Home Uncategorized Creative thinking and synthesis.

Uncategorized

Creative thinking and synthesis.

One-Pager Assignment

Synthesis One-Pager: Given the topics, discussions, conferences, etc. throughout the course; identify what issues are important in human resources. This is different from a one-page written paper. It requires creative thinking and synthesis.

Directions: Create a One-Pager to synthesize our learning on issues in human resource topics. Your one-pager must have the following components

Give your one-pager a title – Put the title at the top of your one-pager. Be sure that it stands out reflects the essence of your page
Present at least 2 visual images of human resource topics.
Include 2 quotes from class readings.
Write 2 quotes from 2 other separate sources that connect with the concepts of your one-pager (these quotes can be from any 2 sources such as other readings or material from other classes, news, movies, the web, data bases, your own experiences, or real life. Include the sources of the quotes.
Include 2 original statements from you (discussion posts, conferences, etc.) in green font.
Include 2 questions regarding human resources you still have red font (your questions can be rhetorical, factual, convergent, divergent, or evaluative).
Include 2 or more paraphrased quotes related to issues in human resources management spoken by members of our class during discussions or conferences (include source).
We can attach our one-pager when we reply to the discussion thread.

For full credit, you are required to review and respond to a minimum of two classmates. Your one-pager needs to be posted by Wednesday at midnight. Your responses can be in written format. Please begin your reply by addressing the student by name. Your responses must be completed by Friday at midnight.

CHAPTER 1

Human Resource Management
in Organizations

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Objectives
Understand human resource management and define human capital
Identify how human resource management and employees can be core competencies for organizations
Name the seven categories of H R functions
Provide an overview of four challenges facing H R today

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Objectives (continued)
Explain how ethical issues in organizations affect H R management
Explain the key competencies needed by H R professionals and why certification is important

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Human Resource (H R) Management
Designing formal systems in an organization to manage human talent for accomplishing organizational goals
Roles
Selecting, training, rewarding, managing, and retaining employees

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Why Organizations Need H R Management
Assists organizations in achieving higher:
Profits
Stock price
Productivity
Assists organizations in adapting to:
A globalized workforce
Age diversity
Deals with government regulations

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Core Competency and Organizational Assets
Core competency: Unique capability that creates high value for a company
Organizational assets
Physical assets
Financial assets
Intellectual property assets
Human assets

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Human Capital
Human capital: The collective value of the capabilities, knowledge, skills, life experiences, and motivation of an organization’s workforce
Called intellectual capital to reflect employees’ contributions
Ability-motivation-opportunity (A M O) model
H R practices that lead to greater skill, greater motivation, and greater opportunity for workers to contribute to the organization

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Productivity
Productivity: Measure of the quantity and quality of work done, considering the cost of the resources used
Unit labor cost: Computed by dividing the average cost of workers by their average levels of output
Can be improved by organizational restructuring, redesigning work, aligning H R activities, and outsourcing analyses

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Customer Service, Quality, and Innovation
H R assists managers and employees in focusing on customers’ needs
Contributes significantly to achieving organizational goals and maintaining a competitive advantage
Innovation: Process whereby new ideas are generated that create value for an organization
Facilitated by selection of appropriate talent, training, and sharing of knowledge

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Organizational Culture
Shared values and beliefs that give members of an organization meaning and provide them with rules for behavior
Is constant and enduring
Comprises the organizational social environment within a firm
Affects service and quality, organizational productivity, and financial results

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
H R Functions
Strategy and planning
Equal employment opportunity
Talent acquisition
Talent management
Total rewards
Risk management and worker protection
Employee and labor relations

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Roles for Human Resource Departments
Administrative
Focusing on clerical administration, recordkeeping, legal paperwork, and policy implementation
Operational and employee advocate
Managing H R activities based on the strategies and operations identified by management
Strategic
Helping define and implement business strategies

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Mix of Roles for H R Departments
Prioritization in the past
Strategic
Operational and employee advocate
Administrative
Prioritization in the future
Administrative
Operational and employee advocate
Strategic

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
H R Management Challenges
Competition, cost pressures, and restructuring
Globalization
A changing workforce
Human resource and technology

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Competition, Cost Pressures, and Restructuring
Job shifts
Gig economy: Most work is performed by freelance workers rather than full-time employees
Skill shortages
Inadequate supply of workers with the skills needed to perform emerging jobs
Major improvements need to be made to educational systems in the United States

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Globalization
Globalization of businesses has shifted from trade and investment to the integration of:
Global operations
Management
Strategic alliances
Globalized firms face difficulties in certain areas
Strategy, people, complexity, and risk

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
A Changing Workforce
Racial and ethnic diversity
Racial and ethnic minorities account for a growing percentage of the overall labor force
Gender in the workforce
Women may be a majority in certain occupations in the U.S. workforce
Age considerations
Many employees may retire in the near future
Millennials may represent 75 percent of the workforce by 2025

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Benefits and Challenges of Technology
Helps in strategic H R planning
Improves administrative and operational efficiency of H R functions
Reduces costs
Supports recruitment, selection, and training
Challenge – Overreliance may negatively impact learning

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Technology Trends
Mobile devices
A D P Mobile – Individuals can view employee information and perform other H R functions
H R leaders should encourage the use of mobile devices with B Y O D policies
Social media: Online communities where users create and share content and participate in networking
Negative comments by employees may affect a firm’s reputation

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
H R and Organizational Ethics
Areas for potential ethical problems in H R
Compensation, development, staffing, performance management, E E O, and training
Ethical or unethical treatment of employees influences the following organizational parameters
Job satisfaction, turnover, absenteeism, commitment, job performance, and ethical decisions

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Ethical Culture and Practices
Programs that emphasize ethical behavior
Written code of ethics
Ethical behavior training
Advice on ethical situations
Confidential reporting systems
Public recognition and recommendation for ethical behavior

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Ethics and Global Differences
Differences in legal, political, and cultural values and practices in different countries exist
Global employers must comply with both their home-country laws as well as the laws of other countries

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Role of H R in Organizational Ethics
Legal question
Does the behavior or result meet all applicable laws, regulations, and government codes?
Ethical question
Does the behavior or result meet both organizational standards and professional standards of ethical behavior?
H R management plays a key role as the keeper and voice of organizational ethics

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Examples of H R-Related Ethical Misconduct
Compensation
Misrepresenting hours and time worked
Falsifying work and reports
Employee relations
Employees lying to supervisors and coworkers
Misusing or stealing organizational assets and supplies
Staffing and equal employment
Sexual harassment of other employees

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
H R Management Competencies
H R professionals need to be:
Strategic positioners
Credible activists
Capacity builders
Change champions
Innovators and integrators
Technology proponents

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Figure 1-10:
S H R M H R
Competency
Model
Applicable only to examinees testing within the United States
Source: www.shrm.org

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
H R Management as a
Career Field
H R generalist: A person who has responsibility for performing a variety of H R activities
H R specialist: A person who has in-depth knowledge and expertise in a specific area of H R

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Human Resource Professionalism
and Certification
H R professionals require considerable knowledge about the legal and operational aspects of managing the human resources in an organization
Earning a certification is an important step in establishing proficiency and credibility
Continued education and recertification are equally important to effectively manage H R programs and practices

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
H R Organizations
Society for Human Resource Management (S H R M)
International Personnel Management Association for Human Resources (I P M A – H R)
World Federation of People Management Associations (W F P M A)
WorldatWork Association
Association for Talent Development (A T D)

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
H R Certifications
H R C I certification
Professional in Human Resources (P H R)
Senior Professional in Human Resources (S P H R)
SHRM exams and certification
WorldatWork certifications
Certified Compensation Professional (C C P)
Master Certified Compensation Professional (M C C P)

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
H R Certifications (continued)
Certified Benefits Professional (C B P)
Work-Life Certified Professional (W L C W)
Global Remuneration Professional (G R P)
Other certifications
Certified Recognition Professional (C R P)
Certified Employee Benefits Specialist Program (C E B S)
Certified Professional in Learning and Performance (C P L P)

H U M A N R E S O U R C E
MANAGEMENT
VA L E N T I N E M E G L I C H M AT H I S J A C K S O N
SIXTEENTH EDIT ION

CHAPTER 2

Human Resource Strategy
and Planning

Learning Objectives
Summarize the organization’s strategic planning process
Outline how H R’s strategies are merged with organizational strategies and give two examples
Discuss how to forecast the supply and demand of human resources

Learning Objectives (continued)
List options for handling imbalances in the workforce
Explain the importance of human resource consideration during mergers and acquisitions
Identify how organizations can measure and analyze the effectiveness of H R management practices

Strategy and Strategic Planning
Strategy: A plan an organization follows for how to compete successfully, survive, and grow
Strategic planning: Defining organizational strategy, or direction, and allocating resources toward its achievement

Strategic Planning Process for the Organization
Organizational mission
SWOT analysis
Establish goals and objectives
Formulate organizational strategies
Formulate supporting functional strategies
Implement
Evaluate and reassess

Strategic Planning
Guided by organizational mission, which is the core reason for the existence of the organization and what makes it unique
Planning cycle takes three to five years
Analyzes strengths, weaknesses, opportunities, and threats
Considers internal and external forces
Managers determine objectives and formulate strategies to meet objectives

Strategic H R Management
The appropriate use of H R management practices to gain or keep a competitive advantage
Provides input for strategic planning and develops specific H R initiatives to help achieve organizational goals

Strategic H R Management (continued)
H R can support organizational strategy by:
Hiring good employees
Placing employees in the right jobs
Rewarding employees fairly
Providing proper training
Fostering good employer–employee communication
Focusing employee efforts and rewards toward the company’s bottom line

Figure 2-3: Positioning H R to Be a Strategic Partner
Source: Adapted from Torben Juul Anderson and Dana Minbaeva, “The Role of Human Resource Management in Strategy Making,” Human Resource Management 52 (2013), 809–827.

H R Contributions to Strategy
Provide perspective and expertise by:
Having a seat at the strategic table
Being knowledgeable about business operations
Focusing on the future
Prioritizing business goals
Understanding what to measure

Figure 2-4: H R Department’s Contribution to Organizational Sustainability
Source: Adapted from Cathy L. Z. Dubois and David A. Dubois, “Strategic HRM as Social Design for Environmental Sustainability in Organization,” Human Resource Management 51 (2012), 799–826.

H R Strategies for Global Competitiveness
Multinational corporations need expertise to administer H R activities in a wide range of nations to compete on an international scale
Multinational corporation (M N C): An organization that has facilities and other assets in at least one country other than its home country
Organizations use offshoring, which is relocation of a business process or operation from one country to another, to respond to global labor conditions

Human Resource Planning
Analyzes and identifies the need for and availability of people so that the organization can meet its strategic objectives
Ensures the right number of people with the right capabilities at the right times and in the right places

Figure 2-5: H R Planning Process

Environmental Scanning
Assesses external and internal environmental conditions that affect the organization
External environment
Economic, political, and competitive forces
Internal environment
Quality and quantity of talent
Organizational culture
Talent pipeline and leadership bench strength
Helps identify strengths, weaknesses, opportunities, and threats

H R Factors in the SWOT Analysis
Strengths
Intellectual capital
Loyal, committed employees
Innovative, adaptive employees
High-performance practices
Weaknesses
Lack of skilled employees
Lack of leadership pipeline
Outdated talent management practices

H R Factors in the SWOT Analysis (continued)
Opportunities
Market position
Unexplored markets
Global expansion
Technology advances
Threats
Legal mandates and restrictions
Competitor power
Economic uncertainty
Talent shortage

Succession Planning
Process of identifying a plan for the orderly replacement of key employees
Ensures high-quality talent will be available to carry out business strategies

Factors Affecting External Workforce Availability
Economic and Governmental Factors
Government regulations affect labor supply
Tax legislation at local, state, and federal levels affects H R planning
Geographic and Competitive Evaluations
Net migration
Direct competitors
International competition

Factors Affecting External Workforce Availability (continued)
Changing Workforce Considerations
Aging of the workforce
Growing diversity of workers
Female workers and work–life integration concerns
Availability of contingent workers
Outsourcing possibilities

Factors Affecting Internal Workforce Availability
Current and Future Jobs Audit
Type of existing jobs
Number of individuals performing each job
Reporting relationships of jobs
Vital K S A s (knowledge, skills, abilities)
Jobs needed to implement future organizational strategies
Characteristics of anticipated jobs

Factors Affecting Internal Workforce Availability (continued)
Employee and Organizational Capabilities Inventory
Employee demographics
Individual competencies (K S A s)
Career progression
Performance data

Forecasting
Uses information from the past and present to predict future conditions
Subject to error and to changing conditions

H R Forecasting Methods
Qualitative Methods (Subjective)
Estimates
The rule of thumb
The Delphi technique
Nominal groups
Quantitative Methods (Mathematical)
Statistical regression analysis
Simulation models
Productivity ratios
Staffing ratios

H R Forecasting Planning Periods
Short-range: forecasts for the immediate H R needs of an organization
Intermediate-range: plans projecting one to three years into the future
Long-range: plans extending beyond three years

Forecasting External Supply of Employees
Factors to be considered while ascertaining external supply
Net migration into and out of the area
Individuals entering and leaving the workforce
Individuals graduating from schools and colleges
Changing workforce composition and patterns
Economic forecasts for the next few years
Technological developments and shifts
Actions of competing employers
Government regulations and pressures
Circumstances affecting persons entering and leaving the workforce

Figure 2-8: Estimating Internal Labor Supply for a Given Unit

Managing Talent Supply Imbalances
Managing a Talent Surplus
Reduce employee work hours or compensation
Attrition
Hiring freezes
Voluntary separation programs
Workforce downsizing/reduction in force (R I F)
Managing a Talent Shortage
Increase employee work hours through overtime
Outsource to a third party
Implement alternative work arrangements
Use contingent workers (temporaries, independent contractors)
Reduce employee turnover

Best Practices to Carry Out Layoffs
Identify the work that is core to sustaining a profitable business
Identify the knowledge, skills, and competencies needed to execute the business strategy
Protect the bottom line and the corporate brand
Constantly communicate with employees
Pay attention to the survivors

Severance Benefits and Outplacement Services
Severance benefits: Temporary payments made to laid-off employees to ease the financial burden of unemployment
Outplacement services: give displaced employees support and assistance
Personal career counseling
Résumé-preparation services
Interviewing workshops
Referral assistance

Legal Considerations for
Workforce Reductions
Selection Criteria for Laying Off
Title 7 of the Civil Rights Act
Age Discrimination in Employment Act
Americans with Disabilities Act
Other Regulations
Consolidated Omnibus Budget Reconciliation Act (C O B R A)
Older Workers Benefit Protection Act (O W B P A)
Worker Adjustment and Retraining Notification (W A R N) Act

Ways to Manage a Talent Shortage
The following are in a common order of usage:
First — Use overtime
Second — Outsource work
Third — Try alternative work arrangements
Fourth — Bring back recent retirees
Fifth — Increase contingent workers
Sixth — Reduce turnover

Managing a Talent Shortage
Outsourcing: Transferring the management and performance of a business function to an external service provider
Alternate Work Arrangements: Nontraditional schedules that provide flexibility to employees

H R Ac tivities during Mergers and Acquisitions
Before the Deal
Conduct due diligence
Assess risks
Identify possible conflicts
During Integration
Address key H R processes
Retain key talent
Recognize cultural differences
Post-Integration
Optimize workforce
Identify and establish new culture

Due Diligence
Due diligence: Comprehensive assessment of all aspects of the business being acquired
Is complex when merger and acquisition involves companies in different countries
H R professionals review issues related to:
Legal compliance
Labor contract obligations
H R policies used in the firm
Available talent and culture

Changing the Organizational Culture
Culture
Define the desired behaviors
Deploy role models
Provide meaningful incentives
Provide clear and consistent messages

Measuring Effectiveness of Human Resources and Human Capital
Effectiveness: Ability of a program, project, or task to produce a specific desired effect or result that can be measured
Efficiency: Degree to which operations are carried out in an economical manner

H R Metrics and Analytics
H R metrics: Specific measures of H R practices
H R analytics: An evidence-based approach to making H R decisions on the basis of quantitative tools and models

Key H R Metrics
H R Staff and Expenses
H R-to-employee ratio
Total H R staff
H R expenses per F T E
Staffing
Number of positions filled
Time to fill
Cost per hire
Annual turnover rate
Compensation
Annual wage and salary increases
Payroll as a percentage of operating expenses
Benefit costs as a percentage of payroll

Key H R Metrics (continued)
Training
Hours of training per employee
Total costs for training
Percentage of employees participating in tuition reimburse-ment program
Retention and Quality
Average tenure of employees
Percentage of new hires retained for 90 days
Performance quality of employees in first year
Development
Positions filled internally
Percentage of employees with career plan

Characteristics of H R Metrics and Analytics
Accurate data can be collected
Measures are linked to strategic and operational objectives
Calculations can be clearly understood
Measures provide information valued by executives
Results can be compared both externally and internally
Measurement data drive H R M efforts

H R Benchmarking and Balanced Scorecard
Benchmarking: Process of comparing an organization’s business results to industry standards or best practices
Balanced scorecard: A framework organizations use to report on a diverse set of performance measures

Figure 2-13:
Balanced Scorecard Framework

Human Capital Effectiveness Measures
Total cost of workforce (T C O W): Takes into account the full cost for all people that contribute work to the organization
Return on investment (R O I): Calculation showing the value of investments in human capital
R O I = C divided by (A + B)

Human Capital Effectiveness Measures (continued)
R O I = C divided by (A+B)
A = Operating costs for a new or enhanced system for the time period
B = One-time cost of acquisition and implementation
C = Value of gains from productivity improvements for the time period

Human Capital Effectiveness Measures (continued 1)
Human capital value added (H C V A): Adjusted operating profitability figure
revenue − (operating expenses [compensation + benefit costs]) divided by (full-time head count)
Human capital return on investment (H C R O I): Amount of profit derived from investment in labor
revenue (operating expenses − [compensation + benefit costs]) divided by (compensation + benefit costs)

Human Capital Effectiveness Measures (continued 2)
Human economic value added (H E V A): Wealth created per employee
(net profit after taxes − cost of capital) divided by (full-time head count)

Human Resources Audit
H R audit: Formal research effort to assess the current state of an organization’s H R practices
Audit areas
Staffing and compensation
Health and safety
Legal compliance
Administrative processes and recordkeeping
Employee retention and benefits

H R Audit Levels
Compliance Audit
Checks recordkeeping on state and federal documentation requirements
Benefit Programs Audit
Reviews regulatory compliance, benefits administration, and reporting
I-9 Audit
Reviews compliance with immigration regulations and the I-9 form requirement

H R Audit Levels (continued)
Specific Program Audit
Reviews specific H R subareas such as compensation, E E O, or training
Full H R Audit
Reviews all of the above plus any and all other H R functions

H U M A N R E S O U R C E
MANAGEMENT
VA L E N T I N E M E G L I C H M AT H I S J A C K S O N
SIXTEENTH EDIT ION

CHAPTER 3

Equal Employment Opportunity

Learning Objectives
Identify the major government agencies that enforce employment discrimination laws
Outline key provisions in the Civil Rights Acts of 1964 and 1991 and compare the two theories of unlawful employment discrimination
Show how women are affected by pay, job assignments, and career issues

Learning Objectives (continued)
Distinguish between the two types of sexual harassment and explain how employers can prevent such misconduct
List key elements of disability discrimination laws
Discuss the legal protections to prevent bias and discrimination based on age, religion, national origin, and other factors

Nature of Equal Employment Opportunity
Employment decisions must be made on the basis of job requirements and worker qualifications
Unlawful discrimination occurs when employment decisions are made based on protected characteristics
Protected characteristics: Individual attributes such as race, age, sex, disability, or religion that are protected under E E O laws and regulations
Equal employment opportunity (E E O): Employment that is not affected by illegal discrimination

Sources of Regulation
and Enforcement
Federal statutes enacted by Congress
State and city governments
Courts
Interpret the laws
Rule on cases

Sources of Regulation
and Enforcement (continued)
Government agencies
Issue guidelines and rules for law implementation
Enforcement bodies for E E O
Equal Employment Opportunity Commission (E E O C) enforces employment laws for employers
Department of Labor (D O L) oversees compliance with employment-related laws

Theories of Unlawful Discrimination
Disparate treatment: Individuals with particular characteristics that are not job related are treated differently from others
Overt and intentional
Follows a pattern or practice

Theories of Unlawful Discrimination (continued)
Disparate impact: When an employment practice that does not appear discriminatory adversely affects individuals with a particular characteristic
Individuals are substantially underrepresented as a result of employment decisions that work to their disadvantage
Unintentional because identical criteria are used, but the results can differ for certain groups
Landmark case: Griggs v. Duke Power (1971)

Equal Employment Opportunity Concepts
Business necessity: Practice necessary for safe and efficient organizational operations
Bona fide occupational qualification (B F O Q)
Legitimate reason an employer can use to exclude persons on otherwise illegal bases of consideration
Burden of proof: Individuals who file suit against employers must establish that illegal discrimination has occurred

Equal Employment Opportunity Concepts (continued)
Sufficient evidence, either factual or statistical, must be provided to the court to support the case and allow the plaintiff to continue with the claim
Retaliation: Punitive actions taken by employers against individuals who exercise their legal rights
To prevent charges of retaliation, employers can:
Create and disseminate an antiretaliation policy
Train supervisors and review performance evaluation
Conduct a thorough internal investigation
Take appropriate action

Civil Rights Act of 1964, Title Seven
States that it is illegal for organizations to discriminate in any way based on a person’s sex, race, national origin, color, and/or religion
Basis for several extensions of E E O law

Coverage of Civil Rights Act
of 1964, Title Seven
All private employers of 15 or more employees
All educational institutions, public and private
State and local governments
Public and private employment agencies
Labor unions with 15 or more members
Joint labor–management committees for apprenticeships and training

The Civil Rights Act of 1991
Requires employers to show that an employment practice is job related for the position and is consistent with business necessity
Creates provision to claim compensatory and punitive damages for the victims of intentional discrimination

Executive Orders 11246, 11375, and 11478
Require federal contractors to take affirmative action to compensate for historical discrimination against women, minorities, and handicapped individuals
Affirmative action: Proactive employment practices to compensate for historical discrimination against minorities

Managing Affirmative Action Requirements
Affirmative Action Program (A A P)
Document that outlines proactive steps the organization will take to attract and hire members of underrepresented groups
Objective
To have the company’s workforce demographics reflect as closely as possible the demographics in the labor market from which workers are recruited

