Ebook Human resource management (Thirteenth edition): Part 2

Ebook Human resource management (13th edition): Part 2 include of the following content: Chapter 11 establishing strategic pay plans; chapter 12 pay for performance and financial incentives; chapter 13 benefits and services; chapter 14 ethics and employee rights and discipline; chapter 15 labor relations and collective bargaining; chapter 16 employee safety and health; chapter 17 managing global human resources; chapter 18 managing human resources in small and entrepreneurial firms.

350 PART FOUR | COMPENSATION PART INTRODUCTION 11 Establishing Strategic Pay Plans Source: Tyler Olson/Shutterstock LEARNING OBJECTIVES Company s Strategic Goals List the basic factors determining pay rates Define and give an example of how to conduct a job evaluation Explain in detail how to establish a market-competitive pay plan Employee Competencies and Behaviors Required for Company to Achieve These Strategic Goals Explain how to price managerial and professional jobs Explain the difference between competency-based and traditional pay plans List and explain six important trends in compensation management Training a Developm nd e nt HR Policies and Practices Required to Produce Employee Competencies and Behaviors d an nt St r at En eg vi e tne meca mt lP iu r c eR e ploye Em ations Rel T he retail grocery business is highly competitive Therefore, when Walmart moves into a grocery s area, the knee-jerk reaction is to cut costs, particularly wages and benefits So as Wegman s Food Markets, Inc., adds more stores and increasingly competes with Walmart, its management needs to decide this: Should we cut pay to better compete based on cost, or pursue a different compensation policy?1 ensation Comp r no i tnem na c d lageL WHERE ARE WE NOW Once you ve appraised and coached your employees, they ll expect to be paid Of course, few firms just pay employees arbitrarily Each employee s pay should make sense in terms of what other employees earn, and this requires a pay plan The main purpose of this chapter is to show you how to establish a pay plan We explain job evaluation techniques for finding the relative worth of a job and how to conduct online and offline salary surveys We also explain how to price the jobs in your firm by developing pay grades and an overall pay plan The next chapter focuses specifically on pay-for-performance and incentive plans Access a host of interactive learning aids at www.mymanagementlab.com to help strengthen your understanding of the chapter concepts MyManagementLab 351 352 PART COMPENSATION List the basic factors determining pay rates BASIC FACTORS IN DETERMINING PAY RATES Employee compensation includes all forms of pay going to employees and arising from their employment It has two main components, direct financial payments (wages, salaries, incentives, commissions, and bonuses) and indirect financial payments (financial benefits like employer-paid insurance and vacations) In turn, there are two basic ways to make direct financial payments to employees: based on increments of time or based on performance Time-based pay is still the foundation of most employers pay plans Blue-collar and clerical workers receive hourly or daily wages, for instance Others, like managers or Web designers, tend to be salaried and paid weekly, monthly, or yearly The second direct payment option is to pay for performance For example, piecework ties compensation to the amount of production (or number of pieces ) the worker turns out Sales commissions are another performance-based (in this case, sales-based) compensation Other employers devise pay plans that combine time-based pay plus incentives In this chapter, we explain how to formulate plans for paying employees a timebased wage or salary Subsequent chapters cover performance-based financial incentives and bonuses (Chapter 12) and employee benefits (Chapter 13) Several factors determine the design of any pay plan: company strategy and policy, equity, legal, and union Aligning Total Rewards with Strategy The compensation plan should first advance the firm s strategic aims management should produce an aligned reward strategy This means creating a compensation package including wages, incentives, and benefits that produces the employee behaviors the firm needs to support and achieve its competitive strategy.2 We will see that many employers formulate a total rewards strategy Total rewards encompass the traditional pay, incentives, and benefits, but also things such as more challenging jobs (job design), career development, and recognition programs Based on Chapter s strategy * behaviors * HR practices process (Figure 3-7, page 81), Table 11-1 lists illustrative questions to ask The accompanying Strategic Context feature illustrates strategic rewards THE STRATEGIC CONTEXT Wegmans Foods Strategic compensation management means asking, What must the company to achieve its strategic aims? ; then asking, What are the employee behaviors or actions needed to support this strategic effort? ; and then putting in place compensation programs to reinforce those employee behaviors Wegmans exemplifies strategic compensation management It competes in the retail food sector, where profit margins are notoriously thin and where online competitors and brick-and-mortar giants like Walmart excel at driving costs and prices down The usual reaction, from competitors like Safeway, is to cut employee benefits and costs.3 Wegmans takes a different approach It views its workforce as an invaluable and integral part of achieving Wegmans strategic aims of optimizing service while controlling costs by improving systems and productivity For example, one dairy department employee designed a new way to organize the cooler, thus improving ordering decisions and inventory control.4 Wegmans compensation policies aim to elicit just this sort of employee dedication The firm offers above-market pay rates, affordable health insurance, a full range of employee benefits, and Wegmans hasn t laid off employees in 96 years.5 In sum, Wegmans pay policies aim to produce exactly the sorts of employee behaviors the company needs to achieve its strategic aims CHAPTER 11 ESTABLISHING STRATEGIC PAY PLANS 353 TABLE 11-1 Do Our Compensation Policies Support Our Strategic Aims? * What are our strategic aims? * What employee behaviors and skills we need to achieve our strategic aims? * What compensation policies and practices salary, incentive plans, and benefits will help to produce the employee behaviors we need to achieve our strategic aims? Equity and Its Impact on Pay Rates In studies at Emory University, researchers investigated how capuchin monkeys reacted to inequitable pay They trained monkeys to trade pebbles for food Some monkeys got grapes in return for pebbles; others got cucumber slices Those receiving the sweeter grapes willingly traded in their pebbles But if a monkey receiving a cucumber slice saw one of its neighbors get grapes, it slammed down the pebble or refused to eat the cucumber.6 The moral seems to be that even lower primates are programmed to demand fair treatment when it comes to pay EQUITY THEORY OF MOTIVATION Higher up the primate line, the equity theory of motivation postulates that people are strongly motivated to maintain a balance between what they perceive as their contributions and their rewards Equity theory states that if a person perceives an inequity, a tension or drive will develop in the person s mind, and the person will be motivated to reduce or eliminate the tension and perceived inequity Research tends to support equity theory, particularly as it applies to people who are underpaid.7 For example, one study found that turnover of retail buyers is significantly lower when the buyers perceive fair treatment in the amount or rewards and in the methods by which employers allocate rewards.8 With respect to compensation, managers should address four forms of equity: external, internal, individual, and procedural.9 * * * * External equity refers to how a job s pay rate in one company compares to the job s pay rate in other companies Internal equity refers to how fair the job s pay rate is when compared to other jobs within the same company (for instance, is the sales manager s pay fair, when compared to what the production manager is earning?) Individual equity refers to the fairness of an individual s pay as compared with what his or her coworkers are earning for the same or very similar jobs within the company, based on each individual s performance Procedural equity refers to the perceived fairness of the processes and procedures used to make decisions regarding the allocation of pay 10 ADDRESSING EQUITY ISSUES Managers use various means to address such equity issues For example, they use salary surveys (surveys of what other employers are paying) to monitor and maintain external equity They use job analysis and comparisons of each job ( job evaluation ) to maintain internal equity They use performance appraisal and incentive pay to maintain individual equity And they use communications, grievance mechanisms, and employees participation to help ensure that employees view the pay process as procedurally fair Some firms administer surveys to monitor employees pay satisfaction Questions typically include, How satisfied are you with your pay? and What factors you believe are used when your pay is determined? 11 employee compensation All forms of pay or rewards going to employees and arising from their employment direct financial payments Pay in the form of wages, salaries, incentives, commissions, and bonuses indirect financial payments Pay in the form of financial benefits such as insurance 354 PART COMPENSATION When inequities arise, conflicts ensue To head off discussions that might prompt feelings of internal inequity, some firms maintain strict secrecy over pay rates, with mixed results.12 But for external equity, online pay sites like Salary.com make it easy to see what one could earn elsewhere Ironically, overpaying people relative to what they think they re worth can backfire too, perhaps due to feelings of guilt or discomfort 13 Legal Considerations in Compensation Employers not have free reign in designing pay plans Various laws specify things like minimum wages, overtime rates, and benefits.14 Thus, the 1931 Davis-Bacon Act lets the secretary of labor set wage rates for laborers and mechanics employed by contractors working for the federal government The 1936 Walsh-Healey Public Contract Act sets basic labor standards for employees working on any government contract that amounts to more than $10,000 It contains minimum wage, maximum hour, and safety and health provisions, and requires time-and-a-half pay for work over 40 hours a week Title VII of the 1964 Civil Rights Act makes it unlawful for employers to discriminate against any individual with respect to hiring, compensation, terms, conditions, or privileges of employment because of race, color, religion, sex, or national origin.15 We ll look next at other important compensation-related laws THE 1938 FAIR LABOR STANDARDS ACT The Fair Labor Standards Act, originally passed in 1938 and since amended many times, contains minimum wage, maximum hours, overtime pay, equal pay, record-keeping, and child labor provisions that are familiar to most working people.16 It covers the majority of U.S workers virtually all those engaged in the production and/or sale of goods for interstate and foreign commerce In addition, agricultural workers and those employed by certain larger retail and service companies are included State fair labor standards laws cover most employers not covered by the Fair Labor Standards Act (FLSA).17 One familiar provision governs overtime pay It says employers must pay overtime at a rate of at least one-and-a-half times normal pay for any hours worked over 40 in a workweek Thus, if a worker covered by the act works 44 hours in one week, he or she must be paid for of those hours at a rate equal to one-and-a-half times the hourly or weekly base rate the person