Chapter 1

The Dynamic Environment

of Human Resource
Management (HRM)

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

Introduction

HRM is a subset of management. It has five main

goals:

attract
employees

retain hire
employees
Goals employees
of
HRM

motivate train
employees employees

Strong employees = competitive advantage.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

Understanding Cultural Environments

HRM operates in a global business environment.

Countries have different

 values
 morals
 customs
 political, economic, and legal systems

HRM helps employees understand other countries’

political and economic conditions.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

Understanding Cultural Environments

The Heritage Foundation’s Index of Economic Freedom rates

183 countries on openness to trade, business, investment,
and property rights. The U.S. was #6 in 2009. North Korea is
the most repressed.

TOP 10 FREE COUNTRIES TOP 10 LEAST-FREE COUNTRIES

1. Hong Kong 1. North Korea
2. Singapore 2. Zimbabwe
3. Australia 3. Cuba
4. Ireland 4. Burma
5. New Zealand 5. Eritrea
6. United States 6. Venezuela
7. Canada 7. Dem. Rep. of Congo
8. Denmark 8. Comoros
9. Switzerland 9. Libya
10. United Kingdom 10. Sao Tome & Principe

2009 Country Rankings, see www.heritage.org/index/Ranking.aspx

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

The Changing World of Technology

HRM operates in a technologically changing

environment.

Thomas Friedman:

Globalization 1.0 Globalization 2.0 Globalization 3.0

(1492-1800) (1800 -2000) (2000 -????)
Driven by transportation Driven by communication Driven by technology

3.0 fueled by instant communication and the Internet.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

The Changing World of Technology

The IT field is growing.

Knowledge workers focus on the acquisition and

application of information for decision making.

Some books for aspiring knowledge workers:

1. Learning as a Way of Being by Peter B. Vaill

2. Thinking for a Living: How to Get Better Performance and
Results from Knowledge Workers by Thomas H. Davenport
3. Information Anxiety 2 by Richard S. Wurman

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

The Changing World of Technology

HRM information systems help to

 facilitate HR plans

 make decisions faster

 clearly define jobs

 evaluate performance

 provide desirable, cost-effective benefits

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

The Changing World of Technology

HR managers use technology to:

 recruit, hire, and train employees

 motivate and monitor workers

 research fair compensation packages

 communicate throughout the organization

 evaluate decentralized employees’

performance

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

Workforce Diversity

HRM has moved from the melting pot

assumption to celebrating workforce diversity.

The U.S. Dept. of the Interior’s Web site

www.doi.gov/diversity/8major2.htm overviews major
U.S. civil rights legislation.

The Civil Rights Acts of 1964 and 1991

Equal Pay Act of 1963
Americans with Disabilities Act of 1990
The Age Discrimination in Employment Act
The Rehabilitation Act

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

Workforce Diversity

Today’s workers want a healthy work/life

balance.

They
 can work any time, from almost anywhere
 work more than 40 hours per week
 are part of a dual-income household

#1 reason
for leaving a company:
lack of work schedule flexibility

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

The Labor Supply

HR managers monitor the labor supply.

Trend is to rightsize: fit company goals to

workforce numbers.

For agility, companies build a contingent

workforce of

 part-time workers
 temporary workers
 contract workers

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

Continuous Improvement Programs

focus
on
customer

concern for
empowerment continuous
of employees continuous improvement
improvement
components

accurate concern for

measurement total quality

HR managers help workers adapt to continuous improvement changes

through retraining, providing answers, and monitoring expectations.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

Employee Involvement

It’s all about employee empowerment through

involvement, which increases worker productivity
and loyalty.

Employee Involvement Concepts

delegation • participative management

work teams • goal setting • employer training

See http://workhelp.org/joomla/content/view/284/ for

managerial tips on empowering employees.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

Other HRM Challenges

Challenges for HRM:

 The recession has brought layoffs and low

morale.

 Increased offshoring means jobs can move

overseas, even HR.

 Today’s spate of mergers and acquisitions

increase HR’s role.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

A Look at Ethics

Code of ethics: a formal statement of an

organization’s primary values and the ethical rules
it expects members to follow.

HR managers must take part in enforcing ethics

rules.
Sarbanes-Oxley Act of 2002
Requires proper financial recordkeeping
for public companies

Video: Robert Lane, Ethics at Deere

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

True or False?

1. HRM should assume all countries have the same cultures.

False!
2. Technology and information technology have little impact on HRM.
False!
3. Today’s workforce is composed of diverse groups.
True!
4. Rightsizing is a strategy companies use to balance their labor supply.
True!
5. Continuous improvement programs eliminate change in an organization.
False!
6. Employee empowerment increases worker involvement and productivity.
True!
7. HRM is affected by the economy.
True!
8. HRM can play a vital role in enforcing ethical codes of conduct.
True!

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

Chapter 2

Fundamentals of
Strategic HRM

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

Importance of HRM

HRM has a dual nature:

.

supports the
organization’s strategy

represents and advocates

for the employees

Strategic HRM provides a clear connection between the

organization’s goals and the activities of employees.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

The HRM Functions

HRM has four basic functions:

staffing

training and
development
motivation
maintenance

In other words, hiring people, preparing them, stimulating

them, and keeping them.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

The HRM Functions

staffing

 strategic human resource planning: match prospects’ skills to

the company’s strategy needs
 recruiting: use accurate job descriptions to obtain an
appropriate pool of applicants
 selection: thin out pool of applicants to find the best choice

Staffing has fostered the most change in HR departments

during the past 30 years.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

The HRM Functions

training and
development

 orientation: teach the rules, regulations, goals, and culture of the

company
 employee training: help employees acquire better skills for the job
 employee development: prepare employee for future position(s) in the
company
 organizational development: help employees adapt to the company’s
changing strategic directions
 career development: provide necessary information and assessment
in helping employees realize career goals

The goal is to have competent, adapted employees.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

The HRM Functions

motivation

 theories and job design: environment and well-constructed jobs

factor heavily in employee performance
 performance appraisals: standards for each employee; must provide
feedback
 rewards and compensation: must be link between compensation and
performance
 employee benefits: should coordinate with a pay-for-performance
plan

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

The HRM Functions

maintenance

 safety and health: caring for employees’ well-being has a big

effect on their commitment
 communications and employee relations: keep employees
well-informed of company doings, and provide a means of
venting frustrations

Job loyalty has declined over the past decade.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

External Influences on HRM

dynamic
environment

management laws and

thought HRM regulations

labor
unions

External influences affect HRM functions.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

External Influences on HRM

dynamic
environment

globalization decentralized work sites

workforce diversity technology

teams employee involvement

changing skill requirements ethics

continuous improvement

“The only constant in life is change.”

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

External Influences on HRM

laws and
regulations

 legislation has an enormous effect on HRM

 laws protect employee rights to union representation, fair

wages, family medical leave, and freedom from discrimination
based on conditions unrelated to job performance

The U.S. Equal Employment Opportunity Commission

www.eeoc.gov enforces federal laws on civil rights at work.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

External Influences on HRM

labor unions

assist workers in dealing with company management

negotiate wages, hours, and other terms of employment
promote and foster a grievance procedure between workers
and management

When a union is present, employers can not fire workers for

unjustified reasons.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

External Influences on HRM

management
thought

Frederick Taylor developed principles to enhance worker productivity

Hugo Munsterberg devised improvements to worker testing, training,
evaluations, and efficiency
Mary Parker Follet advocated people-oriented organizations
Elton Mayo’s Hawthorne Studies: dynamics of informal work groups
have a bigger effect on worker performance than do wage incentives

The Hawthorne Studies gave rise to the human relations movement:

benefits, healthy work conditions, concern for employee well-being.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

Structure of the HR Department

There are four areas in a typical nonunion HR

department:

compensation /
employment
benefits

training and employee

development relations

Many HR departments also offer services such as operating the

company’s credit union, making child-care arrangements,
providing security, or running in-house medical or food services.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

Structure of the HR Department

promotes staffing activities, recruits new

employment employees, but does not make hiring decision

training and helps workers adapt to change in the company’s

development external and internal environments

compensation/ pays employees and administers their benefits

benefits package

ensures open communication within the company by

employee fostering top management commitment, upward and
relations accurate communication, feedback, and effective
information sources

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

Careers in HR

HR positions include:

 assistants who support other HR professionals

 generalists who provide service in all four HR functions

 specialists who work in one of the four HR functions

 executives who report to top management and coordinate HR

functions to organizational strategy

Interpersonal communication skills and ambition are two

factors that HR professionals say advance their careers.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

Careers in HR

Organizations that spend money for quality HR

programs perform better than those that don’t.
(HCI study)

Quality programs:
reward productive work
offer a flexible, work-friendly environment
properly recruit and retain quality employees
provide effective communications

Make sure HR services match the overall

organizational strategy.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

HR Trends and Opportunities

 more than half of all companies outsource all or some

parts of their HR functions

 professional employer organizations (PEO) help small- to

medium-size companies attract stronger candidates and
handle new laws in HR

 shared services allow organizations with several divisions

or locations to consolidate some HR functions into one
central location while retaining certain functions in divisional
locations

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

Match the Fours

Four major HR positions staffing, training, motivation, maintenance

Four HR department environment, laws, labor unions, management

areas thought

employment, training, compensation,

Four quality programs
employee relations

Four HRM functions assistants, generalists, specialists, executives

reward productive work

Four external influences offer a flexible, work-friendly environment
on HRM properly recruit and retain quality employees
provide effective communications

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

Chapter 3

Equal Employment
Opportunity

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

Introduction

Almost every U.S. organization, public and private,

must abide by

the 1964 Civil Rights Act

its 1972 amendment

other federal laws regulating employment

State and municipal laws may go beyond federal laws.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

Laws Affecting Discriminatory Practices

The 1866 Civil Rights Act prohibited discrimination in

employment based on race and color.

White males have used it to argue reverse discrimination in court cases.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

Laws Affecting Discriminatory Practices

The 1964 Civil Rights Act

 outlawed racial segregation and discrimination in

employment, public facilities, and education

 Title VII covers hiring, promotion, dismissal,

benefits, compensation or any other terms, conditions,
or privileges based on race, religion, color, gender, or
national origin

Organizations must have at least

15 employees to be covered.

Video: Robert Johnson: Diversity at the Top

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

Laws Affecting Discriminatory Practices

The 1972 Equal Employment Opportunity Act

(EEOA)

 enforced the 1964 Civil Rights Act

 established the Equal Employment Commission
(EEOC)
expanded scope of civil rights protection to
employees of state and local governments,
education, and labor
introduced affirmative action

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

Laws Affecting Discriminatory Practices

1967 Age Discrimination in Employment Act

(ADEA)

protects people over age 39

stopped companies from requiring mandatory

retirement at any age

uses four criteria to determine discrimination

whether:
1. the employee is part of a protected group
2. adverse employment action was taken
3. worker was replaced by a younger worker
4. worker was qualified for the job

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

Laws Affecting Discriminatory Practices

The Pregnancy Discrimination Act of 1978

Companies may not

 fire a female employee for being pregnant

 refuse positive treatment based on pregnancy
 deny insurance coverage to women

Companies must
 offer pregnancy leave (typically 6-10 weeks)
 offer returning employee a similar job should the
exact one be unavailable upon return

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

Laws Affecting Discriminatory Practices

Americans with Disabilities Act (ADA) of 1990

 extends protection and reasonable

accommodations to those with a disability

 defines disabled as a person who:

1. has a physical or mental impairment that substantially
limits one or more life activities
2. has a history or record of such impairment
3. is perceived by others as having such impairment

Covers not only those with mobility and communication

disabilities, but those with HIV/AIDS and intellectual
disabilities.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

Laws Affecting Discriminatory Practices

The Civil Rights Act of 1991

reinforced the 1964 Act, as a number of Supreme Court cases

over the years weakened it

included the Glass Ceiling Act and established the Glass

Ceiling Commission to study management practices

First time such an act allowed individuals to sue for

punitive damages.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

Laws Affecting Discriminatory Practices

The Family and Medical Leave Act of 1993

 allows employees to take up to 12 weeks of unpaid

leave in a 12-month period for family matters

 employees must
1. live within a 75-mile radius
2. have worked at least 1,250 hours in the past 12 months
3. work for a company that employs at least 50 workers

FMLA difficulties for HR: defining conditions sufficient to take leave,

staffing problems that result, and timing of leave notification.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

Laws Affecting Discriminatory Practices

USERRA and Executive Orders

Uniformed Services Employment and Reemployment Rights
Act of 1994 clarifies and strengthens rights of veterans
who served in the national guard or reserves

Executive Order 11246 prohibits discrimination by federal

agencies and contractors / subcontractors

Executive Order 11375 added sex-based criteria to 11246

Executive Order 11478 added that employment practices of

the federal government must be based on merit and
prohibit discrimination

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

Guarding Against Discrimination Practices

Four tests can determine if discrimination occurred:

4/5ths rule geographical

comparisons

restricted McDonnell
policy Douglas test

But it is up to a judicial body to make the

final determination.
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
Guarding Against Discrimination Practices

4/5ths
rule

 number of minority members hired must equal at least 80

percent (4/5ths) of the majority members in the population
hired
 issued by the EEOC, it helps to assess if adverse impact has
occurred
 Connecticut v. Teal (1984) case established that decisions in
each step of decision process must conform to the 4/5ths rule

Exhibit 3.3 shows an example of compliance and non-

compliance with the 4/5ths rule.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

Guarding Against Discrimination Practices

restricted
policy

Do HRM policies exclude a class of individuals?

geographical
comparisons

Does company’s mix of employees at all levels reflect its

recruiting market?