Managing Racial and Ethnic Discrimination Issues
Making sure a hiring organization uses recruitment approaches that secure a diverse applicant pool
Using anonymous application procedures
Adopting policies against harassment of any type
Ethnic jokes, vulgar epithets, racial slurs, and physical actions should be categorized as harassment

Sex/Gender Discrimination Laws
The Pregnancy Discrimination Act (P D A)
Treating maternity leave the same as other personal or medical leaves
Family and Medical Leave Act (F M L A)
Giving up to 12 weeks of unpaid family leave and allowing the individual to return to job

Sex/Gender Discrimination Laws (continued)
The Equal Pay Act
Paying similar wage rates for similar work without regard to gender
Differences in pay between men and women in the same jobs are permitted because of:
Differences in seniority, performance, quality, and/or quantity of production
Factors other than sex, such as skill, effort, and working conditions

Pay Equity
Pay equity: Idea that pay for jobs requiring comparable levels of knowledge, skill, and ability should be similar, even if actual duties differ significantly
Called comparable worth
Reason for enforcement
Continued gap between the earnings of women and men

Steps to Reduce Pay Inequities
Include all benefits that are part of pay to calculate total compensation
Ensure that people know how the pay practices work
Base pay on the value of jobs and performance
Benchmark against local and national markets to make pay structures competitive
Conduct frequent audits

Glass Ceiling
Glass ceiling: Discriminatory practices that have prevented women and minority status employees from advancing to executive-level jobs
Glass elevators: Limits that keep women from progressing only in certain fields

Some Ways to Break the Glass
Establish formal mentoring programs
Provide opportunities for career rotation
Include women and minorities in top management
Establish clear goals for retention and progression of women and minorities
Allow for alternative work arrangements for employees

Sexual Orientation
20 states, the District of Columbia, and many cities have passed laws to protect applicants and employees from discrimination on the basis of sexual orientation
Managers and employees should show respect for individuals undergoing transition surgery and therapy
Can be done by ensuring individual privacy and making the right accommodations when needed

Nepotism and Romance
at Work
Nepotism: Practice of allowing relatives to work for the same employer
Workplace romance
Managers and employers face a dilemma
Whether they should monitor and/or manage these relationships to protect the firm from potential legal complaints or do they simply ignore these relationships
Risky because workplace romances have great potential for causing conflict

Sexual Harassment
Sexual harassment: Unwelcome verbal, visual, or physical conduct of a sexual nature that is severe and affects working conditions or creates a hostile work environment
Can be perpetrated by boss or subordinate
Can be perpetrated by men or women
Goes unreported because victims are embarrassed or concerned about retaliation

Types of Sexual Harassment
Quid pro quo
Sexual harassment that links employment outcomes to the granting of sexual favors
Hostile environment
Sexual harassment occurs when an individual’s work performance or psychological well-being is unreasonably affected by intimidating or offensive working conditions

Sexual Harassment Issues
Gender stereotyping
Electronic sexual harassment
Sexual harassment may occur when employees e-mail each other, visit social networking sites, and access the Internet
Tolerance can vary from country to country

Ways to Prevent Sexual Harassment
Establish a sexual harassment policy
Communicate the policy regularly
Train employees and managers on issues related to sexual harassment
Encourage reporting with a positive culture
Investigate when complaints are voiced and take appropriate action

Disability Discrimination
Rehabilitation Act of 1973 provided for equal employment opportunity for disabled workers and applicants by federal contractors
Americans with Disabilities Act (A D A)
Applies to private employers, employment agencies, and labor unions with 15 or more employees
A D A Amendments Act
Broadens the definition of individuals with disabilities to include anyone with an impairment that limits life functions without regard for medication/prosthetics

Disability Discrimination (continued 1)
Person with a disability
Individual who:
Has a physical or mental challenge that greatly reduces the ability to perform important life functions
Possesses a record of such a challenge or
Is thought to have such a challenge
Individual is considered to have a disability even if corrective measures are taken
Significant life activities and functions include visible activities and internal bodily functions

Disability Discrimination (continued 2)
Mental disabilities: Mental or psychological disorders
Intellectual disability, organic brain syndrome, emotional or mental illness, and specific learning disabilities
Bipolar disorder, depression and anxiety disorder, and temporary impairments
Employees who develop disabilities may shift to jobs where their disabilities do not affect them as much

A D A and Job Requirements
Discrimination is prohibited against individuals with disabilities who can perform the essential job functions
Essential job functions: Fundamental job duties
Reasonable accommodation: Modification to a job or work environment that gives a qualified individual an equal employment opportunity to perform

Determining If a Job Function Is Essential
A job function may be considered essential for any of several reasons
The function may be:
Essential because the reason the position exists is to perform that function
Essential because there is a limited number of employees available who can perform the job function
Highly specialized so that the job incumbent is hired for that expertise or ability to perform the particular function

Determining If a Job Function Is Essential (continued)
Evidence of whether a particular function is essential:
Employer’s judgment as to which functions are vital, and written job descriptions prepared before advertising/interviewing applicants for the job
Amount of time spent on the job performing the function, the consequences of not requiring the incumbent to perform the function, and the terms of a collective bargaining agreement
Work experience of past incumbents in the job and current work experience of incumbents in similar jobs

Undue Hardship
Undue hardship: Significant difficulty or expense imposed on an employer when making an accommodation for individuals with disabilities
General guidelines are provided by the A D A
Determined on a case-by-case basis

Common Means of Reasonable Accommodation
Job reassignment
Employer-provided assistance
Additional training time
Job restructuring
Special equipment
Modified work schedules

Key to Making Reasonable Accommodations
Identifying essential functions
Determining which accommodations are reasonable so the individual can perform core job duties
Architectural barriers should not block access
Work tasks must be assigned or modified to allow performance
Work hours and breaks may be adjusted

A D A Restrictions and
Medical Information
Restrictions prohibit employers from:
Rejecting individuals because of a disability
Asking job applicants any question about current or past medical history until a conditional job offer is made
Using pre-employment medical exams, except for drug testing, until a conditional job offer is made
Medical information must be stored separately and securely

Genetic Bias Regulations
Employers use genetic screening tests to:
Make workers aware of genetic problems
Terminate employees who may make extensive use of health insurance benefits
Genetic Information Nondiscrimination Act
Limits health insurance plans’ use of genetic information
Prohibits employment discrimination on the basis of genetic information

Age Discrimination Laws
Age Discrimination in Employment (A D E A)
Prohibits discrimination against all individuals age 40 or older employed by an organization having 20 or more workers
Older Workers Benefit Protection Act (O W B P A)
Amendment to the A D E A
Protects employees who sign liability waivers for age discrimination in exchange for severance packages

Managing Age Discrimination
Adopting age-neutral selection and promotion practices
Recruiting older people to return to the workforce through part-time and other attractive scheduling options
Employing phased retirement
Phased retirement: Approach that enables employees to gradually reduce their workloads and pay levels

Religion and Spirituality in the Workplace
Religious discrimination: Hostile remarks or refusal to hire individuals with different beliefs
Religious expression: Express religious beliefs at work in a way that does not harass others
Managing religious diversity
Changing an employee’s job tasks or scheduling
Making an exception to dress and grooming rules and making accommodations related to paying union dues or agency fees, prayer, proselytizing, and other forms of religious expression

Immigration and Discrimination
Immigration Reform and Control Act (I R C A)
Requires that employers verify the employment eligibility status of all employees without any discrimination
Requires that each employee must complete an Employment Eligibility Verification (I-9) form within the first three days of employment
E-Verify federal database verifies the employment eligibility of employees
Has broadened visa requirements to accommodate highly skilled employees

Language Issues
E E O C has issued guidelines stating that employers may require workers to speak only English at certain times or in certain situations
The business necessity of the requirements must be justified

Military Status Protections
Vietnam Era Veterans’ Readjustment Assistance Act
Uniformed Services Employment and Reemployment Rights Act (U S E R R A)
U S E R R A Provisions:
Leaves of absence and return to employment rights
Prompt reemployment on return
Protection from discharge and retaliation
Health insurance continuation
Continued seniority rights

Appearance and Weight Discrimination
Employers are allowed to set dress codes and appearance standards as long as they are applied uniformly
Height and weight requirements must be linked to specific job functions

Components of Diversity Training
Legal awareness
Cultural awareness
Sensitivity training

Mixed Results for Diversity Training
May not produce long-term changes in people’s attitudes and behaviors toward others with different characteristics
Has not reduced discrimination and harassment complaints
Perceived as benefiting only women and racial minorities and taking away opportunities for white men

Improving Diversity Training Efforts
Focusing on behavior
Stressing that people can believe whatever they wish, but at work their values are less important than their behaviors
Dealing with diversity is not about what people can and cannot say
It is about being respectful to others

H U M A N R E S O U R C E
MANAGEMENT
V A L E N T I N E M E G L I C H M A T H I S J A C K S O N
S I X T E E N T H E D I T I O N

CHAPTER 4

Workforce, Jobs, and

Job Analysis

Learning Objectives
Explain how the workforce is changing in unpredictable ways
Understand how technology changes jobs and workflow
Define job design and identify common approaches to job design

Learning Objectives (continued)
Discuss how flexible work arrangements help employees achieve work–life integration
Describe job analysis and the steps in the process
List the components of job descriptions

The Workforce Profile
Labor force participation rate: Percentage of the population working or seeking work
Important elements
Age and generational groups
Skill gaps
Improving readiness to work

Nature of Work and Jobs
Work: Effort directed toward accomplishing results
Job: Grouping of tasks, duties, and responsibilities that constitutes the total work assignment for an employee
Workflow analysis: Study of the way work (inputs, activities, and outputs) moves through an organization

Figure 4-4: Workflow Analysis

Job Design and Job Redesign
Job design: Organizing tasks, duties, responsibilities, and other elements into a productive unit of work
Influences performance
Affects overall job satisfaction
Impacts both physical and mental satisfaction
Job redesign: Changing existing jobs in different ways to improve them

Figure 4-5: Some Characteristics
of Jobs and People

Types of Employees
Full-Time Employees
Part-Time Employees
Independent Contractors
Temporary Workers
Contingent worker: Not a full-time employee but is a temporary or freelance worker for a specific period of time and type of work

Person–Job Fit
Person–job fit: Matching the characteristics of people with the characteristics of jobs
Based on the match between individual characteristics and the unchangeable components of a job
Different people will find that they fit different kinds of work in unique ways

Common Approaches to
Job Design
Job simplification: Breaking a more complex job into relatively small subparts
Job enlargement: Broadening the scope of a job by expanding the number of different tasks that are performed
Job enrichment: Increasing the depth of a job by adding responsibility for planning, organizing, controlling, and/or evaluating the job
Job rotation: Process of shifting a person from job to job

Characteristics of Jobs to Consider in Design
Skill variety: Work requires several activities for successful completion
Task identity: Job includes a recognizable unit of work that is carried out from start to finish
Task significance: Impact the job has on other people
Autonomy: Individual freedom and discretion in the work and its scheduling
Feedback: Amount of information employees receive about how well or how poorly they have performed

Figure 4-6: Job Characteristics Model

Special Types of Teams
Special-purpose team: Formed to address specific problems, improve work processes, and enhance the overall quality of products and services
Self-directed team: Composed of individuals who are assigned a cluster of tasks, duties, and responsibilities to be accomplished
Virtual team: Includes individuals who are separated geographically but linked by communications technology

Global Teams
Global operations have increased the use of virtual teams
Members may seldom or never meet in person
Managers and H R should address task and responsibility issues

Benefits of Work Teams
Improved productivity
Increased employee involvement
Greater coworker trust
Widespread individual learning
Greater individual diversity in knowledge, skills, and abilities

Telework and Coworking Space
Telework: Employees complete work through electronic interactions, telecommunications, and Internet technology
Coworking space: Communal space shared by freelancers and remote workers

Advantages of Telework
Fewer expenditure (gas, lunches, dry cleaning, etc.) for employees
Saves commuting time
Increased productivity due to higher morale and decreased stress
Higher employee satisfaction and commitment

Disadvantages of Telework
Possibility of working more hours
Social isolation
Electronic media limits employee interaction
Role conflict between work and family
Teams may allow poor performance
Absence of work and home boundaries

Work Scheduling Flexibility
Shift work
Compressed workweek: Full week’s work
is accomplished in fewer than five days of eight working hours each
Part-time schedules
Job sharing: Two employees perform the work of one full-time job
Flextime: Employees work a set number of hours a day but vary starting and ending times

Time Flexibility: Work Scheduling
Relaxes some of the traditional “time clock” control of employees, while still covering workloads
Work–life integration: Employer-sponsored programs designed to help employees balance work and personal life
Ensures much-needed downtime
Reduces conflicts between work and family

Job Analysis
Job analysis: Gathering and analyzing information about the content, context, and human requirements of jobs
Purpose
Aids in H R planning, recruiting, and hiring
Provides accurate information for equal employment opportunity matters
Is the basis for compensation, training, and employee performance appraisals

Figure 4-8:
Essentials of Job Analysis

Typical Division of H R Responsibilities: Job Analysis
H R Unit
Coordinates job analysis
Writes job descriptions and specifications for review by managers
Periodically reviews job descriptions and specifications
Reviews managerial input to ensure accuracy
May seek assistance from outside experts for difficult or unusual analyses
Managers
Complete or help complete job analysis information
Review job descriptions and specifications and maintain their accuracy
Request new analyses as jobs change
Use job analysis information to identify performance standards
Provide information to outside experts

Task-Based Job Analysis
Task: Distinct, identifiable work activity comprised of motions that employees perform
Duty: Work segment comprised of several tasks that are performed by individuals
Responsibilities: Obligations to perform certain tasks and duties within a job

Competency-Based Job Analysis
Competencies: Individual capabilities that can be linked to enhanced performance
by individuals or teams
Technical competencies
Behavioral competencies
Identifies characteristics that make employees successful on the job
Strives to influence future job performance

Figure 4-10:
Steps in the Job Analysis Process

Job Analysis Methods
Observation
Work Sampling
Employee Diary/Log
Interviewing
Questionnaires
O*Net

Information Collected in a Job Analysis
Job Content
Tasks and duties
Responsibilities and accountabilities
Tools, equipment, software used
Decision-making
Supervision received/supervision provided to others
Job Context
Working hours/schedule
Work environment/hazards
Relationships (internal and external contacts)
Travel requirements
Physical, psychological, and emotional demands
Worker Characteristics
Education and experience
Knowledge, skills, and abilities
Certification/licensure

Job Analysis and O*Net
O*Net: Online database containing information on a wide range of jobs and occupational characteristics
O*Net database contains data on 800+ occupations, classified by industry, and includes:
Task statements of importance, relevance, and frequency
Abilities, training, work experiences, and education
Interests, work values, work styles, and job zones

Behavioral Aspects of Job Analysis
Current Incumbent Emphasis
Focus on core duties and necessary knowledge,
skills, and abilities
Inflation of Jobs and Job Titles
Employee and Managerial Concerns
Employee Fears
Managerial Straitjacket

Legal Aspects of Job Analysis
Job Analysis and the Americans with Disabilities Act (A D A)
Employers must identify essential job functions,
not marginal functions
Job Analysis and Wage/Hour Regulations
Fair Labor Standards Act (F L S A)

Job Analysis and the Americans with Disabilities Act (A D A)
Essential job functions: Fundamental duties of the job
Marginal job functions: Duties that are part of a job but are incidental or ancillary to the purpose and nature of the job
Considerations used in determining essential functions and marginal functions are:
Percentage of time spent on tasks
Frequency of tasks performed on the job
Importance of tasks performed

Job Description and Job Specifications
Job description: Identifies a job’s tasks, duties, and responsibilities
Job specifications: Knowledge, skills, and abilities (K S As) an individual needs to perform a job satisfactorily
Performance standards: Indicators of what the job accomplishes and how performance is measured in key areas of the job description

Job Description Components
Identification
Job title and department
Reporting relationships
Location and date of analysis
General Summary
General responsibilities and components of a job
Acts as a complete overview
Essential Job Functions and Duties
Functions and duties listed in order of importance
Lists tasks, duties, and responsibilities

Job Description Components (continued)
Job Specifications
Knowledge, skills, and abilities
Education and experience
Physical requirement and/or working conditions
Disclaimers and Approvals
Many job descriptions include approval signatures and legal disclaimers
Allows employers to change job duties

H U M A N R E S O U R C E
MANAGEMENT
VA L E N T I N E M E G L I C H M AT H I S J A C K S O N
SIXTEENTH EDIT ION

CHAPTER 5

Individual/
Organization Relations and Retention

Learning Objectives
Discuss five different views of motivation at work
Explain the nature of the psychological contract
Define the difference between job satisfaction and engagement

Learning Objectives (continued)
Identify a system for controlling absenteeism
Classify different kinds of turnover and explain how turnover can be measured
Summarize various ways to manage retention

Individual Performance Factors
Performance factors
Ability to do the work
Effort expended
Organizational support
The relationship between the performance factors is
Performance (P) = Ability (A) x Effort (E) x Support (S)

Figure 5-1: Components of Individual Performance

Individual Motivation
Motivation: Desire that exists within a person that causes that individual to act
Approaches to Understanding Motivation:
Need Theory
Until the more basic needs are adequately met, a person will not fully strive to meet higher needs
Two-Factor Theory
Assumes that one group of factors, motivators, accounts for individual motivation
Hygiene factors can cause dissatisfaction with work

Figure 5-2: Need Theory and Two-Factor Theory Compared

Individual Motivation (continued 1)
Expectancy Theory
Individuals base decisions about their behaviors on their expectations that one or another alternate behavior is more likely to lead to desired outcomes
Includes three relationships: Effort–performance expectations, performance–reward linkage, and value of rewards

Figure 5-3: Simplified Expectancy Model of Motivation

Individual Motivation (continued 2)
Equity Theory
People want to be treated fairly at work
Equity: The perceived fairness of what the person does compared with what the person receives for doing it
Inputs: What a person brings to the organization
Outcomes: Rewards obtained in exchange for inputs
Employee’s view of fair value is critical to the relationship between performance and satisfaction

Motivating Individual Performance
Top Motivators
Being appreciated
Respect in the workplace
Being able to utilize personal capabilities
Liking the job
Other Motivators
Pay and employment security
Good managers/leaders
Feedback, training, and benefits
Motivational speakers, T-shirts, mugs, books, and videos

Individual Workers and Organizational Relationships
Psychological contract
Job satisfaction and commitment
Employee engagement
Loyalty and organizational citizenship
Organizational trust

Figure 5-5: The Individual–Organizational Relationship

Psychological Contract
Unwritten expectations employees and employers have about the nature of their work relationships

Expectations of Psychological Contract
Employers Will Provide
Competitive compensation and benefits
Flexibility to balance work and home life
Career development opportunities
Employees Will Contribute
Continuous skill improvement and increased productivity
Reasonable length of service
Extra efforts and results when needed

Global Psychological Contract Concerns
Psychological contract expectations vary between foreign country employees and those from the United States
Psychological contract expectations of employees from different cultures need to be met by multinational firms

Job Satisfaction
Job satisfaction: Positive feelings and evaluations derived from an individual’s employment in a job
Morale: Job satisfaction of a group or organization
Attitude survey: Focuses on employees’ feelings and beliefs about their jobs and the organization

Components of Job Satisfaction
Job Satisfaction
Adequacy of the pay
Opportunity for advancement
Supervision
Coworkers
Nature of the work

Commitment and Engagement
Organizational commitment: Degree to which workers believe in and accept organizational objectives and want to remain employed at a company
Employee engagement: The extent to which an employee’s thoughts and behaviors are focused on his or her work and their employer’s success
Loyalty: Being faithful to an institution or employer

Engaged and Disengaged Employees
Engaged Employees
Put in extra effort
Are highly involved in their jobs
Employ both effort and thought
Are active/busy
Are fully invested in their jobs
Disengaged Employees
Simply put in time
Do not do best work
Are “checked out”/apathetic
Do only their basic jobs
React only to pay

Organizational Citizenship Behavior (O C B)
Organizational citizenship behavior (O C B): When an employee acts in a way that improves the psychological well-being and social environment of an organization
Motives for organizational citizenship
Leads to a more desirable workplace
Gratitude, appreciation, and recognition

Employee Absenteeism
Absenteeism: Any failure by an employee to report for work as scheduled or to stay at work when scheduled
Types
Involuntary absences
Voluntary absences

Sources of Direct and Indirect Costs of Absenteeism
Direct Costs
Replacement for absent worker and salary/benefits for absent worker
Indirect Costs
Overstaffing to cover anticipated absences
Lost productivity with replacement and lower productivity/quality
Replacement training and supervisor’s lost time
Customer dissatisfaction and overtime
Late deliveries and slower work pace

Methods of Addressing Absenteeism
Disciplinary Approach
People who are absent in excess of policy limits receive warnings
Severe discipline if attendance does not improve
Positive Reinforcement
Rewards for meeting attendance standards
Combination Approach
Rewards desired behaviors and punishes undesired behaviors

Methods of Addressing Absenteeism (continued)
No-Fault Policy
Employees must manage their own attendance unless they abuse that freedom
Paid-Time-Off (P T O) Programs
Employees use days from their paid-time-off accounts at their discretion

Measuring Absenteeism
Formula suggested by the U.S. Department of Labor follows:
Number of persons subtracted by the days lost through job absence during period
The resultant value is divided by the product of average number of employees and number of workdays
The resultant value is multiplied by 100

Other Measures of Absenteeism
Incidence rate: Number of absences per 100 employees each day
Inactivity rate: Percentage of time lost to absenteeism
Severity rate: Average time lost per absent employee during a specific period of time

Employee Turnover
Turnover: Process in which employees leave an organization and have to be replaced
Signs of Possible Turnover
Low interest in getting promoted and low motivation to keep managers happy
Reluctance to be involved in long-term opportunities and decreased motivation to be enrolled in training and development opportunities
Fewer contributions in meetings and just getting by or working only enough to get work done

Types of Employee Turnover
Involuntary Turnover
Employees are terminated for poor performance or work rule violations, or through layoffs
Voluntary Turnover
Employees leave by choice
Functional Turnover
Lower-performing or disruptive employees leave

Types of Employee Turnover (continued)
Dysfunctional Turnover
Key individuals and high performers leave at critical times
Uncontrollable Turnover
Employees leave for reasons outside the control of the employer
Controllable Turnover
Employees leave for reasons that could be influenced by the employer

Turnover and Churn
Churn: Hiring new workers while laying off others
Employers sometimes complain about not being able to find workers with the right skills while they are laying off other employees

