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1]1EREKIQIRX0EF 1]1EREKIQIRX0EFMWERSRPMRIEWWIWWQIRXERHTVITEVEXMSR WSPYXMSRJSVGSYVWIWMR4VMRGMTPIWSJ1EREKIQIRX,YQER 6IWSYVGIW7XVEXIK]ERH3VKERM^EXMSREP&ILEZMSVXLEXLIPTW ]SYEGXMZIP]WXYH]ERHTVITEVIQEXIVMEPJSVGPEWW'LETXIV F]GLETXIVEGXMZMXMIWMRGPYHMRKFYMPXMRTVIXIWXWERHTSWX XIWXWJSGYWSR[LEX]SYRIIHXSPIEVRERHXSVIZMI[ MRSVHIVXSWYGGIIH :MWMX1]1EREKIQIRX0EFGSQXSPIEVRQSVI MANAGING HUMAN RESOURCES This page intentionally left blank S EV EN T H ED IT IO N MANAGING HUMAN RESOURCES Luis R Gómez-Mejía Texas A&M University David B Balkin University of Colorado, Boulder Robert L Cardy University of Texas at San Antonio Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montréal Toronto Delhi Mexico City São Paulo Sydney Hong Kong Seoul Singapore Taipei Editorial Director: Sally Yagan Editor in Chief: Eric Svendsen Acquisitions Editor: Brian Mickelson Director of Editorial Services: Ashley Santora Editorial Assistant: Carter Anderson Director of Marketing: Maggie Moylan Senior Marketing Manager: Nikki Ayana Jones Marketing Assistant: Ian Gold Senior Managing Editor: Judy Leale Production Project Manager: Ilene Kahn Senior Operations Supervisor: Arnold Vila Operations Specialist: Cathleen Petersen Creative Director: Blair Brown Sr Art Director/Design Supervisor: Janet Slowik Art Director: Steve Frim Cover and Interior Designer: Jill Lehan Cover Photo: Shutterstock Senior Media Project Manager, Editorial: Denise Vaughn MyLab Product Manager: Joan Waxman Media Project Manager: Lisa Rinaldi Full-Service Project Management and Composition: Integra Printer/Binder: Courier/Kendallville Cover Printer: Lehigh-Phoenix Color/Hagerstown Text Font: 10/12 Times Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on the appropriate page in text Copyright © 2012, 2010, 2007, 2004, 2001 Pearson Education, Inc., publishing as Prentice Hall All rights reserved Manufactured in the United States of America This publication is protected by Copyright, and permission should be obtained from the publisher prior to any prohibited reproduction, storage in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or likewise To obtain permission(s) to use material from this work, please submit a written request to Pearson Education, Inc., Permissions Department, One Lake Street, Upper Saddle River, New Jersey 07458, or you may fax your request to 201-236-3290 Many of the designations by manufacturers and sellers to distinguish their products are claimed as trademarks Where those designations appear in this book, and the publisher was aware of a trademark claim, the designations have been printed in initial caps or all caps Library of Congress Cataloging-in-Publication Data Gomez-Mejia, Luis R Managing human resources / Luis R Gómez-Mejía, David B Balkin, Robert L Cardy.—7th ed p cm ISBN 978-0-13-272982-6 Personnel management I Balkin, David B., 1948 II Cardy, Robert L., 1955 III Title HF5549.G64 2012 658.3—dc22 2011010723 10 ISBN 10: 0-13-272982-2 ISBN 13: 978-0-13-272982-6 To my wife Ana, my two sons Vince and Alex, and my daughter Dulce —L.G.M To my parents, Daniel and Jeanne —D.B.B To my family for their endless support and to Todd Snider for the endless inspiration —R.L.C This page intentionally left blank Brief Contents PART I Introduction Chapter PART II The Contexts of Human Resource Management 52 Chapter Chapter Chapter PART III Appraising and Managing Performance 222 Training the Workforce 256 Developing Careers 284 Compensation 311 Chapter 10 Chapter 11 Chapter 12 PART VI Recruiting and Selecting Employees 165 Managing Employee Separations, Downsizing, and Outplacement 199 Employee Development 222 Chapter Chapter Chapter PART V Managing Work Flows and Conducting Job Analysis 52 Understanding Equal Opportunity and the Legal Environment 92 Managing Diversity 128 Staffing 165 Chapter Chapter PART IV Meeting Present and Emerging Strategic Human Resource Challenges Managing Compensation 311 Rewarding Performance 357 Designing and Administering Benefits 397 Governance 436 Chapter 13 Chapter 14 Chapter 15 Chapter 16 Chapter 17 Developing Employee Relations 436 Respecting Employee Rights and Managing Discipline 466 Working with Organized Labor 503 Managing Workplace Safety and Health 539 International HRM Challenge 568 vii Contents Preface xx Acknowledgments xxv About the Authors xxvii PART I Introduction Chapter Meeting Present and Emerging Strategic Human Resource Challenges Human Resource Management: The Challenges Environmental Challenges Organizational Challenges 11 Competitive Position: Cost, Quality, or Distinctive Capabilities Individual Challenges 18 11 Planning and Implementing Strategic HR Policies 21 The Benefits of Strategic HR Planning 21 The Challenges of Strategic HR Planning 22 Strategic HR Choices 24 Selecting HR Strategies to Increase Firm Performance 27 Fit with Organizational Strategies 28 Fit with the Environment 31 Fit with Organizational Characteristics 33 Fit with Organizational Capabilities 33 Choosing Consistent and Appropriate HR Tactics to Implement HR Strategies HR Best Practices 35 The HR Department and Managers: An Important Partnership 35 Specialization in Human Resource Management 36 34 Summary and Conclusions 37 • Key Terms 38 • Discussion Questions ■ CASE 1.1 EMERGING TRENDS Managing by the Numbers: A Way to Improve Productivity and Efficiency? 39 ■ CASE 1.2 HR IN SMALL BUSINESS Zappos: How to Create an Employee Friendly Culture and Use It as a Source of Competitive Advantage 40 ■ CASE 1.3 DISCUSSION Managers and HR Professional at Sands Corporation: Friends or Foes? 41 ■ CASE 1.4 DISCUSSION The Enduring Wage Gap by Gender 42 PART II The Contexts of Human Resource Management 52 Chapter Managing Work Flows and Conducting Job Analysis 52 Work: The Organizational Perspective 53 Strategy and Organizational Structure Designing the Organization 54 Work-Flow Analysis 57 Business Process Reengineering 57 viii 38 53 ... :MWMX1]1EREKIQIRX0EFGSQXSPIEVRQSVI MANAGING HUMAN RESOURCES This page intentionally left blank S EV EN T H ED IT IO N MANAGING HUMAN RESOURCES Luis R Gómez-Mejía Texas A&M University David B Balkin University... role that human resource management plays in this process Managing Human Resources, Seventh Edition, prepares all future managers with a business understanding of the need for human resource management... Cataloging-in-Publication Data Gomez-Mejia, Luis R Managing human resources / Luis R Gómez-Mejía, David B Balkin, Robert L Cardy.—7th ed p cm ISBN 978-0-13-272982-6 Personnel management I Balkin, David B., 1948 II Cardy,