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

Guarding Against Discrimination Practices

McDonnell
Douglas
Test

Charge must meet four criteria:

1. the applicant is a member of a protected group

2. the applicant was qualified for job
3. the applicant was rejected
4. the organization, after rejecting applicant, continued to seek
other applicants with similar qualifications

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

Guarding Against Discrimination Practices

How companies can respond to discrimination

charges if found to have adverse impact:

 discontinue the practice

 defend against the charges by arguing:
1. business necessity
2. bona fide occupational qualification
3. seniority

Proving job relatedness is often the

most common approach.
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
Relevant Supreme Court Cases

HRM practices can be challenged by anyone, and HRM must be

able to defend its practices.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

Enforcing Equal Opportunity Employment

Federal Government

OFCCP
EEOC
within dept. of labor

The EEOC Web site posts notices on current issues. For example, see
its notice on the Swine Flu: http://www.eeoc.gov/facts/h1n1.html

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

Enforcing Equal Opportunity Employment

EEOC

Enforces federal laws on civil rights at work.

www.eeoc.gov
 Follows a five-step process:
1. EEOC notifies company within 10 days of filing and begins
investigation
2. EEOC notifies company of findings within 120 days
3. if unfounded, process stops; if founded, EEOC tries to resolve
4. if unsuccessful, EEOC begins mediation (settlement meeting)
5. if unsuccessful, EEOC may file charges in court

Has power to investigate claims but no enforcement power.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

Enforcing Equal Opportunity Employment

OFCCP

“ESA’s Office of Federal Contract

compliance Programs (OFCCP) is responsible
for ensuring that contractors doing business
with the Federal government do not discriminate
and take affirmative action.”
http://www.dol.gov/esa/ofccp/

 follows similar practice as EEOC in evaluating claims

 can cancel an organization’s contract with the federal
government if organization fails to comply with EEO laws

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

Issues in Employment Law

EEOC: Instances where verbal or physical

conduct creates:
sexual  an intimidating, offensive, or hostile environment
harassment  unreasonably interferes with an individual’s work
 adversely affects an employee’s employment
opportunities

Glass ceiling - lack of women and minority

representation at the top levels of organizations
comparable
OFCCP has glass ceiling initiative
worth promotes career development for women
and minorities
looks for such in its audits

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

 HRM in a Global Environment
Laws affecting HRM vary greatly by country.
60/100-hour work-weeks not uncommon.
China
China’s recent labor laws seek to protect
employees from such practices

Canada Canadian laws closely parallel those in the U.S.

Mexico In Mexico, employees more likely to be unionized

Australia’s discrimination laws not enacted until the

Australia
1980s

Representative participation (work councils and board

Germany representatives) put labor on par with management
and stockholders

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

 Fill-in-the-blanks
1. The 1964 Civil Rights Act, Title VII, protects individuals on the basis of
____, _____, ________, ___, and ________ ______.
race, color, religion, sex, national origin
2. The Equal Opportunity Employment Act established the _________.
EEOC
3. The Civil Rights Act of 1991 included the _____ _______ Act.
Glass Ceiling
4. The 4/5ths Rule: number of minority members hired must equal at least
___ percent of the majority members in the population hired.
80
5. With _______ _________, companies argue job relatedness in
responding to accusations of discrimination in hiring.
Business necessity
6. The 1971 Supreme Court case _____v.________________ ruled that
tests must fairly measure the skills and knowledge required for a job.
Griggs v. Duke Power Company
7. The EEOC defines sexual harassment as creating an ____________.
intimidating, offensive, or hostile environment

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

 Chapter 4

Employee Rights
and Discipline

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 4, slide 58

Introduction

 employee rights have become one of the

more important human resource issues

 the U.S. Constitution, laws, and Supreme

Court rulings have increasingly constrained
employer actions

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 4, slide 59

Employee Rights Legislation

Privacy Act of 1974

 requires government agencies to make available to

employees information contained in their personnel files

 employees can review letters of recommendation made

on their behalf

 similar state laws apply to state and private-sector

employees

 restrictions: employee waivers of right-to-review

procedures that stipulate when and how a file can be
accessed

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 4, slide 60

Employee Rights Legislation

The Fair Credit Reporting Act of 1971

 extension to the Privacy Act

 requires employers to notify employees that their credit

is being checked

 provides additional information to applicants who are

negatively affected by a credit check

 information used must be job-relevant

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 4, slide 61

Employee Rights Legislation

The Drug-Free Workplace Act of 1988

Requires government agencies, federal contractors, and those

receiving federal funds of $25,000 or more to

 establish and disseminate drug-free policies

 provide substance-abuse awareness programs

Drug-free policies must include:

 what is expected of employees

 penalties for infractions of policies
 substance abuse awareness programs

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 4, slide 62

Employee Rights Legislation

Polygraph Protection Act of 1988

prohibits employers in the private sector from using lie-detector tests in
all employment decisions

may still be used during investigations of suspected criminal activity

employees can challenge the results of a polygraph

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 4, slide 63

Employee Rights Legislation

Worker Adjustment and Retraining

Notification Act of 1988
Protects employees from unexpected plant closings.

 organizations of 100+ employees must give 60 days

notice if closing facility or laying off 50 or more workers

 state officials must be notified

 penalty for not notifying is one day’s pay and benefits for
each day’s notice

The law does recognize circumstances in which advance

notice is impossible.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 4, slide 64

Current Issues in Employee Rights

Drug Testing
For current employees, it:
offers rehabilitation to those who fail
communicates that drugs will not be tolerated

For applicants:
it should be done after a job offer is made
those who fail are usually no longer considered

Companies are
moving to more precise tests (that do not use body fluids)
communicating clear policies and procedures
relating the testing program to safety and job performance

Even organizations not covered by the Drug-Free Workplace Act

conduct drug testing.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 4, slide 65

Current Issues in Employee Rights

Honesty Tests

 written tests to get applicants to reveal information about their

integrity

 legal alternative to polygraph

 used to predict theft and drug use

 multiple questions on the same topic to assess consistency of

responses

 shouldn’t be sole criterion for a hiring decision

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 4, slide 66

Current Issues in Employee Rights

Employee Monitoring and

Workplace Security
Company interests are protected against

 theft
 revealing of trade secrets to competitors
 using the customer database for personal gain
 lost productivity

HRM policies must be clear on monitoring

 e-mail
 the Internet
 phone

How to balance security with employees’ rights? That is

the question!

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 4, slide 67

Current Issues in Employee Rights

Employee Monitoring and

Workplace Security
Monitoring could extend to cyber places such as:

See “Twitter with Care” from SHRM

http://www.shrm.org/hrdisciplines/
technology/Articles/Pages/
TwitterCarefully.aspx
Technology has blurred the line between public and private.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 4, slide 68

Current Issues in Employee Rights

Workplace Romance

Companies

 try to prevent employee romance because of potential

discrimination or sexual harassment issues

 can issue fraternization policies and guidelines on how

relationships at work may exist

 may ask parties to sign a consensual contract

HRM concerns: favoritism charges, ethics breeches, low

productivity, even workplace violence

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 4, slide 69

The Employment-at-Will Doctrine

Employment-at-Will Doctrine

Allows dismissal of employees at any time for any reason except race,
religion, sex, national origin, age, or disability.

Exceptions to the doctrine:

1. contractual relationship: a legal agreement exists defining

how employee issues are handled

2. statutory considerations: federal and/or state laws can

create exceptions

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 4, slide 70

The Employment-at-Will Doctrine

Employment-at-Will Doctrine

Exceptions to the doctrine:

3. Public policy violation: Employees cannot be fired for

disobeying an illegal order from the employer

4. Implied employment contract: any promise or guarantee

about job security, verbal or written.

5. Breach of good faith: An employer breaches a promise or

abuses its managerial powers.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 4, slide 71

Discipline and Employee Rights

Discipline
A condition where employees conduct themselves in
accordance with the organization’s rules and standards of
acceptable behavior.

HR managers should first consider:

 seriousness of the problem

 duration of the problem
 frequency and nature of the problem
 extenuating factors
 degree of socialization
 history of organization’s discipline practices
 management backing

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 4, slide 72

Discipline and Employee Rights

The most frequent violations requiring

disciplinary action

attendance

dishonesty Job behaviors

outside
activities

Video: Ed Liddy, Integrity

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 4, slide 73

Discipline and Employee Rights

Even tardiness can lead to disciplinary action.

Real people’s “real” reasons for being late to work:

“My heat was shut off so I had to stay home to keep my snake warm.”
“My husband thinks it’s funny to hide my car keys before he goes to work.“
“My father didn’t wake me up.”
“My bike tire went flat after a groundhog bit it.“
“A gurney fell out of an ambulance and delayed traffic.”
“I feel as if I’m in everyone’s way if I show up on time.“

http://www.shrm.org/Publications/HRNews/Pages/TardinessTermination.aspx

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 4, slide 74

Discipline and Employee Rights

Disciplinary Guidelines
 make disciplinary action corrective rather than punitive

 use a progressive approach (verbal warning, written

warning, suspension, dismissal)

 follow the Hot-Stove rule:

give an immediate response
give ample warning
be consistent
be impersonal

Allow employees to have a representative present for disciplinary

meetings.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 4, slide 75

Discipline and Employee Rights

Disciplinary Actions

written/verbal warning

written warning

suspension

dismissal

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 4, slide 76

Discipline and Employee Rights

When firing an employee:

1. review all facts
2. set the stage
3. be very clear
4. allow a little dignity
5. let the employee talk
6. give severance pay
7. sign waiver of right to sue
8. pay for earned time
9. have person leave that day
10. inform person of benefits
11. take protective steps (change passwords, etc.)
12. inform staff of firing

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 4, slide 77

Let’s Play Jeopardy-style!

1. An act that requires government agencies to make available to

employees information contained in their personnel files.
What is the Privacy Act of 1974?
2. An act that requires employers to notify employees that their credit is
being checked.
What is the Fair Credit Reporting Act of 1971?
3. An act that protects employees from unexpected plant closings.
What is the Worker Adjustment and Retraining Notification Act of 1988?
4. A doctrine that allows dismissal of employees at any time for any reason
except race, religion, sex, national origin, age, or disability.
What is the Employment-at-Will-Doctrine?
5. attendance, job behaviors, outside activities, dishonesty
What are the four most common violations requiring disciplinary action?
6. give an immediate response, give ample warning, be consistent, be
impersonal
What is the Hot-Stove Rule?

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 4, slide 78

 Chapter 5

Human Resource Planning

and Job Analysis

Fundamentals of Human Resource Management, 10/e, Chapter 5, slide 79

Introduction

Human resource planning is a process

by which an organization ensures that

 it has the right number and kinds of people

 at the right place

 at the right time

 capable of effectively and efficiently completing

those tasks that will help the organization achieve its
overall strategic objectives

Fundamentals of Human Resource Management, 10/e, Chapter 5, slide 80

Introduction

HR planning must be

 linked to the organization’s overall strategy

to compete domestically and globally

 translated into the number and types of

workers needed

Senior HRM staff need to lead top

management in planning for HRM issues.

Fundamentals of Human Resource Management, 10/e, Chapter 5, slide 81

An Organizational Framework

A mission statement defines what business the

organization is in, including

 why it exists

 who its customers are

 strategic goals set by senior management to establish

targets for the organization to achieve

Goals are generally defined for the next 5-20 years.

Fundamentals of Human Resource Management, 10/e, Chapter 5, slide 82

Linking Organizational Strategy to HR Planning

During a corporate assessment,

 SWOT (Strengths-Weaknesses-Opportunities-Threats)
analysis determines what is needed to meet objectives

 strengths and weaknesses and core competencies are

identified

HRM determines what knowledge, skills, and abilities are needed by

the organization’s human resources through a job analysis.

