HUMAN THIRTEENTH EDITION RESOURCE MANAGEMENT GARY DESSLER FLORIDA INTERNATIONAL UNIVERSITY Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Editorial Director: Sally Yagan Text Designer: LCI Design Acquisitions Editor: Brian Mickelson Cover Designer: LCI Design Editorial Project Manager: Sarah Holle Cover Art: LCI Design Director of Marketing: Maggie Moylan Manager, Rights and Permissions: Estelle Simpson Senior Marketing Manager: Nikki Ayana Jones Media Project Manager: Lisa Rinaldi Marketing Assistant: Ian Gold Senior Media Project Manager: Denise Vaughn Senior Managing Editor: Judy Leale Full-Service Project Management: Jennifer Welsch/ Production Project Manager: Kelly Warsak Bookmasters Senior Operations Supervisor: Arnold Vila Composition: Integra Software Services Pvt. Operations Specialist: Cathleen Petersen Printer/Binder: Quebecor World Book Services Creative Director: Blair Brown Cover Printer: Lehigh-Phoenix Color Senior Art Director: Kenny Beck Text Font: Minion 11/12 Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on appropriate page within text. Microsoft and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published as part of the services for any purpose. All such documents and related graphics are provided as is without warranty of any kind.
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Library of Congress Cataloging-in-Publication Data Dessler, Gary Human resource management/Gary Dessler. Includes bibliographical references and index. ISBN-13: 978-0-13-266821-7 (hardcover: alk. paper) ISBN-10: 0-13-266821-1 (hardcover: alk.3 dc23 2011037044 10 9 8 7 6 5 4 3 2 1 ISBN 10: 0-13-266821-1 ISBN 13: 978-0-13-266821-7 DEDICATED TO SAMANTHA AND TAYLOR BRIEF CONTENTS PART ONE INTRODUCTION 2 1 Introduction to Human Resource Management 2 2 Equal Opportunity and the Law 30 3 Human Resource Management Strategy and Analysis 70 PART TWO RECRUITMENT, PLACEMENT, AND TALENT MANAGEMENT 102 4 Job Analysis and the Talent Management Process 102 5 Personnel Planning and Recruiting 136 6 Employee Testing and Selection 174 7 Interviewing Candidates 212 PART THREE TRAINING AND DEVELOPMENT 242 8 Training and Developing Employees 242 9 Performance Management and Appraisal 282 10 Employee Retention, Engagement, and Careers 320 PART FOUR COMPENSATION 350 11 Establishing Strategic Pay Plans 350 12 Pay for Performance and Financial Incentives 390 13 Benefits and Services 422 PART FIVE EMPLOYEE RELATIONS 458 14 Ethics and Employee Rights and Discipline 458 15 Labor Relations and Collective Bargaining 494 16 Employee Safety and Health 530 17 Managing Global Human Resources 576 18 Managing Human Resources in Small and Entrepreneurial Firms 604 APPENDICES APPENDIX A PHR and SPHR Knowledge Base 633 APPENDIX B Comprehensive Cases 641 V CONTENTS Preface xxiii Acknowledgments xxvii PART ONE INTRODUCTION 2 1 Introduction to Human Resource Management 2 WHAT IS HUMAN RESOURCE MANAGEMENT AND WHY IS IT IMPORTANT? 4 What Is Human Resource Management? 4 Why Is Human Resource Management Important to All Managers? 