Computing Turnover Rate
Number of employee separations during the year divided by total number of employees at midyear
The resultant value is multiplied by 100
Gathering and analysis of data
Job and job level and performance ratings/levels
Department, unit, work shift, and location
Reason for leaving and length of service
Demographic characteristics; education and training; and knowledge, skills, and abilities

Determining Turnover Costs
Turnover cost is the sum of the following:
Separation costs
Vacancy costs
Replacement costs
Training costs
Hidden and indirect costs (including lost productivity)

Optimal Turnover
Turnover costs and benefits can be calculated separately for various organizational segments
More turnover in certain segments of the organization can be beneficial if:
It costs very little
Those leaving are less valuable than their replacements
Minimal training is needed
Good replacements are available

Myths about Retention
Money is the main reason people leave
Hiring has little to do with retention
If you train people, you are only
training them for another employer
Do not be concerned about retention during organizational change
If high performers want to leave, the company cannot hold them

Figure 5-10: Drivers of Retention

Retaining Top Performers
Executive mentoring
Challenging job assignments
Development of management competencies
Regular performance feedback

Retention Assessment and Metrics
Some of the first areas to consider when analyzing data for retention
Work
Pay and benefits
Supervision
Occupations
Departments
Demographics of those leaving and staying

Figure 5-12:
Process for
Managing
Retention

Retention Assessment
and Metrics
Employee surveys are used to:
Diagnose specific problem areas and identify employee needs or preferences
Evaluate attitudes of employees and satisfaction
Exit interview: Individuals who are leaving the organization are asked to explain their reasons
Stay interview: Focuses on why employees want to continue working for the organization

Retention Evaluation and Follow-Up
Organizations must:
Review turnover data
Track intervention results
Adjust intervention efforts
Some firms use pilot programs to see how changes affect retention before extending them to the entire organization

H U M A N R E S O U R C E
MANAGEMENT
VA L E N T I N E M E G L I C H M AT H I S J A C K S O N
SIXTEENTH EDIT ION

CHAPTER 6

Recruiting

High-Quality Talent

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Objectives
Explain strategic recruiting decisions regarding employment branding, outsourcing, and other related issues
Identify distinct labor markets and describe their unique characteristics
Explain how technology and social networking affect recruiting processes for employers and candidates

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Objectives (continued)
Identify three internal recruiting sources and issues associated with their use
Highlight five external recruiting sources
Define recruiting measurement and metrics and illustrate how analytics can be used to improve talent acquisition

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Recruiting
Talent acquisition: Finding and hiring high-quality talent needed to meet the organization’s workforce needs
Recruiting: Process of generating a pool of qualified applicants for organizational jobs
Recruiting connects companies to sources of potential employees; selection involves picking the best supplier of talent

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Strategic Components of Effective Recruiting
Quality of talent
Quantity of talent
Business strategies
Labor market dynamics
Time limits
Financial limits

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Strategic Recruiting and
H R Planning
Understanding how business strategies impact how and where to recruit
Identifying keys to success in the labor market
Determining the balance between quality and quantity of workers
Recognizing the limits of time and money for recruiting
Measuring recruiting effectiveness and efforts

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Assigning Responsibility
for Recruiting
Recruitment by employer or outsourcing
Recruitment process outsourcing (R P O)
Streamlines hiring and reduces costs
Professional employer organizations (P E Os) and employee leasing
Employee leasing: Employer signs an agreement with the P E O, after which staff is hired by P E O and leased to the employer
Leasing firm writes paychecks, pays taxes, and implements H R policies

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Employment Brand and Employer Choice
Employment brand: Distinct image of the organization that captures the essence of the company to engage employees and outsiders
Employer of choice: Desirable places to work because of employee engagement, job satisfaction, pay, benefits, flexible schedules, corporate social responsibility, etc.
Receive more applicants

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Core versus Flexible Staffing
Core workers: Employees who are foundational to the business
They work year-round
Flexible workers: Employees who are hired on an “as-needed” basis
Labor costs vary based on product demand and other economic conditions
Challenges: Low motivation, low performance, and increased costs

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Core versus Flexible Staffing (continued 1)
Temporary workers: Employers can hire their own temporary staff members or make use of agencies on an hourly, daily, or weekly basis
Purpose of hiring temporary workers:
Screen individuals for full-time, regular employment
Match the firm’s needs with the right workers
Avoid costs associated with benefits
Enhance staffing flexibility

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Core versus Flexible Staffing (continued 2)
Independent contractors: Workers who perform specific services on a contract basis
Obtain significant savings because benefits are not provided to these individuals
Companies can mix and match core, temporary, and contract workers to accommodate changing business needs

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Figure 6-3: Combination of Core
and Flexible Workers

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Advantages and Disadvantages of Using Flexible Staffing Alternatives
Advantages
Organizations can hire workers without incurring high costs
Reduces time spent on recruiting efforts such as screening and initial training of workers
Gives the organization staffing flexibility
Reduces the organization’s legal compliance requirements
Organization saves money by not providing employee benefits
Disadvantages
Flexible workers may perform less effectively than core workers
Flexible workers may lack motivation because there are few opportunities for long-term employment and job advancement
Time limits on temporary work contracts prevent significant enhancements in individual skills and knowledge
Flexible workers in high demand fields may command premium wages

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Recruiting and E E O
Equal employment opportunity (E E O) considerations
Equal employment laws and regulations
Equal Employment Opportunity Commission (E E O C) guidelines
Employer must reduce underrepresentation of protected-class members
Interviews, ads, and company materials should show diversity

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Figure 6-5: Recruiting and
Diversity Considerations

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Recruiting Diversity
Nontraditional labor pools
Persons with different racial/ethnic backgrounds
Workers over 40 years of age, particularly retirees
Single parents
Workers with disabilities
Welfare-to-work workers
Long-term unemployed

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Recruiting Diversity (continued)
Gender-neutral recruiting
Gender-balanced adjectives in recruiting ads are encouraged
Generational differences in recruiting
Baby boomers prefer traditional posting methods
Generation X prefers flexible work arrangements, child care, and other work-life balance programs
Generation Y prefers technology, meaningful work, and opportunity to contribute to policies and arrangements

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Understanding Labor Markets
Labor markets: Supply pool from which employers attract employees
Elements of the labor market
Labor force population
Applicant population
Applicant pool
Selected applicants

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Elements of the Labor Market
Labor force population: All individuals who are available for selection if all possible recruitment strategies are used
Applicant population: Subset of the labor force population that is available for selection using a particular recruiting approach
Applicant pool: All persons who are actually evaluated for selection

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Recordkeeping of Applications
Employers are required to track and report affirmative action plans
Applicant tracking system makes the recruiting process more effective
Employers store information to avoid claims of impropriety

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Unemployment Rates and Labor Market
Unemployment rates vary with the business cycle
Unemployment rates vary depending on particular skill needs
Highly skilled workers are recruited differently

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Different Labor Markets
Industry and occupational labor markets
These jobs represent the health care, retail, and education industries
Educational and technical labor markets
Looks at labor markets by considering the educational and technical qualifications that define the people being recruited
Geographic labor markets
Markets can be local, area or regional, national, or international

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Recruiting Source Choices: Internal versus External
Internal recruitment: Promoting from within the organization
External recruitment: Hiring from outside the organization
Possible strategy for organizations that face rapidly changing competitive environments and conditions
Promote from within if a qualified applicant exists or go to external sources if not

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Technology for Recruiting
Technology is a vital element for recruiting
Social Media and Networking
Particularly helpful for finding passive job candidates
Passive job candidates: Qualified individuals who aren’t actively looking for work but might be interested if the right job comes along
LinkedIn: A professional social networking site
Twitter: A social networking site

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Technology for Recruiting (continued)
Web-based recruiting
Internet job boards
Professional/career websites
Employer websites
E-video: Recruitment videos and video interviewing
Gamification: Using game thinking and software to engage people in solving problems

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Legal Issues in Internet Recruiting
Legal issues in Internet recruiting
The use or misuse of screening software
Collection of required applicant information
Exclusion of individuals based on unlawful information
Proper identification of “real” applicants
Maintaining confidentiality and privacy

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Technology in Recruiting
Advantages
Cost-effective recruiting
Lesser recruiting time
Broader exposure and diverse pool of applicants
Recruiters can reach passive job seekers
Reduced response time
Disadvantages
Additional work for H R staff
Need for expensive specialized software
Access limited or unavailable to some applicants
Difficulty faced by individuals with disabilities

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Internal Recruiting Sources
Organizational databases
Information on existing employees such as knowledge, skills, and abilities (K S As) are entered into a database
Employee data sorted by occupational fields, areas of career interests, previous work histories, and other variables
These databases can be linked to H R activities

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Internal Recruiting Sources (continued 1)
Job posting: System in which employer provides notices of job openings, and employees respond by applying for specific openings
Employee-focused recruiting
Reliable sources are current and former employees
They are familiar with the employer
They will not refer unqualified individuals

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Internal Recruiting Sources (continued 2)
Ways of recruiting
Current employee referrals
Rerecruiting former employees and applicants
Seeking out former employees and recruiting them again
Boomerangs
Alumni networks

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Pros and Cons of Internal Recruiting
Pros
Improves morale of promotee
Provides more accurate performance history
Lowers recruiting costs
Offers hope and motivation to employees
Facilitates succession planning, future promotions, and career development
Improves organization fit because current employees understand the company’s culture, hierarchy, and policies/practices
Cons
“Inbreeding” may lead to less diverse workforce
Tunnel vision thinking may lead to a lack of new ideas
May lower morale for individuals not promoted
Employees may engage in “political” infighting for promotions
Employees promoted may need to be trained or developed
Some managers may block the internal movement of good performers

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
External Recruiting Sources
Media sources
Newspapers, magazines, television, radio, and billboards are widely used in external recruiting
Internet media sources such as postings, ads, videos, and webinars are also used
Effectiveness of evaluating media ads
Track responses by using different contact names, e-mail addresses, or phone number codes in each ad
Follow up to know the sources for employees who stayed longer and performed better

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
External Recruiting Sources (continued 1)
Competitive recruiting sources
Professional and trade associations, trade publications, and competitors
Online applications and in-store kiosks
Interviews scheduled in-store
Employment announcements in customer bills and newsletters

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
External Recruiting Sources (continued 2)
Employment agencies (public and private)
State-sponsored: Operate branch offices in cities and do not charge fees to applicants or employers
Private: Operate in most cities
Charge a fee collected from employee or employer
Headhunters: Employment agencies that focus their efforts on executive, managerial, and professional positions
Contingency firms charge a fee after a candidate is hired
Retainer firms charge a set fee whether or not the contracted search is successful

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
External Recruiting Sources (continued 3)
Labor unions: A labor pool is available through a union
Workers can be dispatched from the hiring hall to particular jobs to meet the needs of employers
Job fairs and creative recruiting: Bring employers and potential job candidates together
Virtual job fairs
Used to recruit college students
Convenient and time efficient

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Educational Institutions and Recruiting
Colleges and universities are significant sources of employees
Desirable attributes of college recruits:
Desirable G P A, real-world experience
Internships: Provide real-world experience that is important to employers
School recruiting: High school and vocational/technical schools are
valuable sources

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Advantages and Disadvantages of External Recruiting
Advantages
New employees bring new perspectives that can be applied to business opportunities and challenges
Training new hires may be cheaper and faster because of prior external experience
New hires are likely to have fewer internal political issues/challenges in the firm
New hires may bring new industry insights and expertise
Potentially larger applicant pool generated by search efforts
Disadvantages
The firm may not select someone who will fit well with the job and the organization
The process may cause morale problems for internal candidates not selected
New employees may require longer adjustment periods and orientation efforts
The recruiting process may take more time and resources
Recruiters often must evaluate more applications

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
College Recruiting: Considerations for Employers
Organizational budget and college graduate pay levels
Experiences with prior college graduates and interns
College graduate programs, faculty links, and current/anticipated job openings
Reputation of firm at college and with previous graduates
College placement office reputation, assistance, programs

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Recruiting Evaluation and Metrics
Evaluating recruiting efforts
Evaluating recruiting quantity and quality
Evaluating recruiting satisfaction
Evaluating the time required to fill openings
Evaluating the cost of recruiting
Recruiting measurement areas
Recruits
Quantity/Quality

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Recruiting Evaluation and Metrics (continued)
Recruitment satisfaction analyses
Time to fill openings
Cost per recruiting method
Process metrics
Yield ratios
Selection rates
Acceptance rates
Success base rates

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
General Recruiting Process Metrics
Yield ratios: Comparison of the number of applicants at one stage of recruiting with the number at the next stage
Selection rate: Percentage hired from a given group of candidates
Acceptance rate: Percentage of applicants hired divided by the total number of applicants offered jobs
Success base rate: Long-term measure of recruiting effectiveness

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Figure 6-13:
Sample
Recruiting
Evaluation
Pyramid

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Improving Recruiting Effectiveness
Effective recruiting activities
Mining résumés and tracking applicants
Using an employer career website
Providing an internal mobility system
Providing realistic job previews and responsive recruiting
Recruiting effectiveness can be improved by using evaluation data to:
Target different applicant pools

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Improving Recruiting Effectiveness (continued)
Tap broader labor markets
Change recruiting methods
Improve internal handling and interviewing of applicants
Train recruiters and managers
Emphasis on positive aspects of the job and employers can enhance recruiting effectiveness

H U M A N R E S O U R C E
MANAGEMENT
V A L E N T I N E M E G L I C H M A T H I S J A C K S O N
S I X T E E N T H E D I T I O N

CHAPTER 7

Selecting

Human

Resources

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Objectives
Understand selection and placement and the levels of person/environment fit
Explain two important qualities of selection predictors—reliability and validity
Discuss the steps of a typical selection process
Identify three types of selection tests and legal concerns about their uses

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Objectives (continued)
Contrast several types of selection interviews and some key considerations in conducting these interviews
Specify how legal concerns affect background investigations of applicants and use of medical examinations in the selection process
Describe the emerging challenges and best practices associated with employee selection

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Selection and Placement
Selection: Choosing individuals with the correct qualifications needed to fill jobs
in an organization
Placement: Fitting a person to the right job
Attraction-selection-attrition (A S A) theory: Job candidates are attracted to and selected by firms where similar types of individuals are employed, and individuals who are very different quit their jobs to work elsewhere

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Selection and Placement (continued)
Person/organization fit: Congruence between individuals and organizational factors
Person/group fit: Congruence between individuals and group or work unit dynamics
Mismatch: Poor pairing of a person’s needs, interests, skills, abilities, personality, and expectations with job characteristics, available rewards, coworker relationships, and the organizational culture
Person/job fit: Matching the K S As and motivations of individuals with the requirements of the job

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Selection Responsibilities
Organizations should meet Equal Employment Opportunity Commission (E E O C) requirements
Approaches
Each department screens and hires its own personnel
Initial screening done by H R professionals, and the final selection is made by managers or supervisors

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Talent Acquisition Functions
Pre-Hire
Receiving applications
Interviewing the applicants
Administering pre-employment tests
Conducting background screening
Scheduling physical examinations
Post-Hire
Placing and assigning new employees
Orienting and onboarding new hires
Coordinating follow-up evaluations of new employees
Conducting exit interviews with departing employees
Maintaining appropriate records and reports

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Selection, Criteria, and Predictors
Best predictor of future behavior is past behavior
Selection criterion: Characteristic that a person must possess to successfully perform job duties
Predictors of selection criteria: Measurable or visible indicators of selection criteria

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Figure 7-3: Job Performance, Selection Criteria, and Predictors

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Reliability and Validity
Reliability: Extent to which a test or measure repeatedly produces the same results over time
Validity: Extent to which a test measures what it claims to measure

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Reliability and Validity (continued)
Establishing criterion-related validity
Concurrent validity: Measured when an employer tests current employees and correlates the scores with their performance ratings
Predictive validity: Measured when applicants’ test results are compared with subsequent job performance

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Figure 7-4: Concurrent and
Predictive Validity

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Approaches for Combining Predictors
Multiple hurdles
Minimum cutoff is set on each predictor
Each minimum level must be passed
Compensatory approach
Scores from individual predictors are added and combined into an overall score
Allows a higher score on one predictor to offset, or compensate for, a lower score on another

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Selection Process
Concepts and practices that companies must follow
Job-relatedness: Qualification or requirement in selection is significantly related to successful performance of job duties
Business necessity: Practice that is necessary for safe and efficient operations
Test: Any method of collecting information about job applicants that is used to make hiring decisions

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Selection Process (continued 1)
Applicant job interest
More applications and résumés are submitted online or electronically
Realistic job preview: Process through which a job applicant receives an accurate picture of a job
Videos, employee testimonials, and job shadowing can be used
Applicants may withdraw if they don’t think the job is a good fit

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Figure 7-6:
Selection
Process
Flowchart

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Selection Process (continued 2)
Pre-employment screening: Before allowing applicants to fill out applications, employers screen to determine if individuals meet minimum qualifications
Electronic assessment screening: Software used to review résumés and application forms received
Disqualification questions to understand individual K S As
Assessment tests
Background, drug, and financial screening
Social network screening—controversial

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Selection Process (continued 3)
Application forms: Basis for pre-screening information
Record of the applicant’s desire to obtain a position
Applicant profile for the interviewer
Basic employee record for applicants hired
Research on the effectiveness of the selection process
Formal document on which the applicant attests to the truthfulness of all information provided

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Selection Process (continued 4)
Application disclaimers and notices
At-will employment
References contacts
Employment testing
Application time limit
Information falsification

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Selection Process (continued 5)
Information on application forms that are considered illegal by the E E O C
Marital status
Height and weight
Number and ages of dependents
Information on spouse
Date of high school graduation
Emergency contact information
Social Security number

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Selection Process (continued 6)
Résumés as applications
E E O C standards require that a résumé is treated as an application form
Application forms are better because the same information is furnished by all applicants
Résumés may embellish or omit negative information

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Selection Process (continued 7)
Security concerns and immigration verification
Employers are required to review and record identity documents
Accepting fraudulent documents could result in seized assets or prosecution of top managers
Employers use the revised form I-9 to determine if an applicant is:
A U.S. citizen
A registered alien
An illegal alien

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Ability Tests
Cognitive ability tests: Measure an individual’s thinking, memory, reasoning, verbal, and mathematical abilities
Physical ability tests: Measure an individual’s physical abilities such as strength, endurance, and muscular movement
Psychomotor tests: Measure dexterity, hand–eye coordination, arm–hand steadiness, and other factors

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Ability Tests (continued)
Work sample tests: Require an applicant to perform a simulated task that is a specified part of the target job
Situational judgment tests: Measure a person’s judgment in work settings
Assessment centers: Selection process composed of a series of evaluative tests where candidates are assessed by multiple raters

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Personality Tests
Personality: Unique blend of individual characteristics that can affect how people interact with their work environment
Accepted approach: The “Big Five” personality framework
Potential issues
Faking
Discrimination against individuals with disabilities

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Figure 7-8: Big Five Personality Characteristics

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Emotional Intelligence Tests
Emotional intelligence: Ability to recognize and manage our own feelings and the feelings of others
Soft skills are critical for establishing good working relationships
Leaders with high emotional intelligence tend to be more creative and perform better on the job
More effective in teams and handle stress better

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Dimensions of Emotional Intelligence
Self-Awareness
Emotional self-awareness
Accurate self-assessment
Self-confidence
Social Awareness
Empathy
Organizational awareness
Service orientation

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Dimensions of Emotional Intelligence (continued)
Self-Management
Emotional self-control
Optimism
Adaptability
Achievement orientation
Social Awareness
Inspirational leadership
Influence
Conflict management
Teamwork/collaboration

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Honesty and Integrity Tests
Reduces the frequency of lying and theft
on the job
Communicate to applicants that dishonesty will not be tolerated
Polygraph: Mechanical device that measures a person’s galvanic skin response, heart rate, and breathing rate
Employee Polygraph Protection Act: Prohibits the use of polygraphs for pre-employment screening

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Selection Interviews
Purposes
To obtain information about candidates
To provide information and reinforce the employer brand
Conducted at two levels
Initial screening interview
In-depth interview

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Interview Quality
Selection interviews must meet the same standards for reliability and validity
Intra-rater reliability: Consistency within the same interviewer
Inter-rater reliability: Consistency across different interviewers

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Comparison of Structured and Unstructured Selection Interviews
Structured
Preplanned job-specific questions
Consistent questions for all candidates
Established scoring key
Trained interviewers
Acceptable reliability and validity
Unstructured
Ad lib generic questions
Different questions for each candidate
No established scoring key
Untrained interviewers
Low reliability and validity

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Structured Interviews
Use a set of prepared job-related questions that are asked of all applicants
Benefits
Many applicants can be effectively evaluated and compared
Ensure that a given interviewer has similar information on each candidate
Greater consistency in the subsequent evaluation of candidates

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Types of Structured Interviews
Biographical interview: Focuses on a chronological assessment of the candidate’s past experiences
Behavioral interview: Applicants give specific examples of how they have performed a certain task
Situational interview: Questions about how applicants might handle specific job situations

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Less-Structured Interviews
Unstructured interview
Interviewer improvises by asking questions that are not predetermined
Semistructured interview
Guided conversation in which broad questions are asked and new questions arise as a result of discussion
Group interview
Several candidates are interviewed together
Nondirective interview
Uses questions developed from the answers to previous questions

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Interviewers
Who conducts interviews?
An individual
Several individuals sequentially
A panel
A team

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Effective Interviewing
Interviewing skills are developed through training and practice
Suggestions
Plan the interview
Control the interview
Use effective questioning techniques
Get a balanced view

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Effective Interviewing (continued)
Questions to avoid
Yes/no questions
Obvious questions
Questions that rarely produce a true answer
Leading questions
Illegal/inappropriate questions
Questions that are not job-related
Listening responses to avoid
Nodding, pausing, making casual remarks, echoing, and mirroring

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Figure 7-11:
Questions
Commonly
Asked in
Selection
Interviews

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Problems in the Interview
Poor interviewing techniques
Snap judgments
Negative emphasis
Halo effect
Biases and stereotyping
Cultural noise

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Background Investigations
Information can be obtained from:
Past job records and credit history
Testing records and drug tests
Educational and certification records
Criminal history and sex offender lists
Motor vehicle records and military records
Negligent hiring: Occurs when an employer fails to check an employee’s background and the employee injures someone on the job

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Background Investigations (continued)
Negligent retention: Occurs when an employer becomes aware that an employee may be unfit for work but continues to employ the person, and the person injures someone
Legal constraints on background investigations
Companies should obtain a signed release from the applicant
Investigations should be relevant to the job and a business necessity