Fundamentals of Human Resource Management, 10/e, Chapter 5, slide 83

Linking Organizational Strategy to HR Planning

STRATEGIC DIRECTION HR LINKAGE

mission determining organization’s

business

setting goals and

objectives and goals
objectives

strategy determining how to attain

goals and objectives

determining what jobs need to be

structure
done and by whom

matching skills, knowledge,

people and abilities to required jobs

Fundamentals of Human Resource Management, 10/e, Chapter 5, slide 84

Linking Organizational Strategy to HR Planning

HR must ensure staff levels meet strategic

planning goals.

 An HR inventory report summarizes

information on current workers and their skills

 HR information systems (HRIS)

 process employee information

 quickly generate analyses and reports

 provide compensation/benefits support

Fundamentals of Human Resource Management, 10/e, Chapter 5, slide 85

Linking Organizational Strategy to HR Planning

Succession planning includes the

development of replacement charts that

portray middle- to upper-level management

positions that may become vacant in the near
future

list information about individuals who might

qualify to fill the positions

Fundamentals of Human Resource Management, 10/e, Chapter 5, slide 86

Linking Organizational Strategy to HR Planning

HR must forecast staff requirements.

 HR creates an inventory of future staffing

needs for job level and type, broken down by
year

 forecasts must detail the specific knowledge,

skills, and abilities needed, not just “we need
25 new employees”

Fundamentals of Human Resource Management, 10/e, Chapter 5, slide 87

Linking Organizational Strategy to Human Resource Planning

HR predicts the future labor supply.

 a unit’s supply of human resources comes from:

 new hires
 contingent workers
 transfers-in
 individuals returning from leaves

 predicting these can range from simple to

complex

 transfers are more difficult to predict since they

depend on actions in other units

Fundamentals of Human Resource Management, 10/e, Chapter 5, slide 88

Linking Organizational Strategy to HR Planning

Decreases in internal supply come about through:

 retirements easiest to forecast

 dismissals possible to forecast

 transfers possible to forecast

 layoffs possible to forecast

 sabbaticals possible to forecast

 voluntary quits difficult to forecast

 prolonged illnesses difficult to forecast

 deaths hardest to forecast

Fundamentals of Human Resource Management, 10/e, Chapter 5, slide 89

Linking Organizational Strategy to HR Planning

Candidates come from

 migration into a community

 recent graduates

 individuals returning from military service

 increases in the number of unemployed and

employed individuals seeking other
opportunities, either part-time or full-time
The potential labor supply can be expanded by formal or
on-the-job training.

Fundamentals of Human Resource Management, 10/e, Chapter 5, slide 90

Linking Organizational Strategy to HR Planning

To match labor demand and supply, HR

 compares forecasts for demand and supply of

workers

 monitors current and future shortages, and

overstaffing. Sometimes, strategic goals must
change as a result

 uses downsizing to reduce supply and

balance demand

Fundamentals of Human Resource Management, 10/e, Chapter 5, slide 91

Linking Organizational Strategy to HR Planning

Employment Planning and

the Strategic Planning Process

demand for labor Outcomes

demand exceeds recruitment

assess current supply
define establish human resources compare demand
organization corporate goals -- - - - - - - - - - - - - for and supply of
mission and objectives HRMS: human resources
job analysis supply exceeds
demand decruitment

supply of
human resources

Fundamentals of Human Resource Management, 10/e, Chapter 5, slide 92

Job Analysis

Job analysis is a systematic exploration of the

activities within a job.

 it defines and documents the duties,

responsibilities, and accountabilities of a job and
the conditions under which a job is performed

See http://www.staffing-and-recruiting-essentials.com/Sample-Job-
Analysis.html for a sample job analysis.

Fundamentals of Human Resource Management, 10/e, Chapter 5, slide 93

Job Analysis

Job analysis methods

1. observation– job analyst watches employees directly or reviews
film of workers on the job
2. individual interview– a team of job incumbents is selected and
extensively interviewed
3. group interview– a number of job incumbents are interviewed
simultaneously
4. structured questionnaire– workers complete a specifically
designed questionnaire
5. technical conference– uses supervisors with an extensive
knowledge of the job
6. diary– job incumbents record their daily activities

The best results are usually achieved with some combination of methods.

Fundamentals of Human Resource Management, 10/e, Chapter 5, slide 94

Job Analysis

understand the purpose review draft

of the job analysis with supervisor

understand the roles of

develop draft
jobs in the organization

benchmark positions seek clarification

determine how to collect

job analysis information

Fundamentals of Human Resource Management, 10/e, Chapter 5, slide 95

Job Analysis

The Occupational Information Network

(O*NET) content model includes:

1. worker characteristics
2. worker requirements
3. experience requirements
4. occupation-specific information
5. workforce characteristics
6. occupational requirements

See http://online.onetcenter.org/

Fundamentals of Human Resource Management, 10/e, Chapter 5, slide 96

Job Analysis

Position analysis questionnaire (PAQ)

 jobs are rated on 194 elements, grouped

in six major divisions and 28 sections

 the elements represent requirements

applicable to all types of jobs

 its quantitative structure allows many job

comparisons, however, it appears to
apply to only higher-level jobs

Fundamentals of Human Resource Management, 10/e, Chapter 5, slide 97

Job Analysis

Job descriptions list:

 job title
 job identification
 job duties/essential functions in order of importance
 job specifications - minimal qualifications for job

They are critical to:

 describing job to candidates
 guiding new-hires
 developing performance evaluation criteria
 evaluating job’s compensation worth

Fundamentals of Human Resource Management, 10/e, Chapter 5, slide 98

Job Analysis
Almost all HRM
activities are
tied to job recruiting
analysis; it is the labor selection
starting point for relations

sound HRM.
HR
safety &
planning
health
job analysis
job description
job specifications employee
compensation development

performance employee
management training
career
development

Fundamentals of Human Resource Management, 10/e, Chapter 5, slide 99

 Job Analysis

Job design is how a position and its tasks are organized.

great job design enriches and motivates through
skill variety task identity task significance
autonomy feedback from job itself

flexible work schedules keep employees motivated

and loyal
flex time job sharing telecommuting

part of HR planning and job analysis is finding team

members with
technical and interpersonal skills

Video: Jim Harris, Three

Keys to Maximize
Productivity
Fundamentals of Human Resource Management, 10/e, Chapter 5, slide 100
True or False?
1. HR planning must be separate from the organization’s overall strategy.
False!
2. A mission statement defines what business the organization is in.
True!
3. To forecast staff requirements, HR creates an inventory of future
staffing needs for job level and type, broken down by decade.
False!
4. Job analysis is a systematic exploration of the activities within a job.
True!
5. A position analysis questionnaire is more qualitative than quantitative in
nature.
False!
6. Job design is how a position and its tasks are organized.
True!

Fundamentals of Human Resource Management, 10/e, Chapter 5, slide 101

 Chapter 6

Recruiting

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 6, slide 102

Introduction

Once an organization identifies its human resource

needs through employment planning, it can begin
recruiting candidates for actual or anticipated vacancies.

Recruiting brings together

those with jobs to fill and those seeking jobs

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 6, slide 103

Recruiting Goals

 recruiting provides information that will attract

a significant pool of qualified candidates and
discourage unqualified ones from applying

 recruiters promote the organization to

prospective applicants

Video: Kevin Gazarra

Find the Right People and Keep Them Engaged

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 6, slide 104

Recruiting Goals

Factors that affect recruiting efforts:

organizational size

employment conditions in the area

effectiveness of past recruiting efforts

working conditions, salary, and benefits offered

organizational growth or decline

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 6, slide 105

Recruiting Goals

Constraints on recruiting efforts:

organization’s image

job attractiveness

internal organizational policies

government policy and laws

recruiting costs

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 6, slide 106

Recruiting Sources

internal
searches

employee
referrals

external
searches

The Internet is blazing online and

trails in recruiting alternative
practices

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 6, slide 107

Recruiting Sources

internal search

Organizations that promote from within identify

current employees for job openings

 by having individuals bid for jobs

 by using their HR management system
 by utilizing employee referrals

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 6, slide 108

Recruiting Sources
Promoting from Within
Advantages

 good public relations

 morale building
 encouragement of employees and members of protected groups
 knowledge of existing employee performance
 cost-savings
 candidates’ knowledge of the organization
 opportunity to develop mid- and top-level managers

Disadvantages

 possible inferiority of internal candidates

 infighting and morale problems
 potential inbreeding

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 6, slide 109

Recruiting Sources

employee
referrals

Current employees can be asked to recommend recruits.

Advantages:
 the employee’s motivation to make a good recommendation
 the availability of accurate job information for the recruit
 employee referrals tend to be more acceptable applicants, more
likely to accept an offer, and have a higher survival rate
Disadvantages:
 the possibility of friendship being confused with job performance
 the potential for nepotism
 the potential for adverse impact

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 6, slide 110

Recruiting Sources

external
searches

Advertisements: Must decide type and location of ad,

depending on job; decide whether to focus on job (job
description) or on applicant (job specification).

Three factors influence the response rate:

 identification of the organization
 labor market conditions
 the degree to which specific requirements are listed.

Blind box ads do not identify the organization.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 6, slide 111

Recruiting Sources

Employment Agencies:
 public or state employment services focus on helping
unemployed individuals with lower skill levels to find jobs

www.careeronestop.org

 private employment agencies provide more comprehensive

services and are perceived to offer positions and applicants of a
higher caliber

 management consulting firms (“headhunters”) research

candidates for mid- and upper-level executive placement

 executive search firms screen potential mid/top-level candidates

while keeping prospective employers anonymous

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 6, slide 112

Recruiting Sources

Schools, colleges, and universities:

 may provide entry-level or experienced
workers through their placement services

may also help companies establish

cooperative education assignments and
internships

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 6, slide 113

Recruiting Sources

Job fairs:
attended by company recruiters seeking resumes and
info from qualified candidates
 Virtual online job fairs could bring employers and job seekers
together online by logging into a specific Web site at a
certain time. Some sites use avatars as candidates and
recruiters.

See:
http://www.inxpo.com/products/virtual-career-fairs/index.htm
http://work.secondlife.com/worksolutions/meetings/
From the WSJ:
http://online.wsj.com/article/SB118229876637841321.html

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 6, slide 114

Recruiting Sources

Professional organizations:

publish rosters of vacancies

run placement services at meetings
control the supply of prospective applicants
labor unions are also in this category

Unsolicited applicants (walk-ins):

may provide a stockpile of prospective applicants if

there are no current openings

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 6, slide 115

Recruiting Sources

online
sources

 most companies use the Internet to recruit employees

 job seekers use online resumes and create Web pages
about their qualifications

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 6, slide 116

Recruiting Sources

recruiting
alternatives

Temporary help services:

 temporary employees help organizations meet short-term
fluctuations in HRM needs
 older workers can also provide high-quality help
Employee leasing:
 trained workers are employed by a leasing company, which
provides them to employers when needed for a flat fee
 typically remain with an organization for longer periods of time
Independent contractors:
 do specific work either on or off the company’s premises
 costs of regular employees (i.e. taxes and benefits costs) are not
incurred

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 6, slide 117

A Global Perspective

For some positions, the whole world is a relevant

labor market. So, HR can recruit

 home-country nationals when searching for someone

with extensive company experience to launch a product
in a country where it has never sold before

 host-country nationals when a foreign subsidiary is being

established and HQ wants to retain control yet hire
someone with local market knowledge

 candidates of any nationality, creating a truly

international perspective

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 6, slide 118

Your Own Job Search

Job searching takes training, commitment,

endurance, and support. Start searching well before
you plan to start work.

Preparing Your Resume

 use quality paper and easy-to-read type
 proofread carefully
 include volunteer experience
 use typical job description phraseology
 use a cover letter to highlight your greatest strengths

Use networking to gain access to an organization.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 6, slide 119

Matching
temp services and employee
constraints on
leasing
recruiting efforts

recruiting sources matching those with jobs to fill

with those seeking jobs
recruiting

employment conditions in the

affects recruiting area
efforts

recruiting organization’s image

alternatives

internal/external searches

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 6, slide 120

 Chapter 7

Foundations of
Selection

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 7, slide 121

The Selection Process

The selection initial screening

Failed to meet minimum qualifications
process typically Passed

consists of eight completed application

Failed to complete application or
steps. Passed failed job specifications

employment test
Failed test
Passed
conditional comprehensive interview
job offer Passed Failed to impress interviewer and/or
meet job expectations

background examination
if required Problems encountered

Passed
permanent
job offer medical/physical examination
(conditional job offer made) reject applicant
Unfit to do essential
elements of job

Able to perform essential

elements of the job

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 7, slide 122

The Selection Process

initial screening
interview

Job description information is shared

along with a salary range.

 weeding out of applicants who don’t meet general job

requirements

 screening interviews help candidates decide if

position is suitable

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 7, slide 123

The Selection Process

completing
the application

Gives a job-performance-related synopsis of what

applicants have been doing, their skills and
accomplishments.
Legal considerations
1. omit items that are not job-related; e.g., sex, religion
2. includes statement giving employer the right to
dismiss an employee for falsifying information
3. asks for permission to check work references
4. typically includes “employment-at-will” statement

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 7, slide 124

The Selection Process

completing
the application

Weighted application forms

 individual pieces of information are validated against

performance and turnover measures and given
appropriate weights

 data must be collected for each job to determine how

well a particular item (e.g., years of schooling, tenure
on last job) predicts success on target job

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 7, slide 125

The Selection Process

completing
the application

 information collected on application forms can be highly

predictive of successful job performance

 forms must be validated and continuously reviewed and

updated

 data should be verified through background investigations

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 7, slide 126

The Selection Process

pre-employment testing

 performance simulation tests require applicants to engage in job

behaviors necessary for doing the job successfully
 work sampling uses job analysis to develop a miniature replica of
the job so the applicant can demonstrate his/her skills
 assessment centers give tests and exercises, (individual and
group), to assess managerial potential or other complex skills

Selection practices must be adapted to cultures

and regulations of the host country.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 7, slide 127

The Selection Process

comprehensive
interviews

 assesses motivation, values, ability to work

under pressure, attitude, ability to fit in
 can be traditional, panel, or situational
 especially useful for high-turnover jobs and less
routine ones

The interview is only as effective as those conducting it.

