WEBFFIRS 04/03/2017 18:59:21 Page i A GUIDE TO THE HUMAN RESOURCE BODY OF KNOWLEDGETM (HRBoKTM) WEBFFIRS 04/03/2017 18:59:21 Page ii WEBFFIRS 04/03/2017 18:59:21 Page iii AGUIDETOTHE HUMAN RESOURCE BODY OF KNOWLEDGETM (HRBoKTM) SANDRA M. REED, SPHR WEBFFIRS 04/03/2017 18:59:21 Page iv Cover design: Wiley Cover image: naqiewei/Getty Images Copyright 2017 by Human Resources Certification Institute, Inc. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. 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Some material included with standard print versions of this book may not be included in e-books or in print-on-demand. If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com. For more information about Wiley products, visit www.wiley.com. Library of Congress Cataloging-in-Publication Data Names: Reed, Sandra M., author. Title: A guide to the human resource body of knowledge / Sandra Reed. Description: Hoboken, New Jersey : John Wiley & Sons, Inc., [2017] | Includes bibliographical references. | Identifiers: LCCN 2017007870 (print) | LCCN 2017013310 (ebook) | ISBN 9781119374893 (pdf) | ISBN 9781119374916 (ePub) | ISBN 9781119374886 (cloth) | ISBN 9781119374930 (oBook) Subjects: LCSH: Personnel management. Classification: LCC HF5549 (ebook) | LCC HF5549 .R447 2017 (print) | DDC 658.3–dc23 LC record available at https://lccn.loc.gov/2017007870 Printed in the United States of America 10987654321 WEBFFIRS 04/03/2017 18:59:21 Page v As always, I must dedicate this work to C3, who continue to be the inspiration for every single decision I make. To Christopher, thank you for believing in me and celebrating the big moments in my life, even when I stubbornly cling to my wallflower status. To my Rowdy friends, thank you for force-feeding me balance (and alternative housing in rainstorms) when I need it the most. Eachofyouhasgivenmeaparticulartypeoflove,support, and encouragement, allowing me to live a life of passion. My wish for each of you is an abundance of the same. WEBFFIRS 04/03/2017 18:59:21 Page vi WEBFTOC 04/03/2017 16:20:14 Page vii Contents Acknowledgments xi Acknowledgments from the First Edition xiii About the Author xv Foreword HR Rising to the Opportunity xvii Dave Ulrich HR Career Mosaic xviii HR Certification and Competencies xix Conclusion xxiii Notes xxiii Chapter 1 The Human Resource Body of Knowledge: HRBoKTM 1 The Building Blocks 1 The HR Profession 4 The Age of Organizational Behavior 10 Structuring Human Resource Departments 11 The Development of HR Competencies 17 HRBoK TM 31 Notes 32 Chapter 2 Business Management and Strategy 33 Introduction 33 General Business Principles 35 HR as a Strategic Partner 51 Organizational Development (OD) 80 The Role of HR 98 Suggested Study or Organizational Audit Activities 106 References 106 vii WEBFTOC 04/03/2017 16:20:14 Page viii viii Contents Chapter 3 Workforce Planning and Employment 109 Introduction 111 Workforce Planning: A Cascading Strategy 111 Recruiting: Characteristics of People 124 The Separation Process 156 Metrics 157 Succession Planning 160 Global Workforce Planning 161 Suggested Study or Organizational Audit Activities 169 Notes 170 References 170 Chapter 4 Human Resource Development 171 Introduction 174 Employee Training 175 Theories of Motivation 184 Instructional Design 191 Talent Management 204 Employee Development 216 Metrics 229 Suggested Study or Organizational Audit Activities 234 Case Study—Measuring Return on Investment in HR: A Global Initiative for HR Strategy, by Jack Phillips and Patti Phillips 235 References 243 Chapter 5 Compensation and Benefits 245 Case Study—Organizational Justice: The Case for Organizational Justice, by Katrina P. Merlini 245 Introduction 250 Strategic Compensation 251 Designing Pay Systems 260 Employee Benefit Programs 269 Compensation and Benefits Outsourcing 275 Expatriate Compensation 275 Executive Compensation 279 Metrics 285 Suggested Study or Organizational Audit Activities 285 Chapter 6 Employee and Labor Relations 287 Introduction 288 Managing the Employee-Employer Relationship 289 Employee Communication and Feedback 296 WEBFTOC 04/03/2017 16:20:14 Page ix