Background Investigations (continued 1)
Employers that check applicants’ credit records must comply with federal laws
Fair Credit Reporting Act requires:
Disclosing that a credit check is being conducted
Obtaining written consent from the person being checked
Furnishing the applicant with a copy of the report

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Background Investigations (continued 2)
Credit checks should be for jobs in which use of, access to, or management of money is an essential job function
Employers conduct criminal background checks to prevent negligent hiring lawsuits
Employers must make sure that checks are performed consistently and fairly across different employees

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Medical Examinations and Inquiries
Used to determine the physical and mental abilities to perform jobs
A D A prohibits:
Use of pre-employment medical exams, except for drug tests, until a job has been conditionally offered
Rejecting an individual because of a disability
Asking job applicants any question related to current or past medical history until a conditional job offer has been made

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Medical Examinations and Inquiries (continued)
Drug testing: Accuracy of tests varies according to the type of test used, the drug tested, and the quality of the laboratory where the test samples are sent
Safety-sensitive jobs may require a more stringent screening process
Companies may elect to drop marijuana from screening efforts

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Why Conduct Previous Employment Checks
Prevent negligent hiring
Verify applicant credentials
Evaluate past work performance
Assess applicant character
Enhance workplace safety
Comply with federal and state regulations

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Additional Selection Criteria
Previous job tenure: Measure of how long the applicant has stayed on jobs held in the past
Long-term unemployed
Hiring managers view long gaps between jobs as a red flag on an applicant’s profile
Educational credentials
Managers frequently use the attainment of a college degree to determine applicants’ suitability for various jobs

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Making the Job Offer
Offer made via telephone
Formalize the offer in a letter that is then sent to the applicant
Offer document should be reviewed by a legal counsel
Terms and conditions of employment should be clearly identified

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Making the Job Offer (continued)
Selected candidate should:
Sign an acceptance of the offer
Return the signed acceptance to the employer
Employer should place the job offer in the candidate’s personnel file

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Emerging Challenges and Best Practices
Time to hire and related concerns
Negative experiences can collectively harm candidates’ overall impressions of an employer
Best practices for employee selection
Emphasize job-related criteria
Provide applicants opportunities to demonstrate their strengths and positive characteristics
Establish good communication with job candidates

H U M A N R E S O U R C E
MANAGEMENT
V A L E N T I N E M E G L I C H M A T H I S J A C K S O N
S I X T E E N T H E D I T I O N

CHAPTER 8

Training

Human

Resources

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Objectives
Define training and discuss why a strategic approach is important
Explain the major categories of training and describe instructional systems design
Identify three types of analyses used to determine training needs
Specify how to design a training program for adult learners

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Objectives (continued)
Explain different means of internal and external training delivery
Provide an example for each of the four levels of training evaluation

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Training
Training: Process whereby people acquire capabilities to perform jobs
Organizational strategy and training
Strategic training
Investments in training
Organizational competitiveness

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Strategic Training
Strategic training
Adds value in a way that simple training cannot
Helps reduce the tendency of managers to think that training alone can solve most problems
Assesses whether training can actually address issues

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Investments in Training
Employee training encompasses
Adequate resources to ensure high-quality learning experiences
Instructors typically represent the biggest cost of training
Training can:
Lower employee turnover and increase human capital
Improve effectiveness and productivity
Increase profitability and reduce costs
Improve quality and customer service

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Figure 8-2:
Linking Strategies and Training

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Organizational Competitiveness
If employees are not continually trained, they may fall behind and the company could become less competitive
Knowledge management: The way an organization identifies and leverages knowledge to be competitive
Learning culture: A work environment that encourages employees to share their individual knowledge, skills, and experiences with their coworkers

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Organizational Competitiveness (continued)
Performance, training, and learning must be integrated to be effective
Sales training is a key element in sales force success in many industries

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Training and Human Resources
Legal issues and training
Selecting individuals for training
Considering only job-related factors
Training contracts
Compensating for training outside of work hours
O S H A training requirements
E E O laws

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Legal Issues in Designing and Delivering Training
Criteria and practices used to select individuals
Compensation for employees working overtime
Requiring employees to sign training contracts

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Types of Training
Legally required
Safety compliance
Driving skills
Nondiscrimination
Harassment prevention
Industry-specific requirements
Basic and remedial skills
English language
Literacy
Core mathematics

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Types of Training (continued)
Job and technical training
Customer service
Equipment operations
Quality procedures
I T and technical
Product details
Soft skills
Interpersonal communication
Ethics and team relationships
Conflict management and problem solving
Coaching and feedback
Diversity and inclusion

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Orientation
Orientation: Planned introduction of new employees to their jobs, coworkers, and the organization
Achieves several key purposes:
Establishes a favorable impression of the organization
Provides organization and job information
Enhances interpersonal acceptance by coworkers
Accelerates socialization and assimilation
Ensures that employee performance and productivity begin more quickly

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Evaluating Orientation
Evaluation metrics
Tenure turnover rate
New hires failure factor
Employee upgrade rate
Development program participation rate

A D D I E Model of Systematic Instructional Design Process
Assessment
Design
Development
Implementation
Evaluation

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Training Needs Assessment
Effective training efforts consider the following questions:
Is there really a need for the training?
Who needs to be trained?
Who will do the training?
What form will the training take?
How will knowledge be transferred to the job?
How will the training be evaluated?

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Sources of Information for Needs Assessment
Organization Analysis
Grievances and accidents
Waste/scrap training observations
Observations and equipment use
Customer complaints and exit interviews
Attitude surveys
Job/Task Analysis
Employee K S As
Job specifications
Benchmarks
Effectiveness
Efficiency data
Employees surveys
Individual Analysis
Performance appraisals
Tests and records
Assessment centers
Questionnaires and surveys
Job knowledge tools

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Establishing Training Objectives
and Priorities
Gap analysis: Indicates the distance between where an organization is with its employee capabilities and where it needs to be
Possible focuses for training objectives:
Knowledge
Skill
Attitude

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Figure 8-8: Training Design Elements

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learner Characteristics
Ability to learn
Motivation: A person’s desire to learn training content
Self-efficacy: People’s belief that they can successfully learn the training program content
Perceived utility/value
Learning styles

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learner Characteristics (continued)
Adult learning: Ways in which adults learn differently than do younger people
Principles for designing training for adults
Adults should know why they are learning something and prefer to be self-directed
Adults should bring more work-related experiences into the learning process and enter into a learning experience with a problem-centered approach
Adults are motivated to learn by both extrinsic and intrinsic factors

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Instructional Strategies
Learner practice/feedback
Active practice: Performing job-related tasks and duties during training
Feedback during training from trainers, fellow trainees, gauges on equipment, and trainees themselves
Feedback after training from supervisors or coworkers
Overlearning: Repeated practice even after a learner has mastered the training content

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Instructional Strategies (continued 1)
Microlearning: Breaking up the lessons to be learned in training into smaller pieces
Behavioral modeling: Copying someone else’s behavior
Error-based examples: Sharing with learners what can go wrong when they do not use the training properly

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Instructional Strategies (continued 2)
Reinforcement is based on the law of effect
People tend to repeat responses that give them a positive reward and avoid actions associated with negative consequences
Immediate confirmation: People learn best if they receive reinforcement and feedback as soon as possible after exhibiting a response

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Training Transfer
Transfer of training occurs when trainees:
Actually use information they learned in the training once on the job
Maintain use of the learned material over time
To increase the transfer of training:
Offer trainees an overview of training content and how it links to the strategy of the organization
Ensure that the training mirrors the job context

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Training Transfer (continued)
Support new trainees to use their new skills when they return to the job
Supervisor support and involvement in the training
Provide an opportunity to use the training
Implement a just-in-time philosophy
Ensure accountability
Extent to which someone expects the learner to use the new skills on the job and holds them responsible for doing so

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Training Delivery Variables
Nature of training
Subject matter
Number of trainees
Individual versus team
Self-paced versus guided
Training resources/costs
E-learning versus traditional learning
Geographic locations involved
Time allotted
Completion timeline

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Training Delivery Options
Internal to the Organization
Traditional classes and on-the-job training
Self-guided training at company portal
Mentoring/coaching and job shadowing
Developing teachers internally
Cross-training and training projects
Group-based classroom
External to the Organization
Third-party delivered training
Web conferences and podcasts
Training at outside location
Educational leave
Blended training and teleconferencing

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Internal Training
Informal training: Occurs through interactions and feedback among employees
On-the-job training (O J T): The most common training because it is flexible and relevant
Problems with O J T
Trainers are poorly-qualified, rushed, or indifferent
Regular work is disrupted
Incorrect information and bad habits are passed on

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Steps for On-the-Job Training
Prepare the trainees
Put them at ease
Find out what they know
Get them interested
Present the information
Tell, show, question
Present one point at a time
Make sure the trainees know

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Steps for On-the-Job Training (continued)
Provide the trainees with practice
Have the trainees perform the tasks
Ask questions
Observe and correct
Evaluate mastery
Do follow-up
Put the trainees on their own
Check frequently
Reduce follow-up as performance improves

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Internal Training (continued)
Cross-training: Training people to do more than one job
Increases flexibility and ensures uninterrupted production
Challenges of cross-training
Unions typically are not in favor of cross-training because it threatens job jurisdiction and broadens jobs
Requires scheduling work differently
May cause temporary decreases in productivity

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
External Training
Advantages
Less expensive to outsource training
Saves organization the time of developing training
Staff may lack expertise
Employees can interact with outsiders
Outsourcing of training
Government-supported job training
Educational assistance programs

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Combination Training Approaches
Forms of cooperative training
School-to-work transition
Apprentice training
Internship

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
E-Learning: Online Training
E-learning: Use of web-based technology to conduct training online
Methods of e-learning:
M O O Cs: Massive open online courses
Distance training/learning
Simulations: Reproduce parts of the real world so that they can be experienced and manipulated and learning can occur
Games: Exercises that entertain and engage

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
E-Learning: Online Training (continued)
M-learning: Use of mobile technology to conduct training
Blended learning: Combines short, fast-paced, interactive computer-based lessons and teleconferencing with traditional classroom instruction and simulation

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Pros and Cons of Technology-Supported Training
Pros
Self-paced and interactive
Automated scoring of exercises and assessments
Quick, appropriate feedback to learners
Incorporates built-in guidance and help for trainees to use when needed
Updating content is fairly easy
Allows for training “on the go” and “just-in-time”
Learners can contribute content to learning platform
Cons
May cause trainee anxiety
Trainees must have easy, reliable access to technology
Relies on user self-direction and motivation to complete training
Is not appropriate for some training content (leadership, cultural change, etc.)
Significant up-front investment of both time and money
Significant support from top management necessary for success
Security and access concerns

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Levels of Evaluation
Reaction: Evaluated by conducting interviews or administering questionnaires to the trainees
Learning: Measuring how well trainees have learned facts, ideas, concepts, theories, and attitudes
Behaviors: Measuring the effect of training on job performance through observing workers on the job
Results: Measuring the effect of training on the achievement of organizational objectives

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Training Evaluation Metrics
Cost–benefit analysis: Comparison of costs and benefits associated with training
Return-on-investment (R O I) analysis: Divides the return produced because of the training by the cost (or investment) of the training
Benchmarking: Comparison of data on training in the organization and training at other organizations in the same industry and in companies of a similar size

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Stages in Calculating Training Costs and Benefits
Determine training costs
Identify potential savings results
Compute potential savings results
Conduct costs and savings benefits comparisons

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Possible Costs and Benefits Related to Training
Typical Costs
Trainer’s salary and time
Trainees’ salaries and time
Materials for training
Expenses for trainer and trainees
Cost of facilities and equipment
Lost productivity (opportunity cost)
Typical Benefits
Increase in production
Reduction in errors and accidents
Reduction in turnover
Less supervision necessary
Ability to use new capabilities
Attitude changes

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Internal Evaluations of Training
Training evaluation designs
Post-measure
Pre-/post-measure
Pre-/post-measure with a control group

H U M A N R E S O U R C E
MANAGEMENT
VA L E N T I N E M E G L I C H M AT H I S J A C K S O N
SIXTEENTH EDIT ION

CHAPTER 9

Talent,

Careers, and Development

Learning Objectives
Identify the importance of talent management and discuss two reasons it may be difficult
Explain the importance of succession planning and the steps involved in the process
Differentiate between organization-centered and individual-centered career planning

Learning Objectives (continued)
List options for development needs analyses
Discuss three career issues that organizations and employees must address
Identify several management development methods

Talent Management
Strategic talent management: Identifying the most important jobs in a company that provide a long-term competitive advantage and then creating appropriate H R policies to develop employees so that they can effectively work in these jobs
Integrated talent management (I T M): Holistic approach to leveraging and building human capital

Maximizing the Value of
Talent Management
Invest in human capital rather than a short-term cost
Deploy workers with high levels of competency and capability
Focus on training, succession planning, career planning, development, and performance management

Figure 9-1:
Integrated Talent Management

Talent Management in Perspective
Talent is like inventory; companies must pay attention to employees’ needs and goals
Successful talent management:
Attracts and retains talent
Provides good development opportunities

Talent Management Information Systems
Integrate all the pieces of talent management into one manageable whole
Pull together H R, finance, and operations data to get insights on talent that are otherwise difficult to obtain
Potential to become a tool to aid decision making
There is great potential for automated talent management systems to aid decision making in the future

Scope of Talent Management
Target jobs
Identify the types of jobs that will be the focus of talent management efforts
Competency models
Show the K S As for various jobs
Libraries of competency models maintained by some companies
Ensure efficient talent planning

Scope of Talent Management (continued)
Development risk management
Companies encourage promising employees to volunteer for development on their own time
Reduces the risk of developing talent of an employee who would choose to leave the organization with the skills gained
Make-or-buy: Develop competitive human resources or hire individuals who are already developed from somewhere else

High-Potential Individuals
High-potential individuals (Hi Pos): Show high promise for advancement in the organization
Approaches to keep Hi Pos engaged:
Discuss their future with key players
Discover their career aspirations
Offer high-profile assignments
Offer interaction with senior leaders

Hi Po Assessment
Strong motivation to excel in pursuit of challenging goals
Humility to put group needs before personal needs and insatiable curiosity to explore new ideas
Keen insight into connections that most people overlook
Strong engagement with work tasks and people
Determination to overcome obstacles

Succession Planning
Succession planning: Preparing for inevitable vacancies in the organization hierarchy
Basis for retirements, transfers, promotions, and turnover
Should include a well-designed development system for employees
Define key positions and involve key managers in talent identification, mentoring, and coaching

Figure 9-3:
Succession
Planning
Process

Figure 9-3:
Succession
Planning
Process (continued)

Succession Planning Decisions
Identifying current talent
Nine-box talent grid: A matrix showing past performance and future potential of all employees
Metrics and succession planning
Measure could be reduced costs of turnover, higher performance, and profitability
Computerized succession planning models
Linking skills-tracking systems, performance appraisals, and other databases

Figure 9-4:
Nine-Box Talent Grid
Source: http://www.smartmovescoach.com.

Succession Planning Decisions (continued)
Benefits
Supplying highly qualified individuals
Providing career opportunities and plans for individuals
Providing a basis for continual review of staffing requirements
Enhancing the “brand” of the company
Generating confidence of stakeholders

Careers and Career Planning
Career: Series of work-related positions a person occupies throughout his or her life
Changing nature of careers
Traditional perspective: Employer is expected to lead in employee development; focus is on upward movement in gaining status and rewards
Contemporary perspective: Employees are proactive about their own satisfaction, determining skills, competencies, work–life balance, and personal challenges

Elements of the Protean Career
Psychological success
Numerous short learning cycles
Willing and able to adapt to changes
Self-directed, proactive
Seeks feedback to form accurate self perceptions
Reward is pride in work and achievement
Career plan is driven by employee, not employer

Organization-Centered
Career Planning
Organization-centered career planning: Focuses on identifying career paths that provide for the logical progression of people between jobs in an organization
Career paths: Employees’ movements through opportunities over time
Employer websites and career planning
Used for career assessment, information, and instruction

Figure 9-6: Organizational and Individual Career Planning Perspectives

Individual-Centered Career Planning
Individual-centered career planning: Focuses on an individual’s responsibility for a career rather than on organizational involvement in the process or consideration of a company’s needs
Primary steps in individual career planning:
Determine who you are
Find out how you are viewed

Individual-Centered Career Planning (continued)
Investigate your options
Set a goal and create an overall plan
Take action to advance the plan
Individual career profile
Interests
Skills
Personality
Values

General Career Periods
Characteristics Early Career Mid-Career Late Career Career End
Age 20 to 30 years 30 to 50 years 50 to 60 years 60 to 70 years
Needs Identify interests
and exploring
jobs Advance in career,
deal with lifestyle
preferences and
limitations Update skills,
person is settled in,
individual is leader
with valued opinions Plan retirement and
nonwork interests
Concerns External rewards, acquiring capabilities Values, contribution, integrity, well-being Mentoring, career continuance, disengagement Retirement, part-time employment

Career Transitions
Organizational entry shock includes:
Supervisors
Feedback
Time
The work
Job loss causes depression, anxiety, and nervousness

Career Transitions (continued)
Areas of adjustment faced by retirees
Self-direction and need to belong
Satisfying achievement needs
Personal space and goals
Phased retirement, consulting arrangements, and callback of some retirees
Means for gradual disengagement between the organization and the individual

Common Individual Career Challenges
Technical and professional workers
Dual career ladder: System that allows a person to advance through either a management or a technical/professional ladder
Women and careers
Sequencing
Glass ceiling: Situation in which women fail to progress into top and senior management positions
Dual-career couples
Family-career issues and relocation

Developing Human Resources
Development involves efforts to improve employees’ abilities to:
Handle a variety of assignments
Cultivate capabilities beyond those required by the current job

Figure 9-9:
Development versus Training

Possible Development Focuses
Lifelong learning
Necessary for many professionals
Desire to expand existing skills
Reinvention
Desire for a career change
Necessary for shifting employer capabilities

Development Needs Analyses
Methods
Assessment centers: Collections of test instruments and exercises designed to diagnose an individual’s development needs
Psychological testing
Performance appraisals

Figure 9-10:
H R Development Approaches
Job-Site Approaches
Coaching
Committees
Job rotation
Corporate universities
Career development centers
Off-Site Approaches
Classroom courses
Seminars
Outdoor experiential activities
Sabbaticals/leaves

Figure 9-11: Management Lessons Learned from Job Experience

Supervisor Development
Supervisor development topics
Basic management responsibilities
Time management
Employee relations

Leadership Development
Ways to help individuals transition successfully into leadership roles
Modeling
Coaching
Management mentoring
Executive education

Figure 9-12: Stages in Management Mentoring Relationships

H U M A N R E S O U R C E
MANAGEMENT
VA L E N T I N E M E G L I C H M AT H I S J A C K S O N
SIXTEENTH EDIT ION

CHAPTER 10

Performance Management
and Appraisal

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Objectives
Identify why performance management is necessary
Distinguish among three types of performance information
Explain the differences between strategic, administrative, and developmental uses of performance appraisal

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Objectives (continued)
Describe the advantages and disadvantages of using various sources of performance rating
Discuss the differences between rating, ranking, and goal-setting methods of appraisal
Identify several errors often committed by raters

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Performance Management
Ongoing series of activities designed to align and improve individual performance to drive organizational results
Key part of performance management is performance appraisal because it helps employees improve their job performance
Performance appraisal: Process of determining how well employees do their jobs relative to a standard and communicating that information to them

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Effective Performance Management System
Should do the following:
Clarify organizational expectations
Document performance for personnel records
Identify areas of success and needed development
Provide performance feedback to employees

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Figure 10-1: Performance Management Linkage

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Cultural Differences
in Performance Management
In some cultures:
Rating employees and giving direct feedback is uncommon
Younger subordinates do not collaborate with their managers in discussing performance appraisals
Criticism from superiors is viewed as negative rather than as useful feedback

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Components of a Performance-Focused Culture
Clear expectations, goals, and deadlines
Detailed appraisal of employee performance
Clear feedback on performance
Manager and employee training as needed
Consequences for performance

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Identifying and Measuring Employee Performance
Common employee performance measures
Quality of output
Quantity of output/productivity
Timeliness of output/meeting deadlines
Punctuality and attendance
Efficiency of work completed
Effectiveness of work completed
Job duties: Important elements in a given job
Weights: Used to show the relative importance of different duties in a job

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Types of Performance Information
Trait-based information
Identifies a character trait of the employee
May or may not be job related
Less useful information than the other methods
Examples: Attitude, teamwork, initiative, creativity, values, and dispositions
Behavior-based information
Focuses on specific behaviors that lead to job success

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Types of Performance Information (continued)
Examples: Customer satisfaction, verbal persuasion, timeliness of response, citizenship/ethics, and effective communication
Results-based information
Considers employee accomplishments
Works well for jobs in which measurement is easy and obvious
More useful information than the other methods
Examples: Sales volume, cost reduction, units produced, and improved quality

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Performance Standards
Define the expected levels of employee performance
Should be realistic, measurable, and clearly understood
Benefit both organizations and employees
Ensure that everyone involved knows the performance expectations

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Example Performance Standards for a Waitperson
Performance level: Superior
Demonstrated Ability
Visits table quickly after guests are seated
Takes order exactly when guests are ready
Serves drinks and food immediately after items are prepared
Clears table and presents check immediately after meal is complete

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Example Performance Standards for a Waitperson (continued 1)
Performance level: Acceptable
Demonstrated Ability
Visits table in a reasonable time after guests are seated
Takes order in a timely manner
Serves drinks and food after items are prepared
Clears table and presents check after meal is complete

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Example Performance Standards for a Waitperson (continued 2)
Performance level: Needs improvement
Demonstrated Ability
Visits table when there is time to do so
Takes order when ready
Serves drinks and food after other duties are completed
Clears tables and presents check after servicing other tables

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Performance Appraisals
Assess an employee’s performance
Provide a platform for feedback
Highlight and address work-related issues
Help improve job performance
Provide justification for many personnel actions such as promotions, pay raises, or terminations

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Uses of Performance Appraisals
Strategic use of appraisals
Looks within the organization (dashboard perspective) to provide consistency between individual and organization performance
Administrative use of appraisals
Based on a backward-looking (rearview mirror) perspective
Developmental uses of appraisals
Based on a forward-looking (windshield) perspective

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Performance Appraisals and Ethics
Performance appraisals may or may not focus on the ethics associated with how employees perform their jobs
Tying ethics to performance appraisals is one way to emphasize it
Codes of conduct can provide useful company guidelines on ethical behavior
Training can teach important workplace ethical values
Communication can help promote an ethical culture