Video: Justin Menkes, Interviewing for Executive Intelligence

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 7, slide 128

The Selection Process

comprehensive
interviews

 impression management, (applicant’s desire to project the

“right” image), may skew interview results
 interviewers have short and inaccurate memories: note-
taking and videotaping may help
 behavioral interviews are much more effective at predicting
job performance than traditional interviews
 realistic job previews (brochures, videos, plant tours, work
sampling) help reduce turnover rates

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 7, slide 129

The Selection Process

conditional
job offer

 HR manager makes an offer of employment, contingent

on successful completion of background check,
physical/medical exam, drug test, etc.

 may use only job-related information to make a hiring

decision

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 7, slide 130

The Selection Process

background
investigation

Verifies information from the application form.

references legal status to work in U.S.

former employers credit references
education criminal records

Online searches can yield too much information on applicants.

See http://www.privacyrights.org/fs/fs16-bck.htm for an analysis of online
background checks as they pertain to employer/employee rights.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 7, slide 131

The Selection Process

background
investigation

 qualified privilege: employers may discuss

employees with prospective employers without
fear of reprisal as long as the discussion is about
job-related, documented facts
 one-third of all applicants exaggerate their
backgrounds or experiences
 a good predictor of future behavior is an
individual’s past behavior

Companies can be held liable for failure to properly hire.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 7, slide 132

The Selection Process

medical investigation

 used only to determine if the individual can comply with

essential functions of the job

 Americans with Disabilities Act requires that exams be

given only after conditional job offer is made

 drug tests can be given at this time

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 7, slide 133

The Selection Process

job offer

 actual hiring decision generally made by the

department manager, not HR manager
 candidates not hired deserve the courtesy of prompt
notification

Resources for Job Seekers: Evaluating Companies

Dun & Bradstreet’s Million Dollar Directory
Standard and Poor’s Register of Corporations
Mergent’s Industrial Review (formerly Moody’s Industrial Manual)
Thomas Register of American Manufacturers
Ward’s Business Directory
From: http://www.bls.gov/oco/oco20046.htm

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 7, slide 134

The Selection Process

The Comprehensive Approach

Comprehensive selection puts applicants through

all the steps in the selection process before
making a decision.

 assesses both strengths and weaknesses, and is

considered more realistic

 must measure factors related to the job only

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 7, slide 135

The Selection Process

Now It’s Up to the Candidate

 most people want jobs compatible with their

personality

 applicants who are not hired this time will still form an
impression about the company

 management should assure the selection process

leaves them with a favorable impression of the
company

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 7, slide 136

Key Elements for Successful Predictors

What test elements help predict which applicants

will be successful on the job?

reliability
validity
cut scores

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 7, slide 137

Key Elements for Successful Predictors

reliability

The ability of the selection tool to measure an attribute

consistently.

 HR managers need reliable tests to make sure the

applicant will perform satisfactorily

There are companies that specialize in employment testing. For

example, watch the demo at www.eSkill.com

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 7, slide 138

Key Elements for Successful Predictors

validity

The relationship between scores on a selection tool and a

relevant criterion, such as job performance.

There are three types:

 content
 construct
 criterion-related

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 7, slide 139

Key Elements for Successful Predictors

validity

 Content validity: degree to which the content of the test, as a

sample, represents situations on the job
 Construct validity: degree to which a particular (abstract) trait
is related to successful job performance
 Criterion-related validity: degree to which a selection device
accurately predicts important elements of work behavior
 Predictive validity uses test scores of applicants to compare with
their future job performance
 Concurrent validity correlates test scores of current employees
with measures of their job performance

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 7, slide 140

Key Elements for Successful Predictors

Predictive
Give test to Hire based on Evaluate Analyze test
all criteria other performanc scores and
applicants, than test e one year performance
record score results after evaluations for
and file beginning significant
work relationship; does
it exist?

Develop a Yes
battery of No
tests
Analyze test
scores and Set and
performance implement
Give test
evaluations valid cut
to all
for significant scores
current
relationship: Yes
employees
does it exist?

No
Concurrent

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 7, slide 141

Key Elements for Successful Predictors

cut scores

The cut score separates successful

from unsuccessful performers.

 cut scores on a selection device can be determined by

validity studies

 applicants scoring below the cut score are predicted to be

unsuccessful on the job and are rejected

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 7, slide 142

Selection From a Global Perspective

 selection criteria for international assignments:

1. interest in working overseas
2. ability to relate to different cultures and environments
3. supportiveness of the candidate’s family
 female executives have done well abroad in Asia and
Latin America, despite past reluctance to assign them to
these countries

For Further Information

www.expatwomen.com: resources for women taking overseas positions
Best Practices for Managers and Expatriates: A Guide on Selection,
Hiring and Compensation By Stan Lomax: book for managers and
overseas assignees
http://www.allbusiness.com/human-resources/858623-1.html analyzes
HR models that predict expatriate success

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 7, slide 143

Excelling at the Interview

Suggestions for making your interviews as an

applicant successful:

1. do some homework on the company

2. get a good night’s rest the night before
3. dress appropriately
4. arrive for the interview a few minutes early
5. use a firm handshake
6. maintain good eye contact
7. take the opportunity to have practice interviews
8. thank the interviewer in person, and send a thank-you note

For the “don’t do’s” see http://hotjobs.yahoo.com/career-articles-

10_ways_to_be_liked_in_your_job_interview-947

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 7, slide 144

 Fill-in-the-blanks

1. The ____ _____ _____ is the first step in the selection process.
initial screening interview
2. _____ _______ __ assign values to application information in order to determine job
success.
Weighted application forms
3. _______ _____ ___require applicants to engage in job behaviors necessary for doing the
job successfully.
Performance simulation tests
4. Three types of comprehensive interviews are _______, ______, and _____.
traditional, panel, and situational
5. In a ___________ ___ _____, HR manager makes an offer of employment, contingent
upon successful completion of background check, physical/medical exam, drug test, etc.
conditional job offer
6. _________ _________ means employers may discuss employees with prospective
employers without fear of reprisal as long as the discussion is about job-related,
documented facts.
Qualified privilege
7. There three types of validity are _______, ________, and _________-_______.
Content, construct, criterion-related
8. On an employment test, the ___ _____ separates successful from unsuccessful
performers.
cut score

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 7, slide 145

 Chapter 8

Socializing, Orienting, and

Developing Employees

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 8, slide 146

 Introduction

 Ideally, employees who understand and accept

the organization’s ways will be able to attain
their own goals.

 HR helps employees become well-adjusted and

productive through socialization, training, and
development programs.

In other words, they’re hired – now what?

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 8, slide 147

 The Insider-Outsider Passage

Socialization, or “onboarding” is a process of

adaptation to a new work role

 adjustments must be made whenever individuals

change jobs

 the most profound adjustment occurs when an

individual first enters an organization, i.e., outside to
inside

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 8, slide 148

 The Insider-Outsider Passage

The Assumptions of Employee Socialization

1 2
socialization strongly
influences new members
employee performance suffer anxiety
and organizational stability

3 4

socialization does not occur individuals adjust to new

in a vacuum situations in similar ways

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 8, slide 149

 The Insider-Outsider Passage

The Socialization Process

Prearrival Individuals arrive with a set of values, attitudes,

and expectations developed from previous experience and the
selection process.

Encounter Individuals discover how well their expectations

match realities within the organization. Where differences
exist, socialization occurs to imbue the employee with the
organization’s standards.

Metamorphosis Individuals have adapted to the

organization, feel accepted, and know what is expected of
them.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 8, slide 150

 The Insider-Outsider Passage

The Socialization Process

Outcomes

Productivity

Prearrival Encounter Metamorphosis Commitment

Turnover

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 8, slide 151

 The Purpose of New-Employee Orientation

Orientation

 may be done by supervisor, HR staff, computer-based programs,

or some combination
 can be formal or informal, depending on the organization’s size
 teaches the organization’s culture, or system of shared meaning

What if a merger occurs? Merging cultures can be tricky.

See http://www.inc.com/magazine/20080101/first-the-merger.html

Socialized employees know how things are done, what matters,

and which behaviors and perspectives are acceptable

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 8, slide 152

 The Purpose of New-Employee Orientation

See how some big companies define their cultures:

http://www.southwest.com/careers/culture.html

http://www.hp.com/hpinfo/abouthp/diversity/sharedvalues.html

http://www.google.com/corporate/culture.html

http://walmartstores.com/AboutUs/321.aspx

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 8, slide 153

 Employee Handbook

HR’s permanent reference guide:

the employee handbook.

 a central source for teaching employees company mission

history, policies, benefits, culture

 employers must watch wording and include a disclaimer

to avoid implied contracts

http://humanresources.about.com/od/handbookspolicies/a/sample_handbook.htm
lists items that may be included in an employee handbook

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 8, slide 154

 The Purpose of New-Employee Orientation

Top management is often visible during the new

employee orientation process.

CEOs can
1. welcome employees
2. provide a vision for the company
3. introduce company culture
4. convey that the company cares about employees
5. allay some new employee anxieties

HR has a dual role in orientation.

Coordinating Role: HRM instructs new employees when and where to
report; provides information about benefits choices.
Participant Role: HRM offers its assistance for future employee needs
(career guidance, training, etc.).

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 8, slide 155

 Employee Training

Employee training is now-oriented.

designed to achieve a relatively permanent change in an individual

that will improve his or her performance
training goals should be tangible, verifiable, timely, and measurable
training is either on-the-job or off-the-job

Employee development is future-oriented.

helps employees to understand cause and effect relationships,

learn from experience, visualize relationships, think logically.
not only for top management candidates; all employees benefit

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 8, slide 156

 Employee Development

adventure job
training rotation

employee
assistant-to
simulations development
positions
methods

lecture
committee
courses/
assignment
seminars

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 8, slide 157

 Employee Development

job rotation

moving employees to various positions in the organization to

expand their skills, knowledge, and abilities

assistant-to
positions

employees with potential can work under and be

coached by successful managers

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 8, slide 158

 Employee Development

committee
assignment

provide opportunities for decision-making, learning by watching

others, and investigating specific organizational problems

lecture courses/
seminars

benefit from today’s technology and are often offered in a

distance learning format

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 8, slide 159

 Employee Development

simulations

include case studies, decision games, and role plays -

and are intended to improve decision-making

adventure training

typically involves challenges that teach trainees the

importance of teamwork

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 8, slide 160

 Organization Development

 organizational development (OD) efforts also force

change on employees, whether newly hired or seasoned

 change agents help employees adapt to the organization’s

new

systems people

processes technology

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 8, slide 161

 Organization Development

Two metaphors clarify the change process.

 calm waters: unfreezing the status quo, change to a new

state, and refreezing to ensure that the change is permanent

 white-water rapids: recognizes today’s business environment,

which is less stable and not as predictable

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 8, slide 162

 Organization Development

Organizational development facilitates long-term

organization-wide changes.

OD techniques include:
1. survey feedback gets workers’ attitudes/perceptions on the
change
2. process consultation gets outside experts to help ease OD
efforts
3. team building strives for cohesion in a work group
4. intergroup development achieves cohesion among different
work groups

change can be stressful for employees

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 8, slide 163

 Organization Development

A learning organization values continued learning and believes a

competitive advantage can be gained from it.

Characterized by

 a capacity to continuously adapt

 employees continually acquiring and sharing new knowledge
 collaboration across functional specialties
 supporting teams, leadership, and culture

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 8, slide 164

 Evaluating Training and Development Effectiveness

Evaluating Training Programs

 typically, employee and manager opinions are used,

 these opinions or reactions are not necessarily valid
measures
 influenced by things like difficulty, entertainment value or
personality of the instructor

 performance-based measures (benefits gained) are better

indicators of training’s cost-effectiveness

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 8, slide 165

 Evaluating Training and Development Effectiveness

How can HR evaluate training method results when

measures aren’t easy to calculate?
Through Kirkpatrick’s model:

Level 1
What was reaction to training?