would have earned for 40 hours For example, if the person earns $12 an hour (or $480 for a 40-hour week), he or she would be paid at the rate of $18 per hour ($12 times 1.5) for each of the overtime hours worked, or a total of $72 for the extra hours If the employee instead receives time off for the overtime hours, the employer must also compute the number of hours granted off at the one-and-a-half-times rate So the person would get hours off for the hours of overtime, in lieu of overtime pay Employers need to monitor when employees clock in and out, lest they become obligated for unexpected additional demands for overtime pay.18 Even giant firms make errors Walmart agreed to pay up to $640 million to settle 63 wage and hour suits alleging infractions, such as failing to pay overtime and not providing required meal breaks.19 The Chicago Police Department distributed BlackBerry smartphones to its officers in the field One police officer subsequently sued, claiming that he wasn t paid overtime for the hours he spent using his smartphone off the clock Vendors such as Pacific Timesheet (www.pacifictimesheet.com) provide mobile payroll time sheets Employees who work outside the office can access and fill these in via their iPhones or similar devices This improves attendance and payroll accuracy, and helps eliminate overpaying overtime.20 A great many employers today pay people as independent contractors rather than as employees Strictly speaking, these people are like consultants, not covered by the FLSA The accompanying Managing the New Workforce feature explains about paying this type of worker The FLSA also sets a minimum wage, which sets a floor for employees covered by the act (and usually bumps up wages for practically all workers when Congress raises CHAPTER 11 ESTABLISHING STRATEGIC PAY PLANS 355 MANAGING THE NEW WORKFORCE The Independent Contractor Whether the person is an employee or an independent contractor is a continuing issue for employers.21 For example, FedEx Ground is battling many lawsuits defending its right to maintain its roughly 15,000 delivery truck owner-operators as independent contractors In December 2010, a federal district court in Indiana ruled that most of the FedEx ground package drivers were independent contractors, and that although FedEx encouraged the drivers to work fast, that didn t mean it controlled the means by which drivers achieved that result.22 For employers, there are advantages to claiming that someone is an independent contractor For one thing, the FLSAs overtime and most other requirements not apply For another, the employer does not have to pay unemployment compensation payroll taxes, Social Security taxes, or city, state, and federal income taxes or compulsory workers compensation for that worker The problem is that many so-called independent contractor relationships aren t independent contractor relationships There is no single rule or test for determining whether an individual is an independent contractor or a bona fide employee Instead, the courts will look at the total activity or situation The major consideration is this: The more the employer controls what the worker does and how he or she does it, the more likely it is that the courts will find the worker is actually an employee Figure 11-1 lists some factors the courts will consider the minimum) The minimum wage for the majority of those covered by the act was $7.25 in 2011.23 Many states have their own minimum wage laws About 80 localities, including Boston and Chicago, require businesses that have contracts with the city to pay employees wages ranging from $8 to $12 an hour.24 FLSA child labor provisions prohibit employing minors between 16 and 18 years old in hazardous occupations, and carefully restrict employment of those under 16 EXEMPT/NONEXEMPT Specific categories of employees are exempt from the FLSA or certain provisions of the act, and particularly from the act s overtime provisions they are exempt employees A person s exemption depends on his or her responsibilities, duties, and salary Bona fide executive, administrative (like office managers), and professional employees (like architects) are generally exempt from the minimum wage and overtime requirements of the act.25 A white-collar worker earning more than $100,000 and performing any one exempt administrative, executive, or professional duty is automatically ineligible for overtime pay Other employees can generally earn up to $23,660 per year and still automatically get overtime pay (so most employees earning less than $455 per week are nonexempt and earn overtime).26 Figure 11-2 lists some examples of typically exempt and nonexempt jobs If an employee is exempt from the FLSAs minimum wage provisions, then he or she is also exempt from its overtime pay provisions However, certain employees are always exempt from overtime pay provisions They include, among others, agricultural employees, live-in household employees, taxi drivers, and motion picture theater employees.27 Davis-Bacon Act (1931) A law that sets wage rates for laborers employed by contractors working for the federal government Walsh-Healey Public Contract Act (1936) A law that requires minimum wage and working conditions for employees working on any government contract amounting to more than $10,000 Title VII of the 1964 Civil Rights Act This act makes it unlawful for employers to discriminate against any individual with respect to hiring, compensation, terms, conditions, or privileges of employment because of race, color, religion, sex, or national origin Fair Labor Standards Act (1938) This act provides for minimum wages, maximum hours, overtime pay, and child labor protection The law, amended many times, covers most employees 356 PART COMPENSATION FIGURE 11-1 Independent Contractor Source: Reprinted from www.HR.BLR.com with permission of the publisher Business and Legal Resources Inc., 141 Mill Rock Road East, Old Saybrook, CT â 2004 BLRđ (Business and Legal Resources, Inc.) Independent Contractor Managers are to use the following checklist to classify individuals as independent contractors If more than three questions are answered yes, the manager will confer with human resources regarding the classification (EE = Employees, IC = Independent Contractors) Factors which show control: Yes/EE No/IC N/A Worker must comply with instructions Worker is trained by person hired Worker s services are integrated in business W orker must personally render services Worker cannot hire or fire assistants Work relationship is continuous or indefinite Work hours are present Worker must devote full time to this business Work is done on the employer s premises 10 Worker cannot control order or sequence 11 Worker submits oral or written reports 12 Worker is paid at specific intervals 13 Worker s business expenses are reimbursed 14 Worker is provided with tools or materials 15 Worker has no significant investment 16 Worker has no opportunity for profit/loss 17 Worker is not engaged by many different firms 18 Worker does not offer services to public 19 Worker may be discharged by employer 20 Worker can terminate without liability Identifying exemptions is tricky As noted, some jobs for example, top managers and lawyers are clearly exempt, while others such as office workers earning less than $23,660 per year are clearly nonexempt Unfortunately, beyond the obvious categorizations, it s advisable to review the job before classifying it as exempt or nonexempt Figure 11-3 presents a procedure for making this decision In all but the clearest situations, carefully review the job description Make sure, for instance, that the job currently does, in fact, require that the person perform, say, an exempt-type supervisory duty.28 FLSA exemption lawsuits are on the rise For example, sales reps for a drug firm argue in one suit that the FLSA outside salesperson exemption doesn t cover them because they market and advise not sell drugs to doctors.29 Supervisors are saying they don t really themselves supervise two or more employees.30 So, again, it s not the title; it is what the employees actually do.31 CHAPTER 11 ESTABLISHING STRATEGIC PAY PLANS 357 FIGURE 11-2 Some Typical Exempt, Nonexempt Job Titles EXEMPT NONEXEMPT Source: Based on www.flsa.com/ coverage.html, accessed August 5, 2011 Lawyers Medical doctors Dentists Engineers (with degrees) Teachers Scientists Registered nurses General managers Pharmacists Administrative employees* Paralegals Accounting clerks Bookkeepers Licensed practical nurses Clerical employees Most secretaries (although some, such as the CEO s secretary, might be exempt) T ][ Lab technicians * The administrative exemption is designed for relatively high-level employees whose main job is to keep the business running Examples of administrative functions, whose high level employees may typically be exempt, include labor relations and personnel (human resources employees), payroll and finance (including budgeting and benefits management), records maintenance, accounting and tax, marketing and advertising (as differentiated from direct sales), quality control, public relations (including shareholder or investment relations, and government relations), legal and regulatory compliance, and some computer-related jobs (such as network, internet and database administration) 1963 EQUAL PAY ACT The Equal Pay Act, an amendment to the Fair Labor Standards Act, states that employees of one sex may not be paid wages at a rate lower than that paid to employees of the opposite sex for doing roughly equivalent work Specifically, if the work requires equal skills, effort, and responsibility and involves similar working conditions, employees of both sexes must receive equal pay, unless the differences in pay stem from a seniority system, a merit system, the quantity or quality of production, or any factor other than sex Step 1: Salary Basis Test Is the employee paid at least $455 per week ($23,660 per annum), not subject to reduction due to variations in quantity/quality of work performed? Step 2: Exemption Applicability Yes No Employee Is Nonexempt Does the employee perform any of the following types of duties/jobs? Executive management is the employee s primary duty Administrative employee performing nonmanual office work Professional/creative employee whose work requires highly advanced knowledge/education; creative and artistic professional Computer professional employee involved in design or application of computers and related systems Outside sales employee making sales or taking orders which influence sales outside of the employer's premises No Employee Is Nonexempt FIGURE 11-3 Who Is Exempt? Who Is Not Exempt? Equal Pay Act (1963) An amendment to the Fair Labor Standards Act designed to require equal pay for women doing the same work as men Step 3: Job Analysis Yes A thorough analysis of the job duties must be performed to determine exempt status An exempt position must pass both the salary basis and the duties tests 358 PART COMPENSATION Source: Dreamstime LLC 1974 EMPLOYEE RETIREMENT INCOME SECURITY ACT The Employee Retirement Income Security Act (ERISA) provided for the creation of government-run, employer-financed corporations to protect employees against the failure of their employers pension plans In addition, it sets regulations regarding vesting rights (vesting refers to the equity or ownership the employees build up in their pension plans should their employment terminate before retirement) ERISA also regulates portability rights (the transfer of an employee s vested rights from one organization to another) It also contains fiduciary standards to prevent dishonesty in pension plan funding OTHER LEGISLATION AFFECTING COMPENSATION Various other laws influence compensation decisions For example, the Age Discrimination in Employment Act prohibits age discrimination against employees who are 40 years of age and older in all aspects of employment, including compensation.32 The Americans with Disabilities Act prohibits discrimination against qualified persons with disabilities in all aspects