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Human Resource Management Human Resource Management TWELFTH EDITION This page intentionally left blank Human Resource Management TWELFTH EDITION ROBERT L. MATHIS University of Nebraska at Omaha • JOHN H. JACKSON University of Wyoming Human Resource Management, Twelfth Edition Robert L. Mathis, John H. Jackson VP/Editorial Director: Senior Marketing Production House: Jack W. Calhoun Communications Manager: Graphic World Inc. Jim Overly Editor-in-Chief: Printer: Melissa S. Acuña Content Project Manager: RR Donnelley, Inc. Patrick Cosgrove Willard, OH Senior Acquisitions Editor: Joseph A. Sabatino Manager, Editorial Media: Art Director: John Barans Stacy Shirley Senior Developmental Editor: Susanna C. Smart Technology Project Manager: Cover and Internal Designer: Kristen Meere Joe DeVine, Red Hangar Editorial Assistant: Design Ruth Belanger Senior Manufacturing Coordinator: Cover Images: Senior Marketing Manager: Doug Wilke © Digital Stock Kimberly Kanakes COPYRIGHT © 2008, 2006 ALL RIGHTS RESERVED. For permission to use material Thomson South-Western, from this text or product, a part of The Thomson No part of this work covered submit a request online at Corporation. Thomson, the by the copyright hereon may be http://www.thomsonrights Star logo, and South-Western reproduced or used in any form .com. are trademarks used herein or by any means—graphic, under license. electronic, or mechanical, in- For more information about cluding photocopying, record- our products, contact us at: Printed in the United States of ing, taping, Web distribution America or information storage and re- Thomson Learning Academic 1 2 3 4 5 10 09 08 07 trieval systems, or in any other Resource Center manner—without the written 1-800-423-0563 Student Edition permission of the publisher. Thomson Higher Education ISBN 13: 978-0-324-54275-2 5191 Natorp Boulevard ISBN 10: 0-324-54275-5 Mason, OH 45040 USA Library of Congress Control Number: 2007933762 TO Jo Ann Mathis, who manages me R. D. and M. M. Jackson, who were successful managers of people for many years This page intentionally left blank Contents in Brief Preface xxiii Section 1 Nature of Human Resource Management 1 Chapter 1 Changing Nature of Human Resource Management 2 Chapter 2 Strategic HR Management and Planning 34 Chapter 3 Organization/Individual Relations and Retention 66 Section 2 Staffi ng the Organization 97 Chapter 4 Legal Framework of Equal Employment 98 Chapter 5 Managing Equal Employment and Diversity 130 Chapter 6 Jobs and Job Analysis 160 Chapter 7 Recruiting in Labor Markets 192 Chapter 8 Selecting Human Resources 224 Section 3 Developing Human Resources 257 Chapter 9 Training Human Resources 258 Chapter 10 Talent Management and Development 290 Chapter 11 Performance Management and Appraisal 324 Section 4 Compensating Human Resources 357 Chapter 12 Total Rewards and Compensation 358 Chapter 13 Variable Pay and Executive Compensation 390 Chapter 14 Managing Employee Benefi ts 416 Section 5 Managing Employee Relations 453 Chapter 15 Risk Management and Worker Protection 454 Chapter 16 Employee Rights and Responsibilities 488 Chapter 17 Union/Management Relations 518 Appendix A Human Resource Certifi cation Institute Test Specifi cations 552 Appendix B Current Literature in HR Management 559 Glossary 563 Author Index 571 Subject Index 576 vii This page intentionally left blank Contents SECTION 1 NATURE OF HUMAN RESOURCE MANAGEMENT 1 CHAPTER 1 Economic and Technological Changes 16 Changing Nature of Human Workforce Demographics and Resource Management 2 Diversity 17 Organizational Cost Pressures and HR Headline Why HR Is Not Always Restructuring 19 Respected 3 HR Technology 19 Human Capital in Organizations 4 Purposes of an HRMS 20 Human Capital and HR 5 HR Online Wikis and Collaborative HR 20 Human Resources as a Core Other Uses of HR Technology 21 Competency 6 Ethics and HR Management 21 HR Activities 6 Ethics and Global Differences 22 Managing Human Resources in Ethical Behavior and Organizational Organizations 8 Culture 22 Smaller Organizations and HR HR Best Practices How UPS Delivers Ethics Management 8 and Corporate Integrity 23 HR On-the-Job What Do HR Managers HR’s Role in Organizational Ethics 23 Do? 9 HR Management Competencies and HR Cooperation with Operating Careers 25 Managers 9 HR Competencies 25 HR Management Roles 10 HR Management as a Career Field 26 Administrative Role of HR 10 HR Professionalism and Certifi cation 27 Operational and Employee Advocate Role Summary 29 for HR 12 Strategic Role for HR 12 Review and Application Questions 29 Current HR Management Challenges 14 Case: HR Contributes at SYSCO 30 Globalization of Business 14 Supplemental Case: Phillips Furniture 31 HR Perspective Globalization Affecting Notes 31 German Companies 15 ix x Contents CHAPTER 2 