Level 2
What was learned?

Level 3
Did training change behavior?

Level 4
Did training benefit employer?

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 8, slide 166

 Evaluating Training and Development Effectiveness

HR can also use performance-based

evaluation measures.

post-training method: employees’ on-the-job performance is

assessed after training

pre-post-training method: employee’s job performance is

assessed both before and after training, to determine whether
a change has taken place

pre-post-training w/control group: compares results of instructed

group to non-instructed group

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 8, slide 167

 International Training and Development Issues

Training and development is critical to overseas employees.

Must teach the culture’s:

politics language

religion economy

history
social climate business practice

may involve role playing, simulations, and immersion in the culture

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 8, slide 168

 Let’s Play Jeopardy-style!

1. A process of adaptation to a new work role.

What is socialization/onboarding?
2. Individuals adjust to new situations in similar ways.
What is an assumption of employee socialization?
3. Prearrival, encounter, metamorphosis
What are the steps in the socialization process?
4. A central source on company mission, history, policies, benefits, and
culture.
What is an employee handbook?
5. Job rotation, assistant-to positions, committee assignments,
lectures/seminars, simulations.
What are the employee development methods?
6. They help employees adapt to OD efforts.
What are change agents?
7. Post-training method, pre-post-training, pre-post-training w/control
group.
What are performance-based evaluation methods?

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 8, slide 169

Chapter 9

Managing Careers
 Introduction

 traditionally, career development programs

helped employees advance within the
organization

 today, each individual must take responsibility

for his or her career

Some helpful career development sites:

http://managementhelp.org/career/career.htm
http://associationdatabase.com/aws/NCDA/pt/sp/home_page

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 9, slide 171

 Introduction

 organizations now focus on matching the career

needs of employees with the requirements of the
organization

 while many organizations still invest in their

employees, they don’t offer career security and
they can’t meet the needs of everyone in a diverse
workforce

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 9, slide 172

 What is a Career?

A career

 is a pattern of work-related experiences that span

the course of a person’s life

 reflects any work, paid or unpaid

 is a broad definition helpful in today’s work

environment where employees and organizations
have diverse needs

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 9, slide 173

 What is a Career?

 organizational career planning develops career

ladders, tracks careers, and provides opportunities
for development

 individual career development helps employees

identify their goals and the steps to achieve them

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 9, slide 174

 What is a Career?

 career development looks at the long-term career

effectiveness and success of employees

 employee training and development focuses on

performance in the immediate or intermediate time
frames

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 9, slide 175

 What is a Career?

Career development adds value to

the company. It
1. ensures needed talent will be available
2. improves the organization's ability to attract and retain
talented employees
3. ensures that minorities and women get opportunities for
growth and development. New legislation:
http://en.wikipedia.org/wiki/Lilly_Ledbetter_Fair_Pay_Act_of_2009
4. reduces employee frustration
5. enhances cultural diversity
6. promotes organizational goodwill

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 9, slide 176

 What is a Career?

 individuals’ external career success is measured by

criteria such as:

progression up the hierarchy

type of occupation
long-term commitment
income

 internal career success is measured by the

meaningfulness of one’s work and achievement of
personal life goals

the external/internal distinction important to the manager who

wants to motivate employees

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 9, slide 177

 What is a Career?

 effective coaches give guidance through

direction, advice, criticism, and suggestion in an
attempt to aid the employee’s growth

 mentors are typically senior-level employees

who:
 support younger employees by vouching for them
 answer for them in the “highest circles”
 introduce them to others
 advise and guide them through the corporate system

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 9, slide 178

 What is a Career?

 disadvantages of coaching/mentoring include:

 a tendency to perpetuate current styles and practices
 reliance on the coach’s ability to be a good teacher

 considerations for organizations:

 coaching between employees who do not have a reporting
relationship
 ways to effectively implement cross-gender mentoring

For tips on obtaining a successful mentor/mentee relationships see

http://www.washington.edu/admin/hr/pod/staff/careerdev/mentoring/relationshipkeys.html

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 9, slide 179

 Traditional Career Stages

Exploration Estblshment Mid career Late Career Decline

High
Will performance
Job increase or decline?
Performance

Low

Transition Getting first

The elder Preparing for
from school job and
statesperson retirement
to work being
accepted

5 10 15 20 25 30 35 40 45 50 55 60 65 70 75
Age

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 9, slide 180

 Traditional Career Stages

exploration

includes school and early work experiences, such as

internships.

involves:
trying out different fields
discovering likes and dislikes
forming attitudes toward work and social relationship patterns

this stage is least relevant to HRM because it occurs

prior to employment

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 9, slide 181

 Traditional Career Stages

establishment

includes:
searching for work
getting first job
getting evidence of “success” or “failure”

takes time and energy to find a “niche” and to

“make your mark”

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 9, slide 182

 Traditional Career Stages

mid-career

 challenged to remain productive at work

 employee may:
 continue to grow
 plateau (stay competent but not ambitious)
 deteriorate

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 9, slide 183

 Traditional Career Stages

late career

 successful “elder states persons” can enjoy being respected

for their judgment. Good resource for teaching others

 those who have declined may experience job insecurity

 plateauing is expected; life off the job increases in importance

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 9, slide 184

 Traditional Career Stages

decline

 may be most difficult for those who were most

successful at earlier stages

 today’s longer life spans and legal protections for

older workers open the possibility for continued
work contributions, either paid or volunteer

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 9, slide 185

 Career Choices and Preferences

Good career choice outcomes provide a positive

self-concept and the opportunity to do work that
we value.

Models to help you match your skills to careers:

Holland
Schein Myers Briggs
Vocational
Anchors Typologies
Preferences

Also try the classic work “What Color is Your Parachute?” for career
advice and a wealth of information: http://www.jobhuntersbible.com/

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 9, slide 186

 Career Choices and Preferences

Holland
Vocational
Preferences

 three major components

1. people have varying occupational preferences
2. if you think your work is important, you will be a
more productive employee
3. you will have more in common with people who
have similar interests

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 9, slide 187

 Career Choices and Preferences

Holland
R I
Vocational
Preferences

Model identifies six

C A
vocational themes

1. Realistic
2. Investigative
3. Artistic E S
4. Social
5. Enterprising
Letters connected by the line indicate
6. Conventional reinforcing themes; letters not connected
represent opposing themes.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 9, slide 188

 Career Choices and Preferences

Holland
Vocational
Preferences

 preferences can be matched to work environments

 example: social-enterprising-conventional
preference structure matches career ladder in
large bureaucracy

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 9, slide 189

 Career Choices and Preferences

Schein
Anchors

 personal value clusters determine what is important to

individuals

1. technical-functional competence
2. managerial competence
3. security-stability
4. creativity
5. autonomy-independence

 success of person-job match determines individual’s fit with the

job

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 9, slide 190

 Career Choices and Preferences

Myers Briggs
Typologies

These four personality dimensions –

1. extraversion-introversion
2. sensing-intuitive
3. thinking-feeling
4. judging-perceiving
-- identify 16 personality types.

 managers find knowing personality types useful in

understanding how workers interact

 job characteristics can be matched to individual preferences

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 9, slide 191

 Enhancing Your Career

You are ultimately responsible for your own career.

manage your
reputation
know yourself network contacts

Successful
build and maintain Career keep current
Tips
balance your
keep your
specialist & generalist
competencies options open
document your
achievements

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 9, slide 192

 True or False?

1. Your employer is ultimately responsible for your career path.

False!
2. A career is a pattern of work-related experiences that span the
course of a person’s life.
True!
3. Career development looks at the short career effectiveness and
success of employees.
False!
4. Establishment is the first traditional career stage.
False!
5. The Holland Vocational Model identifies six vocational themes.
True!
6. The Myers-Briggs Typologies (four dimensions that identify 16
personality types) help match job characteristics to individual
preferences.
True!

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 9, slide 193

Chapter 10

Establishing the Performance

Management System
 Introduction

employees see performance evaluations as

having a direct effect on their work lives

questions regarding the performance

management process:

Why evaluate?
Who benefits from the evaluation?
What format should be used?
What problems might arise?

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 10, slide 195
 Performance Management Systems

Performance management systems have

three main purposes:

1. two-way feedback – performance measures

mutually set between employee and employer

2. development – identify areas in which employees

have deficiencies or weaknesses

3. documentation - to meet legal requirements

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 10, slide 196
 Performance Management Systems

Performance management systems aren’t perfect.

 focus on the individual: discussions of performance may elicit

strong emotions and may generate conflicts when
subordinates and supervisors do not agree

 focus on the process: company policies and procedures may

present barriers to a properly functioning appraisal process

 appraisers may be poorly trained

For further reading: when HR needs to overhaul its appraisal system:

http://www.nysscpa.org/cpajournal/2008/208/essentials/p64.htm

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 10, slide 197
 Performance Management and EEO

 EEO laws require performance management

systems to be objective and job-related

 ADA: performance management systems must

measure “reasonable” success. See:

http://www.eeoc.gov/facts/performance-conduct.html#perf

 valid performance appraisals are conducted at

established intervals

 evaluations done by trained appraisers

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 10, slide 198
 The Appraisal Process

1
establish performance standards with employees

2
communicate expectations and set goals

3
measure actual performance

4
compare actual performance with standards

5
discuss the appraisal with the employee

6
if necessary, initiate corrective action

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 10, slide 199
 The Appraisal Process

1. establish performance
standards

derived from company’s strategic goals

based on job analysis and job description

2. communicate
expectations

goals must be articulated from supervisor to employee

and from employee to supervisor

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 10, slide 200
 The Appraisal Process

3. measure actual
performance

 measurement of performance using information from:

personal observation oral reports

written reports statistical reports

4. compare performance
with standards

explanation of different levels of performance and their

degree of acceptability against the performance standard

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 10, slide 201
 The Appraisal Process

5. discuss appraisal
with employee

 feedback employees receive has strong impact

on self-esteem and subsequent performance

6. initiate
corrective action

 immediate action deals with symptoms

 basic corrective action deals with causes

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 10, slide 202
 The Appraisal Process

Five common mistakes managers can make in

giving a performance review:

1
waiting for the performance appraisal to give feedback

2
overemphasizing recent performances

3
being too positive or negative

4
being critical without being constructive

5
talking not listening

From http://www.businessknowhow.com/manage/performance-appraisal.htm

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 10, slide 203
 Appraisal Methods

The Three Appraisal Approaches

absolute standards

relative standards

achieved outcomes

no single approach is best; each has its strengths and weaknesses

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 10, slide 204
 Appraisal Methods

absolute standards

 employee’s performance is measured against

established standards

 evaluation is independent of any other employee

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 10, slide 205
 Appraisal Methods

absolute standards

 critical incident appraisal: based on key behavior

anecdotes illustrating effective or ineffective job performance

 checklist appraisal: appraiser checks off behaviors that

apply to the employee

 graphic rating scale appraisal: appraiser rates

employee on a number of job-related factors; avoids
abstract categories

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 10, slide 206
 Appraisal Methods

absolute standards

 forced-choice appraisal: appraisers ponder sets of

statements that appear to be equally favorable, then
choose the statement that best describes the employee

 behaviorally anchored rating scales (BARS):

appraiser rates employee on factors that are defined by
behavioral descriptions illustrating various dimensions
along each rating scale

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 10, slide 207
 Appraisal Methods

relative standards

group order ranking: employees are placed in a

classification reflecting their relative performance,
such as “top one-fifth”
individual ranking: employees are ranked from
highest to lowest
paired comparison: each individual is compared to
every other final ranking is based on number of times
the individual is preferred member in a pair

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 10, slide 208
 Appraisal Methods

achieved outcomes

Management by Objectives (MBO)

 includes mutual objective-setting and evaluation

based on the attainment of the specific objectives

 firms overall objectives translate into specific

objectives at the divisional/departmental/ individual
levels

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 10, slide 209
 Appraisal Methods

achieved outcomes

 common elements in an MBO program are:

1. goal specific
2. participative decision making
3 a specific time period
4. performance feedback

 effectively increases employee performance

and organizational productivity, especially when
goals are difficult enough to require stretching

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 10, slide 210
 Factors That Can Distort Appraisals

inappropriate
leniency error
substitutes

inflationary distortions halo error

pressures

central
similarity error
tendancy

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 10, slide 211
 Factors That Can Distort Appraisals

 leniency error : each evaluator has his/her

own value system; Some evaluate high (positive
leniency) and others, low (negative leniency)

 halo error : evaluator lets an assessment of an

individual on one trait influence evaluation on all
traits

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 10, slide 212
 Factors That Can Distort Appraisals

similarity error: evaluator rates others in the

same way that the evaluator perceives him or
herself

 low appraiser motivation: evaluators may

be reluctant to be accurate if important rewards
for the employee depend on the results