5 Line and Staff Aspects of Human Resource Management 6 Line Managers Human Resource Duties 7 Human Resource Manager s Duties 7 New Approaches to Organizing HR 9 Cooperative Line and Staff HR Management: An Example 9 THE TRENDS SHAPING HUMAN RESOURCE MANAGEMENT 10 Globalization and Competition Trends 11 Indebtedness ( Leverage ) and Deregulation 12 Technological Trends 12 Trends in the Nature of Work 13 * HR AS A PROFIT CENTER: Boosting Customer Service 14 Workforce and Demographic Trends 14 Economic Challenges and Trends 16 THE NEW HUMAN RESOURCE MANAGERS 17 Human Resource Management Yesterday and Today 17 They Focus More on Strategic, Big Picture Issues 17 * THE STRATEGIC CONTEXT: Building L.Bean 17 They Use New Ways to Provide Transactional Services 18 They Take an Integrated, Talent Management Approach to Managing Human Resources 19 They Manage Ethics 19 They Manage Employee Engagement 19 They Measure HR Performance and Results 19 They Use Evidence-Based Human Resource Management 20 They Add Value 20 They Have New Competencies 21 HR Certification 22 THE PLAN OF THIS BOOK 22 The Basic Themes and Features 22 CHAPTER CONTENTS OVERVIEW 23 Part 1: Introduction 23 Part 2: Recruitment, Placement, and Talent Management 23 Part 3: Training and Development 23 Part 4: Compensation 23 Part 5: Employee Relations 23 The Topics Are Interrelated 24 CHAPTER SECTION SUMMARIES 25 DISCUSSION QUESTIONS 25 INDIVIDUAL AND GROUP ACTIVITIES 26 EXPERIENTIAL EXERCISE: HELPING THE DONALD 26 APPLICATION CASE: JACK NELSON S PROBLEM 27 CONTINUING CASE: CARTER CLEANING COMPANY 27 KEY TERMS 28 ENDNOTES 28 VII VIII CONTENTS 2 Equal Opportunity and the Law 30 EQUAL EMPLOYMENT OPPORTUNITY 1964 1991 32 Title VII of the 1964 Civil Rights Act 32 Executive Orders 32 Equal Pay Act of 1963 33 Age Discrimination in Employment Act of 1967 33 Vocational Rehabilitation Act of 1973 33 Pregnancy Discrimination Act of 1978 34 Federal Agency Guidelines 34 Early Court Decisions Regarding Equal Employment Opportunity 34 EQUAL EMPLOYMENT OPPORTUNITY 1990 91 PRESENT 35 The Civil Rights Act of 1991 35 The Americans with Disabilities Act 36 Genetic Information Nondiscrimination Act of 2008 (GINA) 39 State and Local Equal Employment Opportunity Laws 39 Sexual Harassment 39 DEFENSES AGAINST DISCRIMINATION ALLEGATIONS 43 The Central Role of Adverse Impact 44 Bona Fide Occupational Qualification 46 Business Necessity 47 Other Considerations in Discriminatory Practice Defenses 48 ILLUSTRATIVE DISCRIMINATORY EMPLOYMENT PRACTICES 48 A Note on What You Can and Cannot Do 48 Recruitment 49 Selection Standards 49 Sample Discriminatory Promotion, Transfer, and Layoff Practices 50 What the Supervisor Should Keep in Mind 51 THE EEOC ENFORCEMENT PROCESS 51 Voluntary Mediation 53 Mandatory Arbitration of Discrimination Claims 54 DIVERSITY MANAGEMENT AND AFFIRMATIVE ACTION PROGRAMS 55 Diversity s Potential Pros and Cons 55 * HR AS A PROFIT CENTER 56 Managing Diversity 56 Encouraging Inclusiveness 57 Developing a Multicultural Consciousness 58 Equal Employment Opportunity Versus Affirmative Action 59 Implementing the Affirmative Action Program 59 Reverse Discrimination 60 CHAPTER SECTION SUMMARIES 61 DISCUSSION QUESTIONS 62 INDIVIDUAL AND GROUP ACTIVITIES 62 EXPERIENTIAL EXERCISE: SPACE CADET OR VICTIM? 63 APPLICATION CASE: AN ACCUSATION OF SEXUAL HARASSMENT IN PRO SPORTS 63 CONTINUING CASE: CARTER CLEANING COMPANY 64 KEY TERMS 65 ENDNOTES 65 3 Human Resource Management Strategy and Analysis 70 THE STRATEGIC MANAGEMENT PROCESS 72 * THE STRATEGIC CONTEXT: The Shanghai Portman Hotel 72 Goal-Setting and the Planning Process 72 Strategic Planning 73 Improving Productivity Through HRIS: Using Computerized Business Planning Software 76 Types of Strategies 76 Top Managers Role in Strategic Planning 78 CONTENTS IX Departmental Managers Strategic Planning Roles 78 Departmental Managers Strategic