Services 316
Problems 296 Legal Services 317
SUMMARY 297 Scholarships for Dependents 317
KEY TERMS 298 Customized Benefit Plans 317
QUESTIONS FOR REVIEW 298 Premium Pay 318
HRM INCIDENT 1: A MOTIVATED WORKER! 299 Health Care Legislation 318
HRM INCIDENT 2: THE CONTROVERSIAL JOB 299 Consolidated Omnibus Budget Reconciliation
NOTES 300 Act 318
 CONTENTS xiii

Health Insurance Portability and Accountability PART SIX: SAFETY AND HEALTH 338
Act 319
Employee Retirement Income Security A Safe and Healthy Work
Act 319 Environment 339
Older Workers Benefit Protection Act 319 Chapter Obj ectives 338
Pension Protection Act 320 HRM in Action: Dominant Crime of the Twenty-First
Communicating Information About the Benefits Century: Identity Theft 339
Package 320 Nature and Role of Safety and Health 340
Nonfinancial Compensation 320 Occupational Safety and Health Administration 341
Job Itself as a Nonfinancial Compensation Safety: The Economic Impact 342
Factor 321
Focus of Safety Programs 3 42
Job Characteristics Theory 322
Unsafe Employee Actions 343
Skill Variety 322
Unsafe Working Conditions 343
Task Identity 322
Developing Safety Programs 343
Task Significance 322
• Ethical Dilemma: Illegal Dumping 343
Autonomy 322
Accident Investigation 345
Feedback 323
Evaluation of Safety Programs 345
Job Environment as a Nonfinancial Compensation
Repetitive Stress Injuries 347
Factor 323
Ergonomics 347
Sound Policies 323
Congress and OSHA 348
Capable Managers 323
Ergonomics Payoff 348
Competent Employees 324
Workplace Violence 348
Congenial Co-workers 324
Vulnerable Employees 349
Appropriate Status Symbols 324
Legal Consequences of Workplace
Working Conditions 324 ,
Violence 349
Workplace Flexibility (Work-Life Balance) 324
Individual and Organizational Characteristics to
Flextime 325 Monitor 349
Compressed Workweek 326 Preventive Actions 3 50
Job Sharing 326 Domestic Violence 351
Examples of Executive Job Sharing 326 Nature of Stress 351
Two in a Box 327 Potential Consequences of Stress 352
Telecommuting 327 Stressful Jobs 352
Part-Time Work 328 Organizational Factors 353
Other Compensation Issues 329 Personal Factors 353
Severance Pay 329 General Environment 3 54
Comparable Worth 329 Managing Stress 354
Pay Secrecy 330 Burnout 355
Pay Compression 330 • Trends if Innovations: Some Are Paid to Be Healthy;
• A Global Perspective: Expat Lifestyle Is Not What It Some Have to Pay Because They Are
Used to Be 331 Unhealthy 356
SUMMARY 332
Wellness Programs 357
KEY TERMS 333
Physical Fitness Programs 358
QUESTIONS FOR REVIEW 333
Substance Abuse 358
HRM INCIDENT 1: FLEXTIME 334
Alcohol Abuse 359
Drug Abuse 359
HRM INCIDENT 2: A BENEFITS PACKAGE DESIGNED
FOR WHOM? 334 Substance-Abuse-free Workplace 359
NOTES 335 Implementing a Drug-Testing Program 361
xiv CONTENTS