of employment, including compensation The Family and Medical Leave Act aims to entitle eligible employees, both men and women, to take up to 12 weeks of unpaid, job-protected leave for the birth of a child or for the care of a child, spouse, or parent And various executive orders require employers that are federal government contractors or subcontractors Two executives discuss a print layout; one to not discriminate, and to take affirmative action in certain employment happens to be in a wheelchair Federal law areas, including compensation mandates that the wheelchair-bound employee Each state has its own workers compensation laws Among other not suffer discrimination in compensation things, these aim to provide prompt, sure, and reasonable income to victims of work-related accidents The Social Security Act of 1935 (as amended) provides for unemployment compensation for workers unemployed through no fault of their own for up to 26 weeks (and recently extended), and for retirement benefits (We ll discuss Social Security benefits in Chapter 13.) The federal wage garnishment law limits the amount of an employee s earnings that employers can withhold (garnish) per week, and protects the worker from discharge due to garnishment Union Influences on Compensation Decisions Unions and labor relations laws also influence pay plan design The National Labor Relations Act of 1935 (Wagner Act) granted employees the right to unionize, and to bargain collectively Historically, the wage rate has been the main issue in collective bargaining However, unions also negotiate other pay-related issues, including time off with pay, income security (for those in industries with periodic layoffs), cost-of-living adjustments, and health care benefits The Wagner Act created the National Labor Relations Board (NLRB) to oversee employer practices and ensure that employees receive their rights For example, the NLRB says that employers must give the union a written explanation of the employer s wage curves the graph that relates job to pay rate The union is also entitled to know its members salaries.33 Pay Policies The employer s compensation strategy will manifest itself in pay policies For example, a top hospital like Johns Hopkins might have a policy of paying nurses 20% above the prevailing market wage Pay policies can influence the employer s performance and profitability, as the accompanying HR as a Profit Center illustrates Managers need to formulate pay policies covering a range of issues One is whether to emphasize seniority or performance For example, it takes 18 years for a U.S federal employee to progress from step to step of the government s pay scale Seniority-based pay may be advantageous to the extent that seniority is an objective standard One disadvantage is that top performers may get the same raises as poor ones Seniority-based pay CHAPTER 11 ESTABLISHING STRATEGIC PAY PLANS 359 might seem to be a relic reserved for some government agencies and unionized firms However, one recent survey found that 60% of employees responding thought highseniority employees got the most pay Only about 35% said their companies paid high performers more.34 How to distinguish between high and low performers is a related policy issue For example, for many years Payless ShoeSource was paternal in how it distributed raises it paid everyone about the same However, after seeing its market share drop over several years, management decided on a turnaround strategy It necessitated revising the firm s compensation policies to differentiate more aggressively between top performers and others.35 Other pay policies usually cover how to award salary increases and promotions, overtime pay, probationary pay, leaves for military service, jury duty, and holidays GEOGRAPHY How to account for geographic differences in cost of living is another big pay policy issue For example, the average base pay for an office supervisor ranges from $47,210 in Florida to $51,120 in Texas to $57,970 in New York.36 Employers handle cost-of-living differentials for transferees in several ways One is to pay a differential for ongoing costs in addition to a one-time allocation For example, one employer pays a differential of $6,000 per year to people earning $35,000 to $45,000 whom it transfers from Atlanta to Minneapolis Others simply raise the employee s base salary The problem is more complicated when you re sending employees overseas Here, for instance, the person typically gets allowances including cost-of-living, relocation, housing, education, and hardship allowances (the latter for countries with a relatively hard quality of life, such as Zambia).37 HR AS A PROFIT CENTER Wegmans Foods As we saw, Wegmans strategic pay policies aim to produce the employee behaviors the company needs to achieve its strategic aims It is likely that those pay policies are one reason for the firm s exceptional profitability For example, Wegmans employee turnover (from 38% for part-timers to 6% 7% for full timers) is well below the industry s average total of about 47%.38 Its stores (which at about 120,000 square feet are much larger than competitors ) average about $950,000 a week in sales (compared to a national average of $361,564), or about $46 million in sales annually, compared with a typical Walmart store s grocery sales of $23.5 million in sales.39 Wegmans human resource head was quoted as saying, Our pay and benefits are at or above our competition s It helps us attract a higher caliber of employee As she also said, good employees assure higher productivity, and that translates into better bottom-line results.40 Define and give an example of how to conduct a job evaluation JOB EVALUATION METHODS Employers use two basic approaches to setting pay rates: market-based approaches and job evaluation methods Many firms, particularly smaller ones, simply use a market-based approach Doing so involves conducting formal or informal salary surveys to determine what others in the relevant labor markets are paying for particular jobs They then use these figures to price their own jobs Job evaluation methods involve assigning values to each of the company s jobs This helps to produce a pay plan in which each job s pay Employee Retirement Income Security Act (ERISA) The law that provides government protection of pensions for all employees with company pension plans It also regulates vesting rights (employees who leave before retirement may claim compensation from the pension plan) SUBJECT INDEX Note: Page numbers with f indicate figures; those with t indicate tables A Absenteeism, 517 Accidents danger zones, 539 540 preventing, 540 550 (See also Unsafe acts; Unsafe conditions) safety checklists, 542 544f workers compensation costs, 550 551 Achievement tests, 190 Action learning, 264 Action research, 270 ADA Amendments Act of 2008 (ADAAA), 38, 38f Adaptability screening, 586 ADDIE five-step training process, 247 Adverse impact, 43 46 disparate rejection rates, 44 example, 46 4/5ths rule, 44 McDonnell-Douglas test, 46 methods used to show, 44 population comparisons, 45 46 restricted policy, 45 standard deviation rule, 44 45 Advertising for employment candidates, 152 154 help wanted ads, 153 154, 153f media, 153 Affirmative action, 59 61 defined, 33 vs EEO opportunity, 59 reverse discrimination, 60 61 Affirmative action program, 59 61 employee resistance, 59 online recruitment of minorities, 59 program evaluation, 60 steps in, 60f Age as BFOQ, 47 Age Discrimination in Employment Act of 1967 (ADEA), 33, 358 Agency shop, 497 Air quality, 553 Albemarle Paper Company v Moody, 35 Alcoholism and substance abuse, 553 555 dealing with, 554 effects of, 553 observable behavior patterns indicating, 553 555 , 555t screening for, in background checks, 202 203 substance abuse policies, 555 All China Federation of Trade Unions (ACFTU), 521 Alternation ranking method, 294, 305t 678 Alternative dispute resolution or ADR program, 54 Alternative staffing See Temp agencies and alternative staffing American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), 498 American Management Association, 612 American Society of Training and Development (ASTD), 613 Americans with Disabilities Act (ADA) ADA Amendments Act of 2008 (ADAAA), 38, 38f applicant s workers compensation injuries and claims, inquiring about, 546 employee compensation laws, 358 insurance benefits, 435 mental impairments and, 36 37 qualified individuals, 37 reasonable accommodation, 37, 37f traditional employer defenses, 37 38 Annual bonuses eligibility, 404 formula, 405, 406 fund size, 404 405 individual performance, 405 multiplier approach, 405, 406t Anti-retaliation provisions, 339 Applicant metrics, tracking, 85 86 Applicant tracking system (ATS), 151, 204 Application forms, 50, 164 167 applicant exaggeration, 166 EEO law and, 166 guidelines for using, 166 job performance predicted by, 167 mandatory arbitration, 167 purpose of using, 164 165 sample off, 165f video résumés, 166 Applications service providers (ASPs), 260 Appraisal See Performance appraisal Appraisal interview, 214, 306 309 checklist, 3085 conducting, 306 307 criticizing a subordinate in, 308 309 of defensive subordinate, 308 defined, 306 realistic appraisals in, 309 sample employee development plan, 307f types of, 306 written warnings and, 309 Apprenticeship training, 255, 255f Aptitude tests, 187 Arbitration, 54, 167, 513 Asbestos exposure, 552 Audiovisual-based training, 257 Audits claim, 437 human resources, 89 90 safety and health, 549 550 in strategic planning, 74 75, 74f Authority, Authorization cards, 504, 504f B Baby Boomers, 15 Background checks, 194 204 applicant tracking systems in, 204 defamation, 195 196 effectiveness of, 195 graphology used in, 201, 202f honesty testing used in, 200 201 human lie detectors, 201 immigration law, complying with, 203 204 methods of, 196 198 physical exams, 201 202 polygraph used in, 199 200 preemployment information services used for, 199 privacy issues, 196 reasons for performing, 194 195 reference checking form, 197f social networks and, 198 198 substance abuse screening, 202 203 Balance sheet approach, 591 592, 592t Bargaining unit, 505 Behavioral interview, 216 Behaviorally anchored rating scale (BARS), 296 299 advantages/disadvantages of, 299, 305t developing, steps in, 296 example of, 298f performance dimensions in, 297 298 Behavioral questions, 216 Behavior-based safety, 548 Behavior modeling, 265 Behavior modification, 394 395 Benchmarking, 86 87, 86f Benchmarks jobs, 361, 364 Benefits, 424 452 defined, 424 domestic partner benefits, 445 educational subsidies, 445 employee assistance programs, 443 executive prerequisites, 445 flexible benefits programs, 446 449 in small businesses, 617 620 for bad times, 619 flexibility in, 618 recognition, 619 retirement benefits, 619 620 work-life benefits, 618 619 SUBJECT INDEX Web sites, 442 See also Family-friendly (or work-life) benefits; Insurance benefits Benefits purchasing alliances, 437 Bias, 182 in performance appraisals, 304 in promotion decisions, 338 339 in testing of employees, 182 Big five personality dimensions, 189 Body piercings, 51 Bona fide occupational qualification (BFOQ), 46 47 age as, 47 gender as, 47 national origin as, 47 religion as, 47 Boycott, 516 Broadbanding, 378 379, 379f Broad-based stock option plan, 411 Burden of proof, 36 Burlington Industries v Ellerth, 42 Burnout, 556 557 Business necessity, 47 48 Business process reengineering, 108 109 C Cafeteria benefits plan, 446 447 Candidate-order (or contrast) error, 222 223 Candidates for employment, 147 160 diversity in, 162 164 disabled, 164 minorities, 163 164 older workers, 163 single parents, 162 163 welfare-to-work, 164 internal, 147 148 finding, 147 forecasting supply of, 142 144 pros and cons of using, 147 rehiring, 147 succession planning, 148 outside, 149 160 advertising, 152 154 college recruiting, 158 159 employment agencies, 154 155 executive recruiters, 157 158 forecasting supply of, 144 HRIS approach to recruiting, 148 Internet recruiting (See Online recruitment) military personnel, 160 offshoring and