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Decisions about the Performance Appraisal Process
Identifying the appraisal responsibilities of the H R unit and of the operating managers
H R unit designs an organization’s performance appraisal system and collects and analyzes all ratings to ensure that the process does not result in adverse impact
Managers then use the appraisal system to evaluate employees
Selecting the type of appraisal system to use
Informal appraisals: Conducted by supervisors whenever necessary

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
19

Decisions about the Performance Appraisal Process (continued)
Systematic appraisal: Occurs when
The communication between manager and employee is more formal
A system is in place to report managerial observations and assessment of employee performance
Establishing the timing of appraisals
Most companies require managers to conduct appraisals once or twice a year, most often annually
Determining who will provide evaluation input

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
20

Possible Performance Rating Situations
Supervisors rating their employees
Based on the assumption that the immediate supervisor is the person most qualified to evaluate an employee’s performance realistically and fairly
Employees rating their superiors
Helps identify competent managers
Helps make a manager more responsive to employees
Contributes to career development efforts for managers by identifying areas for growth

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
21

Possible Performance Rating Situations (continued 1)
Team members rating each other
Useful when supervisors don’t have the opportunity to observe each employee working, but work group members do
Employees rating themselves
Helps employees think about their strengths and weaknesses and set goals for improvement
Outside sources rating employees
Involves the people outside the immediate work group participating in performance reviews

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
22

Possible Performance Rating Situations (continued 2)
Combining multiple sources (360-degree rating)
Person is appraised by:
Manager
Coworkers or peers
Subordinates
Self
Customers

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
23

Uses of 360-Degree Feedback
Developmental use
Helps evaluate conflict resolution skills, decision-making abilities, team effectiveness, communication skills, managerial styles, and technical capabilities
Effectiveness depends on the accountability of the individuals who have been assessed
Administrative use
Results can be used for compensation, promotion, termination, and other administrative decisions

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Graphic Rating Scale
Allows the rater to mark an employee’s performance on a continuum indicating low to high levels of a particular characteristic
Helps appraise three aspects of performance
Descriptive categories, such as quantity of work, attendance, and dependability
Job duties, taken from the job description
Behavioral dimensions, such as decision making, employee development, and communication effectiveness

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
25

Graphic Rating Scale (continued)
How well employees meet established standards is expressed numerically (5, 4, 3, 2, and 1) or verbally (outstanding, meets standards, and below standards)
Concerns
Evaluation criteria may not be representative of job performance elements
Reduces employees’ confidence in evaluation fairness and leads to more legal issues for firms
Traits or factors are often grouped, and the rater is given only one box to check

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
26

Sample Terms for Defining Standards
Outstanding: The person is so successful at this job criterion that special note should be made, and performance ranks in the top 10%
Exceeds Expectations: Performance is better than average for the unit, given the common standards and unit results
Meets Expectations: Performance is at or above the minimum standards
This level is what one would expect from most experienced, competent employees

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Sample Terms for Defining Standards (continued)
Below Expectations: Performance is slightly below the minimum standards
Potential to improve within a reasonable time frame is evident
Unsatisfactory: Performance is well below standard
Whether the person can improve to meet the minimum standards is questionable

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Graphic Rating Scale (continued 1)
Behavioral rating scales
Designed to assess individual actions instead of personal attributes and characteristics
Behaviorally anchored rating scale (B A R S)
Specific examples of job behaviors are anchored or measured against a scale of performance levels

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
29

Figure 10-11: Behaviorally Anchored Rating Scale for Customer Service Skills

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Comparative Methods
Ranking: Employees are listed from highest to lowest based on their performance levels and relative contributions
Drawbacks
Magnitude of the performance differences between employees is not clearly indicated
Ranking task becomes unwieldy if the group of employees to be ranked is large
Ranking means that someone must be last, which ignores the possibility that the last-ranked individual in one group might be equal to the top-ranked employee in a different group

Comparative Methods (continued)
Forced distribution: Ratings of employees’ performance levels are distributed along a bell-shaped curve
Forces managers to identify high, average, and low performers, with a limited percentage permitted to earn each ranking level

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Figure 10-12: Forced Distribution on a Bell-Shaped Curve

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Narrative Methods
Critical incident: Manager keeps a written record of both favorable and unfavorable employee actions during the entire rating period
Essay: Manager writes a short essay describing each employee’s performance during the rating period
Allows the rater more flexibility than other methods do, sometimes too much
Appraisers often combine the essay with other methods

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Management by Objectives (M B O)
Specific performance appraisal method that highlights the performance goals that an individual and manager identify together
Stages
Job review and agreement
Development of performance standards
Setting of objectives
Frequent performance discussions

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Combinations of Methods
No single appraisal method is best for all situations
Performance measurement system that uses a combination of methods may be sensible
Managers can work with H R staff to choose and mix methods to realize advantages of each approach
Different categories of employees might require different combinations of methods

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Topics to Be Covered in Appraisal Training for Managers
Appraisal process and timing
Performance criteria and job standards that should be considered
How to avoid common rating errors
How to communicate positive and negative feedback
When and how to discuss training and development goals
Conducting and discussing the compensation review

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Types of Rater Errors
Varying standards
Recency and primacy effects
Central tendency, leniency, and strictness errors
Rater bias
Halo and horns effects
Contrast error
Similar-to-me/different-from-me errors
Sampling error

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Appraisal Discussion
Manager should clearly communicate how an employee’s positive contributions have helped the organization perform well
Discussing poor performance
Managers can use questions and discussion points that enable employees to identify their own deficiencies and develop useful plans for progress
Feedback can inspire employees to improve their performance when delivered effectively
Clarity, conflicts, confidence, and conviction can inspire employees

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Appraisal Discussion Hints for Appraisers
What appraisers should do:
Prepare before interview
Focus on objective performance
Be specific about ratings and feedback
Develop a future improvement plan
Reinforce employee successes

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Appraisal Discussion Hints for Appraisers (continued)
What appraisers should not do:
Talk too much
Berate or lecture the employee
Focus entirely on negative job performance
Think that the employee always has to agree
Compare the employee with others

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Appraisal Discussion (continued)
Reactions of managers and employees
Managers:
Might have negative perceptions about the process
May experience internal conflict arising from being a judge on one hand and a coach and a counselor on the other
Might be tempted to make the employee’s ratings positive and avoid unpleasantness
Employees may see the process as a threat and feel that the only way for them to get a higher rating is for someone else to receive a low rating

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Effective Performance Management Systems
Should be:
Beneficial as a development tool
Useful as an administrative tool
Legal and job related
Viewed as generally fair by employees
Effective in documenting employee performance
Clear about who are high, average, and low performers

H U M A N R E S O U R C E
MANAGEMENT
VA L E N T I N E M E G L I C H M AT H I S J A C K S O N
SIXTEENTH EDIT ION

CHAPTER 11

Total Rewards
and Compensation

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Objectives
Identify the three general components of total rewards and give examples of each
Explain the major laws governing employee compensation
Outline the steps in developing a base pay system

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Objectives (continued)
Define variable pay and identify three aspects of effective pay-for-performance plans
Explain three levels of incentives and give one example at each level
Identify four measures used to determine the effectiveness of compensation systems

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Nature of Total Rewards and Compensation
Total rewards: Monetary and nonmonetary rewards provided by companies to attract, motivate, and retain employees
Strategic decisions can guide the design of compensation practices
Compliance with all applicable laws and regulations
Cost-effectiveness for the organization
Internal and external equity for employees

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Nature of Total Rewards
and Compensation (continued)
Performance enhancement for the organization
Performance recognition and talent management for employees
Enhanced recruitment, involvement, and retention of employees

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Elements of Total Rewards
Tangible direct rewards
Base pay
Wages and salary
Individual variable pay
Piece rate, bonus, and commission
Team variable pay
Gainsharing and team bonus
Organization variable pay
Profit sharing and equity/stock awards

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Elements of Total Rewards (continued 1)
Tangible indirect rewards
Health care benefits
Medical insurance, dental insurance, and health spending account
Paid time off
Vacation, holidays, and medical leaves of absence
Disability benefits
Short-term disability, long-term disability, and long-term care insurance

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Elements of Total Rewards (continued 2)
Financial benefits
Education assistance and financial planning
Retirement benefits
Defined benefit plan and defined contribution plan (401k)
Employee development and training
Intangible rewards
Supportive work environment, challenging work, autonomy, and supportive supervisor

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Components of Compensation
Tangible rewards: Elements of compensation that can be quantitatively measured and compared between different organizations
Intangible rewards: Elements of compensation that cannot be as easily measured or quantified
Base pay: Basic compensation that an employee receives, often wages or salary
Wages: Payments calculated directly on the basis of time worked by employees

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Components of Compensation (continued)
Salary: Consistent payments made each period regardless of the number of hours worked
Variable pay: Compensation linked directly to individual, team, or organizational performance
Benefit: Indirect reward given to an employee or group of employees as part of membership in the organization, regardless of performance

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Fair Labor Standards Act (F L S A)
Primary federal law affecting compensation
Enforced by the Wage and Hour Division of the U.S. Department of Labor (D O L)
Provisions focus on the following major areas:
Minimum wage
Limits on the use of child labor
Overtime provisions (exempt and nonexempt status)

Fair Labor Standards Act (F L S A) (continued 1)
Minimum wage
Set by F L S A to be paid to a broad spectrum of covered employees
Congressional action is the only way to change it
Child labor provisions
Set the minimum age for employment with unlimited hours at 16 years
Minimum age for hazardous occupations is 18 years
Individuals who are 14 to 15 years old may work outside school hours with certain limitations

Fair Labor Standards Act (F L S A) (continued 2)
During enactment of F L S A, limited exemptions were included that permitted employers to restrict executives and others from receiving overtime pay
Exempt employees: Employees who hold positions for which they are not paid overtime
Nonexempt employees: Employees who must be paid overtime
Overtime: F L S A established overtime pay requirements at 1.5 times the regular pay rate for all hours worked over 40 in a week

Determining Exempt Status under the F L S A
Categories for exempt status
Executive
Administrative
Professional (learned and creative)
Computer
Outside sales (including pharmaceutical sales)

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Determining Exempt Status under the F L S A (continued)
Major criteria for exempt status
Pay level per week—minimum of $455/week
Paid on a salary basis
Job duties and responsibilities
Primary duties of managing
Decision discretion/judgment
Requires advanced knowledge and/or training/education
Pursuit of artistic or creative endeavors

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Special Pay/Overtime Issues
Compensatory time off
Incentives for nonexempt employees
Training time
Security inspection time
After-hours e-mail time
Travel time
Donning and doffing time

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Pay Equity Laws
Equal Pay Act of 1963
Prohibits companies from using different wage scales for men and women performing substantially the same jobs
Lilly Ledbetter Fair Pay Act
Statute of limitations are extended for equal pay claims, and each paycheck is treated as a new act of discrimination
Pay practices resulting in disparate impact are also actionable

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Independent Contractor Regulations
Employers do not have to pay Social Security, unemployment, or workers’ compensation costs
Criteria for independent contractor status established by the Internal Revenue Service, or I R S
Firms may control only the result of the work being contracted but not what or how it will be done
The I R S considers the amount of behavioral and financial control a company exercises over the worker and additional relationship factors

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Pay for Internships
Many organizations began to pay interns only after the institution of the six-factor test by the D O L
Six-factor test
Issued by the D O L in April 2010
Narrowly permitted for-profit enterprises to utilize unpaid interns
December 2017: The D O L issued new guidance reversing the six-factor criteria and adopting a primary beneficiary test

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Additional Laws Affecting Compensation
Prevailing wage: Hourly wage determined by a formula that considers the rate paid for a job by a majority of the employers in the appropriate geographic area
Garnishment: Court order that directs an employer to set aside a portion of an employee’s wages to pay a debt owed to a creditor

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Strategic Compensation Decisions
Firms need to manage their compensation philosophy to ensure that employees believe they are being treated fairly
Entitlement philosophy is at one end of the continuum, and performance philosophy is at the other end
Entitlement philosophy: Assumes that individuals who have worked another year with the company are entitled to pay increases with little regard for performance differences
Pay-for-performance philosophy: Assumes that compensation decisions reflect performance differences

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Continuum of Compensation Philosophies
Entitlement
Pay and raises based on length of service
Across-the-board raises
Pay scales increased annually
Performance
Pay and raises based on performance
No raises for poor-performing employees
Market-adjusted pay scales

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Continuum of Compensation Philosophies (continued)
Entitlement
Industry comparisons of pay only
Holiday bonuses given to all employees
Performance
No raises for length of service or job tenure
Industry comparisons of total rewards

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Strategic Compensation Decisions (continued)
Communicating pay philosophy
Helps employees recognize the value of the total rewards package and how their work performance, tenure, and raises can affect their compensation
Administrative responsibilities
H R specialists develop and administer the compensation system and ensure that pay practices comply with all legal requirements
Managers help employees see the connections between their individual performance and the expected rewards

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Payroll Administration
Handled in different ways:
H R professionals may or may not do the actual processing of payroll
If they do, payroll staff may report to H R or accounting function
Payroll is outsourced
Accurate payroll processing is important for maintaining a positive workplace and complying with various laws
Managers are responsible for accuracy
Recordkeeping is critical

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Motivation Theories and Compensation Philosophies
Expectancy theory
States that an employee’s motivation is based on the probability that his or her efforts will lead to an expected level of performance that is linked to a valued reward
Rewards that are not appreciated by the employee have little power to motivate performance
Managers who understand the key linkages in employee expectations can better monitor employee motivation and adjust reward systems accordingly

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Motivation Theories and Compensation Philosophies (continued 1)
Important relationships in expectancy theory within the context of pay
Expectancy can lead to instrumentality, which in turn can lead to valence
Expectancy: Perceived likelihood that if the employee invests time in learning new product features, it will lead to better sales performance
Instrumentality: Perceived likelihood that better sales performance will lead to higher commission pay
Valence: Employee places a high value on receiving high commission pay

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Motivation Theories and Compensation Philosophies (continued 2)
Equity theory
States that individuals judge fairness (equity) in compensation by comparing their inputs and outcomes against the inputs and outcomes of referent others
Referent others: Workers whom the individual uses as a reference point to make these comparisons
Employee inputs that are compared with referent other’s inputs
Skills, abilities, knowledge, effort, loyalty, commitment, adaptability, tolerance, determination, enthusiasm, support of colleagues, and personal sacrifice

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Motivation Theories and Compensation Philosophies (continued 3)
Employee outcomes that are compared with referent other’s outcomes
Wages, salary, benefits, bonus, recognition, reputation, praise, thanks, responsibility, training, sense of achievement, and advancement opportunities

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Compensation Fairness and Equity
External equity
If an employer’s rewards are not viewed as equitable compared with other firms, the employer is likely to experience higher turnover
Internal equity
Employees are compensated fairly within the organization with regard to their K S As
Pay secrecy
Explaining pay grades and pay decision rules can enhance employee perceptions of fair and ethical treatment

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Compensation Quartile Strategies
Reflect the overall market position where the organization sets its compensation levels
First quartile
Lag-the-market strategy: Company targets pay ranges so that 75% of other firms pay above and 25% pay below
Used when the employer is experiencing financial difficulties and when an abundance of workers is available

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Compensation Quartile Strategies (continued 1)
Second quartile
Match-the-market strategy: Company targets pay ranges so that 50% of other firms pay above and 50% pay below
Attempts to balance employer cost pressures and the need to attract and retain employees
Third quartile
Lead-the-market strategy: Company targets pay ranges so that 25% of other firms pay above and 75% pay below

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Compensation Quartile Strategies (continued 2)
Enables a firm to attract and retain sufficient workers with the required capabilities and be more selective when hiring
Deciding which quartile position to target for pay structures is a function of the following considerations:
Available financial resources
Competitiveness pressures
Market availability of employees with different capabilities

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Competency-Based Pay
Rewards individuals for the capabilities they demonstrate and acquire
Knowledge-based pay (KBP) or skill-based pay (SBP) systems
Employees start at a base level of pay and receive increases as they learn to do other jobs or gain additional skills and knowledge and thus become more valuable to the employer

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Compensation Issues
Developing and managing a global compensation system is extremely complex
The growing world economy has led to an increase in employees working internationally
Laws, living costs, tax policies, currency fluctuations, and more must be considered when designing the compensation

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Figure 11-7: Compensation Administration Process

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Job Evaluation Methods
Job evaluation: Formal, systematic means to determine the relative worth of jobs within an organization
Ranking method: Places jobs in order, from highest to lowest, by their value to the firm
Appropriate in small firms with relatively few jobs
Classification method: Involves writing descriptions of job classes and then putting each job into a grade according to the class it best matches
Used in public-sector organizations

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Job Evaluation Methods (continued)
Point factor method: Looks at compensable factors in a group of similar jobs and assigns weights, or points, to them
Compensable factor: Job dimension commonly present throughout a group of jobs within an organization that can be rated for each job
Derived from job analysis
Reflects the nature of different types of work performed in the organization
Most popular approach because it is relatively simple to use and considers the components of a job rather than the total job

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Market Pricing
Uses market pay data to identify the relative value of jobs based on what other employers pay for similar jobs
Key to market pricing is identifying relevant market pay data for jobs that are good matches with the employer’s:
Jobs
Geographic considerations
Company strategies and philosophies about desired market competitiveness levels

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Market Pricing (continued)
Advantages
Ties organizational pay levels to the external job market, without internal job evaluation distortion
Allows an employer to communicate to employees that the compensation system is truly market linked
Disadvantages
Pay survey data may be limited or may not be gathered in methodologically sound ways
Tying pay levels to market data can lead to wide fluctuations on the basis of market conditions

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Pay Surveys
Collection of data on compensation rates for workers performing similar jobs in other organizations
Using benchmark jobs to anchor the survey data is helpful
Benchmark jobs: Jobs that are found in many other organizations that can be used for the purposes of comparison
Internet-based pay information is prevalent

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Using Pay Surveys
Involves evaluating many factors to determine if the data are relevant and valid
Is the participant sample realistic?
Is the survey broad based?
How established is the survey, and how qualified are those who conducted it?
Does it include required elements of compensation to allow comparison of the reward mix?
Does the survey contain job summaries so that appropriate matches to job descriptions can be made?
Timeliness: How current are the data?

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Pay Surveys and Legal Issues
Employers use outside sources for pay surveys to avoid charges that they are attempting to “price fix” wages
Companies must safeguard employee privacy and provide only de-identified data so that specific employee pay rates and names are not shared
Care must also be taken to avoid violating the N L R A provisions that apply to disclosing wage and benefit information

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Pay Grades
Groupings of individual jobs that have approximately the same value to the organization
Market line: Graph line that shows the relationship between job value as determined by job evaluation points and job value as determined by pay survey rates
Market banding: Grouping jobs into pay grades based on similar market survey amounts

Pay Ranges
Jobs within a point range are classified into job grades using the point factor method
Market data are then used to determine the minimum and maximum pay rates for each job grade, and midpoint is computed by averaging the range of minimum and maximum pay rates
Current pay of employees is compared with the proposed ranges
Broadbanding: Practice of using fewer pay grades with much broader ranges than in traditional compensation systems

Individual Pay
Many organizations use compa-ratio to determine each individual employee’s standing in relationship to the midpoint
Compa-ratio: Pay level divided by the midpoint of the pay range
Red-circled employee: Incumbent who is paid above the range set for a job
Green-circled employee: Incumbent who is paid below the range set for a job

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Individual Pay (continued)
Pay compression: Occurs when the pay differences among individuals with different levels of experience and performance become small
Salary inversion: Occurs when the pay given to new hires is higher than the compensation provided to more senior employees

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Performance-Based Increases
Targeting high performers
Focuses on providing the top-performing employees with significantly higher pay raises, while providing standard increases to the remaining satisfactory performers
Pay adjustment matrix
Reflects an employee’s eligibility for pay increase
Factors considered:
Employee’s level of performance as rated in an appraisal
Employee’s position in the pay range

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Figure 11-10: Pay Adjustment Matrix
Source: Adapted from Payscale’s 2012 Compensation Best Practices Report.