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 10, slide 213
 Factors That Can Distort Appraisals

 central tendency: the reluctance to use the

extremes of a rating scale and to adequately
distinguish among employees being rated

 inflationary pressures: pressures for equality

and fear of retribution for low ratings leads to less
differentiation among rated employees

 inappropriate substitutes for performance:

effort, enthusiasm, appearance, etc., are less
relevant for some jobs than others

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 10, slide 214
 Factors That Can Distort Appraisals

attribution theory: evaluations are affected based

on whether someone’s performance is due to:

 internal factors they can control

 external factors they cannot control

if poor performance is attributed to internal control, the judgment is

harsher than when it is attributed to external control

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 10, slide 215
 Factors That Can Distort Appraisals

To create better performance management systems:

use behavior-based measures, which are more job-related

and elicit more inter-rater agreement than traits such as
“loyalty” or “friendliness”

 combine absolute and relative standards: absolute

standards tend to be positively lenient; relative standards
suffer when there is little variability

 provide ongoing feedback: expectations and

disappointments should be shared with employees on a
frequent basis

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 10, slide 216
 Factors That Can Distort Appraisals

To create better performance management systems:

 use multiple raters: the more used, the more reliable and
valid the results (peer evaluations, upward and 360-degree
appraisals)

 rate selectively: appraisers should evaluate only in areas

about which they have sufficient knowledge, they should be
organizationally close the individual being evaluated, and
should be an effective rater

 train appraisers because poor appraisals can demoralize

employees and increase legal liabilities

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 10, slide 217
The Performance Appraisal Meeting

Success
=
Train appraisers
+
Rate selectively
+
Have multiple raters
+
Provide ongoing feedback
+
Combine absolute and relative standards
+
Use behavior-based measures

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 10, slide 218
Creating More Effective Performance Management Systems

For an effective performance appraisal meeting:

1. prepare/schedule meeting in advance

2. create supportive aura about meeting
3. describe appraisal’s purpose
4. involve employee in appraisal discussion
5. focus on behaviors, not employee
6. cite specific examples
7. give positive and negative feedback
8. ensure employee understood appraisal
9. generate a development plan

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 10, slide 219
 International Performance Appraisal

Challenges in evaluating overseas employees:

 different cultural perspectives and expectations between

the parent and local country may make evaluation difficult

 evaluation forms may not be translated accurately

 quantitative measures may be misleading

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 10, slide 220
 Matching

internal and external control

three appraisal approaches
factors weigh heavily in the
appraisal

communicate expectations
two-way feedback,
development,
documentation
three purposes of performance
management systems
factors that can
distort appraisals
attribution theory
absolute standards, relative
standards, achieved
leniency error, halo error,
outcomes
similarity error, central
tendency, inflationary
pressures, inappropriate
substitutes step in the appraisal process

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 10, slide 221
Chapter 11

Establishing
Rewards and
Pay Plans
 Introduction

There are many work motivators, including

 promotions
 desirable work assignments
 peer recognition
 work freedom

but the focus in this chapter is pay.

they all help maintain employee commitment

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 11, slide 223
 Rewards Review
Intrinsic Extrinsic

Financial Non-financial
participation in
decision making

Performance Implied Explicit assigned

greater job based membership-based membership-based parking space
freedom
preferred
cost of living protection
more bonuses assignments
increase Program
responsibility
business
labor market pay for time
opportunities piecework cards
adjustment not worked
for growth
own
services/
diversity commission profit sharing secretary
perks
of activities
impressive
incentive time-in-rank title
plans increase

merit pay
plans

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 11, slide 224
 Types of Reward Plans

Intrinsic versus Extrinsic Rewards

intrinsic rewards (personal satisfactions)

come from the job itself, such as:
 pride in one’s work
 feelings of accomplishment
 being part of a work team

extrinsic rewards come from a source

outside the job, mainly by management:

money
promotions
benefits

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 11, slide 225
 Types of Reward Plans

Financial versus Nonfinancial Rewards

financial rewards:
 wages
 bonuses
 profit sharing
 pension plans
 paid leaves
 purchase discounts
nonfinancial rewards:
make life on the job more attractive;
employees vary greatly on what types they like

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 11, slide 226
 Types of Reward Plans

Performance-based versus Membership-Based

 performance-based rewards are tied to specific job

performance criteria
 commissions
 piecework pay plans
 incentive systems
 group bonuses
 merit pay

 membership-based rewards such as cost-of-living

increases, benefits, and salary increases are offered
to all employees

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 11, slide 227
 Compensation Administration

Companies derive their compensation programs

from job evaluation, which defines the appropriate
worth of each job.
An effective, fair compensation program
attracts motivates retains
competent employees.

Both employees and employers

can research compensation
facts and issues at
www.salary.com
http://salary.nytimes.com/
http://www.salaryexpert.com/

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 11, slide 228
 Compensation Administration

The Fair Labor Standards Act requires

 minimum wage
 overtime pay
 record-keeping
 child labor restrictions

exempt employees nonexempt employees

include professional and eligible for premium pay
managerial employees (time and one-half)
not covered under when they work more than
FLSA overtime provisions 40 hours in a week

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 11, slide 229
 Compensation Administration

Equal Pay Act of 1963 requires that men and

women hired for the same job be paid the same.

Civil Rights Act:

 broader than Equal Pay Act
 prohibits discrimination on the basis of gender
 used to support comparable worth concept
 salaries established based on skill,
responsibility, effort, and working conditions

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 11, slide 230
 Job Evaluation and the Pay Structure

Job evaluation helps set pay structure.

Job analysis information determines the relative value, or

rank, of each job in the organization.

Other pay structure factors:

labor market conditions
collective bargaining
individual skill differences
Research wage information at
the Bureau of Labor Statistics
http://www.bls.gov/bls/blswage.htm

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 11, slide 231
 Job Evaluation and the Pay Structure

Job Evaluation Methods

ordering classification point

method method method

A committee places Jobs placed in grades Jobs are rated and

jobs in a simple rank to compare their allocated points on
order from highest descriptions to the several criteria.
(worth highest pay) to benchmarked jobs. Jobs with similar
lowest. Look for a common point totals are
denominator (skills, placed in similar pay
knowledge, grades. Offers the
responsibility). greatest stability.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 11, slide 232
 Job Evaluation and the Pay Structure

Establishing the Pay Structure

compensation wage wage

surveys curves structure

Used to gather factual Drawn by plotting Designates pay ranges

data on pay rates for job evaluation data for jobs of similar
(such as job points value. Results in a
other organizations.
or grades) against logical hierarchy of
Information is often pay rates (actual
collected on associated wages, in overlapping
or from survey
employee benefits as data). ranges.
well. Indicates whether
pay structure is
logical.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 11, slide 233
 Job Evaluation and the Pay Structure

External factors also influence pay structure.

geographic differences (local supply and demand)

labor supply (low supply = higher wages and vice versa)

competition (HR can match, lead, or lag)

cost of living as determined by the CPI

collective bargaining (unions)

employees must know how the pay structure is derived

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 11, slide 234
 Special Cases of Compensation

Incentive Compensation Plans

individual organization-wide

group

incentives can be added to the basic pay structure to

provide rewards for performance

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 11, slide 235
 Special Cases of Compensation

Individual Incentives

merit pay plans (annual increase, based

on performance)

piecework plans (pay based on number

of units produced typically in a specified
time period)

time-savings bonuses and commissions

these work best where clear objectives are set and tasks are
independent
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 11, slide 236
 Special Cases of Compensation

Group Incentives
Incentives can be offered to groups, rather than individuals, when
employees' tasks are interdependent and require cooperation.

Advantages Disadvantages

Focuses the group on specific Can be costly to install and administer.

performance targets. De-emphasizes individual performance,
Since rewards are controllable by which can result in excessive peer pressure.
individuals, the programs can be very Requires open communication with
motivational. employees on costs, profitability, etc. If the
The program can be integrated with other performance targets are not carefully
corporate initiatives and leads to improved selected, adverse results may occur.
communication and employee relations See:
http://www.hrdm.net/en/group_incentive.htm

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 11, slide 237
 Special Cases of Compensation

Organization-wide Incentives
direct employee efforts toward organizational goals (such as
cost reduction)

Scanlon Plan - supervisor and employee committees suggest

labor-saving improvements.
See
http://www.scanlonleader.org/index.php/Plans-ect./Plans-ect.html

IMPROSHARE - formula is used to determine bonuses

based on labor cost savings.

See http://www.qualitydigest.com/jul/gainshre.html

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 11, slide 238
 Special Cases of Compensation

Paying for Performance

 Competency-based compensation
 Rewarded for skills, knowledge and behaviors
 leadership
 problem solving
 decision making
 strategic planning

 Broad-banding: pre-set pay levels that determine

what people are paid based on their type and level
of competency.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 11, slide 239
 Special Cases of Compensation

Team-Based Compensation

 incentives for empowered work teams to exceed

established goals and share equally in rewards

 depends on:
 clarity of team purpose and goals
 ability of the team to obtain needed resources
 effective team communication skills and trust

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 11, slide 240
 Executive Compensation Programs

Salaries of Top Managers

 executive pay can run 400 times higher than that of the
average worker
 2008 saw a decline in exec compensation, mostly due to
economic and political forces.

See:
http://online.wsj.com/article/SB123375514020647787.html

 competition for executive talent raises the price of hiring an

executive
 high salaries can be a motivator for executives and lower-
level managers

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 11, slide 241
 Executive Compensation Programs

Supplemental Financial Compensation

deferred bonuses – paid to executives over

extended time periods, to encourage them to stay
with the company

stock options – allow executives to purchase

stock in the future at a fixed price

hiring bonuses – compensate for the deferred

compensation lost when leaving a former
company

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 11, slide 242
 Executive Compensation Programs
Supplemental Nonfinancial Compensation Perquisites

club
memberships paid life insurance
free financial, legal and
tax counseling
supplemental
retirement accounts

interest-
free loans
perks may postretirement
include consulting contracts

mortgage assistance

expense accounts

company cars supplemental

disability insurance

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 11, slide 243
 Executive Compensation Programs

Supplemental Nonfinancial Compensation Perks

 Golden parachutes protect executives when a

merger or hostile takeover occurs by providing
severance pay or a guaranteed position.

For the history of the golden parachute, see:

http://www.businessweek.com/magazine/content/05_50/b3963111.htm

Read about the top 10 golden parachute recipients:

http://www.time.com/time/specials/packages/completelist/0,29569,1848501,00.html

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 11, slide 244
 International Compensation

International compensation packages generally

utilize the “balance-sheet approach,” using these
four factors:
 base pay: the pay of employees in comparable jobs at home
 differentials: compensation given to offset higher costs of
living abroad
 incentives: inducements given to encourage employees to
accept overseas assignments
 assistance programs: payment for expenses involved in
moving a family abroad and in providing some services
overseas

HR needs to understand the statutory requirements of each country

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 11, slide 245
 Fill-in-the-blanks

1. _________ rewards come from the job itself; _________ rewards come
from outside the job.
Intrinsic; extrinsic
2. Wages, bonuses, and pension plans are examples of _________ rewards.
financial
3. The ___ _________ is the source of companies’ compensation programs.
job evaluation
4. Scanlon and IMPROSHARE are examples of ____________-____
incentives.
organization-wide
5. Using pre-set pay levels that determine what people are paid based on
their type and level of competency is called ______-_______.
Broad-banding
6. _____ _________ protect executives when a merger or hostile takeover
occurs by providing severance pay or a guaranteed position.
Golden parachutes

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 11, slide 246
Chapter 12

Employee Benefits
 Introduction

Employee Benefits
have grown in importance and variety

are typically membership-based rewards

offered to attract and keep employees

do not directly affect a worker’s

performance, but inadequate benefits lead to
employee dissatisfaction

legislation, unions, and a changing workforce have

expanded benefit offerings

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 12, slide 248
 Introduction

 benefit and service offerings add about 30% to an

organization’s payroll cost

 benefits become the focus of negotiations with

employees when large wage and salary increases
are not feasible

Some of the benefits we enjoy today were established under

Franklin Roosevelt’s New Deal as a response to the Great Depression--
most notably unemployment insurance and social security.
To get a taste of this extraordinary time, watch
http://www.youtube.com/watch?v=4F4yT0KAMyo

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 12, slide 249
 Introduction

Contemporary Benefits Offerings

 benefits today reflect a diverse workforce

 challenge -- designing a benefits package that
is lawful and attractive
meets legal attracts applicants
requirements and current workers

health insurance
social security
retirement plans
unemployment compensation
time off
workers’ compensation
disability
FMLA
life insurance

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 12, slide 250
 Legally Required Benefits

Social Security

 financed by equal employee and employer

contributions, based on a percentage of
earnings
 provides income for retirees, disabled workers
and surviving dependents
 provides some health insurance coverage
through Medicare

SS was never intended to be sole source of retirement income.