outsourcing, 157 on-demand recruiting services (ODRS), 158 recruiting source use and effectiveness, 160 referrals, 159 160 telecommuters, 160 temp agencies and alternative staffing, 155 156 walk-ins, 160 in small businesses, 616 See also Interviews Can t do/won t problems, 250 Career, defined, 327 Career centers, 329 Career coaches, 330, 331 See also Coaching skills Career development, defined, 327 Career management, 327 333 careers terminology, 327 328 careers today, 328 defined, 327 employee s role in, 328 329 employer s role in, 329 gender issues in, 332 333 manager s role in, 333 psychological contract, 328 Career management systems, 329 332, 330f career centers, 329 career coaches, 330, 331 career-oriented appraisals, 331 332, 332f career planning workshops, 330 employee career planning form, 331f lifelong learning budgets, 330 online programs, 331 Career-oriented appraisals, 331 332, 332f Career planning, defined, 328 Career planning workshops, 330 Case study method, 264 Cash balance plans, 440 Cause/no cause in EEOC enforcement process, 53 Caveats mentoring, 334 personality tests, 189 professional employer organizations, 622 Central tendency, 303 Change to Win Coalition, 498 Charge acceptance in EEOC enforcement process, 53 Child care, subsidized, 444 China, HRM in, 581 582 Citation See Inspections and citations Civil Rights Act of 1991 (CRA 1991), 35 36 burden of proof, 36 mixed motive cases, 36 money damages, 36 Claim audits, 437 Classes, 362 Cliff vesting, 441 Clinical prevention programs, 437 Closed shop, 497 Coaching, defined, 333 Coaching skills, 333 336 building, 333 334 career coaches and, 330, 331 self-evaluation checklist, 335t 679 See also Mentoring skills Codetermination, 580 Cognitive ability tests, 186 187 Collective bargaining, 509 516 contract agreement, 516 corporate campaign, 516 defined, 509 510 good faith bargaining, 510 grievances, 517 (See also Grievance procedure) hints, 511, 512 items, 511, 512t mass e-mail communication in, 516 mediation, 512 513, 514f negotiating team, 510 511 See also Impasse; Strikes College recruiting, 158 159 Combination plan, 401 402 Commission plan, 401 Common-law protections against invasion of privacy, 475 Comparable worth, 380 381 Compa ratio, 372 Compensable factors, 364 366 assigning, 365 convert percentages to points for each, 365 defined, 360 degrees of, 366 determining and assigning points, 366, 366t selecting, 364 365, 365f Compensation See Employee compensation Competence in promotion decisions, 337 338 in Scanlon plan, 409 Competencies appraisal standards based on, 288 of HR manager, 21, 21f Competency-based appraisal forms, 293, 293f Competency-based job analysis, 128 131 model of, 129f purpose of, 128 129 skills matrix used in, 130 131, 130f writing, 130 131 Competency-based pay, 376 378 bottom line on, 378 defined, 376 General Mills example, 377 in practice, 377 reasons for using, 377 Competency models in talent management, 248 249 Competition trends in HRM, 11 12 Competitive advantage, 77 Competitive strategy, 77 Compressed workweeks, 448 Computer-based training (CT), 258 680 SUBJECT INDEX Computerized business planning software, 76 Computerized interview, 219 220 Computerized job evaluation methods, 363 364 Computerized performance appraisals, 300 301, 301 302f Computerized tests, 185 Conciliation in EEOC enforcement process, 53 Construct validity, 179 Consumer-driven health plans (CDHPs), 436 Content validity, 179 Contingent workers, insurance benefits for, 438 Continuing case benefits plan, 451 career planning program, 343 challenging economic times, 628 discrimination, 64 fair treatment, 489 global human resources, managing, 600 grievances, 525 526 high-performance work system, 96 HR challenges, 27 28 incentive plan, 416 interviewing, 232 job descriptions, 133 pay plan, 385 performance appraisal, 315 recruitment process, 170 safety program, 570 testing, 207 training program, 277 278 Controlled experimentation, 272 Corporate campaign, 516 Corporate-level strategy, 77 Corporate universities, 266 Cost-containment specialists, 435 Cost leadership, 77 Crime prevention plan, 562 Criterion validity, 179 Critical incident method, 295 296, 296t, 305t Cross training, 262 Cultural factors in global HRM, 579 580 Current training needs analysis, 248 D Data mining, 88 Davis-Bacon Act (1931), 354 Decertification, 509 Defamation, 195 196 Deferred profit-sharing plan, 440 Defined benefit pension plan, 439 Defined contribution pension plan, 439 Demographic trends in HRM, 14, 14t Department of Labor (DOL), 609 610 FirstStep Employment Law Advisor, 609, 609f job analysis techniques, quantitative, 115 116, 116t sample elaws Advisors, 609, 610f small businesses and, 609 610 Depression, employee, 557 Deregulation, 12 Diary/logs, 114 Differential pay increases, 397 Differentiation, 77 Digital dashboard, 83 Direct financial payments, 352 Disabled workers disability insurance, 434 in diverse workforce, 164 job applicants, interviews and, 224 See also Americans with Disabilities Act (ADA) Discipline of employees See Fair discipline guidelines Discrimination, 43 51 allegations, 43 48 adverse impact, 43 46 bona fide occupational qualification (BFOQ), 46 47 business necessity, 47 48 defenses against, 43 disparate impact, 43 44 other considerations in, 48 defined, 55 in employment practices, 48 51 recruitment, 49 sample promotion, transfer, and layoff practices, 50 51 selection standards, 49 50 supervisor s considerations in, 51 what federal fair employment laws allow/do not allow, 48 49 See also Affirmative action; Equal Employment Opportunity Commission (EEOC) Discrimination testers, 224 Dismissal of employees, 476 485 angry or violent employees, 561 dismissal, defined, 476 grounds for, 477 478 changed requirements of job, 477 gross misconduct, 477, 477f insubordination, 477 478 lack of qualifications, 477 unsatisfactory performance, 477 handbook acknowledgment form, 478 479, 480f mergers and acquisitions, 485 personal liability for supervisory actions, 480 481 security measures, 478 severance policies, 478, 479f termination at will, 476 wrongful discharge, 476 477 wrongful discharge suits, avoiding, 478 480 See also Layoffs and downsizing; Termination interview Disparate impact, 43 44 Disparate rejection rates, 44 Disparate treatment, 43 Distributive justice, 462 Diverse workforce, 162 164 disabled workers, 164 minorities, 163 164 older workers, 163 single parents, 162 163 welfare-to-work, 164 Diversity benefits of, 56 defined, 55 downsides of, 55 training, 262 See also Diverse workforce; Managing diversity Domestic partner benefits, 445 Downsizing See Layoffs and downsizing Dress, 50 Due diligence stage of M&A planning, 80 E Early retirement, 442 Early retirement window, 442 Earnings-at-risk pay plan, 410 411 Economic strike, 513 Economic systems in global HRM, 580 Economic trends in HRM, 16 17, 16f Educational requirements in employee selection, 49 Educational subsidies, 445 Effective Psychology for Managers (Feinberg), 308 Elaws Advisors (DOL), 609, 610f Elder care, 444 Electronic Communications Privacy Act (ECPA), 475 Electronic eavesdropping, 475 Electronic performance monitoring (EPM), 301 Electronic performance support systems (EPSS), 257 258 E-mail in collective bargaining, 516 workplace monitoring and, 475 E-mail monitoring acknowledgment statements, 475, 476f Employee appraisal See Performance appraisal, Employee assistance program (EAP), 443 Employee career planning form, 331f Employee compensation aligned reward strategy, 352, 353t in China, 582 SUBJECT INDEX contemporary topics in, 376 (See also Competency-based pay) automating strategic compensation administration, 382 board oversight of executive pay, 381 broadbanding, 378 379, 379f comparable worth, 380 381 managing compensation allocations, 380 total rewards and tomorrow s pay programs, 381 382 defined, 352 equity and, 353 354 geographic differences in cost of living, 359 for managers (See Executive pay) pay policies, 358 359 for professional employees, 375 376 in small businesses, 614 See also Incentives; Job evaluation Employee compensation laws, 354 358 Age Discrimination in Employment Act, 358 Americans with Disabilities Act, 358 Davis-Bacon Act, 354 Employee Retirement Income Security Act, 358 Equal Pay Act, 357 exempt/nonexempt employees, 355, 356, 357f Fair Labor Standards Act, 354 355 Family and Medical Leave Act, 358 federal wage garnishment law, 358 independent contractor, 355, 356f Social Security Act of 1935, 358 Title VII of the 1964 Civil Rights Act, 354 unions and labor relations laws, 358 Walsh-Healey Public Contract Act, 354 workers compensation laws, 358 Employee data, privacy in, 143 144, 144f Employee depression, 557 Employee discipline See Fair discipline guidelines Employee engagement, 19, 326 327 actions that foster, 326 defining, 327f importance of, 326 monitoring, 326 Employee Free Choice Act, 521 Employee handbook, 244 245 Employee health See Workplace health hazards Employee leasing firms, 447 448 Employee monitoring, 474 475 Employee orientation, 244 246 checklist, 245f employee handbook, 244 245 goals of, 244 needs analysis, 247 248 current, 248 strategic, 247 task, 248, 249t process of, 244 245 purpose of, 244 technology, 246 Employee participation, unsafe acts reduced through, 548 549, 549f Employee performance in training needs analysis, 249 250 Employee privacy background checks, 196 common-law protections against invasion of privacy, 475 company security and, 563 employee data, 143 144, 144f ethics and, 474 testing of employees, 183 184 Employee recruiting, 146 147 applications for managers, 161t challenges in, 146 in China, 582 defined, 146 effective, need for, 146 importance of, 146 organizing, 146 147 recruiting yield pyramid, 145 146, 145f supervisor s role in, 146 147 See also Application forms; Online recruitment Employee retention, 322 349 comprehensive approach to, 324 job withdrawal, 325 326 reducing voluntary turnover, strategies for, 323 talent management and, 325 See also Employee turnover Employee Retirement Income Security Act (ERISA), 358, 411, 435, 441 Employee rights employment laws, 463 public policy, 462 463 unalienable rights, 462 Employee safety Deepwater Horizon disaster example, 532 533 global safety concerns, 593 594 kidnapping and ransom insurance, 594 protective measures, 594 terrorism, 593 594 Hispanic workers, safety training for, 547 importance of, 532 management s role in safety, 532 533 safety checklist, 542 544f in small businesses, 614 supervisor s role in, 533 workers compensation costs, controlling, 550 551, 551t See also Accidents; Occupational Safety and Health Administration (OSHA); Occupational security and safety; Unsafe acts; Unsafe conditions 681 Employee safety responsibilities checklist, 549f Employee selection careful, importance of, 176 in China, 582 discrimination in, 49 50 ethics and fair treatment promoted by, 467 person and job/organization fit, 176 reducing unsafe acts through, 546 in small businesses, 611 612, 614 standards, 49 50 application forms, 50 arrest records, 50 educational requirements, 49 garnishment, discharge due to, 50 height, weight, and physical characteristics, 49 50 preference to relatives, 49 tests, 49 workplace violence and, 559 work sampling technique for, 190 Employee stock ownership plan (ESOP), 411, 440 Employee testing bias in, 182 computerized multimedia candidate assessment tools, 192 employers use of, 184 185 of expatriates, 586 587, 587f job previews used in, realistic, 193 management assessment centers for, 191 192 miniature job training and evaluation, 193 online, 185 privacy issues, 183 184 reliability in, 177 178 rights of test taker, 183 184 summary of assessment methods, 194t techniques for managers, 193 utility analysis in, 182 validity in (See Validity) video-based simulation, 192 See also Tests in employee selection Employee training See Training Employee turnover, 322 325 costs of, 322 involuntary, 325 reasons for, 323f voluntary, 322 323 Employment agencies, 154 155 private, 154 155 public and nonprofit, 154 Enterprise incentive management (EIM) systems, 400 Enterprise