EDITION 1 PRINCIPLES OF HUMAN RESOURCE MANAGEMENT Scott SnelL Professor of Business Administration, University of Virginia Professor Emeritus of Management, Arizona State University SOUTH-WESTERN CENGAGE Learning- Australia • Brazil 'Japan • Korea • Mexico • Singapore • Spain • United Kingdom • United States PART Human Resource Management in Perspective Chapter 1 The Challenge of Human Resources Management 2 Why Study Human Resources Management? 4 Competitive Challenges and Human Resources Management 5 Challenge 1: Competing, Recruiting, and Staffing Globally 5 Challenge 2: Embracing New Technology 7 Highlights in HRM 1: A Guide to HR Internet Sites 8 Highlights in HRM 2: Automation of Talent Management Functions 11 Challenge 3: Managing Change 12 Challenge 4: Managing Talent, or Human Capital 13 Challenge 5: Responding to the Market 15 Challenge 6: Containing Costs 17 Demographic and Employee Concerns 22 Demographic Changes 22 Highlights in HRM 3: Social Issues in HRM 23 Cultural Changes 28 Highlights in HRM 4: Why Diversity? 30 The Partnership of Line Managers and HR Departments 31 Responsibilities of the Human Resources Manager 32 Competencies of the Human Resources Manager 33 Highlights in HRM 5: SHRM Code of Ethical and Professional Standards in Human Resource Management 35 Role of the Line Manager 38 Summary 39 Key Terms 40 Discussion Questions 41 HRM Experience: Balancing Competitive Challenges and Employee Concerns 41 vii Contents Case Study 1: A Chip off the Rock: Outsourcing HR at Prudential 42 Case Study 2: Managing "Daddy Stress" at Baxter Healthcare 43 Notes and References 45 Chapter 2 Strategy and Human Resources Planning 48 Strategic Planning and Human Resources 50 Strategic Planning and HR Planning: Linking the Processes 51 Step One: Mission, Vision, and Values 51 Step Two: Environmental Analysis 53 Competitive Environment 53 Step Three: Internal Analysis 57 The Three Cs: Culture, Capabilities, and Composition 57 Forecasting: A Critical Element of Planning 61 Highlights in HRM 1: HR Planning and Strategy Questions to Ask Business Managers 64 Assessing a Firm's Human Capital Readiness: Gap Analysis 67 Highlights in HRM 2: Succession-Planning Checklist 68 Step Four: Formulating Strategy 70 Corporate Strategy 70 Business Strategy 72 Highlights in HRM 3: Key HR Activities Associated with Merger or Acquisition Phases 73 Functional Strategy: Ensuring Alignment 75 Step Five: Strategy Implementation 76 Taking Action: Reconciling Supply and Demand 77 Step Six: Evaluation and Assessment 79 Evaluation and Assessment Issues 79 Highlights in HRM 4: Ten Measures of Human Capital 80 Measuring a Firm's Strategic Alignment 81 Ensuring Strategic Flexibility for the Future 82 Summary 84 Key Terms 85 Discussion Questions 85 HRM Experience: Customizing HR for Different Types of Human Capital 86 Contents IX Case Study 1: Misplaced Affections: Discharge for Sexual Harassment 87 Case Study 2: A "Bad Hair Day" or Religious Custom? 89 Notes and References 90 Appendix: Calculating Turnover and Absenteeism 93 Employee Turnover Rates 93 Computing the Turnover Rate 93 Determining the Costs of Turnover 94 Employee Absenteeism Rates 94 Computing Absenteeism Rates 94 Highlights in HRM 5: Costs Associated with the Turnover of One Computer Programmer 95 Comparing Absenteeism Data 96 Costs of Absenteeism 96 Absenteeism and HR Planning 96 Notes and References 97 PART Meeting Human Resources Requirements Chapter 3 Equal Employment Opportunity and Human Resources Management 98 Historical Perspective of EEO Legislation 101 Changing National Values 101 Economic Disparity 102 Early Legal Developments 102 Government Regulation of Equal Employment Opportunity 102 Major Federal Laws 103 Highlights in HRM 1: Test Your Knowledge of Equal Employment Opportunity Law 104 Other Federal Laws and Executive Orders 114 Fair Employment Practice Laws 115 Other Equal Employment Opportunity Issues 116 Sexual Harassment 116 Highlights in HRM 2: Questions Used in Auditing Sexual Harassment 118 Contents Highlights in HRM 3: Basic Components of an Effective Sexual Harassment Policy 119 Sexual Orientation 120 Immigration Reform and Control 120 Uniform Guidelines on Employee Selection Procedures 121 Enforcing Equal Employment Opportunity Legislation 124 The Equal Employment Opportunity Commission 124 Record-Keeping and Posting Requirements 125 Highlights in HRM 4: 2007 EEO-1 Survey 127 Processing Discrimination Charges 128 Highlights in HRM 5: EEOC Poster 129 Highlights in HRM 6: EEOC Guidelines on Retaliation 131 Preventing Discrimination Charges 132 Diversity Management: Affirmative Action 133 Establishing Affirmative Action Programs 133 Highlights in HRM 7: Basic Steps in Developing an Effective Affirmative Action Program 134 Managing Diversity: Affirmative Action 135 Summary 137 Key Terms 138 Discussion Questions 138 HRM Experience: Sexual Harassment: A Frank Discussion 139 Case Study 1: Building a Stealth Fighter with Virtual Teams 140 Case Study 2: Empty Cubicles: How Would You Manage the Vacancy? 