Employee Assistance Programs 3 62 Collective Bargaining 382

Smoke-free Workplaces 363
• A Global Perspective: Global Safely Programs 364
SUMMARY 365
KEY TERMS 366
QUESTIONS FOR REVIEW 366
HRM INCIDENT 1: WHAT A CHANGE! 367
HRM INCIDENT 2: A COMMITMENT TO SAFETY? 367
NOTES 368
PART SEVEN: EMPLOYEE AND LABOR
Labor Unions and Collective
Bargaining 371
Chapter Objectives 370
HRM in Action: Change to Win Coalition 371
Union Objectives 372
Organized Labor's Strategies for a Stronger
Movement 3 72
Strategically Located Union Members 373
Organizing Several Big Companies at Once 373
Pulling the Union Through 373
Political Involvement 373
Union Salting 374
Flooding the Community 3 74
Public Awareness Campaigns 374
Building Organizing Funds 3 74
• Ethical Dilemma: A Strategic Move 315
Organizing through the Card Check 375
Why Employees Join Unions 375
Dissatisfaction with Management 375
Social Outlet 3 76
Opportunity for Leadership 376
Forced Unionization 377
Peer Pressure 377
Union Structure 377
Local Union 377
National Union 378
American Federation of Labor and Congress of
Industrial Organizations (AFL-CIO) 378
Establishing the Collective Bargaining Relationship 379
Signing of Authorization Cards 380
Petition for Election 381
Election Campaign 381
• Trends & Innovations: The Two-Tier Wage System
Returns 382
Election and Certification 3 82
Collective Bargaining Process 383
Psychological Aspects of Collective Bargaining 3 84
Preparing for Negotiations 3 84
Bargaining Issues 387
Recognition 387
Management Rights 387
Union Security 388
Compensation 389
Grievance Procedure 3 89
Employee Security 389
Job-Related Factors 389
Negotiating the Agreement 390
Breakdowns in Negotiations 391
Third-Party Intervention 391
Union Strategies for Overcoming Negotiation
Breakdowns 392
Management Strategies for Overcoming
Negotiating Breakdowns 394
Ratifying the Agreement 395
Administration of the Agreement 395
Collective Bargaining in the Public Sector 396
Union Decertification 396
Decertification Procedure 397
Management and Decertification 397
Unions Today 398
• A Global Perspective: The ICFTU Says Union
Organizing Can Be Dangerous 399
SUMMARY 400
KEY TERMS 401
QUESTIONS FOR REVIEW 402
HRM INCIDENT 1: BREAK DOWN THE BARRIER 402
HRM INCIDENT 2: YOU ARE OUT OF WHAT? 403
NOTES 403
Appendix Chapter 12: History of Unions in the
United States 405
Labor Movement Before 1930 405
Labor Movement After 1930 406
Anti-Injunction Act (Norris-LaGuardia Act),
1932 406
National Labor Relations Act (Wagner Act),
1935 406
Labor Management Relations Act (Taft-Hartley
Act), 1947 408
Labor-Management Reporting and Disclosure Act
(Landrum-Griffin Act), 1959 409
KEY TERMS 409
NOTES 409
 CONTENTS xv

Internal Employee Relations 411 PART EIGHT: OPERATING IN A GLOBAL

Chapter Objectives 410
ENVIRONMENT 438
HRM in Action: Worker Retention 411
Global Human Resource Management 439
Internal Employee Relations Defined 412
Chapter Objectives 438
Employment at Will 412
HRM in Action: Global Bribery 43 9
Discipline and Disciplinary Action 414
Evolution of Global Business 440
Disciplinary Action Process 414
Global Strategic Human Resource Management 442
Approaches to Disciplinary Action 415
Global Staffing 442
Hot Stove Rule 415
Types of Global Staff Members 443
Progressive Disciplinary Action 416
Approaches to Global Staffing 443
Disciplinary Action without Punishment 417
Selecting Expatriates 444
Problems in the Administration of Disciplinary
Action 418 Background Investigation 445
• Ethical Dilemma: To Fire or Not to Fire 419 Hiring Temps in Japan 445
Grievance Handling Under a Collective Bargaining • Trends if Innovations: American Companies Hiring
Agreement 420 Foreign-Born Executive 446
Grievance Procedure 420 Global Human Resource Development 446
Arbitration 421 Expatriate Training and Development 446
Proof That Disciplinary Action Was Needed 422 Pre-Move Orientation and Training 447
Grievance Handling in Union-Free Organizations 422 Continual Development: Online Assistance and
Training 447
Ombudspersons 42 3
Repatriation Orientation and Training 447
Alternative Dispute Resolution 423
Global E-learning 448
Termination 424
Global Compensation 449
• Trends & Innovations: Outsourcing Terminations 425
Compensation for Host-Country Nationals 449
Termination of Employees at Various Levels 42 5
Expatriate Compensation 450
Termination of Nonmanagerial/Nonprofessional
Employees 42 5 Unique Benefits in Japan 450
Termination of Executives 426 Global Safety and Health 450
Termination of Middle and Lower-Level Managers Global Health Care Legislation 451
and Professionals 427 Global Employee and Labor Relations 451
Termination Software 427 Global Legal and Political Factors 452
Demotion as an Alternative to Termination 427 • Ethical Dilemma: Mordita 453
Transfers 428 Virtual Teams in a Global Environment 454
Promotions 42 8
SUMMARY 455
Resignations 429
KEY TERMS 456
Analyzing Voluntary Resignations 429
QUESTIONS FOR REVIEW 456
Attitude Surveys: A Means of Retaining Quality
HRM INCIDENT 1; THE OVERSEAS TRANSFER 456
Employees 430
HRM INCIDENT 2: WAS THERE ENOUGH
Advance Notice of Resignation 43 0 PREPARATION? 457
Retirements 431
NOTES 457
• A Global Perspective: Help for Expats: A Buddy
Helps Find the Way 432 GLOSSARY 461
SUMMARY 433 NAME INDEX 471
KEY TERMS 434 COMPANY INDEX 477
QUESTIONS FOR REVIEW 434 SUBJECT INDEX 480
HRM INCIDENT 1: SHOULD HE BE FIRED? 435
HRM INCIDENT 2: TO HECK WITH THEM! 435
NOTES 436