risk management See Occupational security and safety Equal Employment Opportunity Commission (EEOC), 32 enforcement process, 51 54, 52f management guidelines for addressing claims, 54f 682 SUBJECT INDEX Equal Employment Opportunity Commission (EEOC) (continued) mandatory arbitration, 54 questions to ask, 53f small businesses and, 610 voluntary mediation, 53 54 Equal employment opportunity (EEO) laws affirmative action programs, 59 61 Age Discrimination in Employment Act of, 33 Americans with Disabilities Act, 36 37 application forms and, 166 Civil Rights Act of 1991, 35 36 court decisions regarding, early, 34 35 discrimination, 43 51 diversity management, 55 EEOC enforcement process, 51 53, 52f Equal Pay Act of 1963, 33 federal agency guidelines, 34 Genetic Information Nondiscrimination Act, 39 international employees and, 39 Pregnancy Discrimination Act of, 34 sexual harassment, 39 43 state and local EEO laws, 39 summary of, 40t Title VII of the Civil Rights Act, 32, 50 51 video case (UPS), 100 101 Vocational Rehabilitation Act of, 33 Equal Pay Act of 1963, 33, 357 Equity in employee compensation, 353 354 equity theory of motivation, 353 issues in, 353 354 Equity theory of motivation, 353 Ethical choices, factors influencing, 463 466 company pressures, 464 ethics policies and codes, 465 organization s culture, 465 466 outside, 464 466 personal traits, 464 pressures from boss, 465 research findings, 463 464 suggestions for managers based on, 466 Ethics Berkshire Hathaway example, 460 defined, 461 employee monitoring, 474 475 fair and just treatment, 461 462f, 489 490 (See also Fair discipline guidelines) in family businesses, non-family employees and, 620 621 in global HRM, 581 HR management methods to promote, 467 468 employee selection, 467 ethics training, 468 managing ethics compliance, 468 performance appraisal, 468 reward and disciplinary systems, 468 law and, 461 manager s role in, 19, 461 morality involved in, 461 in strategic into HR policies and practices, 489 490 Wall Street Journal workplace ethics quiz, 460f See also Employee rights; Ethical choices, factors influencing Ethnocentric staffing, 585 Ethnocentrism, 55 European Union, HRM in, 581 Evacuation plans, 563 Evidence-based HR, 90 91 incentives, effective, 402 measuring recruiting effectiveness, 161 sick leave, tracking, 428 test validity, 180 182 Executive coaches, 266 Executive pay, 374 375 board oversight of, 381 compensating, 374 determining, 374 375 elements of, 375 job evaluation, 375 for managers abroad, 591 593 balance sheet approach, 591 592, 592t expatriate pay example, 592 global pay system, 592 593 incentives, 592 Executive prerequisites, 445 Executive recruiters, 157 158 Exempt/nonexempt employees, 355, 356, 357f Exit interview, 214, 482 483, 483f Expatriates (expats), 582, 583 584 compensating, 592 defined, 582 early returns of, avoiding, 589 family pressures, 589 global buddy programs, 589 legal issues, 587 vs locals, 582, 583 584 Overseas Assignment Inventory, 588f selection testing in, 586 587, 587f traits of successful, 589 Expectancy, 394 Expectancy chart, 181 F Facebookrecruiting, 12 Fact finder, 513 Fair and just treatment, 461 462f, 489 490 See also Ethics Fair day s work, 392 Fair discipline guidelines, 469 474 appeals procedure, 471, 473f bullying and victimization, 469 470 employee input on, 470 471 4-point hot stove rule when applying discipline, 473 nonpunitive discipline, 471 473 progressive penalties, 471, 472f rules and regulations, 471 summary of, 474f supervisory actions influencing, 470 Fair Labor Standards Act (FLSA), 354 355, 395 Family and Medical Leave Act of (FMLA), 429 431 compensation decisions influenced by, 358 guidelines, 430, 431 Request for Leave form, online, 430f rights under, 429f Family-friendly (or work-life) benefits, 443 445 bottom line, 445 child care, subsidized, 444 elder care, 444 sick child benefits, 444 in small businesses, 618 619 Faragher v City of Boca Raton, 42 Federal Violence Against Women Act of 1994, 40 Federal wage garnishment law, 358 File charge in EEOC enforcement process, 52 53, 52f Financial incentives, 392 First impressions (snap judgments), 222 FirstStep Employment Law Advisor (DOL), 609, 609f Flexible benefits plan/cafeteria benefits plan, 446 449 cafeteria benefits plan, 446 447 employee leasing firms, 447 448 flexible work schedules, 448 449 online survey of employees benefits preferences, 446 447f Flexible work schedules, 448 449 compressed workweeks, 448 effectiveness of, 448 flextime, 448 job sharing, 448 449 workplace flexibility, 448 work sharing, 449 Flextime, 448 Focusers, 77 Forced distribution method, 294 295, 305t Forecasting personnel needs, 139 142 Markov analysis, 141 142 ratio analysis, 140 scatter plot, 140 141, 141f trend analysis, 140 qualifications (or skills) inventories used in, 142 SUBJECT INDEX supply of inside candidates, 142 144 computerized skills inventories, 143 personnel replacement charts and, 142, 143f position replacement cards, 142 privacy in employee data, 143 144, 144f supply of outside candidates, 144 Foreign service premiums, 592 4/5ths rule, 44 401(k) plan, 439 440, 440f Functional strategies, 78 G Gainsharing plan, 410 Garnishment, discharge due to, 50 Gender as BFOQ, 47 Gender issues in career management, 332 333 Gender-role stereotypes, 55 Generation X, 15 Generation Y, 14 15 Genetic Information Nondiscrimination Act (GINA), 39, 435 Geocentric staffing, 585 586 Global buddy programs, 589 Global HRM, 577 601 appraising managers abroad, 590 591 best practices of, 595 597 acceptability, 596 597 developing, 596 global HR networks, 596 implementing, 597 summary of, 596f challenges of, 578 compensating managers abroad, 591 593 balance sheet approach, 591 592, 592t expatriate pay example, 592 global pay system, 592 593 incentives, 592 competition trends and, 11 12 EEO laws and, 39 HRIS in, 595 labor relations broad, 593 repatriation, 594 595 safety concerns, 593 594 kidnapping and ransom insurance, 594 protective measures, 594 terrorism, 593 594 staffing (See Staffing global organization) training and maintaining employees abroad, 590 workforce and demographic trends, 15 16 See also Intercountry differences in global HRM Goals hierarchy off, 72, 73f mission translated into, 75 in planning process, 72 Golden parachutes, 407 Good faith bargaining, 510 Good faith effort strategy, 59 Grade definition, 362 Graded vesting, 441 Grades, 362 Graphic rating scale, 290 293, 303, 303t advantages/disadvantages of, 305t form, sample of, 291f with unclear standards, 303, 303t what to rate, 292 293f Graphology, 201, 202f Grievance procedure, 517 519 grievance form, online, 518f grievance procedure, 517, 518 519 guidelines for handling, 519 Griggs v Duke Power Company, 34 35 Gross misconduct as grounds for dismissal, 477, 477f Gross national product (GNP), 16, 16f Group life insurance, 438 H Hair, 50 51 Halo effect, 303 Handbook acknowledgment form, 478 479, 480f Hardship allowances, 592 Health hazards See Workplace health hazards Health Insurance Portability and Accountability Act (HIPAA), 435 Health maintenance organization (HMO), 434 Health promotion and disease prevention programs, 437 Health savings accounts (HSA), 436 Height in employee selection, 49 50 Help wanted ads, 49 High-performance HR policies and practices, 92 93 High-performance work system, 91 92, 92t High-tech jobs, 13 Hispanic workers, safety training for, 547 Hofstede study, 580 Holiday benefits, 427 Home-country nationals, 582 Honesty testing, 200 201 Horizontal promotion decisions, 338 HR audits, 89 90 HR as a Profit Center, 14, 56, 82, 88, 108, 162, 183, 220, 274, 286, 322, 359, 412, 428, 479, 511, 551, 558, 583, 620 HR certification, 22 HR organization chart, 9f HR performance measures, 19 20 See also Metrics HR Scorecard, 82 83 Human capital, 13 Human lie detectors, 201 Human process applications, 271 683 Human resource information systems (HRIS) global, 595 improving productivity through succession and talent planning systems, 148 learning management systems, 260 productivity improved through computerized business planning software, 76 tracking applicant metrics, 85 86 in small businesses, 624 625 Human resource management (HRM) chapter contents overview, 23 24, 24f defined, evidence-based, 20 importance of, introduction to, 28 line and staff aspects of, 6, 10 organizational development applications in, 271 organizing, 9, 8f, 9f specialties, strategic planning in (See Strategic HRM) talent management approach to, 19 themes and features of book, 22 trends in (See Trends in HRM) video case (Patagonia), 100 Human resource manager See Manager Human resource metric, 92 Hygiene factors, 394 I Identity, 409 Illegal bargaining items, 511 Immigration law, 203 204 Impasse, 512 516 arbitration, 513 boycott, 516 corporate campaign, 516 injunction, 516 inside games, 516 lockout, 516 mediation, 512 513, 514f third party assistance, 513 See also Strikes Incentives financial incentives, 392 for individual employees, 396 400 job design, 400 merit pay, 396 398 online and IT-supported awards, 400 piecework plan, 396 for professional employees, 398 recognition programs, 398 399, 400f legal issues in, 395 for managers and executives, 403 407 abroad, 592 golden parachutes, 407 large loans, 407 684 SUBJECT INDEX Incentives (continued) long-term incentives, strategic, 403 404, 406 407 (See also Stock options) Sarbanes-Oxley, 404 short-term incentives (See Annual bonuses) nonfinancial rewards, 398 399 incentives managers can use, 399, 400f recognition programs, 398 399 organization-wide incentive plan, 409 411 plans, designing effective, 411 413 five building blocks of, 412 413 HR as a Profit Center example, 412 in practice, Nucor example, 413 for sales people, 400 402 combination plan, 401 402 commission plan, 401 evidence of effective incentives, 402 maximizing sales force results, 402 salary plan, 401 strategy and performance linked to, 392 393 for teams (See Team (or group) incentive plans) terminology, 395 See also Benefits; Motivation Inclusiveness, encouraging, 57, 58f Indebtedness, 12 Independent contractor, 355, 356f Indexed stock options, 406 407 Indirect financial payments, 352 Industrial hygiene, 552 Infectious diseases, 553 Informal learning, 255 In-house development center, 266 Injunction, 516 Inside games, 516 Inspections and citations OSHA, 535, 537 safety and health, 549 550 Instrumentality, 394 Insubordination defined, 477 grievance procedures and, 517 as grounds for dismissal, 477 478 Insurance benefits, 432 438 cost control, 435 437 benefits purchasing alliances, 437 claim audits, 437 communication and empowerment, 436 437 consumer-driven health plans, 436 cost-containment specialists, 435 health savings accounts, 436 limited plans, 437 medical tourism, 437 outsourcing, 437 wellness programs, 437 coverage, 433 434 disability insurance, 433 434 employers offering health benefits-change over time, 433t health, 433 434 HMOs, 434 hospitalization, 433 434 law, 434 435 Americans with Disabilities Act, 435 COBRA, 435, 436f Employee Retirement Income Security Act, 435 Genetic Information Nondiscrimination Act, 435 Health Insurance Portability and Accountability Act, 435 Newborn Mother s Protection Act, 435 Patient Protection and Affordable Care Act, 434 435 Pregnancy Discrimination Act, 435 life insurance, 438 long-term care, 437 438 mental health benefits, 434 for part-time and contingent workers, 438 PPOs, 434 workers compensation, 432 433 Integrated case scenarios, 264 Integrated strategic management, 271 Integration stage of M&A planning, 80 Intelligence (IQ) tests, 186 187 Intelligent tutoring systems, 257 Intentional discrimination, 43 44 Interactive learning, 259 Interactive multimedia training, 258 Intercountry differences in global HRM cultural factors, 579 580 economic systems, 580 ethics and codes of conduct, 581 Hofstede study, 580 HR abroad examples China, 581 582 European Union, 581 labor relations factors, 580 legal issues, 580 political factors, 580 Interest arbitration, 513 Interest inventories, 189 190 International Brotherhood of Teamsters, 498 International employees