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Standardized Pay Adjustments
Methods used
Seniority can be used as the basis for pay increases
Cost-of-living adjustments (C O L A): Every employee’s pay is increased to compensate for inflation and rising prices
Across-the-board increases: Given as a percentage raise based on standard market or financial budgeting determinations
Lump-sum increases (L S I): One-time payment of all or part of a yearly pay increase

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Compensation Challenges
Economic recessions
Organizations address shortfalls in revenue by reducing employment-related expenses
Should be used sparingly because such strategies may result in employee job dissatisfaction and turnover
Gender pay gap
Wider in some industries than others
Continued monitoring of organizational pay levels and properly managing women’s career progress are important

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Variable Pay
Compensation that is tied to performance
Performance may be evaluated and rewarded at individual, team, or organizational level
Incentives: Tangible rewards that encourage or motivate action
Tying pay to performance can be attractive for both employers and employees
Employers: More output per employee, lower fixed costs, and some risks shifted to employees
Employees: More pay when they do their jobs well

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
52

Variable Pay (continued)
Basic assumptions that underlie the philosophical foundation of variable pay:
Some people or groups contribute more to organizational success than do others
Some people perform better and are more productive than are others
Employees or groups who perform better or contribute more should receive greater compensation

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
A Variety of Possible Incentives
Monetary incentives
Team bonus
Recognition and reward programs
Perks
Piece-rate pay
Opportunities to use personal expertise
Stock options
Autonomy
Bonuses
Professional development

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
A Variety of Possible Incentives (continued)
Service Awards
Trips
Meaningful work
Gainsharing
Commissions
E S O P’s
Profit sharing
Spot bonus
Praise
Merchandise

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Effective Variable Pay
The effectiveness of any variable pay program relies on its consistency with the organization’s culture
Many companies find that variable pay plans make performance results a higher priority for employees
Variable pay systems should be tied to desired performance
Line of sight: Idea that employees can clearly see how their actions and decisions lead to desired outcomes

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
56

Factors for Effective Variable Pay Plans
Variable pay effectiveness
Current updated plans
Results in desired behaviors
Clearly separate from base pay
Clearly communicated
Performance results are clearly linked to payout
Clear differentiation based on performance level

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Factors for Effective Variable Pay Plans (continued)
Sufficient financial resources
Consistent with organizational culture
Measurable performance
Plan is clear and understandable
Linked to organization objectives

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Effective Variable Pay (continued)
Establishment involves determining appropriate performance measures to evaluate performance and the resulting rewards
Most firms have a number of important targets to track results related to critical success factors
Critical success factors: Variables that have a strong influence on the results of the organization
Key performance indicators (K P I’s): Scorecard measures that tell managers how well the organization is performing relative to critical success factors

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Levels of Variable Pay
Variable pay plans can be classified into three levels or categories:
Individual
Team
Organizational

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Individual Incentive Systems
Tie personal effort to additional rewards for the individual employee
Necessary conditions to be considered when using individual incentive plans
Individual performance must be identifiable
Individual competitiveness must be desirable
Individualism must be stressed in the organizational culture
Individuals must be in control of the pace of production

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Individual Incentive Systems (continued)
Piece-rate system
Pay system in which wages are determined by multiplying the number of units produced by the piece rate for one unit
Results in inequality in pay, which can lead to dysfunction within a work group
Training managers in the program specifics is helpful

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Individual Incentives
Bonus: One-time payment that does not become part of the employee’s base pay
Factors leading to success in utilizing bonuses include:
Establishing clear, metric-based reviews
Ensuring that employees who have not met performance criteria do not receive a payout
Educating managers and employees about the incentive plan details
Other types of bonuses: spot, referral, hiring, retention, and project completion

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Individual Incentives (continued)
Nonmonetary Incentives
Performance awards
Incentive rewards for performance
Recognition awards
Recognizes individual employees for their work
Service awards
Recognizes and rewards longevity with the company

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Team Incentives
When employees participate in team-level incentives, they share more information among the team members
Concerns are how and when to distribute the incentives and who will determine the incentive amounts
Primary ways for distributing those rewards are as follows:
Same size reward for each member
Different size reward for each member

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Team Incentives (continued)
Challenges with team incentives
Rewards distributed in equal amounts to all members may be perceived as unfair by some employees
Some individuals who are performing poorly may prevent the team from meeting the goals needed to trigger the incentive payment
Free rider: Member of the group who contributes little
Gainsharing: Sharing with employees greater than expected gains in profits and/or productivity

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Organizational Incentives
Profit sharing: System to distribute a portion of an organization’s profits to employees
Stock option plan: Gives employees the right to purchase a fixed number of shares of company stock at a specified price for a limited period of time
Employee stock ownership plan (E S O P): Gives employees significant stock ownership in their organizations

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Types of Sales Compensation Plans
Salary only
Useful when an organization emphasizes serving and retaining existing accounts over generating new sales and accounts
Commission plans
Commission: Percentage of the revenue generated by sales that is given to an agent or salesperson
Straight commission: Compensation is computed as a percentage of the value of the sales generated
Salary plus commission: Combines the stability of a salary with the performance aspect of commission

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
68

Executive Compensation
Handled differently from employee pay in various types of organizations
Determined by the board of directors
Subject to shareholder approval via a say-on-pay provision in the Dodd-Frank Act
Contracts with executives include a clawback provision
Clawback provision: Permits the organization to require an employee to return rewards obtained through unethical or negligent actions

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Figure 11-13: H R Metrics for Compensation

H U M A N R E S O U R C E
MANAGEMENT
VA L E N T I N E M E G L I C H M AT H I S J A C K S O N
SIXTEENTH EDIT ION

CHAPTER 12

Managing Employee

Benefits

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Objectives
Explain how companies use benefits as a competitive advantage
Identify four key benefit design considerations
Specify three legally required benefits
Discuss the trends in retirement plans and compare defined benefit and defined contribution plans

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Objectives (continued)
Explain the importance of managing the costs of health benefits and identify some methods of doing so
Describe the growth of financial, family-oriented, and time-off benefits and their importance to employees

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Benefits
Tangible indirect rewards provided to an employee or group of employees for organizational membership
Includes retirement plans, paid time off, health insurance, life and disability insurance, and many more
Health insurance represents the largest percentage of benefit costs, followed by paid time off, legally required benefits, and retirement plans

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Benefits and H R Strategy
Benefits approach adopted as part of total rewards depends on many factors, such as:
Size of the organization
Workforce competition
Organizational life cycle
Employee demographics
Financial circumstances
Corporate strategic approach

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Benefits as a Competitive Advantage
Benefits are offered to:
Aid recruiting and retention
Improve organizational performance
Meet legal requirements
Reinforce the company philosophy of social and corporate citizenship

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Benefits as a Competitive Advantage (continued)
Benefits can influence employees’ decisions about:
Which employer to work for
Whether to stay with or leave an organization
When to retire

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Tax-Favored Status of Benefits
Most benefits are not taxed as income to employees
Exception: Paid time off
Gross-up: To increase the net amount of what the employee receives to include the taxes owed on the amount

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Benefits
Benefits differ significantly across the globe
In many countries, employers and employees are taxed heavily to pay into government funds
Multinational companies must determine how to compensate both host-country nationals and expatriates so that all employees will feel that they are being treated fairly
Decisions about compensation impact global attraction and retention of employees among international employers

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Public-Sector Benefits
Public sector workers
Enjoy more benefits than those in the private sector
Belong to labor unions at a much higher rate than nongovernment workers
Their union contracts include:
Free health care
Traditional defined benefit pension plans

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Types of Benefits
Some benefits are mandated by laws and government regulations
Others are offered voluntarily by employers as part of their H R strategy
Organizations provide greater security and support to workers with diverse personal circumstances by offering additional benefits
Benefits professionals should constantly review changes in compliance and mandated benefits and shifting employee priorities

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Types of Benefits (continued 1)
Legally required health care benefits
Consolidated Omnibus Budget Reconciliation Act (C O B R A) and Health Insurance Portability and Accountability Act (H I P A A) provisions
P P A C A
Medical plans
Medicare
Voluntary health care benefits
Dental and vision care
Wellness programs

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Types of Benefits (continued 2)
Legally required financial benefits
Life, disability, and long-term care insurance
Education assistance
Relocation/home buying assistance
Severance pay
Legally required time-off benefits
Military-service leave
Voluntary time-off benefits
Public-service leave, vacation, holidays, and bereavement leave

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Types of Benefits (continued 3)
Legally required family benefits
F M L A provisions
Voluntary family benefits
Domestic partner benefits
Adoption benefits
Child care and elder care
Legally required retirement benefits
Social Security
A D E A and O W B P A provisions

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Types of Benefits (continued 4)
Voluntary retirement benefits
Defined benefit plans
Defined contribution plans
401(k) plans
Cash balance pension plans
Phased retirement programs
Legally required security benefits
Workers’ compensation
Unemployment compensation

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Benefit Design Decisions
Many key decisions must be made as part of benefits design:
What percentage of total rewards should be provided as benefits?
What benefits do employees value?
Should standard or flexible benefit choices be offered?
Which employees should be covered?
What is the budget for benefits?
Should internal or external administration be preferred?

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Flexible Benefits Plan
Allows employees to select the benefits they prefer from options established by the employer
Disadvantages
Employees may choose an inappropriate package
Younger employees may decide not to participate in the retirement plan
Adverse selection: Situation in which only higher-risk employees select and use certain benefits
Offering more choices leads to higher administrative costs for the organization

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Part-Time Employee Benefits
Part-time employees
Most do not receive employee benefits except some paid time off
Least likely to receive health and life insurance benefits
Provided in proportion to the percentage of full-time work they provide

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Domestic Partner Benefits
Under federal law, same-sex spouses may be entitled to benefits
If same-sex couples get divorced, one partner may be entitled to a share of retirement benefits
Court decision resulted in elimination of domestic partner benefits by some employers
Approximately one-third of companies that previously provided health care benefits to domestic partners have dropped that coverage

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Generational Differences in Benefit Needs
Benefits attractive to older workers
Modified work schedules, part-time benefits, simplified seasonal travel, wellness programs, and financial planning programs
Millennial employees place high value on in-person interactions regarding their employee benefits
In-person interactions and ongoing communications may enhance the perceived value employees obtain from employer-sponsored benefit plans

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Benefits Administration and Technology
Open enrollment: Time when employees can change their participation level in various benefit plans and switch between benefit options
Many organizations outsource benefits administration
Third-party administrator (T P A): Vendor that provides enrollment, recordkeeping, and other administrative services to organizations

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Benefits Administration and Technology (continued 1)
Technology and employee self-service
Internet and computer-based systems are being used to:
Communicate benefits information
Conduct employee benefits surveys
Facilitate benefits administration
Decrease expenses
Increase positive communication
Effectively connect people across many H R functions

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Benefits Administration and Technology (continued 2)
Self-service
Technology that allows employees to:
Enroll in and change their benefit choices
Track their benefit balances
Submit questions to H R staff members and external benefit providers

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Frequently Used Benefit Metrics
Benefits as a percent of payroll
Benefit costs per F T E
Benefit costs by employee group
Benefits administration costs
Health care costs per F T E
Retirement plan participation rate
Paid time-off utilization
Tuition reimbursement costs

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Benefit Cost Control
Reducing or dropping benefits
Cost sharing with employees
Sponsoring wellness programs
Offering employee health education
Changing prescription drug programs
Consolidating benefits packages into more streamlined offerings

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Benefit Communication
Employees are not aware of values and costs associated with benefits
Employers can develop special benefit communication systems to inform employees about the monetary value of the benefits
Using Internet and social media might help increase employee access to benefits information
Year-round, multichannel communications can help workers better appreciate the value of their benefits

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Benefit Communication (continued)
When communicating benefit information, consider:
Timing and frequency
Communication methods
Any specialized content
Providing rationale for significant changes to existing plans
Some companies provide a personal benefit statement, which translates benefits into dollar amounts

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Legally Required Benefits
Social Security Act of 1935: Provides old age, survivor’s, disability, and retirement benefits
Funded by both employees and employers through a tax on employees’ wages or salaries
Amount of wages subject to tax is reviewed and increased periodically
Medicare: Government-operated health insurance for Americans aged 65 and above and for some citizens with disabilities
Funded by a tax on employers and employees
Long-term viability of funding is in question

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Workers’ Compensation
Security benefits provided to workers who are injured on the job
Concepts that balance the rights of employers and employees under workers’ compensation
No-fault insurance: Injured worker receives benefits even if the accident was the employee’s fault
Exclusive remedy: Workers’ compensation benefits are the only benefits injured workers may receive from the employer to compensate for work-related injuries

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Unemployment Compensation
Established as part of the Social Security Act of 1935
Provides a minimum level of benefits for workers who are out of work
Each state operates its own system, so benefits differ by state
Companies pay an unemployment tax
Out-of-work and actively-looking employees can receive up to 26 weeks of pay at the rate of 50 to 80 percent of normal pay

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Retirement Benefits
Many states have state-sponsored retirement plans for workers whose employers do not provide optional retirement savings plans
Many private employers freeze the traditional plans and restrict new employees from enrolling
Results in retired individuals relying on Social Security payments, which were not designed to provide full retirement income
Can be a valuable tool for attracting and retaining workers

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Figure 12-6: The Three-Legged Stool of Retirement Income

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Features of Retirement Plans
Vesting: A benefit that cannot be taken away
If employees have not been employed long enough to be vested, no pension rights accrue to them except the funds they have contributed
Portability: Allows employees to move their retirement benefits from one employer to another
Once employees are vested in a plan, they can transfer their retirement benefits from one employer to another

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Retirement Plan
Program established and funded by the employer and/or employees to fund employees’ retirement years
Types of retirement plans
Defined benefit plan: Employees are promised a pension amount based on age and years of service
Defined contribution plan: Employer and/or employee makes an annual payment to an employee’s retirement account

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Comparison of Defined Benefit and Defined Contribution Retirement Plans
Defined Benefit
Typically funded at least in part by employer
Amount of benefit paid at retirement is predetermined
Defined Contribution
Typically funded by employee and employer
Amount of benefit at retirement is determined on the basis of investment performance

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Comparison of Defined Benefit and Defined Contribution Retirement Plans (continued 1)
Defined Benefit
Investment risk borne by employer
Benefit guaranteed by Pension Benefit Guaranty Corporation (P B G C)
Defined Contribution
Investment risk borne by employee
Benefit not guaranteed

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Comparison of Defined Benefit and Defined Contribution Retirement Plans (continued 2)
Defined Benefit
Amount of contribution changes on the basis of actuarial assumption
Common in public sector and unionized workforces
Defined Contribution
Amount of contribution is defined by employee participation level and company match
Common in private sector and nonunion workforces

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Common Defined Contribution Plans
Profit-sharing plans
Employee stock ownership plans (E S O P’s)
401(k) plan: Allows for a percentage of an employee’s pay to be withheld and invested in a tax-deferred account
Auto-enrollment: Employee contributions to a 401(k) plan are started automatically when an employee is eligible to join the plan
Some companies also use auto-escalation
Auto-escalation: Automatic increases of 1 percent a year to a 401(k) plan

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Legal Regulation of Retirement Benefits
Employee Retirement Income Security Act (E R I S A) in 1974
Ensures that private pension plans and other plans governed by E R I S A meet minimum standards
Requires plans to periodically provide participants with information about plan features, funding, and benefit accrual amounts
Retirement Benefits and Age Discrimination
According to a 1986 amendment to the Age Discrimination in Employment Act (A D E A), most employees cannot be forced to retire at a specific age

Legal Regulation of Retirement Benefits (continued 1)
Early retirement
Many pension plans include provisions for early retirement to allow workers to retire before the normal retirement age
Phased retirement is an alternative used by individuals and firms
Some employers use early retirement buyout programs to cut back their workforces and reduce costs

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Legal Regulation of Retirement Benefits (continued 2)
Older Workers Benefit Protection Act (O W B P A) in 1990
Enacted as an amendment to the A D E A
Requires equal treatment for older workers in early retirement or severance situations
Sets specific criteria that must be met if older workers are asked to sign waivers promising not to sue for age discrimination in exchange for severance benefits during layoffs

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Health Care Benefits
Considered to be one of the most important benefits companies offer
Can cover medical, dental, prescription drug, and vision care expenses for employees and their dependents
Costs associated with health care coverage have increased considerably in the United States
Increased expenses have led companies to require employees to shoulder some of the costs

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Patient Protection and Affordable Care Act (P P A C A)
Provisions were phased in over several years, culminating in universal coverage in 2014
The U.S. Supreme Court ruled in 2012 and 2015 that the law was constitutional even though many elements of the act were controversial and led to lawsuits
Original legislation required every individual to obtain health care coverage
This was eliminated in 2017 as part of the tax reform bill

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Key Provisions of the P P A C A
Requires companies with 50 or more employees (who work 30 hours a week or more) to provide health care coverage or pay a penalty
Extends dependent coverage up to age 26
Eliminates lifetime and unreasonable annual benefit limits
Requires coverage for preventive services

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Key Provisions of the P P A C A (continued)
Restricts insurance companies from setting rates based on an individual’s health status, medical conditions, and other health-related factors
Creates state-run health care exchanges through which insurance companies will offer competitive health plans

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Employer-Sponsored Plans
Some employers might drop health insurance plans, cut staff, or reduce working hours to avoid providing coverage or paying penalties
Can have a negative effect on attracting, motivating, and retaining employees
While employer-sponsored health coverage is still a tax-favored benefit, employers must report the value of this coverage on employees’ W-2 forms

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Controlling Health Care Benefit Costs
Approaches used by employers:
Increasing deductibles and copayments
Deductible: Money paid by an insured individual before a health plan pays for medical expenses
Copayments: Portion of medical expenses paid by an insured individual for medical treatment
Instituting high-deductible plans
Offering consumer-driven health plans
Increasing employee contributions

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Controlling Health Care Benefit Costs (continued)
Using managed care
Managed care: Approaches that monitor and reduce medical costs through restrictions and market system alternatives
Limiting family coverage; excluding spouses
Spousal exclusion provisions limit access to a company’s health plan when an employee’s spouse works for another company that offers health insurance
Managing prescription drug costs
Increasing health preventive and wellness efforts

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Consumer-Driven Health (CDH) Plan
Provides employer financial contributions to employees to help cover their health-related expenses
Gives employees ownership of their health care dollars

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Wellness Initiatives
Many plans broaden the definition of wellness to include social, financial, and behavioral health programs in a more holistic approach to employee well-being
Companies should carefully assess any wellness programs before implementing them to ensure employee concerns are considered
Balancing individual privacy concerns with corporate cost-saving initiatives can blur ethical lines

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
C O B R A Provisions
Requires that employers with 20 or more full-time and/or part-time employees offer extended health care coverage to the following participants:
Employees who voluntarily quit or are terminated
Widowed or divorced spouses and dependent children of former or current employees
Retirees and their spouses and dependent children whose health care coverage ends
Any child who is born or adopted by a covered employee

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
C O B R A Provisions (continued)
Other individuals involved in the plan such as independent contractors and agents/directors
Qualifying events: Events that cause a plan participant to lose group health benefits
Examples:
Reduction in work hours or loss of employment constitutes a qualifying event for employees
Divorce or death of an employee constitutes a qualifying event for covered family members

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
H I P A A Provisions
Allow employees to switch their health insurance plans when they change employers
Require employers to:
Provide privacy notices to employees
Carefully store sensitive employee personal information
Not disclose employee health information without authorization

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Dental and Vision Coverage
Employees typically pay a portion of the premium for dental and vision plans
Emphasize preventive care
Semiannual dental visits and annual optometry visits may be covered in full or at minimal cost to the employee

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Common Types of Financial Benefits
Insurance
Medical, dental, life, disability, long-term care, and legal
Financial services
Credit union, purchase discounts, stock purchase plan, financial planning, and discount club membership
Education assistance
Tuition reimbursement, trade training, professional certification or licensure, and learning materials

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Types of Insurance Benefits
Life insurance
Typical level of coverage is one and one-half or two times an employee’s annual salary
Disability insurance
Provides continuing income protection for employees who become disabled and are unable to work
Long-term care insurance
Allows employees to purchase insurance to cover costs for long-term health care in a nursing home, assisted-living facility, or at home

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Types of Insurance Benefits (continued)
Legal insurance
Employees (or employers) pay a flat fee for a fixed number of hours of legal assistance each month

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Family and Medical Leave Act (F M L A)
Enacted in 1993
Covers:
All federal, state, and private employers with 50 or more employees who live within 75 miles of the workplace
Employees who have worked at least 12 months and 1,250 hours in the previous year
Provides for unpaid leave

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Family and Medical Leave Act (F M L A) (continued 1)
Leave provisions
Requires employers to allow eligible employees to take a maximum of 12 weeks of unpaid, job-protected leave during any 12-month period for the following situations:
Birth of a child and care for the newborn within one year of birth
Adoption or foster care placement of a child
Caring for a spouse, child, or parent with a serious health condition

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Family and Medical Leave Act (F M L A) (continued 2)
Serious health condition of the employee
Illness or injury that requires inpatient care or continuing treatment by a health care provider for medical problems that exist beyond three days
Military family members who must handle the affairs for military members called to active duty
Twenty-six weeks leave to care for a military servicemember injured while on active duty

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Guidelines Regarding F M L A Administration
Return to same or equivalent job
Continued health care benefits during leave
Intermittent leave permitted
Use of paid vacation and personal leave required
F M L A leave runs concurrently with other disability leave
No penalty under attendance policy

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Guidelines Regarding F M L A Administration (continued)
30-day notice from employee required
Fitness-for-duty test upon return permitted

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Family and Medical Leave Act (F M L A) (continued 3)
Impact of the F M L A
Significant percentage of employees have used it since its enactment
Employers have to cover the workload for employees on family leave
Employees seeking to balance work demands with family and medical situations place significant demands on H R professionals to ensure compliance with F M L A provisions

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Family-Care Benefits
Family-based benefits
Adoption and fertility benefits
Child-care assistance
Elder-care assistance

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Paid-Time-Off Benefits
Vacation and holiday pay
Leaves of absence
Family leave
Sick leave
Paid-time-off (P T O) plans
Employee-paid group benefits

H U M A N R E S O U R C E
MANAGEMENT
VA L E N T I N E M E G L I C H M AT H I S J A C K S O N
SIXTEENTH EDIT ION

CHAPTER 13

Risk Management and Worker Protection

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Objectives
Understand risk management and identify its components
Discuss important legal areas regarding safety and health
Outline the basic provisions of the Occupational Safety and Health Act of 1970 and recordkeeping and inspection requirements

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Objectives (continued)
Recognize the activities that constitute effective safety management
List three workplace health issues and highlight how employers are responding to them
Define workplace security concerns and discuss some elements of an effective security program
Describe the nature and importance of disaster preparation and recovery planning for H R

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Risk Management
Involves the responsibility to consider physical, human, and financial factors to protect organizational and individual interests
Involves the following essential issues:
How big is the threat to our organization?
How likely is the threat to occur?
What options do we have to reduce its impact?
What is the preferred course of action to prevent a major loss?