Planning Roles in Action: Improving Mergers and Acquisitions 79 STRATEGIC HUMAN RESOURCE MANAGEMENT 80 Defining Strategic Human Resource Management 80 Human Resource Strategies and Policies 82 HR AS A PROFIT CENTER: Albertsons Example 82 Strategic Human Resource Management Tools 82 HR METRICS AND BENCHMARKING 84 Types of Metrics 85 Improving Productivity Through HRIS: Tracking Applicant Metrics for Improved Talent Management 85 Benchmarking in Action 86 Strategy and Strategy-Based Metrics 87 Workforce/Talent Analytics and Data Mining 87 HR AS A PROFIT CENTER: Using Workforce/Talent Analytics 88 What Are HR Audits? 89 Evidence-Based HR and the Scientific Way of Doing Things 90 WHAT ARE HIGH-PERFORMANCE WORK SYSTEMS? 91 High-Performance Human Resource Policies and Practices 92 CHAPTER SECTION SUMMARIES 93 DISCUSSION QUESTIONS 94 INDIVIDUAL AND GROUP ACTIVITIES 94 EXPERIENTIAL EXERCISE: DEVELOPING AN HR STRATEGY FOR STARBUCKS 95 APPLICATION CASE: SIEMENS BUILDS A STRATEGY-ORIENTED HR SYSTEM 95 CONTINUING CASE: CARTER CLEANING COMPANY 96 TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE 96 KEY TERMS 98 ENDNOTES 99 PART 1 VIDEO CASES APPENDIX 100 PART TWO RECRUITMENT, PLACEMENT, AND TALENT MANAGEMENT 102 4 Job Analysis and the Talent Management Process 102 THE TALENT MANAGEMENT PROCESS 104 What Is Talent Management? 104 THE BASICS OF JOB ANALYSIS 105 Uses of Job Analysis Information 106 THE STRATEGIC CONTEXT: Daimler Alabama Example 107 Conducting a Job Analysis 107 HR AS A PROFIT CENTER: Boosting Productivity through Work Redesign 108 Job Analysis Guidelines 110 METHODS FOR COLLECTING JOB ANALYSIS INFORMATION 110 The Interview 110 Questionnaires 113 Observation 114 Participant Diary/Logs 114 Quantitative Job Analysis Techniques 114 Internet-Based Job Analysis 116 WRITING JOB DESCRIPTIONS 118 Job Identification 118 Job Summary 119 Relationships 121 Responsibilities and Duties 121 X CONTENTS MANAGING THE NEW WORKFORCE: Writing Job Descriptions That Comply with the ADA 122 Standards of Performance and Working Conditions 122 Duty: Accurately Posting Accounts Payable 122 Using the Internet for Writing Job Descriptions 122 WRITING JOB SPECIFICATIONS 126 Specifications for Trained Versus Untrained Personnel 126 Specifications Based on Judgment 126 Job Specifications Based on Statistical Analysis 127 Using Task Statements 127 PROFILES IN TALENT MANAGEMENT 128 Competencies and Competency-Based Job Analysis 128 How to Write Job Competencies-Based Job Descriptions 130 CHAPTER SECTION SUMMARIES 131 DISCUSSION QUESTIONS 132 INDIVIDUAL AND GROUP ACTIVITIES 132 EXPERIENTIAL EXERCISE: THE INSTRUCTOR S JOB DESCRIPTION 132 APPLICATION CASE: THE FLOOD 133 CONTINUING CASE: CARTER CLEANING COMPANY 133 TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE 134 KEY TERMS 134 ENDNOTES 134 5 Personnel Planning and Recruiting 136 INTRODUCTION 138 WORKFORCE PLANNING AND FORECASTING 138 Strategy and Workforce Planning 138 THE STRATEGIC CONTEXT: IBM 139 Forecasting Personnel Needs (Labor Demand) 139 Improving Productivity Through HRIS: Computerized Personnel Forecasting 142 Forecasting the Supply of Inside Candidates 142 Forecasting the Supply of Outside Candidates 144 Talent Management and Predictive Workforce Monitoring 144 Developing an Action Plan to Match Projected Labor Supply and Labor Demand 145 The Recruiting Yield Pyramid 145 THE NEED FOR EFFECTIVE RECRUITING 146 Why Recruiting Is Important 146 What Makes Recruiting a Challenge?