141 Appendix: Determining Adverse Impact 143 Notes and References 144 Chapter 4 Job Analysis, Employee Involvement, and Flexible Work Schedules 148 Relationship of Job Requirements and HRM Functions 150 Recruitment 150 Selection 151 Training and Development 151 Performance Appraisal 151 Compensation Management 151 Contents XI Job Analysis 152 Job Analysis and Essential Job Functions 152 Gathering Job Information 153 Controlling the Accuracy of Job Information 154 Approaches to Job Analysis 155 Job Descriptions 158 Highlights in HRM 1: Job Description for an Employment Assistant 159 Problems with Job Descriptions 161 Writing Clear and Specific Job Descriptions 161 , Job Design 162 Behavioral Concerns 162 Highlights in HRM 2: Empowered Employees Achieve Results 165 Industrial Engineering Considerations 166 Ergonomic Considerations 167 Designing Work for Group/Team Contributions 168 Flexible Work Schedules 174 Highlights in HRM 3: How to Request a Flexible Work Schedule 175 Summary 179 Key Terms 180 Discussion Questions 180 HRM Experience: Establishing Ground Rules for Team Success 180 Case Study 1: Human Resources Planning at Donna Karan International 182 Case Study 2: Moen's Recruiting Faucet 183 Notes and References 184 PART Developing Effectiveness in Human Resources Chapter 5 Expanding the Talent Pool: Recruitment and Careers 186 Recruiting Talent Externally 188 Highlights in HRM 1: Marriott's Recruitment Principles 189 Outside Sources for Recruitment 190 The Global Labor Market 198 Improving the Effectiveness of External Recruitment 198 Recruiting Talent Internally 200 Xii Contents Advantages and Limitations of Recruiting from Within 201 Methods for Identifying Qualified Candidates 202 Career Management: Developing Talent over Time 205 The Goal: Matching Individual and Organizational Needs 206 Identifying Career Opportunities and Requirements 207 Highlights in HRM 2: Career Path of Jeffrey Immelt, CEO, General Electric 210 Career Development Initiatives 214 Developing a Diverse Talent Pool 220 Recruiting and Developing Women 221 Eliminating Women's Barriers to Advancement 221 Glass Ceiling Audits 223 Preparing Women for Management 223 Accommodating Families 224 Recruiting and Developing Minorities 224 Providing Minority Internships 225 Advancing Minorities to Management 225 Highlights in HRM'3: Diversity Recruitment That Works 226 Other Important Talent Concerns 227 Recruiting the Disabled 227 Less Publicized Disadvantages 229 Highlights in HRM 4: Resources and Tips for Hiring and Retaining Employees with Disabilities 229 Employing the Older Workforce 231 Employing Dual Career Couples 232 Summary 233 Key Terms 234 Discussion Questions 234 HRM Experience: Career Management 235 Case Study 1: Nike: Hiring Gets Off on the Right Foot 235 Case Study 2: Small Companies Need Diversity Too 237 Notes and References 238 Appendix: Personal Career Development 241 Developing Personal Skills and Competencies 241 Choosing a Career 241 Highlights in HRM 5: Career Competencies at Caterpillar 242 Contents Use of Available Resources 242 Accuracy of Self-Evaluation 243 The Significance of Interest Inventories 243 Highlights in HRM 6: Campbell Interest and Skill Survey: Individual Profile 244 Evaluating Long-Term Employment Opportunities 246 Choosing an Employer 246 Questions to Ask Yourself Before You Accept a Job Offer 247 Becoming an Entrepreneur 247 Keeping a Career in Perspective 248 Developing Off-the-Job Interests 248 Balancing Marital and/or Family Life 249 Planning for Retirement 249 Key Term 250 Notes and References 250 Chapter 6 Employee Selection 252 Matching People and Jobs 254 Person-Job Fit: Beginning with Job Analysis 255 Person-Organization Fit 255 The Selection Process 255 Obtaining Reliable and Valid Information 256 Sources of Information about Job Candidates 259 Application Forms 260 Online Applications 262 Biographical Information Blanks 262 Background Checks 263 Highlights in HRM 1: Sample Reference-Checking Questions 265 Polygraph Tests 267 Honesty and Integrity Tests 267 Graphology 268 Medical Examinations 269 Drug Testing 269 Employment Tests 271 Nature of Employment Tests 271 Highlights in HRM 2: Best Practices for Employee Testing and Selection 272 Classification of Employment Tests 272 Contents The Employment Interview 277 Interviewing Methods 277 Highlights in HRM 3: Sample Situational Interview Question 279 Highlights in HRM 4: iring Managers Reveal Top Five Biggest Mistakes Candidates Make During Job Interviews in CareerBuilder. com Survey 280 Guidelines