See Expatriates (expats); Global HRM International staffing policies, 585 585 ethnocentric practices, 585 geocentric practices, 585 586 offshoring, 585 polycentric practices, 585 Internet-based job analysis, 116 118 Internet-based training, 259 260 Internet recruiting See Online recruitment Interventions in organizational development, 270 271, 270t strategic, 271 technostructural, 271 Interviews, 214 241 administering, 218 221 appraisal, 214, 306 309 behavioral, 216 behavior of interviewer, 224 225 candidate-order (or contrast) error, 222 223 classifying, 214 computerized, 219 220 content of, 215 218 designing, 225 226 disability of applicant, 224 discrimination testers, 224 EEOC aspects of, 215 effective, conducting, 226 229 errors made in, 221 evaluation form, 237f exit, 214, 482 483, 483f first impressions (snap judgments), 222 guidelines for, 111, 112 impression management, 223 job analysis, 110 113 job-related, 217 job requirements, clarifying, 222 mass, 218 nonverbal behavior, 223 one-on-one, 218 out-of-control, 231 232 panel, 218 personal characteristics, effect of, 223 224 phone, 218 219 pros and cons, 111 questions in, 111 behavioral, 216 profile-oriented, 229 puzzle, 218 situational, 215 supplementary, 228f sample applicant interview form, 216 217f serial, 218 situational, 215 Skype, 219 in small businesses, 614 616 conducting, 615 preparing for, 614 615 specific factors to probe, 615 stress, 217 218 structured, 111 structured situational, 221, 225 226 termination, 481 483 trait assessments, 221 types of, 214 unstructured, 214 215 video/web-assisted, 219 Intrinsic motivation, 394 Investigation/fact-finding conference in EEOC enforcement process, 53 Involvement system, 410 SUBJECT INDEX J Job aid, 258 Job analysis, 105 basics of, 105 106 competency-based, 128 131, 129f conducting, 107 110 business process reengineering in, 108 109 job descriptions and specifications in, 110 job redesign in, 109 organization chart in, 107 process chart in, 107, 108f workflow analysis in, 107 108 Daimler Alabama example, 107 defined, 105 guidelines, 110 information, methods for collecting, 110 118 diary/logs, 114 Internet-based job analysis, 116 118 interview, 110 113 observation, 114 quantitative job analysis techniques, 114 116 questionnaires, 113 114 information, uses of, 106, 106f job descriptions, writing, 118 125 job specifications, writing, 126 128 Job classification (or grading) method, 362 363, 363f Job descriptions, 110, 118 125 ADA compliant, 122 Internet used for, 122 125 job identification, 118, 119 120 job summary, 119, 120 posting accounts payable accurately, 122 relationships statement, 121 responsibilities and duties, 121 122 sample forms of, 119f, 120f, 121f standards of performance and working conditions, 122 Job enlargement, 109 Job enrichment, 109 Job evaluation, 359 364 compensable factors, 360 defined, 360 vs market-based approaches, 359 360 methods computerized, 363 364 job classification, 362 363, 363f point method, 363 ranking, 262t, 361 362 preparing for, 360 361 Job hazard analysis, 543, 544 545 Job Instruction Sheet, 616, 617t Job instruction training (JIT), 255 256 Job instruction training sheet, 255 Job offshoring, 12 Job posting, 147 Job redesign, 109 Job-related interview, 217 Job requirements changes in, as grounds for dismissal, 477 clarifying in interviews, 222 Job rotation, 109, 263 Job sharing, 448 449 Job specifications, 110, 126 128 based on judgment, 126 127 based on statistical analysis, 127 task statements used in, 127 28 for trained vs untrained personnel, 126 Job withdrawal, 325 326 Just treatment, 461 462f, 489 490 See also Ethics; Fair discipline guidelines K Kidnapping and ransom (K&R) insurance, 594 Knowledge work, 13 L Labor relations abroad, 593 consultants, 503 factors in global HRM, 580 Landrum-Griffin Act (1959), 502 Law application forms, EEO and, 166 ethics, 461 federal wage garnishment, 358 immigration, 203 204 insurance benefits, 434 435 plant closing, 483 unions and labor relations laws, 358, 498 502 See also Legal issues Layoffs and downsizing, 483 485 adjusting to, 485 alternatives to, 485 bumping/layoff procedures, 484 485 defined, 483 effects of, 484 plant closing law, 483 preparing for, 484 process, 483 484 Learning action, 264 informal, 255 intelligent tutoring systems, 257 interactive, 259 Internet-based, 260 lifelong, 261 meaningful, 252 mobile, 260 261 motivational environment for, creating, 251 252 objectives, 250 251 portals, 260 programmed, 256 257 685 reinforcing, 252 SHRM learning system, 266 simulated, 258 259 transfer of to job, ensuring, 253 Learning management systems (LMS), 260 Learning portals, 260 Lectures, 256 Legal issues expatriates, 587 in global HRM, 580 incentives, 395 intercountry differences in global HRM, 580 promotion decisions, 339 in promotion decisions, 339 tests in employee selection, 49 workplace violence, 561 See also Law Lewin s change process, 269 Life insurance, 438 Lifelong learning, 261 budgets, 330 Limited plans, 437 Lincoln incentive system, 410 Line authority, Line manager, 6, 7, 10 Literacy training, 261 Loans as incentive, 407 Lockout, 516 Long-term care, 437 438 M Management assessment center, 191 192 Management by objectives (MBO), 300, 305t Management development, defined, 263 Management development programs, implementing, 263 268 leadership development at GE, 266 267 off-the-job training, 264 266 on-the-job training, 263 264 strategy and development, 263 Management games, 264 Management malpractice, 51 Management process, Manager competencies of, 21, 21f defined, duties of, employee engagement, 19 ethics and, 19 HR certification, 22 HR organization chart, 9f HR performance and results measured by, 19 20 line manager, 6, 7, 10 new trends in, 17 19 specialties, staff manager, 6, 10 in strategic planning 686 SUBJECT INDEX Manager (continued) departmental, 78 80 top, 78 value added by, 20 Managing diversity, 56 61 example, 57 inclusiveness, encouraging, 57, 58f multicultural consciousness, developing, 58 59 top-down programs, 56 57 See also Affirmative action; Affirmative action program Managing the New Workforce, 122, 224, 262, 355, 545, 547 Mandatory bargaining items, 511 Market competitive pay system, 367 Markov analysis, 141 142 Mass interview, 218 McDonnell-Douglas test, 46 Mechanical security, 563 Mediation in collective bargaining, 512 513, 514f in EEOC enforcement process, 53 54 Medical tourism, 437 Mental health benefits, 434 Mental impairments, ADA and, 36 37 Mentoring, defined, 333 Mentoring skills, 334 336 effective mentoring, 334, 335 336 mentoring caveats, 334 protégé s responsibilities, 336 Merger and acquisition (M&A), 79 80 dismissal of employees, 485 due diligence stage of planning, 80 integration stage of planning, 80 Meritor Savings Bank, FSB v Vinson, 42 Merit pay (merit raise), 396 398 differential pay increases, 397 options, 397 398, 398t Metrics, 84 87 applicant metrics, tracking, 85 86 HR performance and results measured by, 20 human resource, 92 strategy and strategy-based, 87 types of, 85, 85f Military personnel, 160 Miniature job training and evaluation, 193 Minorities, online recruitment of, 59 Mission statement, 75 Mission translated into goals, 75 Mixed motive cases, 36 Mixed standard scales, 299 Mobile learning, 260 261 Mobility premiums, 592 Money damages, 36 Monitoring of employees, 474 475 Morality in ethics, 461 Motivation, 393 395 behavior modification principle, Skinner s, 394 395 expectancy theory, Vroom s, 394 hierarchy of needs, Maslow s, 393 positive reinforcement programs, 548 self-determination theory, Deci s, 394 two-factor theory, Herzberg s, 393 394 unsafe acts reduced through, 547 548 See also Incentives Motivator factors, 394 Motor and physical abilities tests, 187 Moving stage of organizational change, 269 270 Multicultural consciousness, developing, 58 59 N Narrative forms, 296, 297f National Association of Manufacturers (NAM), 613 National emergency strikes, 502 National Institute for Occupational Safety and Health (NIOSH), 547 National Labor Relations (or Wagner) Act, 499 500 National Labor Relations Board (NLRB), 499 500 ballot, sample of, 507f election, 507 508 Form 501: Filing an Unfair Labor Practice, 500f Form 852: Notice of Representation Hearing, 506f National origin as BFOQ, 47 Natural security, 562 563 Negligent hiring, 176 Negligent training, 246 Newborn Mother s Protection Act of 1996, 435 Newsletters for small business communications, 620 9-box matrix, 337 Nonpunitive discipline, 471 473 Nontraditional workers, 15 Nonverbal behavior in interviews, 223 Norris-LaGuardia Act (1932), 499 Notice of Election, 505 Notice to sue in EEOC enforcement process, 53 O Objective tests, 192 Observation, 114 Occupational illness, 534 Occupational Safety and Health Act of 1970, 533 Occupational Safety and Health Administration (OSHA), 533 employee resistance, dealing with, 539 inspections and citations, 535, 537 free on-site inspections, 537 guidelines for managers, 537 initial contact, 537 inspection priorities, 535 inspection procedures, 535 opening conference, 537 penalties, 537 walk-around inspection, 537 record keeping rules, 533 535, 534f accidents reported under, 534 535, 534f form used to record occupational injuries and illness, 536f general standard clause, 533 534 respiratory standard requirements, 547 responsibilities and rights of employers/employees, 538 safety poster, 538f Sharp program, 614 small businesses and, 610 611, 610f, 614 substance-specific health standards, 552t asbestos exposure, 552 industrial hygiene, 552 Occupational Safety and Health Review Commission (OSHRC), 537 Occupational security and safety, 561 563 company security and employee privacy, 563 crime prevention plan, 562 evacuation plans, 563 security program, setting up, 562 563 analysis of the facility s current level of risk, 562 mechanical security, 563 natural security, 562 563 organizational security, 563 See also Workplace violence Office of Federal Contract Compliance Programs (OFCCP), 33 Offshoring, 157, 585 Off-the-job training, 264 266 behavior modeling, 265 case study method, 264 corporate universities, 266 executive coaches, 266 management games, 264 outside seminars, 264 265 role playing, 265 SHRM learning system, 266 Onboarding See Employee orientation On-demand recruiting services (ODRS), 158 One-on-one interview, 218 O*NET, 123 125, 124 125f Online benefits management systems, 442 Online career management programs, 331 Online communications in small businesses, 620 Online recruitment, 149 152 applicant tracking system (ATS), 151 dot-jobs domain, 150 effectiveness of, improving, 152, 152f job boards, 149f pros and cons, 151 texting, 150 SUBJECT INDEX virtual job fairs, 150 151 Online survey of employees benefits preferences, 446 447f On-site health care services, 437 On-the-job training (OJT), 253 254 action learning, 264 coaching/understudy approach, 264 management development programs, 263 264 process, 254 types of, 254 Operational safety reviews, 545 Organization, Organizational change, leading, 269 270 moving stage, 269 270 refreezing stage, 270 unfreezing stage, 269 Organizational change programs, 268 271 leading organizational change, 269 270 moving stage, 269 270 refreezing stage, 270 unfreezing stage, 269 Lewin s change process, 269 other changes, 268 269 strategic changes, 268 Organizational culture, 465 466 Organizational development, 270 271 human process applications, 271 human resource management applications, 271 interventions, 270 271, 270t strategic interventions, 271 technostructural interventions, 271 Organizational justice, 461, 560 Organizational security, 563 Organization chart, 107 Organization-wide incentive plans, 407 411 earnings-at-risk pay plan, 410 411 employee stock ownership plan, 411 gainsharing plan, 410 profit-sharing plan, 409 Scanlon plan, 409 410 Out-of-line rates, correcting, 373 374 Outplacement counseling, 481 482 Outsourcing alternative staffing, 157 benefits management, 437 Overseas Assignment Inventory (OAI), 588f Overtime pay, 395 P Paired comparison method, 294, 295f Panel interview, 218 Part-time workers, insurance