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Risk Management (continued)
Risk management concerns
Preventing accidents and health problems at work
Protecting against workplace violence
Ensuring H R data are secure
Preparing for terrorist attack, natural disasters, and global disease outbreaks

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Key Facets of H R-Based Risk Management
Health: General state of physical, mental, and emotional well-being
Safety: Condition in which people’s physical well-being is protected
Security: Protection of employees and organizational facilities from forces that may harm them

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Safety and Health Regulations
Major legal concerns
Workers’ compensation legislation
Americans with Disabilities Act (A D A)
Child labor laws
Civil rights nondiscrimination provisions
Collective bargaining laws

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Workers’ Compensation
Employers purchase insurance to compensate employees for injuries incurred while on the job
Laws require payments be made to an
employee:
For time away from work because of an injury
To cover medical bills
For retraining if a new job is required as a result of the incident

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Elements of Workers’ Compensation Benefits
Medical care
Medical treatment
Physical therapy
Prescription medications
Replacement income
Short term during recovery
Long term for permanent injuries

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Elements of Workers’ Compensation Benefits (continued)
Retraining costs
Occupational rehabilitation
Skill training and education
Survivor benefits
Payment to families of workers killed on the job

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
A D A and Safety Issues
Employers try to return injured workers to restricted duty work to reduce workers’ compensation costs
When making accommodations for injured employees through restricted duty work, essential job functions may be undercut
H R professionals understand A D A guidelines as they affect physical disabilities
It becomes difficult when mental illness is an issue

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Child Labor Laws
Fair Labor Standards Act (F L S A)
Child labor provisions set restrictions on minimum age for employment
Penalties for violating restrictions can be costly
Work-related injuries of teenage workers are a significant issue
Proper training of managers and employees in permissible tasks for younger workers and safe practices is critical

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Child Labor Law Restrictions
Children of all ages
Permitted to deliver newspapers
Permitted to work as entertainers
Permitted to work for a family-based farm or other business that is owned and operated by their parents
Cannot work in manufacturing or mining jobs regardless of ownership

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Child Labor Law Restrictions (continued 1)
Children between ages 14 and 15
Can work a maximum of 3 hours/day up to 18 hours/week when school is in session
Can work between the hours of 7:00 a.m. and 7:00 p.m. when school is in session
Can work a maximum of 8 hours/day up to 40 hours/week when school is not in session
Can work until 9:00 p.m. when school is not in session

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Child Labor Law Restrictions (continued 2)
Children between ages 16 and 18
Can work unlimited hours in permissible jobs
May perform any farm job
May perform any nonhazardous job
May not drive on public roads or perform duties of a delivery driver
Children aged 18
Minimum age for employment in hazardous occupations
No longer subject to child labor provisions

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Legal Issues Related to
Work Assignments
Reproductive Health
Employers should not prevent employees from working in hazardous jobs because of reproductive concerns, but they should:
Use the safest working methods
Comply with safety laws
Inform employees of known risks
Document employee acceptance of any risks

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Legal Issues Related to
Work Assignments (continued)
Employees can refuse unsafe work
Conditions for refusing work because of safety concerns:
The employee’s fear is objectively reasonable
The employee has tried to have the dangerous condition corrected
Using normal procedures to solve the problem has not worked

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Safety, Health, and Security Issues
Risk management must be considered for employees around the world
Safety and health laws and regulations vary greatly from country to country
Importance on health and safety is affected by level of regulation and other governmental and societal factors present in each country

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Occupational Safety and
Health Act
Enacted to ensure that the health and safety of workers is protected
Established three agencies within the Department of Labor to oversee various aspects of workplace safety
Occupational Safety and Health Administration (O S H A)
Administers the provisions of the law
Conducts workplace inspections
Works with companies to improve worker safety

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Occupational Safety and
Health Act (continued)
National Institute for Occupational Safety and Health (N I O S H)
Conducts research and develops safety standards
Occupational Safety and Health Review Commission (O S H R C)
Reviews O S H A enforcement actions and addresses disputes between O S H A and employers that are cited by O S H A inspectors

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
O S H A Enforcement Actions and Results
O S H A enforces safety regulations to reduce injuries and illnesses in the workplace
Incidences of nonfatal occupational injuries and illnesses and fatal work injuries have declined since 2003
Employers must:
Provide safe and healthy working conditions
Inform employees of O S H A safety and health standards through notification and posters

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Workplace Safety Standards
O S H A enforcement standards
Hazard communication standards
Standards regarding exposure to bloodborne pathogens
Personal protective equipment standards
Standards regarding pandemics

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Categories of Recordable Injuries
Death
Injuries causing days away from work
Injuries or illnesses causing job transfer or restricted duty
Other recordable cases

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Figure 13-6: Determining Recordability of Cases under the Occupational Safety and Health Act

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
O S H A Inspections
Compliance officers conduct on-the-spot inspections
Dealing with an inspection
Managers check inspector’s credentials
H R representative or safety professional has an initial conference with the compliance officer
Officer reviews safety records and conducts on-the-spot inspection
Officer issues citations for any violations

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
O S H A Inspections (continued 1)
Most common violations
Imminent danger: Reasonable certainty that the condition will cause death or serious physical harm if not corrected immediately
Serious: Condition that could cause death or serious physical harm, where the employer should know of the condition
Other than serious: Violations that impact employees’ health or safety but may not cause death or serious harm

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
O S H A Inspections (continued 2)
De minimis: Condition not directly and immediately related to employee safety or health
Willful and repeated: Issued to employers that have been previously cited
Related to fall protection, hazard communication, scaffolding, respiratory protection, and powered industrial trucks

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Examples of Direct Costs of Accidents
Direct Costs
Medical treatment (medication, rehabilitation, surgery)
Disability benefit payments for lost time
Durable medical equipment
Workers’ compensation premiums
Fines for safety violations
Damage to work equipment

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Examples of Indirect Costs of Accidents
Indirect Costs
Decreased/lost productivity
Management time for accident investigation
Claims administration
Time and production lost by coworkers
Reduced work group efficiency
Time lost by supervisor
Cost to replace injured workers and train new workers

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Examples of Immeasurable Costs of Accidents
Immeasurable Costs
Negative publicity and damaged reputation
Negative influence on employees’ esprit de corps

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Safety Management
Steps to reduce accidents
Organizational commitment to safety
Top management support is critical
Safety policies, discipline, and recordkeeping
Frequent reinforcing of safe behavior is important
Safety training and communication
Regular training sessions along with effective communication can help reduce accidents
Effective safety committees: Composed of workers from a variety of levels and departments

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Safety Management (continued)
Best practices
Senior leaders must endorse efforts and managers must actively assist the committees
Safety advocates should be assigned to committees
Management and employees should be represented
Inspection, investigation, and evaluation
Regular inspections should be performed, and research on prevention should be arranged
Accident reduction using ergonomics
Ergonomics: Study and design of work environment to address physical demands placed on individuals as they perform their jobs

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Accident Investigation Process
Emergency response; secure the accident site
Initial investigation; review site
Collect data from injured worker, witnesses, historical records
Analyze data and determine root cause
Institute corrective measures

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Approaches for Effective Safety Management
Organizational approach
Design safe jobs
Develop and implement safety policies
Use safety committees
Coordinate accident investigations
Create a safety culture
Establish reward and recognition programs
Engineering approach
Design appropriate work settings and equipment

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Approaches for Effective Safety Management (continued)
Utilize proper guarding and alert systems
Evaluate and use equipment and assistive devices
Apply ergonomic principles
Implement safety procedures in the workplace
Individual approach
Reinforce safety motivation and attitudes
Provide employee safety training
Reward safety through incentive programs
Discuss safety in meetings and at worksites

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Measuring Safety Efforts
Accident and injury statistics should be compared with previous accident patterns to identify any significant changes
Common metrics
Workers’ compensation costs per injury/illness
Percentage of injuries/illnesses by department, work shifts, and job categories
Incident rate comparisons with industry and benchmark targets

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Substance Abuse
Use of illicit substances or misuse of controlled substances, alcohol, or other drugs
Companies should consider utilizing an employee assistance program (E A P) for support and counseling related to substance abuse
Types of drug tests
Urinalysis, radioimmunoassay of hair, surface swiping, and fitness-for-duty tests (impairment)

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Common Signs of Substance Abuse
Physical
Fatigue, slurred speech, flushed cheeks, difficulty walking, and tiredness
Psychological
Depression, emotional instability, helplessness, insecurity/low self-concept, and difficulty remembering details
Behavioral
Inconsistency, missed deadlines, high absenteeism (especially Mondays/Fridays), frequently borrowing money, and poor job performance

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Common Signs of Substance Abuse (continued)
Interactional
Irritability, overreacting, argumentative behavior, bullying, and violence

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Other Employee Health Concerns
Emotional/mental health
Specific events can affect individuals who otherwise have been coping successfully with life’s pressures
Affected employees can be referred to outside resources through employee assistance programs
Stress and burnout
Stress: Harmful physical or psychological reaction that occurs when people are subject to excessive demands or expectations

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Workplace Stressors
Increased volume of work
Longer work hours
Increased pace of work and tight deadlines
Increased performance expectations and pressures

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Ways to Combat Workplace Stress
Learn coping strategies
Get enough sleep
Get regular exercise
Relax
Eat healthy, nutritious meals
Seek support from sympathetic colleagues

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Other Employee Health Concerns (continued)
Smoking at work
Many employers have instituted no-smoking policies throughout their workplaces
Organizations refuse to hire smokers or nicotine users because they want to:
Improve job performance
Reduce health-related expenses
Promote healthier lifestyles
Legal status of e-cigarettes is complicated because of the lack of F D A oversight

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Health Promotion
Health promotion: Supportive approach of facilitating and encouraging healthy actions and lifestyles among employees
Wellness programs: Programs designed to maintain or improve employee health before problems arise
Employee assistance program (E A P): Provides counseling and other help to employees having emotional, physical, or other personal problems

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Health Promotion (continued)
Helps improve employee performance
Reduces expenses associated with benefits
Enhances organizational well-being
Addresses the following most common employee issues:
Child care and elder care
Mental health and substance abuse problems
Relationship issues
Legal and financial problems
Career advice

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Health Promotion Levels
Level 1: Information and Awareness
Brochures and materials
Health risk screenings
Health tests and measurements
Special events and classes
Level 2: Lifestyle/Wellness
Wellness education program
Regular health classes
Employee assistance programs

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Health Promotion Levels (continued)
Support groups
Health incentives
Level 3: Health Emphasis
Benefits integrated with programs
Dedicated resources and facilities
Continuous health promotion
Health education curriculum

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Workplace Security Concerns
Security concerns
Security management
Employee screening and selection
Security personnel
Workplace violence

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Security Management
Involves:
Performing a security audit
Security audit: Comprehensive review of organizational security
Controlling physical access to facilities of the organization
Controlling access to H R and other sensitive data
Screening job applicants
Providing trained security personnel in sufficient numbers

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Security Management (continued)
Providing violence prevention training
Managers, H R staff members, supervisors, and employees should be trained on:
How to recognize signs of a potentially violent employee
What to do when violence occurs

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Workplace Violence
Perpetrated by such categories of individuals as criminal, customer, coworker, or domestic
Incivility: Rude behavior that offends other employees
Bullying: Behavior that the victim perceives as oppressive, humiliating, threatening, or infringing on the target’s human rights and that occurs over an extended period of time

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Workplace Violence (continued)
Dealing with workplace violence
Develop policies and practices that aim to prevent and respond to it
Train managers and others
Create a violence response team
Develop post-violence response plans

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Levels of Workplace Violence Warning Signs
Level 1: Early Warning Signs
Intimidating/bullying
Discourteous/disrespectful
Uncooperative
Verbally abusive
Level 2: Escalating Situation
Argumentative with customers, coworkers, and management
Insubordination

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Levels of Workplace Violence Warning Signs (continued)
Sabotage of equipment or stealing property for revenge
Verbal or written threats to hurt coworkers or managers
Level 3: Further Escalation
Threats of suicide
Physical altercation
Destruction of property
Extreme rage
Brandishing weapons to harm others

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Crisis Management
Effectively managing a crisis faced by a company in three basic steps:
Pre-crisis: Identify how crises can be avoided through proper preparation, risk assessment, and disaster prevention
Crisis: Craft a plan that enables the firm to adequately identify and respond to a crisis
Post-crisis: Identify how the organization can better respond to the same or a similar crisis if it were to happen again

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Elements of a Disaster Plan
Organizational assessment
Includes establishing a disaster planning team whose goal is to conduct an organizational assessment of how various disasters might affect the organization and its employees
Disaster recovery plan is then developed to identify how the organization will respond to various situations
Human impact planning
Involves assessing the impact of events on people and putting contingency plans in place

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Elements of a Disaster Plan (continued)
Disaster training
Covers a wide range of topics, including the following:
First aid/CPR
Hazardous materials containment
Disaster escape means
Employee contact methods
Organizational restoration efforts

H U M A N R E S O U R C E
MANAGEMENT
V A L E N T I N E M E G L I C H M A T H I S J A C K S O N
S I X T E E N T H E D I T I O N

CHAPTER 14

Employee Rights and Responsibilities

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Objectives
Explain elements of employment contracts, including noncompete and intellectual property agreements
Define employment at will and discuss how wrongful discharge, just cause, and due process are interrelated
Discuss issues associated with employee privacy, free speech, and whistle-blowing

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Objectives (continued)
Analyze workplace monitoring, employer investigations, and other steps taken to ensure a safe and productive workplace
Understand the use of policies, procedures, and employee handbooks to communicate workplace behavior and performance expectations
Outline approaches to employee discipline and termination of employment

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Employee Rights and Responsibilities
Rights: Powers, privileges, or interests derived from law, nature, or tradition
Statutory rights: Result of specific laws or statutes passed by federal, state, or local governments
Equal employment opportunity
Collective bargaining
Workplace safety
Responsibilities: Obligations to perform certain tasks and duties

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Contractual Rights
Rights based on a specific contract between an employer and an employee
Employment contract: Formal agreement that outlines the details of employment
Noncompete agreement: Prohibits individuals who leave an organization from working with an employer in the same line of business for a specified period of time

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Noncompete Agreements
Employment contract clauses
Nonpiracy agreements
Nonsolicitation of current employees

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Contractual Rights (continued)
Protection of intellectual property
Right to keep trade secrets confidential
Right to have employees bring business opportunities to the employer first before pursuing them elsewhere
Common-law copyright for works and other documents prepared by employees for their employers

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Implied Contracts
Unwritten agreements created by the actions of the parties involved
Affect employment relationship
Rights and responsibilities of the employee may exist only as unwritten employer expectations about what is acceptable behavior or performance

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Rights Affecting the Employment Relationship
Employment at will (E A W)
Wrongful and constructive discharge
Just cause
Due process
Organizational justice

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Employment at Will (E A W)
Common-law doctrine stating that
Employers have the right to hire, fire, demote, or promote whomever they choose, unless there is a law or a contract to the contrary
Employees can quit at any time with or without notice
Courts have recognized certain exceptions to E A W
Public policy exception, implied contract exception, good-faith and fair-dealing exception, and statutory exception

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Wrongful Discharge and Constructive Discharge
Wrongful discharge: Termination of an individual’s employment for reasons that are illegal or improper
Constructive discharge: Deliberately making conditions intolerable to get an employee to quit

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Keys for Preparing a Defense against Wrongful Discharge
Put together accurate performance evaluations
Develop documentation justifying dismissals
Provide employees with a written warning
Provide written grounds for termination decisions
Involve more than one person in the dismissal decision

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Just Cause and Due Process
Just cause: Reasonable justification for taking an employment-related action
Due process: Occurs when an employer is determining if there has been employee wrongdoing and uses a fair process to give an employee a chance to explain and defend his or her actions

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Criteria for Evaluating Just Cause
Just cause determinants
Was the employer’s rule reasonable?
Was the employee warned of the consequences of the conduct?
Did management investigate before disciplining?
Was the investigation fair and impartial?
Was there sufficient evidence of guilt?
Were the rules and penalties applied consistently?
Was the penalty reasonable, given the offense?

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Criteria for Evaluating Due Process
Due process considerations
How have precedents been handled?
Was the employee asked for his or her side of the story?
Is a complaint process available?
Was the complaint process used?
Did the company retaliate against the employee?
Was the decision based on facts?
Were the actions and processes viewed as fair by outside entities?

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Organizational Justice
Fairness of decisions and resource allocations in an organization
Elements
Procedural justice: Perceived fairness of the processes used to make decisions about employees
Distributive justice: Perceived fairness in the distribution of outcomes
Interactional justice: Extent to which a person affected by an employment decision feels treated with dignity and respect

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Open-Door Policy
Allows workers with a complaint to talk with someone in management
Used by union-free firms but can be mishandled
Union-free firms benefit from having formal complaint procedures that are well-defined to provide a more systematic due process for employees than do open-door policies
Unionized employees have a formal grievance procedure specified in the union contract

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Alternative Dispute Resolution (A D R) Methods
Arbitration: Uses a neutral third party to make a binding decision, thereby eliminating the need to involve the court
Compulsory arbitration: Employees waive their rights to pursue legal action until arbitration is complete
Peer review panels: Internal committees of employees that review disciplinary actions and make recommendations
Reduce lawsuits, provide due process, and lower costs

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Alternative Dispute Resolution (A D R) Methods (continued)
Ombuds: Individuals outside the normal chain of command who act as independent problem solvers for both management and employees
Mediation: Tool for developing appropriate and fair outcomes for all parties involved
Facilitative approach: Fosters communication among parties and uncovers options for settling
Evaluative approach: Points out potential weaknesses in each side’s case and offers potential settlement options

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Privacy Rights
Right to privacy: An individual’s freedom from unauthorized and unreasonable intrusion into personal affairs
Change in nature of privacy issues at workplace is due to:
Internet communications
Social media
Mobile devices
Telecommunication systems

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Employee Records
Employee medical records
Americans with Disabilities Act
Requires that all medical-related information be maintained separately from all other confidential files
Health Insurance Portability and Accountability Act
Includes regulations designed to protect the privacy of employee medical records
Access restrictions and security procedures
Should exist to protect the privacy of employees and protect employers from potential liability for improper disclosure of personal information

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Employees’ Free Speech Rights
Three situations in which employees’ freedom of speech might be restricted include:
Expressing controversial, divisive, and/or political views
Whistle-blowing
Using the Internet and other communication-based technology

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Expressing Controversial, Divisive, and/or Political Views
Handling concerns
Attempt informal resolution first
Outline boundaries and standards for appropriate behavior in a formalized policy that addresses work expectations
Have a signed nondisclosure privacy agreement

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Whistle-Blowing
Whistle-blowers: Individuals who report real or perceived wrongs committed by their coworkers or employers
Laws protecting whistle-blowers
Sarbanes-Oxley Act
Antiretaliation rules issued by O S H A
Equal Employment Opportunity Commission rules

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Whistle-Blowing (continued)
Key questions regarding whistle-blowing:
When do employees have the right to speak out with protection from retribution?
When do employees violate the confidentiality of their jobs by speaking out?

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Technology and Employer–Employee Issues
Monitoring electronic communications
E-mail, social media, and text messaging cause major issues for privacy
Bring your own device (B Y O D): Employees use their own mobile devices such as smartphones and digital tablets in the workplace
H R policies on electronic communications
Should provide guidance
Employers should develop policies

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Recommended Employer Actions Regarding Electronic Communications
Develop an electronic communications policy
Communicate the policy to employees
Obtain signed permission from employees
Monitor for business purposes only
Enforce the policy through disciplinary procedures

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Employee Rights and
Personal Behavior
Counterproductive behavior
Bullying, harassment, and assault
Dress and body appearance limitations
Visible tattoos, certain clothing, and body piercings
Off-duty behavior
Misconduct, especially when wearing clothing or badges with company identification
Weapons in the workplace
Balance a safe workplace with the right to bear arms

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Workplace Monitoring
Private-sector employers can monitor, observe, and search employees
Conducting video surveillance at work
Employers should be careful so that employer rights and employee privacy do not collide
Employers should develop a policy and inform employees of the policy
Monitoring employee performance
Signed employee consent form stating that performance will be monitored regularly should be obtained from employees

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Employer Investigations
Develop a good plan to respond in crises
Specify who will conduct the investigation
Investigate problems quickly before evidence can be tampered with
Assess the credibility of individuals and information in an investigation
Use the stories and information collected to conclude the investigation and recommend any remedial steps

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Employee Theft and Fraud
White-collar theft occurs through embezzling, accepting bribes, and stealing company property
Addressing employee theft and other workplace misconduct
Conduct thorough pre-hire applicant screening and background investigations
Use honesty tests both before and after a person is hired
Use workplace monitoring to review unusual behaviors

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Employee Theft and Fraud (continued)
Develop an ethics code that outlines appropriate behaviors, and conduct ethics training
Conduct internal checks and balances and audits regularly

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Honesty and Polygraph Tests
Employee Polygraph Protection Act
Prohibits the use of polygraphs for most pre-employment screening
Requires that employees must:
Be advised of their rights to refuse to take a polygraph exam
Be allowed to stop the exam at any time
Not be terminated because they refuse to take a polygraph test or solely because of the exam results

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Negative Impacts of Substance Abuse in the Workplace
Work performance
Inconsistent work quality
Increased absenteeism
Carelessness and mistakes
Risky, unsafe acts
Personal behavior
Blaming coworkers for own errors
Complaints and excuses for time off
Deteriorating personal hygiene

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Negative Impacts of Substance Abuse in the Workplace (continued)
Avoiding colleagues
Financial costs
Inadequate production
Rework or replacement for poor quality production
Coverage for absences
Workers’ compensation and health care

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Substance Abuse and
Drug Testing
National Council on Alcohol and Drug Dependence estimates that 70% of people who illegally use drugs are employed
Laws that address drug testing:
Americans with Disabilities Act
Specifies that alcoholism is a disability but that dependency on illegal drugs is not
Drug-Free Workplace Act of 1988
Government contractors must try to eliminate employee drug use

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Drug Testing and Employee Rights
Policies for conducting drug tests
Random testing of all employees at periodic intervals
Testing only in cases of probable cause
Testing after accidents

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Drug Testing and Employee Rights (continued)
Test conditions
Job-related consequences outweigh privacy concerns
Accurate test procedures are available
Written consent of the employee is obtained
Results are treated confidentially
Employer offers a complete drug rehabilitation program, including an employee assistance program

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
H R Policies, Procedures, and Rules
Policies: General guidelines that help focus organizational actions
Procedures: Customary methods of handling activities
More specific than policies
Rules: Specific guidelines that regulate and restrict individuals’ behavior

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Shared Responsibility for Policies, Procedures, and Rules
H R unit
Designs formal mechanisms for coordinating H R policies
Assists in developing organization-wide H R policies, procedures, and rules
Provides information on application of H R policies, procedures, and rules
Trains managers to administer policies, procedures, and rules

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Shared Responsibility for Policies, Procedures, and Rules (continued)
Managers
Help in developing H R policies and rules
Review policies and rules with all employees
Apply H R policies, procedures, and rules
Explain rules and policies to all employees
Give feedback on effectiveness of policies and rules

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Employee Handbook
Physical or electronic manual that explains a company’s essential policies, procedures, and employee benefits
Communicates workplace culture, benefits, attendance, pay practices, safety issues, discipline, and other critical information
Effective when written in common language rather than legalistic fashion

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Recommendations on Creating an Employee Handbook
Eliminate controversial phrases
Use disclaimers that are prominently displayed
Keep the handbook content current

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Possible Topics for an Employee Handbook
Introduction
Welcome message
Company history
Mission, vision, and values
General employment policies
Employment and labor laws
Employment status and work hours
Nondisclosure and intellectual property protections
Use of company technology/bring your own device policy

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Possible Topics for an Employee Handbook (continued)
Workplace conduct
Harassment and civility policies
Professional attire and behavior
Attendance requirements
Disciplinary procedures
Compensation and benefits
Pay grades and pay increase policy
Performance management process
Benefits eligibility
Paid time off/vacation entitlement

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Communicating H R Information
Downward communication
Flows from top management to the rest of the organization
Informs employees about what is and will be happening in the organization and what top management’s expectations and goals are
Upward communication
Enables managers to learn about the ideas, concerns, and information needs of employees