Forecasting HR Supply and Demand 50 Strategic HR Management and Forecasting Methods and Periods 50 Planning 34 HR On-the-Job Discovering What Works with a “Skills Database” 51 HR Headline Strategy Mistakes and HR Forecasting the Demand for Human Consequences at Automakers 35 Resources 51 Nature of Strategy and HR Forecasting the Supply of Human Management 36 Resources 52 Strategic Success with HR Practices 37 Succession Planning 52 Operationalizing HR Strategy 38 Workforce Realignment 53 Using Human Resources as a Core Managing a Human Resources Surplus 53 Competency 38 Outplacement Services 55 Organizational Culture and HR 38 Managing a Shortage of Employees 55 HR as Organizational Contributor 40 HR Planning in Mergers and Organizational Productivity 40 Acquisitions 56 Customer Service and Quality Linked to Revising the Structure 57 HR Strategies 41 Measuring Effectiveness Using HR HR Effectiveness and Financial Metrics 58 Performance 42 Developing and Using HR Metrics 58 Global Competitiveness and Strategic Measures of Strategic HR Effectiveness 58 HR 42 HR Measurement and Benchmarking 61 Types of Global Organizations 42 HR Audit 61 Global Legal and Political Factors 43 Global Cultural Factors 43 Summary 62 Global Economic Factors 44 Review and Application Questions 62 Human Resource Planning 45 Case: Xerox Focuses on HR 63 HR Planning Responsibilities 45 Supplemental Case: Where Do You Find Small Businesses and HR Planning 46 the Bodies? 63 HR Planning Process 46 Notes 63 Scanning the External Environment 47 Government Infl uences 48 Economic Conditions 48 CHAPTER 3 Geographic and Competition Concerns 48 Organization/Individual Relations Workforce Composition 48 and Retention 66 HR Best Practices Mattel Assesses Its Management 49 HR Headline Applebee’s Turnover Recipe 67 Assessing the Internal Workforce 49 Individual/Organizational Jobs and Skills Audit 49 Relationships 68 Organizational Capabilities Inventory 50 The Psychological Contract 68 Using a Skills Database 50 Generational Differences 69 Contents xi Job Satisfaction, Loyalty, and Employee Turnover 83 Commitment 70 Types of Employee Turnover 84 Loyalty and Organizational Commitment 70 Turnover and “Churn” 85 Individual Employee Performance 71 HR Metrics: Measuring Absenteeism and Individual Performance Factors 71 Turnover 85 Individual Motivation 72 Measuring Absenteeism 85 Management Implications for Motivating Measuring Turnover 86 Individual Performance 73 Managing Retention 87 HR Perspective Nucor Steel Motivates Global Retention 88 Employees 73 Retention Measurement and Retention of Human Resources 74 Assessment 89 Myths About Retention 74 HR On-the-Job Conducting Exit Why People Stay or Leave 74 Interviews 89 Drivers of Retention 75 Retention Management Interventions 90 Characteristics of the Employer 76 Retention Evaluation and Follow-Up 90 Job Design/Work 77 Summary 92 Career Opportunities 78 Review and Application Questions 92 HR Online Opportunities for Promotion 79 Case: Alegent Health 93 Rewards 80 Supplemental Case: The Clothing Employee Relationships 81 Store 93 Employee Absenteeism 81 Notes 94 Types of Absenteeism 82 Controlling Absenteeism 82 SECTION 2 STAFFING THE ORGANIZATION 97 CHAPTER 4 HR Perspective Hidden or Implicit Bias and Legal Framework of Equal Employment Discrimination 102 Employment 98 Equal Employment Opportunity Concepts 102 HR Headline Paying for Employment Progressing Toward Equal Employment Discrimination 99 Opportunity 105 Nature of Equal Employment Opportunity Major Equal Employment Laws 105 (EEO) 100 Civil Rights Act of 1964, Title VII 105 Disparate Treatment 101 Executive Orders 11246, 11375, and Disparate Impact 101 11478 107 xii Contents Civil Rights Act of 1991 107 Race, National Origin, and Citizenship Sex/Gender Discrimination Laws and Issues 132 Regulations 107 Race/Ethnic Discrimination 132 HR Perspective Global Employees and EEO 108 Language Issues and EEO 134 Americans with Disabilities Act (ADA) 109 Requirements for Immigrants and Foreign- Born Workers 134 HR Best Practices Recruiting and Retaining Older Workers 112 HR Perspective Employers and Illegal Age Discrimination in Employment Act Immigrants 135 (ADEA) 112 Sex/Gender Issues 135 Other Employment Discrimination Laws Sex Discrimination 135 and Regulations 113 Individuals with Differing Sexual Immigration Reform and Control Acts Orientations 138 (IRCA) 113 Sexual Harassment and Workplace Religious Discrimination 114 Relationships 138 Military Status and USERRA 114 Consensual Relationships and Romance at Other Discrimination Issues 115 Work 138 Pre-Employment Inquiries 116 Nature of Sexual Harassment 139 Uniform Guidelines on Employee HR Online Cyber and Electronic Sexual Selection Procedures 119 Harassment 140 “No Disparate Impact” Approach 119 Age Issues and EEO 142
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