benefits for, 438 Pay-for-performance, 395 Pay (or wage) grade, 371, 373t Pay plans, creating, 364 374 benchmarks jobs, choosing, 364 compensable factors in, 364 366 evaluate jobs, 367 for expatriates, 592 grades for pay, developing, 371, 373t market competitive pay system, 367 out-of-line rates, correcting, 373 374 pay (or rate) ranges, establishing, 371 373, 372f, 373t remaining jobs addressed, 373 review job descriptions and job specifications, 366 wage curves, 367 373 See also Wage curves Pay (or rate) ranges, 371 373, 372f, 373t Pension Benefits Guarantee Corporation (PBGC), 441 Pension plans, 438 442 cash balance plans, 440 deferred profit-sharing plan, 440 defined benefit pension plan, 439 defined contribution pension plan, 439 early retirement, 442 Employee Retirement Income Security Act of, 441 employee stock ownership plan, 440 401(k) plan, 439 440, 440f membership requirements, 441 PBGC, 441 portability, 439 savings and thrift plan, 440 vesting, 441 442 Performance achievement plan, 407 Performance analysis, 249 250 Performance appraisal appraisers (See Performance appraisers) best practices in, checklist for, 305f career-oriented, in career management, 331 332, 332f in China, 582 defined, 284 285 diary used in, 304 effective, guidelines for, 287 288 ethics and fair treatment promoted by, 468 fairness in, ensuring, 305 feedback in, importance of, 286 interviews in (See Appraisal interview) job descriptions in, role of, 288 legally defensible, 306, 306f of managers abroad, 590 591 vs performance management, 309 310 plan for, agreement on, 304 problems, 302 306 bias, 304 central tendency, 303 graphic rating scale with unclear standards, 303, 303t halo effect, 303 learning and understanding, 304 recency effects, 304 strictness/leniency, 303 304 687 process, 285 reasons for, 285 in small businesses, 613 614 talent management practices and, 311 312 techniques, 290 302 alternation ranking method, 294 behaviorally anchored rating scale, 296 299 computerized and Web-based, 300 301, 301 302f critical incident method, 295 296, 296t electronic performance monitoring, 301 forced distribution method, 294 295 graphic rating scale, 290 293, 303, 303t management by objectives, 300 mixed standard scales, 299 narrative forms, 296, 297f paired comparison method, 294, 295f in practice, 291f, 301, 302 tools in, advantages/ disadvantages, 304, 305t Performance appraisers, 288 290 peers, 288 289 rating committees, 289 self-ratings, 289 subordinates, 289 degree feedback, 289 290, 290f Performance-contingent restricted stock, 406 Performance evaluation in strategic planning, 76 Performance management, 309 310 defined, 286 287 information technology used to support, 310, 310f vs performance appraisal, 309 310 process report, 310f TRW s performance management system, 287 Personal appearance regulations of Title VII, 50 51 Personality tests, 188 190 big five personality dimensions and, 189 caveats, 189 interest inventories, 189 190 performance predicted by, 189 projective, 188 sample online, 188f self-reported, 188 Personal protective equipment (PPE), 545 Person and job/organization fit, 176 Personnel replacement charts, 142, 143f Personnel services, 443 Phantom stock plans, 407 Philosophy of cooperation, 409 Phone interview, 218 219 Physical capabilities tests, 546 Physical characteristics in employee selection, 49 50 688 SUBJECT INDEX Physical exams, 201 202 Physiological needs, 393 Picketing, 514 Piecework plans, 396 pros and cons, 396 standard hour plans, 396 straight piecework, 396 Plant rules, 517 Point method, 363 Policy issues, 424 Political factors in global HRM, 580 Polycentric staffing, 585 Polygraphs, 199 200 Population comparisons, 45 46 Portability, 439 Position analysis questionnaire (PAQ), 114 115, 115f Position replacement card, 142 Positive reinforcement programs, 548 Practices Behaviors Strategy Pyramid, 81f Predictive Index, 611 Preemployment information services, 199 Preferential shop, 498 Preferred provider organizations (PPOs), 434 Pregnancy Discrimination Act, 34, 435 Premium priced stock options, 407 Prepotency process principle, 393 Privacy issues in background checks, 196 in employee data, 143 144, 144f employee privacy violations, types of, 474 Procedural justice, 462 Process chart, 107, 108f Productivity, 392 Professional employees, compensating, 375 376 Professional employer organizations (PEOs), 447 448, 621 622 benefits of, 447 448 caveats, 622 function of, 447, 621 622 guidelines for finding and working with, 622f lax due diligence, 622 reasons for using, 621 622 Profile-oriented questions, 229 Profiles in talent management, 248 249 Profit-sharing plan, 395, 409 Program development, 253 Programmed learning, 256 257 Projective personality tests, 188 Promotion decisions, 337 340 based on competence, 337 338 vs based on seniority, 337 defining and measuring, 337 338 bias in, 338 339 formal vs informal process of, 338 legal issues in, 339 practical considerations in, 338 retirement, 340 transfers, 339 vertical vs horizontal vs other, 338 Protected class, 34 Psychological contract in career management, 328 Public policy, 462 463 Puzzle questions, 218 Q Qualifications, lack of as grounds for dismissal, 477 Qualifications (or skills) inventories, 142 Qualified individuals, ADA and, 37 Quantitative job analysis techniques, 114 116 Questionnaires for developing job descriptions, 113 114 O*NET, 123 125 position analysis questionnaire, 114 115, 115f Questions in interviews behavioral, 216 profile-oriented, 229 puzzle questions, 218 situational questions in, 215 supplementary, 228f Quid pro quo harassment, 41 R Ranking method, 262t, 361 362 Ratio analysis, 140 Reality shock, 330 Reasonable accommodation, 37, 37f Recency effects, 304 Record keeping rules See under Occupational Safety and Health Administration (OSHA) Recruiting yield pyramid, 145 146, 145f Recruitment discriminatory practices in, 49 help wanted ads, 49 misleading information, 49 word-of-mouth, 49 See also Employee selection Reference checking form, 197f Referrals, 159 160 Refreezing stage of organizational change, 270 Rehiring, 147 Reliability, test, 177 178 Religion as BFOQ, 47 Repatriation, 594 595 Required and discretionary, 425t Restricted policy, 45 Restricted stock plans, 407 Retaliation, 339 Retention See Employee retention Retirees, 15 Retirement benefits, 438 pension plans, 438 442 in small businesses, 619 620 Social Security, 438 Retirement planning, 340 Reverse discrimination, 60 61 Rewards aligned reward strategy, 352, 353t ethics in, 468 nonfinancial, 398 399 incentives managers can use, 399, 400f recognition programs, 398 399 in small businesses, 617 620 total rewards and tomorrow s pay programs, 381 382 Rights arbitration, 513 Rights of employees See Employee rights Right to work, 498 Risk level, analysis of the facility s, 562 Role playing, 265 S Safety awareness program, 549 550 Safety of employees See Employee safety Salary plan, 401 Salary surveys, 368 370 commercial, professional, and government, 369 defined, 368 Internet-based options, 369 370, 369t Sarbanes-Oxley, 404 Savings and thrift plan, 440 Scanlon plan, 409 410 Scatter plot, 140 141, 141f Scientific management movement, 392 Security, need for, 393 Security program, setting up, 562 563 analysis of the facility s current level of risk, 562 mechanical security, 563 natural security, 562 563 organizational security, 563 Selection of employees See Employee selection Selection testing of expatriates (expats), 586 587, 587f Self-actualization, 393 Self-esteem, 393 Self-reported personality tests, 188 Seminars, outside, 264 265 Sequential interviews, 218 Serial interview, 218 Serve notice in EEOC enforcement process, 53 Service Employees International Union (SEIU), 498 Service jobs, 13 Severance pay, 431 432 Sexual harassment, 39 43 defined, 40 41 employee options, 43 SUBJECT INDEX hostile environment, 41 42 legal requirements, 42 43 proving, 41 Supreme Court decisions, 42 Sham unions, 521 522 Sharing of benefits formula, 410 SHRM learning system, 266, 612 Sick child benefits, 444 Sick leave, 427 428 Simulated learning, 258 259 advantages, 259 other examples, 259 U.S Army example, 258 259 Situational interview, 215 216 Situational judgment tests, 191 Situational questions, 215 Situational tests, 191, 192 SkillSoft, 613 Small Business Administration (SBA), 613, 613f Small businesses, 606 629 benefits and rewards, 617 620 challenging economic times, 619 flexibility in, 618 recognition, 619 retirement benefits, 619 620 work-life benefits, 618 619 communications in, improved, 620 differences in, 606 607 employee compensation, 614 employee safety and health, 614 employment laws, complying with, 608 611 DOL, 609 610 EEOC, 610, 612 OSHA, 610 611, 610f, 614 employment planning and recruiting, 611 employment selection, 611 612, 614 entrepreneur in, 607 fairness and family businesses, non-family employees and, 620 621 HR and intranets, 625 HR forms, 623 624, 623t HRIS in, 624 625 HR materials, 624 HRM in, importance of, 607 608 HR system components, 623 624 HR system integration, 625 HR tasks, automating, 624 importance of, 606 interviewing process, 614 616 conducting, 615 matching candidate to job, 616 preparing for, 614 615 specific factors to probe, 615 online self- processing, 624 performance appraisals, 613 614 professional employer organizations used in, 621 622 reporting capability, 625 software packages, 624 training, 612 613, 616 617 flexibility in, 616 617 four-step process of, 616 informal training methods, 617 Job Instruction Sheet, 616, 617t NAM, 613 private vendors, 612 613 SBA, 613, 613f Summary Task Analysis Record Form, 616, 617t transaction processing, 624 work-sampling tests, 616 Smoking in the workplace, 558 Social needs, 393 Social networks, background checks and, 198 198 Social recognition, 399, 400f Social Security, 438 Social Security Act of 1935, 358 Software computerized business planning, 76 small business, 624 workforce/talent analytics, 87 88 Spurlock v United Airlines, 48 Staff authority, Staffing global organization, 582 home-country nationals, 582 localization policy, 584 locals, 583 short-term or commuter solutions, 584 staffing policies (See International staffing policies) third-country nationals, 583 transnational virtual teams, 584 See also Expatriates (expats) Staff leasing firms, 447 448 Staff manager, 6, 10 Standard deviation rule, 44 45 Standard hour plan, 396 Standard Occupational Classification (SOC), 121 122, 123 State and local EEO laws, 39 Stereotyping, 55 Stock appreciation rights (SARs), 407 Stock options broad-based, 411 indexed options, 406 407 performance achievement plan, 407 performance-contingent restricted stock, 406 phantom stock plans, 407 premium priced options, 407 problems with, 406 restricted stock plans, 407 stock appreciation rights (SARs), 407 Straight piecework, 396 Strategic Context, The, 17, 72, 107, 139, 176, 214, 246, 287, 324, 352, 392, 425, 460, 496, 532, 578, 608 689 Strategic fit, 78 Strategic HRM, 72 98 Albertsons example, 82 benchmarking in, 86 87, 86f and company s strategic plan, link between, 81f data mining in, 88 defined, 80 81 evidence-based HR in, 90 91 goal-setting in, 72, 73f high-performance HR policies and practices in, 92 93 high-performance work systems in, 91 92, 92t HR audits in, 89 90 HRIS used to improve productivity, 76 human resource strategies in, 82 managers role in, 78 80 merger and acquisition planning in, 79 80 metrics in, 84 87 Practices Behaviors Strategy Pyramid in, 81f Shanghai Portman Hotel example, 72 strategic planning, 73 76, 73f tools, 82 83, 83f digital dashboards, 83 HR Scorecard, 82 83 strategy map, 82, 83f types of strategies in, 76 78 video case (Joie de Vivre Hospitality), 101 workforce/talent analytics, 87 88 Strategic interventions in organizational development, 271 Strategic management, 73 Strategic plan, defined, 73 Strategic planning, 73 76, 73f audits, 74 75, 74f define current business, 74 formulate strategies, 76 goals in, 72, 75 implement strategies, 76 managers role in departmental, 78 80 top, 78 mission statement, 75 performance evaluation, 76 and