Watch: http://www.youtube.com/watch?v=aVZijG4WSOw

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 12, slide 251
 Legally Required Benefits

Unemployment Compensation
 funded by employers who pay combined federal and
state tax imposed on taxable wage base
 tax varies based on organization’s unemployment
experience: the more layoffs, the higher the rate
 provides employees with some income continuation
during periods of involuntary unemployment
 typical coverage is for 26 weeks

Requirements to Receiving Unemployment Benefits:

1. involuntary loss of job (but not having been fired)
2. must have worked a minimum number of weeks
3. have applied to a state agency for unemployment
4. have registered for available work
5. are willing to accept any suitable job offered through the state agency

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 12, slide 252
 Legally Required Benefits

Workers’ Compensation

 paid for by the organization

 rates based on likelihood of
accidents, past history, and the
type of industry
 benefits pay expenses and/or
compensate for losses
resulting from work-related
accidents or illness, regardless
of fault

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 12, slide 253
 Legally Required Benefits

Family and Medical Leave Act

 requires employers with 50 or more

employees to allow up to 12 weeks of unpaid
leave for family or medical reasons

 specifies record-keeping and communication

requirements

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 12, slide 254
 Voluntary Benefits

Health Insurance

 increases in healthcare costs have made

health insurance a critical benefit
 healthcare costs are growing faster than
wages
 purpose is to protect employee from
catastrophic loss should a serious illness
occur

The current debate over a public option for health insurance is

heated. For the pros and cons, see:
http://www.balancedpolitics.org/universal_health_care.htm

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 12, slide 255
 Voluntary Benefits
Traditional Health Insurance

 typically has the fewest coverage limitations for

the employee
 usually the most expensive
 provides coverage in three areas:
1. hospitalizations
2. medical/surgical
3. major medical
Some major traditional health
insurers are:

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 12, slide 256
 Voluntary Benefits
Health Maintenance Organizations (HMOs)
 alternative benefit required by Health Maintenance Act of
1973
 broad comprehensive care provided by physicians who are
“in network”
 employee incurs small copay
 health care choices significantly limited

Major HMOs…

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 12, slide 257
 Voluntary Benefits

Preferred Provider Organizations (PPOs)

 member health care providers agree to provide services

at a fixed fee
 employees are encouraged by lower rates to use
member or “preferred” providers
 combine best of HMOs and traditional insurance

Point-of-Service Plans (POS)

 require primary care physicians

 employee can go out of network, but pays up front and
seeks reimbursement herself

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 12, slide 258
 Voluntary Benefits

Consumer-driven Health Plans

 high deductible
 health savings account
 support services help employees make decisions

Employer-operated Coverage

 employers self-fund insurance programs

 operated under a Voluntary Employees
Beneficiary Association (VEBA) to reduce costs
 often hire third party to administer

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 12, slide 259
 Voluntary Benefits

Health Insurance Continuation

 The Consolidated Omnibus Budget Reconciliation Act

(COBRA)
 provides for continuation of benefits for up to three years
after an employee leaves a job
 cost is paid by the employee

The HIPAA Requirement

 The Health Insurance Portability and Accountability Act of

1996
 imposed on employers and health providers regulations
regarding the confidentiality of employee health
information
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 12, slide 260
 Retirement Benefits

Employee Retirement Income Security Act (ERISA)

of 1974

 vesting rights – right to pension benefits even if one

leaves the company
 enables pension rights to be portable
 sets up Pension Benefit Guaranty Corporation (PBGC)
claims corporate assets to cover inadequately
funded pension plans
 requires Summary Plan Description (SPD)

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 12, slide 261
 Retirement Benefits

Defined Benefit Plans

 plan specifies the dollar benefit workers receive at

retirement

 usually based on some formula of years of service

and average final compensation

 used more in government and unionized industries

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 12, slide 262
 Retirement Benefits

Defined Contribution Plans

 employee and employer may contribute to account

based on rules established for contributions
 amount of benefits depends on success of account
investments

money purchase profit-sharing

pension plans plans

IRAs 401Ks

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 12, slide 263
 Retirement Benefits

Money Purchase Pension Plan

 type of defined contribution plan

 organization commits to depositing fixed
amount of money or percentage of
employee’s pay annually

Profit-Sharing Plans
 variation of defined contribution plan
 company amount contributed depends on
profit level in the organization
 contribution is optional, not required

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 12, slide 264
 Retirement Benefits

Individual Retirement Accounts (IRAs)

1. employer makes contributions

2. can defer taxes on amount deposited and
interest earned in retirement account
3. two types exist for small businesses and self-
employed

401(k)s:
1. permit workers to set aside specified amount
of income on tax-deferred basis
2. employers may match employee contribution

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 12, slide 265
 Paid Time Off

Vacation and Holiday Leave

 vacation time is usually related to the

length of time on the job

 some companies also allow personal days

that can be used for any reason

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 12, slide 266
 Paid Time Off

Disability Insurance Programs

 provides salary continuation for:

 short-term disabilities (sick leave)
 long-term disabilities (coverage usually effective
after 6 months)

 some companies provide financial incentives

to employees to not use their sick leave

 long-term disability plans usually replace a

portion of the employee’s salary, often 60%

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 12, slide 267
 Survivor Benefits

Group Term Life Insurance

 benefit is usually based on one’s annual rate of pay

 supplemental insurance increases coverage to two to
five-times the employee’s salary

Travel Insurance

 life insurance for business travel-related deaths (not

including normal commuting)

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 12, slide 268
 Survivor Benefits

The Service Side of Benefits

1. Social and recreational events

2. employee assistance programs
3. credit unions
4. housing
5. tuition reimbursement
6. uniforms
7. company-paid transportation
8. parking

employers often can provide services at no cost or

at a significant reduction from the usual cost

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 12, slide 269
 An Integrative Perspective on Employee Benefits

Flexible Benefits

These programs allow employees to choose which benefits they want

and help to keep costs down.
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 12, slide 270
 An Integrative Perspective on Employee Benefits

Flexible Spending Accounts

 under Section I25 of the Internal Revenue Code
employees can set aside a designated dollar amount
before taxes for specified services such as

1. health-care premiums
2. medical expenses
3. dependent child or elder care
4. group legal services

 IRS requires that accounts for different purposes be

separate and that all money be spent during the year or
forfeited

 not subject to federal, state, and social security taxes

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 12, slide 271
 An Integrative Perspective on Employee Benefits

Modular Plans
 employees choose a pre-designed package of
benefits from several options

Core-Plus Options Plans

 employees given core coverage (e.g. medical, life,
disability) with option to select other benefits

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 12, slide 272
 Let’s Play Jeopardy-Style!
1. Social Security, unemployment compensation, workers’ compensation,
FMLA.
What are legally required benefits?

2. Benefits that pay expenses and/or compensate for losses resulting

from work-related accidents or illness, regardless of fault.
What is workers’ compensation?

3. Health insurance, retirement plans, time off, disability, life insurance.

What are voluntary benefits?

4. Requires employers with 50 or more employees to allow up to 12

weeks of unpaid leave for family or medical reasons.
What is the Family Medical Leave Act?

5. Money purchase pension plans, profit-sharing plans, IRAs, 401Ks.

What are defined contribution plans?

6. Flexible spending accounts, modular plans, core-plus plans.

What are flexible benefits?
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 12, slide 273
Chapter 13
Ensuring a Safe and
Healthy Work Environment
 Introduction

 management has both legal and moral

responsibilities to provide a safe and healthy
workplace
 work-related accidents, injuries, and illnesses are
costly
 cost of lost productivity to U.S. companies surpasses
$100 billion annually. Enter:

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 13, slide 275
 The Occupational Safety and Health Act

OSHA

 1970 federal legislation

 established health and safety standards
 authorized inspections and fines for violations
 empowered OSH Administration to ensure
standards are met
 requires employers to keep records of illnesses
and injuries, and calculate accident ratios
 applies to almost every U.S. business engaged
in interstate commerce

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 13, slide 276
 The Occupational Safety and Health Act

OSHA’s Five Inspection Priorities

1. imminent danger: where an accident is

about to occur

2. accidents that have led to serious injuries or

death: Employer must report within 8 hours

3. employee complaints: employees have right

to call OSHA

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 13, slide 277
 The Occupational Safety and Health Act

4. inspection of industries with the highest injury

or illness rates
meat processing roofing and sheet metal transportation

lumber and wood products chemical processing warehousing

5. random inspection
 Supreme Court ruled (Marshall v. Barlow’s Inc., 1978)
that employers are not required to let OSHA inspectors enter
without search warrants

 most attorneys recommend companies cooperate with

inspectors

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 13, slide 278
 The Occupational Safety and Health Act

OSHA’s Record-Keeping Requirements

 industries with high incidences of injury (incident rates)

must keep records for OSHA
 basis for record-keeping is Form 300
 must report any work-related illness; report injuries that
require medical treatment besides first aid, involve loss
of consciousness, restriction of work or motion, or
transfer to another job
 incidence rate: number of illnesses, injuries or lost
workdays per 100 full-time workers

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 13, slide 279
 The Occupational Safety and Health Act

OSHA Punitive Actions

 Omnibus Budget Reconciliation Act of 1990

allows fines up to $70,000 if violation is
severe, willful and repetitive
 fines can be for safety violations or failure to
keep adequate records
 courts have backed criminal charges against
executives when they have willfully violated
health and safety laws

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 13, slide 280
 OSHA: A Resource for Employers
OSHA also helps small businesses and
entrepreneurs by
1. fostering management and employee involvement
2. offering worksite analysis
3. teaching hazard prevention and control
4. training employees, supervisors, managers

The National Institute for Occupational Safety and Health (NIOSH)

is a government agency that researches and makes
recommendations to prevent work-related illness and injury.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 13, slide 281
 Contemporary Health and Safety Issues

workplace indoor
violence air quality

smoke-free
environment

repetitive
stress STRESS!
injuries

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 13, slide 282
 Contemporary Health and Safety Issues

workplace
violence

 at-risk workers are those who exchange money and/or interact

primarily with the public, make deliveries, work alone or in small
groups, and work late-night or early morning hours
 recommended HRM actions:
1. develop a plan, including review of policies and employee treatment;
respect to workers is paramount
2. train supervisors to identify and deal with troubled employees
3. implement stronger security mechanisms
4. prepare employees to deal with violent situations

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 13, slide 283
 Contemporary Health and Safety Issues

indoor
air
quality

 a building is “sick” if it contains harmful airborne chemicals,

asbestos, or indoor pollution
 suggestions for keeping the environment healthy:
1. make sure workers get enough fresh air
2. avoid suspect building materials and furnishings
3. test new buildings for toxins before occupancy
4. provide a smoke-free environment
5. keep air ducts clean and dry
6. pay attention to workers’ complaints

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 13, slide 284
 Contemporary Health and Safety Issues

smoke-free
environment

Costs of smokers:
 increased health premiums
 absenteeism
 lost productivity due to smoke breaks
 maintenance costs
 harm to coworkers by second-hand smoke

smoking bans should take a phased-in approach

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 13, slide 285
 Contemporary Health and Safety Issues

smoke-free
environment

 smoke-free policies at work include banning

smoking or restricting it to properly ventilated
designated areas

 employees should be involved in phase-in of

programs

 some employers offer incentives and help for

employees to stop smoking

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 13, slide 286
 Contemporary Health and Safety Issues

repetitive
stress
injuries

 injuries resulting from continuous, repetitive

movements, such as typing
 also referred to as musculoskeletal disorders (MSDs)
 the most frequent injury is carpal tunnel syndrome,
which occurs in the wrist
 ergonomics, or fitting the work environment to the
individual, can prevent repetitive motion injuries

See http://www.office-ergo.com/a.htm for specific tips.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 13, slide 287
 Contemporary Health and Safety Issues

STRESS!

 we feel negative stress in the face of constraints, demands,

and pressure

 stress costs U.S. corporations almost $300 billion annually

The American Institute of Stress, www.stress.org, offers a wealth of

information, including this questionnaire that assesses stress levels:
http://www.stress.org/topic-workplace.htm

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 13, slide 288
 Contemporary Health and Safety Issues
Common Causes of Stress

organizational personal

Task demands - job design,

working conditions,
physical layout, work quotas.