Contents ix Discipline and Terminations 300 Managing the Union Relationship 306 Suggested Study or Organizational Audit Activities 317 Note 317 Chapter 7 Risk Management 319 Introduction 321 A Focus on Compliance 322 Risk Assessments 323 Injury and Illness Prevention Programs 331 Return to Work Programs 335 A Focus on Prevention 336 Employee Communication and Safety Training 347 Risk Management Techniques 347 Metrics 348 Suggested Study or Organizational Audit Activities 348 Appendix A Alphabetical Listing of Legal Issues 351 Affirmative Action Plans (AAPs) 351 Age Discrimination in Employment Act of 1967 (ADEA) 357 Americans with Disabilities Act of 1990 (ADA) 359 Australian Federal Privacy Act of 1988 361 Civil Rights Act of 1964 (Title VII) 361 Common Law Doctrines 365 Copyright Act of 1976 369 Davis-Bacon Act of 1931 370 Drug-Free Workplace Act of 1988 370 EEO Survey 371 Employee Retirement Income Security Act of 1974 (ERISA) 374 Executive Orders 381 Fair Credit Reporting Act of 1970 (FCRA) 382 Fair Labor Standards Act of 1938 (FLSA) 383 Family and Medical Leave Act of 1993 (FMLA) 395 Foreign Corrupt Practices Act of 1977 408 Genetic Information Nondiscrimination Act of 2008 (GINA) 409 Glass Ceiling Act of 1991 410 Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (IIRIRA) 411 Immigration Reform and Control Act of 1986 (IRCA) 411 International Labour Organization (ILO) 414 International Trade Organizations 415 Mine Safety and Health Act of 1977 (MSHA) 416 WEBFTOC 04/03/2017 16:20:14 Page x x Contents Occupational Safety and Health Act of 1970 (OSHA) 417 Organisation for Economic Co-operation and Development (OECD): Guidelines for Multinational Enterprises (MNEs) 430 Patient Protection and Affordable Care Act of 2010 (PPACA, ACA, Obamacare) 431 Pension Protection Act of 2006 (PPA) 432 Privacy Act of 1974 432 Privacy Shield and Safe Harbor Frameworks 433 Rehabilitation Act of 1973, Sections 501, 503, and 505 434 Sarbanes-Oxley Act of 2002 (SOX) 434 Service Contract Act of 1965 (SCA) 435 Sexual Harassment 435 Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) 439 United Kingdom Bribery Act of 2010 442 United States Patent Act of 1790 442 Wage Garnishment Law, Federal 443 Walsh-Healey Public Contracts Act of 1936 443 Worker Adjustment Retraining and Notification Act of 1988 (WARN) 444 Workers’ Compensation 445 Quick Reference Guide: Agencies, Court Cases, Terms, and Laws; General Record-Keeping Guidelines 446 Appendix B Four Steps to Domestic Certification 457 Appendix C Four Steps to Global Certification 461 Appendix D Some Questions You May Have About Form I-9 465 Appendix E Sample Affirmative Action Plan 477 Appendix F OSHA Form 300 515 Appendix G HRCI’s Ethical Standards 529 Professional Responsibility 529 Professional Development 530 Ethical Leadership 530 Fairness and Justice 530 Conflicts of Interest 531 Use of Information 531 Appendix H Glossary of Terms 533 Index 573 WEBFACK 04/03/2017 18:49:5 Page xi Acknowledgments The industry of human resources (HR) has many voices, several of which are repre­ sented in this work. The construction and deconstruction of the ideas contained here are intended to be a reflection of the work of passionate and dedicated HR practitioners around the globe. While sure to inspire conversation and debate, the primary purpose of this volume is to serve those practitioners—guiding new careers, providing insights on the application of HR principles, accompanying the preparation efforts of certifica­ tion seekers, and offering perspectives on the past, present, and future of our field. Critical to these aims are the subject matter experts who juggled tight dead­ lines, travel commitments, teaching and work schedules, the holidays, sickness, and my incessant e-mails and questions in review of the content for accuracy and clarity. While any errors to the content are certainly my own, I offer my sincere thanks to the following reviewers for their thoughtful guidance and expertise: Pantelis Markou, PhD Cameron Evans, JD Vice President of Human Resources, President Adjunct Professor of Business Evans Law Group, PC Psychology Mikimoto America Co.