strategic human resource management, link between, 81f SWOT chart in, 75, 75f vision statement in, 75 Strategic planning managers, 78 80 Strategic training needs analysis, 247 Strategy, defined, 73 Strategy, translating into HR policies and practices benefits plan, 452 career management system, 343 344 challenging economic times, 628 629 690 SUBJECT INDEX Strategy, translating into HR policies and practices (continued) compensation plan, 385 386 ethics, justice, and fair treatment process, 461 462f, 489 490 global human resources, managing, 600 601 high-performance work system, 96 97, 98t incentive plan, 417 interviewing, 232 233 job descriptions, 134 labor relations practices, 526 performance management system, 316 recruitment process, 170 safety and health program, 570 571 testing, 207 208 training program, 278 Strategy-based metrics, 87 Strategy map, 82, 83f Strategy types, 76 78 competitive, 77 corporate-level, 77 at each company level, 76f functional, 78 human resources as competitive advantage, 77 78 strategic fit and, 78 Stress, 555 556 Stress interview, 217 218 Strictness/leniency problems, 303 304 Strikes, 513 515 defined, 515 employer response, 514 employers replacing strikers, 514 515 guidelines for employers, 515 likelihood of and severity of, 515, 516 picketing, 514 types of, 515 Structured (or directive) interview, 215 Structured sequential interview, 218 Structured situational interview, 225 226 Substance abuse See Alcoholism and substance abuse Substance-specific health standards (OSHA), 552t Succession planning, 148, 263 Summary Task Analysis Record Form, 616, 617t Supplemental pay benefits, 425 432 Family and Medical Leave Act, 429 431 severance pay, 431 432 sick leave, 427 428 supplemental unemployment benefits, 432 unemployment insurance, 425 426, 426t vacations and holidays, 427 Supplemental unemployment benefits, 432 Supplementary questions, 228f SWOT chart, 75, 75f Sympathy strike, 513 T Taft-Hartley Act (1947), 501 502 Talent management, 19 career and succession planning integrated with, 336 337 defined, 104 105 employee retention and, 325 mission-critical employees, 267 268 performance appraisals and, 288, 311 312 actively managing employees, 311, 312f based on required competencies, 288 segmenting and actively managing employees, 311 312 predictive workforce monitoring, 144 145 process, 104 Talent management profiles competency-based, 128 131, 129f competency models and, 248 249 employee interviews, 229 Task analysis, 248, 249t Task statements, 127 using, 127 128 Tattoos, 51 Team (or group) incentive plans, 407 411 designing, 407 408 engineered standards in, 408 HR inequities that undercut, 408 409 pros and cons of, 408 See also Organization-wide incentive plans Team training, 262 Technical training, 262 Technological trends in HRM, 12 Technostructural interventions, 271 Telecommuters, 160 Telephone monitoring acknowledgment statements, 475 Temp agencies and alternative staffing, 155 156 concerns of temporary employees, 156 legal guidelines, 156 pros and cons, 156 Termination at will, 476 Termination interview, 481 483 defined, 481 exit interview, 482 483, 483f guidelines for, 481 outplacement counseling, 481 482 Terrorism, 593 594 Testing See Employee testing Test security, 183 184 Tests in employee selection achievement tests, 190 aptitude tests, 187 of cognitive abilities, 186 187 computerized tests, 185 evaluation of, 194t intelligence (IQ) tests, 186 187 legal issues in, 49 McDonnell-Douglas, 46 motor and physical abilities tests, 187 objective tests, 192 physical capabilities tests, 546 reliability of, 177 178 situational judgment tests, 191 situational tests, 191, 192 validity of, 179, 180 182 work-sampling tests, in small businesses, 616 See also Employee testing; Personality tests Test takers rights, 183 184 Test validity, 179, 180 182 Third-country nationals, 583 Third party assistance in collective bargaining, 513 Time series design, 272 Title VII of the 1964 Civil Rights Act, 32, 354 EEOC, 32 personal appearance regulations, 50 51 who it covers, 32 Tokenism, 55 Top-down programs, 56 57 Top managers, 78 Traditional employer defenses, 37 38 Training defined, 246 effort, evaluating, 272 controlled experimentation, 272 designing the study, 272 form, 273 274f graph used in, 272f impact of training, judging, 274 training effects, measuring, 273 of employees abroad, 590 process, 246 253 (See also Learning) ADDIE five-step training process, 247 defined, 246 ensuring transfer of learning to job, 253 making skills transfer obvious and easy, 252 other design issues, 253 performance and, 247 program design, 250 253 program development, 253 skills transfer, obvious and easy, 252 strategic training, 246 247 vestibule training, 257 program, implementing, 253 262 (See also Learning) apprenticeship training, 255, 255f audiovisual-based, 257 computer-based training, 258 diversity training, 262 electronic performance support systems, 257 258 Internet-based training, 259 260 job instruction training, 255 256 lectures, 256 literacy training, 261 SUBJECT INDEX on-the-job training, 253 254 team training, 262 technical training, 262 videoconferencing, 258 virtual classroom, 261 in small businesses, 612 613, 616 617 flexibility in, 616 617 four-step process of, 616 informal training methods, 617 Job Instruction Sheet, 616, 617t NAM, 613 private vendors, 612 613 SBA, 613, 613f Summary Task Analysis Record Form, 616, 617t unsafe acts reduced through, 546 547 Training needs analysis, 247 248 can t do/won t problems, 250 competency models in, 248 249 current, 248 performance, of current employees, 249 250 profiles in, 248 249 strategic, 247 task, 248, 249t Trait assessments in interviews, 221 Transfers, 339 Transnational virtual teams, 584 Trend analysis, 140 Trends in HRM, 10 17, 11f demographic, 14, 14t economic, 16 17, 16f Generation Y, 14 15 globalization and competition trends, 11 12 high-tech jobs, 13 indebtedness and deregulation, 12 knowledge work and human capital, 13 nontraditional workers, 15 retirees, 15 service jobs, 13 technological, 12 workers from abroad, 15 16 Turnover See Employee turnover U Unalienable rights, 462 Unclear standards, 303, 303t Unemployment insurance (or compensation), 425 426, 426t Unfair labor practice strike, 513 Unfreezing stage of organizational change, 269 Uniform guidelines, 34 Uniforms, 51 Unintentional discrimination See Adverse impact Union drive and election, 502 509 authorization cards, obtaining, 504, 504f campaign, 505 Change to Win Coalition, 498 election, 505 508 decertification, 509 losing, 507 508 NLRB ballot, sample of, 507f winning, 508 hearings, 505 NLRB Form 852: Notice of Representation Hearing, 506f initial contact, 502 503 labor relations consultants, 503 union salting, 503 literature and solicitation, rules regarding, 509 Notice of Election, 505 supervisor s role in, 508 Unions AFL-CIO, 498 aims of improved wages, hours, and benefits wanted by, 498 security, 497 498 card check system, 521 class action lawsuits supporting employees in nonunionized companies, 521 elections (See Union drive and election) globalization of, 521, 578 going high-tech, 516 labor movement and, 496 498 laws of (See Unions and labor relations laws) membership from 1935 to 1947, 501 declines, 520 variations, 520 security wanted by, 497 498 SEIU, 498 sham unions, 521 522 See also Collective bargaining Union salting, 503 Unions and labor relations laws, 358, 498 502 Employee Free Choice Act, 521 Landrum-Griffin Act, 502 national emergency strikes, 502 National Labor Relations (or Wagner) Act, 499 500 National Recovery Act, 521 Norris-LaGuardia Act, 499 rights of employees, 501 rights of employers, 502 Taft-Hartley Act, 501 502 unfair employer labor practices, 499 unfair union labor practices, 501 502 See also National Labor Relations Board (NLRB) Union shop, 497 UNITE HERE, 498 Unsafe acts causes of, 540 691 reducing, 546 550 by conducting safety and health audits and inspections, 549 550 summary of, 550t through behavior-based safety, 548 through employee participation, 548 549, 549f through motivation, 547 548 through safety awareness programs, 549 550 through selection and placement, 546 through supportive environment, 547 through training, 546 547 Unsafe conditions causes of, 539 check list, 541f danger zones, 539 540 defined, 539 reducing, 540 545 as first line of defense, 540, 541 job hazard analysis, 543, 544 545 operational safety reviews, 545 personal protective equipment, 545 safety inspection checklist, online, 542 544f summary of, 550t vulnerable workers, protecting, 545 Unsatisfactory performance as grounds for dismissal, 477 Unstructured (or nondirective) interview, 214 215 Unstructured sequential interview, 218 Utility analysis, 182 Utilization analysis, 45 V Vacation benefits, 427 Valence, 394 Validity, 178 179 construct validity, 179 content validity, 179 criterion validity, 179 generalization, 183 test validity, 179, 180 182 Value added by manager, 20 Variable pay, 395 Vertical promotion decisions, 338 Vested funds, 441 442 Vestibule training, 257 Video-based simulation, 192 Videoconferencing, 258 Video/web-assisted interviews, 219 Violence at work See Workplace violence Virtual classroom, 261 Virtual reality training, 258 See also Simulated learning Virtual teams, 584 692 SUBJECT INDEX Vision statement, 75 Vocational Rehabilitation Act of 1973, 33 Voluntary (or permissible) bargaining items, 511 W Wage curves, 367 373 current pay rates adjusted by comparing, 370, 371f, 372f defined, 367 external, 368 370, 370f internal, 368, 368f plotting, 368f Walk-ins, 160 Wall Street Journal workplace ethics quiz, 460f Walsh-Healey Public Contract Act (1936), 354 Web-based performance appraisals, 300 301, 301 302f Web-based recruiting used by small businesses, 611 Weight in employee selection, 49 50 Wellness programs, 437 for preventing illnesses, 437 safety and health initiatives, 558 Wildcat strike, 513 Wonderlic Personal Characteristics Inventory, 611, 612f Word-of-mouth recruitment, 49 Workers compensation, 432 433 benefits, determining, 432 costs, controlling, 432 433, 550 551 before the accident, 550 after the accident, 551 techniques, 432 433 laws, 358 Workers from abroad, 15 16 See also Expatriates (expats); Global HRM Workflow analysis, 107 108 Workforce analysis, 45 Workforce (or employment or personnel) planning, 138 146 action plan developed to match labor supply and demand, 145 talent management and predictive workforce monitoring in, 144 145 Workforce/talent analytics, 87 88 Workplace flexibility, 448 Workplace health hazards, 551 561 air quality, 553 asbestos exposure, 552 burnout, 556 557 computer-related ergonomic problems, 557 dealing with, 554 effects of, 553 employee depression, 557 industrial hygiene, 552 infectious diseases, 553 observable behavior patterns indicating, 553 555, 555t occupational illness, 534 repetitive motion disorders, 557 in small businesses, 614 smoking in the workplace, 558 stress, 555 556 See also Alcoholism and substance abuse Workplace violence, 558 561 angry or violent employees dealing with, 560 561 dismissing, 561 employee screening, 559 legal issues in reducing, 561 organizational justice, 560 security measures, heightened, 559 supervisory training for identifying potential, 560 561 victims of, risk factors for, 558 559 Work samples, 190 Work sampling technique, 190 Work sharing, 449 Wrongful discharge, 476 477 Wrongful discharge suits, avoiding, 478 480 ... 19,579 20 ,171 20 ,519 21 ,104 21 ,694 21 ,717 22 ,26 9 20 ,017 20 ,493 21 ,155 21 ,717 21 ,961 22 ,607 23 ,25 3 23 ,899 24 ,545 25 ,191 21 ,840 22 ,568 23 ,29 6 24 , 024 24 ,7 52 25,480 26 ,20 8 26 ,936 27 ,664 28 ,3 92 24,518 25 ,335... 25 ,335 26 ,1 52 26,969 27 ,786 28 ,603 29 , 420 30 ,23 7 31,054 31,871 27 ,431 28 ,345 29 ,25 9 30,173 31,087 32, 001 32, 915 33, 829 34,743 35,657 30,577 31,596 32, 615 33,634 34,653 35,6 72 36,691 37,710 38, 729 ... 52, 643 54, 028 10 45,771 47 ,29 7 48, 823 50,349 51,875 53,401 54, 927 56,453 57,979 59,505 11 50 ,28 7 51,963 53,639 55,315 56,991 58,667 60,343 62, 019 63,695 65,371 12 60 ,27 4 62, 283 64 ,29 2 66,301 68,310