Role demands - conflicts, Family issues

overload and ambiguity.
Personal economic problems
Interpersonal demands
-lack of social support Inherent personality
and poor interpersonal characteristics
relationships.
– type A / type B dichotomy
Organizational structure

Organizational leadership

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 13, slide 289
 Contemporary Health and Safety Issues
Symptoms of Stress
 physiological (increased blood pressure, headaches,
increased pulse rate) are the most difficult to observe
 psychological (increased tension and anxiety, boredom,
procrastination) can lead to productivity decreases
 behavioral (increased smoking or substance
consumption, sleep disorders) also affect the
organization

What HR Can Do

1. match individuals to their jobs

2. clarify expectations
3. redesign jobs
4. offer involvement and participation

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 13, slide 290
 Contemporary Health and Safety Issues

Reducing Stress
 Dilemmas for HRM include:

1. balancing the need to energize people with

the need to minimize dysfunctional stress

2. deciding how much an employer can

intrude on employees’ personal lives

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 13, slide 291
 Contemporary Health and Safety Issues

Burnout
Burnout is a function of three concerns:
 chronic emotional stress with emotional and/or physical
exhaustion
 lowered job productivity
 dehumanizing of jobs

Four techniques HR can use to reduce burnout:

1. identification
2. prevention
3. mediation
4. remediation

Take this quiz if you think you are approaching burnout at work:
http://stress.about.com/library/burnout/bl_job_burnout_quiz.htm

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 13, slide 292
 Employee Assistance Programs
A Brief History of EAPs
 extension of 1940’s programs to help employees with
alcohol-related problems

 cost-effective counseling to help employees overcome

problems such as:
1. substance abuse
2. bereavement
3. child-parent problems
4. marriage problems

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 13, slide 293
 The Employee Assistance Program

EAPs Today
 provides employees visits with counselors at
company expense; usually visits are off-site
 help control rising health insurance costs
 employees and supervisors must be familiar
with and trust the program and perceive EAPs
as worthwhile
 confidentiality is guaranteed
 for every dollar spent on EAP programs, studies
estimate a return of $5.00 to $16.00 in savings

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 13, slide 294
 The Employee Assistance Program
Wellness Programs
 programs to keep employees healthy; include smoking
cessation, physical fitness, weight control, etc.
 designed to cut employer health costs and lower
absenteeism
 employees must view programs as having value
 must have top management support
 should also provide services for employees’ families
 need opportunities for employee input

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 13, slide 295
 International Safety and Health

International Health Issues/Needs

1. an up-to-date health certificate providing records of
employee vaccinations
2. a general first aid kit should include over-the-counter and
prescription medications and other supplies that might not
be available to U.S. workers abroad
3. emergency plans help expatriates anticipate medical needs
and locate resources
4. U.S. Department of State “hotline” provides travel alerts
about such issues as terrorist activity or disease outbreaks

5. security concerns prompt recommendations regarding travel

modes, attire, and “blending in”

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 13, slide 296
 True or False?
1. It’s not management’s responsibility to provide a safe and healthy
workplace.
False!
2. OSHA applies to almost every U.S. business engaged in interstate
commerce.
True!
3. Most attorneys recommend companies cooperate with OSHA inspectors.
True!
4. Smoking bans work best when they take a “cold turkey” approach.
False!
5. HR should clarify expectations of employees in an effort to reduce worker
stress.
True!
6. EAPs give employees visits with counselors at the company’s expense.
True!

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 13, slide 297
Chapter 14

Understanding Labor
Relations and
Collective Bargaining
 Introduction

 a union is an organization of workers, acting

collectively, seeking to promote and protect its
mutual interests through collective bargaining
 only 12% of the private sector workforce is
unionized
 labor contracts typically stipulate:
 wages
 hours
 terms and conditions of employment
See
http://www.aflcio.org/joinaunion/why/uniondifference/uniondiff16.cfm
for a breakdown of union membership by state.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 299
 Introduction

Union Membership
Percentage of Workforce

▪ Total - 12.5%
▪ Public sector - 36.5%
▪ Private sector - 7.8%
Demographics
▪ Age 16 - 24 - 4.6%
▪ 25 - 34 - 10.7%
▪ 35 - 44 - 13.7%
▪ 45 - 54 - 16.5%
▪ 55 - 64 - 16.5%
▪ 65 and over - 8.9%
▪ Women - 11.3%
▪ Men - 13.5%
Wikipedia (USDL, retrieved 1/28/09 )

For a comprehensive history of labor unions see

http://en.wikipedia.org/wiki/Labor_unions_in_the_United_States

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 300
 Why Employees Join Unions

higher wages and benefits: the strength of large

numbers and negotiating skills of professional bargainers
give unions an advantage over individuals

greater job security: collective bargaining contracts

limit management’s ability to arbitrarily hire, promote, or fire

influence over work rules: unions represent workers

and define channels for complaints and concerns

Watch Solidarity Forever sung by Pete Seeger

http://www.youtube.com/watch?v=kYiKdJoSsb8
for a feel of what unions meant to people at the turn of the 20th
century, when labor laws were almost nonexistent.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 301
 Why Employees Join Unions

Compulsory Membership

 union shops require that all employees hired into positions

covered under the collective-bargaining agreement must join
the union

 agency shops require nonunion employees to pay an

amount equal to union fees and dues

 open shops allow union membership to be totally voluntary

 maintenance of membership clauses require union

members to remain for the duration of the contract

 dues checkoff provisions require employers to withhold

union dues from members’ paychecks

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 302
 Labor Legislation

The Wagner Act

 also known as the National Labor Relations Act

 “bill of rights” for unions, guaranteeing right

to organize and bargain collectively

 National Labor Relations Board (NLRB):

 determines bargaining units

 conducts elections
 prevents or corrects unfair labor practices

www.nlrb.gov

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 303
 Labor Legislation

The Wagner Act

Unfair labor practices include:

 interfering with an employee’s right to bargain
collectively
 Interfering with or discriminating against anyone
because of union activity
 discriminating against employee who gave
testimony under the act
 refusing to bargain collectively with employee
representatives

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 304
 Labor Legislation
Taft-Hartley Act
 also known as the Labor-Management Relations Act
 amended Wagner to address employer concerns
 specified unfair union labor practices
1. coercion of employees to join the union
2. refusing to bargain collectively
3. engaging in illegal strikes and boycotts
4. obtaining compensation for services not performed

 prohibited closed shops, secondary boycotts, and gave

the president power to issue a cooling-off period
 created Federal Mediation and Conciliation Service
(FMCS) to help labor and management settle disputes

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 305
 Labor Legislation

The Railway Labor Act

 gave workers in the transportation industry the right
to bargain collectively and allowed congressional
and presidential intercession in the event of an
impasse

Established the
National Mediation Board
http://www.nmb.gov

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 306
 Labor Legislation
Landrum-Griffin Act
 also known as the Labor and Management
Reporting and Disclosure Act

 made union officials accountable for funds,

elections, and other business and
representational matters

 required annual filing of information by unions

and by individuals employed by unions

 required that all members be allowed to vote

by secret ballot

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 307
 Labor Legislation

Executive Orders 10988 and 11491

 permitted federal employees to join unions and established

the Federal Labor Relations Council (FLRC)

Racketeering Influenced and Corrupt

Organizations Act (RICO) of 1970

 prohibits payment and loans in the form of bribery, kickbacks,

or extortion
 has been used to oust labor officials with organized crime ties

The Department of Labor’s inspector general investigates union and

organized crime activity
http://www.oig.dol.gov/laborracprogram.htm

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 308
 Labor Legislation

Civil Service Reform Act of 1978

 replaced executive orders as basic law governing

labor relations for federal employees.

 established the Federal Labor Relations Authority

www.flra.gov

 broad-scope grievance procedure

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 309
 Unionizing Employees

Union Organizing Process

Unorganized

No union vote for one year

Authorization card campaign: Did union get 30% or more? No
Yes

Petition NLRB for election: Are authorization cards in order? No

Yes

Vote taken: Did union receive a majority vote? No

Yes

Certification of bargaining unit

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 310
 Unionizing Employees

Employees want to form a union. Now what?

 thirty percent of employees must sign

authorization cards indicating their interest in
having an election

 with a representation certification (RC), a

secret-ballot election is held

 if the union is accepted by a majority of eligible

voting workers, the union becomes the workers’
legal representative

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 311
 Unionizing Employees

 once the National Labor Relations Board certifies

a union, each worker must abide by the
negotiated contract
 most organizations’ managements will try to
influence workers against voting for union
representation
 representation decertification (RD) elections can
be held to vote unions out
 RMs are decertification elections initiated by
management
 most agreements bar the use of decertification
elections during the term of a contract

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 312
 Collective Bargaining
What is collective bargaining?

 the negotiation, administration, and interpretation of

a written agreement between two parties, at least
one of which represents a group that is acting
collectively, that covers a specific period of time

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 313
 Collective Bargaining
Objective and Scope of Collective Bargaining

 contracts must be acceptable to management,

union representatives, and union membership

 four issues appear in all labor contracts; the first

three are mandated by the Wagner Act

terms and conditions

wages
of employment

grievance
hours
procedures

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 314
 Collective Bargaining

Collective Bargaining Participants

1. large corporations have HRM departments with industrial

relations experts; corporate executives, and company
lawyers also participate
2. in small companies, the president typically represents the
company
3. union bargaining teams include an officer of the local union,
local shop stewards, and reps from the international/
national union
4. government watches to ensure rules are followed
5. financial institutions set limits on the cost of the contract

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 315
 Collective Bargaining

The Collective Bargaining Process

 Preparing to negotiate

 fact-gathering: includes internal information (e.g.,

employee performance records, overtime) and external
(i.e., data on what similar organizations are doing and the
economy)
 goal-setting: management decides what it can expect
from the negotiation
 strategy development: this includes assessing the other
side’s power and tactics

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 316
 Collective Bargaining

The Collective Bargaining Process

Preparation for
negotiations

Prepare for next negotiation

Contract
negotiation

Agreement no

yes

Union
no
ratification
yes

Contract
administration

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 317
 Collective Bargaining

Negotiating at the bargaining table

 each side usually begins by publicly demanding

more than they are willing to accept
 more realistic assessments and compromises take
place behind closed doors
 after oral agreement, a written contract is submitted
to the union for ratification

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 318
 Collective Bargaining

Contract administration is the implementation,

interpretation, and monitoring of the negotiated
contract between labor and management.

1. information dissemination: helping staff and

workers understand the new contract provisions
2. implementation: making the changes to comply
with contract terms
3. interpreting the contract and grievance
resolution
4. monitoring activities during contract period

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 319
 Collective Bargaining

Failure to Reach Agreement

Strikes versus Lockouts

 economic strikes - labor and management

cannot reach agreement before the current
contract expires
 wildcat strikes - unauthorized and illegal strikes
that occur because of worker dissatisfaction
during an existing contract
 lockouts - when organizations deny unionized
workers access to their jobs during an impasse

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 320
 Collective Bargaining

Impasse-Resolution Techniques
used when labor and management cannot agree
 conciliation and mediation involve a third party to either
keep negotiations going or make nonbinding settlement
recommendations

 fact-finding involves a neutral third party who conducts a

hearing and recommends a nonbinding settlement

 interest arbitration Involves a panel of one neutral, one

management, and one union representative who hear
testimony and render a decision to settle a contract
negotiation dispute

 primarily in public-sector bargaining

 binding only if there is unanimous agreement

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 321
 Critical Issues for Unions Today

Where have the union members gone?

 Reasons for decline in membership include:

1. new concerns of a growing middle class
2. greater diversity of the workforce
3. growth of the service sector
4. diminished financial resources of unions
5. anti-union pressures resulting from increased
competitiveness
6. layoffs of large numbers of union workers
7. hiring of replacement workers for strikers

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 322
 Critical Issues for Unions Today

 unions are changing some of their organizing

tactics and may currently be gaining public support

 they also are placing more emphasis on the service

sector

 some unions recognize that they can gain more by

cooperating with management rather than fighting

 the Electromation case illustrates the potential legal

difficulties of cooperative efforts: The NLRB ruled that
employee committees were an unfair labor practice

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 323
 Critical Issues for Unions Today

Public-Sector Unionization

 membership of government workers in

unions has increased from 11% in 1970 to
nearly 38% in 2002

 public-sector labor relations differs from

private-sector labor relations

 sunshine laws in some states mandate that

labor-management negotiations be open to the
public

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 324
 International Labor Relations
Differing Perspectives Toward Labor Relations
 countries differ in their labor relations histories,
government involvement, and public acceptance of
labor unions
 the labor relations function for international
companies is more likely to be centralized with the
parent company when domestic sales are larger than
those overseas
The European Community
 brings together a dozen or more labor relations
systems
 countries wishing to do business in Europe must
keep up with changing labor legislation
See FedEE for general information on labor laws by country.
http://www.fedee.com/natlaw.html

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 325
 Matching

Wagner Act Labor-Management

Relations Act

union
certifies unions

Taft-Hartley Act
National Labor Relations
Act
unionized workers denied
access to their jobs during an
impasse organization of workers,
acting collectively

National Labor Relations

Board lockout

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins Chapter 14, slide 326