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Employee Discipline
Discipline: Process of corrective action used to enforce organizational rules
Effective discipline:
Is aimed at problem behaviors, not at employees personally
Is monitored by H R to ensure that remedial actions follow corporate and legal guidelines, are appropriate, and are fair and consistent
Relies on supervisors and managers who are properly trained on when and how to use discipline

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Approaches to Discipline
Positive discipline approach
Counseling
Written documentation
Final warning
Discharge
Progressive discipline approach
Incorporates steps that become progressively more severe and are designed to change the employee’s inappropriate behavior

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Figure 14-9:
Progressive Discipline Process

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Challenges in Employee Discipline
At-will employment
Formally stated discipline processes can undercut at-will provisions
Fairness and consistency
Equity should be the key
Documentation problems
Documenting issues ensures the process is done correctly
Reluctance to discipline

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Employee Discipline (continued)
Reasons why managers might not use discipline
Organizational culture of avoiding discipline
Lack of support from higher management
Guilt about past behavior
Fear of loss of friendship
Avoidance of time loss
Fear of lawsuits

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Termination
Occurs when an employee is removed from a job at an organization
Occurs for numerous reasons such as excessive violations of attendance policies and behavioral issues
Treating employees with dignity and respect is an ethical approach
Separation agreement: Terminated employee agrees not to sue the employer in exchange for specified benefits

H U M A N R E S O U R C E
MANAGEMENT
VA L E N T I N E M E G L I C H M AT H I S J A C K S O N
SIXTEENTH EDIT ION

CHAPTER 15

Union–Management Relations

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Objectives
Discuss what a union is and explain why employees join and employers resist unions
Outline the current state of union activity in the United States and identify several reasons for the decline in union membership
Explain the provisions of each of the major U.S. labor laws and recognize the impact of these laws and National Labor Relations Board (NLRB) rulings on nonunion workplaces

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Objectives (continued)
Describe the phases of the unionization process and the typical collective bargaining process
Define a grievance and identify the stages in a dispute resolution procedure

Unions
Union: Formal association of workers that promotes the interests of its members through collective action
Employees join unions because:
They are dissatisfied with how they are treated by employers
They believe that unions can improve their work situations

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Perspectives on Unionization
Advantages
Provides a channel for feedback about employee concerns and suggestions
Balances unchallenged decision-making power of management
Increases job tenure, performance, and employee earnings
Disadvantages
Negatively impacts the allocation of organizational resources
Decreases profitability
Hurts productivity as a result of increased compensation and rigid work practices

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Factors Leading to Employee Unionization
Working conditions
Inadequate staffing
Mandatory overtime
Unsatisfactory work requirements
Unrealistic expectations
Compensation
Noncompetitive pay and inequitable pay raises
Inadequate benefits
Unfair allocation of resources

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Factors Leading to Employee Unionization (continued)
Management style
Arbitrary decision making
Use of fear/intimidation and autocratic leadership
Lack of recognition
Employee treatment
Job insecurity
Unfair discipline/policies
Lack of response to complaints
Harassment/abusive behaviors

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Why Employers Resist Unions
Unions affect how employees and workplaces are managed
Unions may create inefficiencies in the workplace that cause waste and poor performance
Union workers frequently receive higher compensation than nonunion workers

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Prevention of Unions
Develop good employment practices
Earn employee trust
Encourage employee feedback
Offer fair, competitive compensation
Build supportive supervisory relationships with workers
Ensure that both H R professionals and operating managers are attentive and responsive to employees

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Union Membership in the United States
Unions played a critical role in improving the lives of American workers
Evolved as the Industrial Revolution took hold in the early 20th century
Focused on better wages, reasonable work hours, and safer working conditions
After the Great Depression in 1929, workers gained the right to:
Form labor unions
Negotiate with their employers regarding terms and conditions of their employment

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Union Membership in the United States (continued)
Membership in unions has steadily declined since 1983
Only 10.7% of employed individuals in the United States were members of unions in both 2016 and 2017
Significant difference in membership exists between the private and public sectors
In 2017, only 6.5% of private-sector employees belonged to labor unions, whereas 34.4% of public-sector employees belonged to labor unions

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Reasons for U.S. Union Membership Long-Term Decline
Changing job conditions
Deregulation
Foreign competition
Increased right-to-work legislation
Increased use of temporary or contingent workers
Improved workplace practices
Unions no longer seen as necessary

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Reasons for U.S. Union Membership Long-Term Decline (continued 1)
Geographic changes
Firms may elect to move their operations to places that are less open to unions or to places where there is cheaper labor and fewer employment restrictions
Industrial changes
Jobs in the United States have shifted from manufacturing, construction, and mining industries to service industries
Private-sector union membership is primarily concentrated in the shrinking part of the economy

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Reasons for U.S. Union Membership Long-Term Decline (continued 2)
In 2017, union representation of nongovernmental employees was heavily concentrated in utilities, transportation and warehousing, and other industrial sectors
Unions are not making significant progress in the fastest-growing segments of the U.S. economy
Workforce changes
Decline in many blue-collar jobs in heavy industry and increase in white-collar jobs
Growing percentage of women in the U.S. workforce

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Public-Sector Unionism
The public sector is the most highly unionized part of the U.S. workforce
Local government workers have the highest unionization percentage of any group in the U.S. workforce
Criticized recently because of:
High cost of union benefits
Slow change to contemporary contribution plans
Inadequately funded pensions
Automatic deduction of dues

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Ways to Fight Decline in Union Membership
Creating partnerships with outside organizations and worker centers
Protests
Work stoppages
Targeting low-skilled workers and contingent workers
Joint employer status

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Early Labor Legislation
Railway Labor Act, 1926
Represented a shift in government regulation of unions
Gave railroad employees the right to organize and bargain collectively through representatives of their own choosing
Allows either unions or management to use the National Labor Relations Board
Norris-LaGuardia Act, 1932
Guaranteed workers some rights to organize

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Early Labor Legislation (continued)
Restricted the issuance of court injunctions in labor disputes
Prohibits employers from asking employees to sign yellow dog contracts
Yellow dog contracts: Pledges by workers not to join a labor union

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Major National Labor Laws and Their Primary Focuses
Wagner Act
Focuses on rights of unions and workers
Taft-Hartley Act
Focuses on rights of management
Landrum-Griffin Act
Focuses on rights of union members in their unions

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Major National Labor Laws
Wagner Act, 1935
Known as the National Labor Relations Act
Declared that the official policy of the U.S. government was to encourage collective bargaining
Provided the right to engage in protected concerted activities
Protected concerted activities: Actions taken by employees working together to try to improve their pay and working conditions, with or without a union

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Major National Labor Laws (continued 1)
Prohibits the following unfair labor practices:
Interfering with, restraining, or coercing employees in the exercise of their right to organize or to bargain collectively
Dominating or interfering with the formation or administration of any labor organization
Encouraging or discouraging membership in any labor organization by discriminating with regard to hiring, tenure, or conditions of employment
Discharging or otherwise discriminating against an employee because the employee filed charges or gave testimony under the act

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Major National Labor Laws (continued 2)
Refusing to bargain collectively with representatives of the employees
National Labor Relations Board (NLRB)
Conducts unionization representation elections
Investigates complaints by employers or unions through its fact-finding process
Issues opinions on its findings
Prosecutes violations in court

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Major National Labor Laws (continued 3)
Taft-Hartley Act, 1947
Amended or qualified in some respect major provisions of the Wagner Act and established an entirely new code of conduct for unions
Notable change brought in the process of representation elections is excluding supervisors from inclusion in the bargaining unit
Union members were given the right to hold elections to deauthorize or decertify the union thus reversing the process of representation

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Major National Labor Laws (continued 4)
Allows the president of the United States to declare:
That a strike constitutes a national emergency
An 80-day cooling-off period during which the union and management continue negotiations
Allowed states to enact right-to-work laws
Right-to-work laws: State laws that prohibit requiring employees to join unions as a condition of obtaining or continuing employment
Open shop: Employer that does not require workers to join or pay dues to a union

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Major National Labor Laws (continued 5)
Closed shop: Employer that requires individuals to join a union before they can be hired
Different types of arrangements exist in states that do not have right-to-work laws
Union shop: Workers must join the union, usually 30 to 60 days after being hired
Agency shop: Workers who don’t join the union must make payments equal to union dues and fees to get union representation services
Maintenance-of-membership shop: Workers must remain members of the union for the period of the labor contract

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Major National Labor Laws (continued 6)
Identifies unfair labor practices that might be committed by unions
Refusing to engage in good-faith negotiations with employers
Engaging in activities that might cause employers to discriminate against employees because of their union or nonunion status
Coercing or discriminating against members and failing to adequately represent all those covered by a collective bargaining agreement
Charging excessive membership fees
Engaging in secondary boycotts with neutral parties if the company and union are in a labor dispute

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Major National Labor Laws (continued 7)
Landrum-Griffin Act, 1959
Also called Labor Management Reporting and Disclosure Act
Protects democratic rights of union members
Unions are required to:
Establish bylaws
Make financial reports
Provide union members with a bill of rights

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Major National Labor Laws (continued 8)
Significant NLRB activities and rulings
Include company policies on:
Employees’ use of social media and electronic communications
Courteous or respectful behavior
Company confidentiality rules
Bargaining unit determination and elections
Franchisors as joint employers
Franchisor is liable for labor violations at all operations bearing the company’s name, regardless of who owns the restaurant

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Typical Unionization Process
Involves the following steps:
Organizing campaign
Authorization cards/petition filing
Representation election
Certification
Collective bargaining/contract negotiation

Union Organizing Process
Employers’ union prevention efforts can include:
Emphasizing good morale and loyalty
Paying competitive wages and benefits
Using a fair system for dealing with complaints
Providing safe working conditions
Creating no-solicitation policies
Hiring “union busters”

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Union Organizing Process (continued)
Unions’ organizing efforts can include:
Personally contacting employees outside work
Mailing materials to employees’ homes
E-mailing information about the union to employees
Inviting employees to attend special meetings away from the company
Publicizing advantages of union membership
Distributing brochures and leaflets
Salting: Unions hire and pay people to apply for jobs at certain companies to begin organizing efforts

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Authorization Cards
Union authorization card: Card signed by employees to designate a union as their collective bargaining agent
30% of the employees must sign authorization cards for a representative election to be scheduled
If enough employees sign authorization cards, a union could be designated as their representative without an election

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Representation Election
Bargaining unit: Employees eligible to select a single union to represent and bargain collectively for them
The Taft-Hartley Act excludes supervisors from voting for or joining unions
Results in the exclusion of supervisors in bargaining units for unionization purposes except in industries covered by the R L A

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Representation Election (continued)
All activities must conform to requirements established by applicable labor laws
The Wagner Act and the Taft-Hartley Act place restrictions on the activities employers and unions can engage in
Election process
Union needs to receive only a majority of the votes to win
Election results can be appealed to the N L R B on suspicion of unfair labor practices

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Unfair Labor Practices during Organizing Campaigns
Threatening to reduce pay, fire workers, or take other negative steps to prevent workers from voting for a union
Questioning employees to learn who initiated the organizing attempt and how workers plan to vote
Promising pay raises or other perks in exchange for employees rejecting the union
Spying on employees to find out who is participating in union organizing activities

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Certification and Decertification
N L R B or an equivalent body gives the official certification of a union as the legal representative for employees
Once certified, the union attempts to negotiate a contract with the employer
Decertification: Process whereby a union is removed as the representative of a group of employees
Can occur through election, which requires at least 30% of employees to sign decertification authorization cards

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Contract Negotiation or Collective Bargaining
Process whereby representatives of management and workers negotiate over wages, hours, and other terms and conditions of employment
Goal is to establish conditions beneficial to both
Balances the power between parties
Collective bargaining agreements will be in force for several years

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Figure 15-10: Continuum of Collective Bargaining Relations

Collective Bargaining Issues
Bargaining issues
Management rights: Rights reserved so that the employer can manage, direct, and control its business
Union security provisions: Contract clauses to help the union obtain and retain members and collect union dues
Require union membership of all employees, subject to state right-to-work laws
Dues checkoff clause: Provides for the automatic deduction of union dues from the payroll checks of union members

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Classification of Collective
Bargaining Issues
Mandatory issues: Negotiation topics and collective bargaining issues identified specifically by labor laws or court decisions as subject to bargaining
Permissive issues: Collective bargaining issues that are not required but might relate to certain jobs or practices
Illegal issues: Collective bargaining issues that would require either party to take illegal action

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Mandatory Subjects of Collective Bargaining
Compensation
Wages, merit increases, and bonuses
Benefits
Pensions, profit sharing, and health and welfare plans
Working conditions
Grievance procedures, disciplinary procedures, drug testing, seniority, promotions and transfers, worker health and safety, work assignments, and plant closings

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Collective Bargaining Process
Consists of four possible stages:
Preparation and initial demands
Negotiations
Settlement or impasse
Strikes and lockouts

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Preparation and Initial Demands
Employer and industry data on the following are gathered:
Wages, benefits, working conditions, management and union rights, productivity, safety, and absenteeism
Core bargaining issues
Wages
Benefits
Working hours and conditions

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Continuing Negotiations
Each side attempts to determine what the other side values highly so that the best bargain can be struck
Good-faith negotiations
Parties agree to send negotiators who can bargain and make decisions rather than people who do not have the authority to commit either group to a decision
To be more effective, meetings should be conducted professionally and address issues rather than being confrontational

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Settlement and Contract Agreement
Ratification: Process by which union members vote to accept the terms of a negotiated labor agreement
Before ratification, the union negotiating team explains the agreement to the union members and presents it for a vote
If the members approve the agreement, it is then formalized into a contract

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Typical Items in a Labor Agreement
Purpose of agreement
Nondiscrimination clause
Management rights
Recognition of the union
Dues checkoff
Wages, incentives, and hours of work
Vacations and sick/absence leaves
Discipline

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Typical Items in a Labor Agreement (continued)
Separation allowance
Seniority and pension/insurance
Safety
Grievance procedure
No-strike or lockout clause
Definitions
Terms of contract (dates)
Appendices

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Handling Bargaining Impasse
Conciliation: Process by which a third party facilitates the dialogue between union and management negotiators to reach a voluntary settlement
Mediation: Process by which a third party suggests ideas to help the negotiators reach a settlement
Arbitration: Process that uses a neutral third party to make a decision

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Strikes and Lockouts
Lockout: Management shuts down company operations to prevent union members from working
Strike: Union members refuse to work in order to put pressure on an employer
Replacement of workers on strike
Management sometimes replaces workers who strike
Workers’ rights vary depending on the type of strike that occurs

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Types of Strikes
Economic strikes
Parties fail to reach agreement during collective bargaining
Unfair labor practices strikes
Union members leave their jobs over what they feel are illegal employer actions
Wildcat strikes
Occur during the life of the collective-bargaining agreement without approval of union leadership and violate a no-strike clause in a labor contract

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Types of Strikes (continued)
Strikers can be discharged or disciplined
Jurisdictional strikes
Members of one union walk out to force the employer to assign work to them instead of to members of another union
Sympathy strikes
One union chooses to express support for another union involved in a dispute, even though the first union has no disagreement with the employer

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Union–Management Cooperation
Employee-involvement programs
Successful organizational restructurings
Occur when unions have been able to obtain information and share that information with their members to work constructively with company management at various levels
Unions and employee ownership
Unions have encouraged workers to become partial or full owners of the firms that employ them
Employee stock ownership plans for union members have been successful in some situations

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Resolving Disputes
Division of responsibilities between the H R unit and operating managers for handling grievances varies from one firm to another, even among unionized firms
Grievance: Complaint formally stated in writing
Complaint: Indication of employee dissatisfaction
Grievance procedures: Specific steps used to resolve grievances

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Grievance Procedures
Union representation in grievance procedures
Unionized employee has a right to union representation if:
The employee is being questioned by management
Discipline may result
Employee will be reinstated with back pay if Weingarten rights are violated and the employee is dismissed

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Grievance Procedures (continued)
Grievance arbitration: Means by which a third party settles disputes arising from different or conflicting interpretations of a labor contract
Common concerns
Discipline and discharge
Safety and health
Security

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Steps in a Typical Grievance Procedure
Discussion of written grievance between employee, union steward, and supervisor
Meeting between union steward and supervisor’s manager and/or H R manager
Meeting between committee of union officers and company managers
Discussion between national union representative and company executive or corporate industrial relations officer
Arbitration by impartial third party

H U M A N R E S O U R C E
MANAGEMENT
VA L E N T I N E M E G L I C H M AT H I S J A C K S O N
SIXTEENTH EDIT ION

CHAPTER 16

Global Human Resource Management

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Objectives
Define forces impacting global trade
Discuss three global business approaches
Compare three types of international staffing assignments
Identify typical international compensation practices

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Objectives (continued)
Compare labor union issues in various countries
Define four important aspects of developing leaders for a global organization

Managing in a Global Context
Managing various functions becomes complex when an organization operates in multiple countries
Different legal and social contexts create challenges that can make it difficult to ensure that operations run smoothly, ethically, and effectively

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Economic Interdependence
Most countries participate in the world economy beyond their own domestic markets
Multinational enterprise (M N E): Organization that has facilities and other assets in at least one country other than its home country
Many economic factors are linked to different political, legal, cultural, and economic systems
Some expand globally as a strategy to reduce costs by finding cheaper labor in developing countries

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global and Regional Alliances
North American Free Trade Agreement (N A F T A), 1994
Promotes free trade between Canada, Mexico, and the United States
European Union
Allows for the free movement of goods and people across the borders of the 28 member states
Largest economic entity in the world
Accounts for nearly one-fourth of the world’s economy

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global and Regional Alliances (continued)
Additional proposed alliances
Transatlantic Trade and Investment Partnership (T T I P) and Trans-Pacific Partnership (TPP)
Foreign policy officials continue to evaluate the merits of joining these multinational groups or favoring a country-by-country trade agreement

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Population and Demographic Trends
Population growth has been declining in many developed nations around the world, and people above age 65 are becoming a larger share of the world population
Migration of working age individuals from less-developed countries to more-developed countries can bolster economic growth and progress
Immigration policies instituted by each nation significantly impact the inflow of people into a country and its economic health

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Reasons for Global Expansion
Diversifying markets and customer base
Extending the sales life of current products
Reducing dependence on current markets by spreading risk
Countering seasonal fluctuations
Accessing a deeper, more diverse talent pool and cheaper, better supplies/suppliers
Increasing efficiencies/economies of scale, reducing costs, and obtaining investment capital

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
International Orientations
Organizations approach the international market with a particular orientation
E P R G model outlines the following worldviews:
Ethnocentric: Strong emphasis on home-country practices
Polycentric: Strong emphasis on each country as a unique environment
Regiocentric: Countries considered as aggregates within a region
Geocentric: Emphasis on utilizing the best ideas and practices from anywhere in the world

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Expansion Methods
Various business approaches require different levels of human resource management involvement
Non-equity approaches demand little from the headquarters H R staff while equity approaches require more assistance from the H R staff
Non-equity business forms: Importing and exporting, licensing and franchising, and piggybacking
Equity business forms: Joint ventures, mergers and acquisitions, and foreign direct investment
Outsourcing and offshoring

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Non-Equity Business Forms
Importing and exporting: Buying and selling goods and services outside the home country
Licensing agreement: Organization sells the rights to its products or trademarks to producers
Franchising: Organization grants the right to use its business model and brand
Piggyback: Arrangements when an organization partners with another firm that sells complementary products or services

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Equity Business Forms
Joint ventures: Two or more partners who share ownership and risk in the investment
Merger: Two companies combine their businesses to create a new business entity
Acquisition: One company being bought by another, resulting in the acquired company being folded into the acquirer’s business
Foreign direct investment: When a company takes a controlling ownership interest in a business in another country

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Outsourcing and Offshoring
Outsourcing: Transferring the management and performance of a business function to an external service provider
Offshoring: A company’s relocation of a business process or operation from one country to another

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Cultural Dimensions
Culture: Shared mind-set of a group of people that distinguished them from others
Understanding the differences in national cultures is important when conducting business abroad
Geert Hofstede developed a model to classify country cultures based on various cultural dimensions
The model helps analyze risks of international expansion and determine the appropriate country to include in a global strategy

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Geert Hofstede’s Cultural Dimensions
Power distance index (P D I)
Individualism versus collectivism (I D V)
Masculinity versus femininity (M A S)
Uncertainty avoidance (U A I)
Long-term orientation (L T O)
Indulgence versus restraint (I N D)

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Human Resource Management
Operating in multiple countries requires H R staff to navigate diverse laws and cultural practices in establishing effective human resource programs
Maintaining an appropriate balance between standardization and localization is an ongoing effort
H R challenges created by global operations:
Worldwide population trends that will lead to ever greater workforce diversity
A more dispersed workforce resulting from people working remotely

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Human Resource Management (continued)
H R professionals should:
Address the new workplace dynamic created by engaging and motivating workers from a distance
Learn about H R demands around the world to adopt effective practices and to prepare for opportunities in their own organizations

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Staffing Strategies
Optimal solution:
To combine the expertise of local employees with organization-specific knowledge of employees from the home country (headquarters)
Some countries require that the organization employ a certain percentage of workers from the host country
Staffing global assignments involves making selection decisions that impact (or take place in) other countries

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Employees
Types
Home-country national
An employee working in his or her home country for a firm that is headquartered in a different country
International assignee/expatriate
A citizen of one country who is working in a second country and employed by an organization headquartered in the first country
Host-country national
An employee working in his or her home country for a firm that is headquartered in a different country

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Employees (continued)
Third-country national
A citizen of one country who is working in a second country for an organization that is headquartered in a third country
Key competencies
Cultural adjustment
Organizational requirements
Personal characteristics
Communication skills
Personal and family concerns

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Labor Markets
Firms reshore employees (bring jobs back to the home country) for various reasons
Recruiting employees for global assignments may present problems that require different approaches from those used in the home country
Dealing with foreign labor markets can be challenging because recruiting may be regulated and require government approval
H R planning is a key concern in both global and domestic firms

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Compensation Systems
Annual pay differences among countries can vary significantly
Result from differences in annual working hours
Relate to country culture, norms, and business demands
M N E’s have various options regarding how to approach compensation in diverse locations:
A totally global approach, a totally customized approach for each location, or a hybrid method

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Compensation Systems (continued)
Globalizing pay policies to attract and retain employees requires management to:
Balance the need for consistent practices throughout the company with the need for differentiating practices based on local input and customs
Monitor the pay level and policy trends in other countries

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Variable Pay
Must accommodate cultural, legal, and economic differences
Important for retaining key staffers after global mergers and acquisitions
Managers should be trained on how to distribute rewards for maximum impact
Global incentive programs can be challenging since strategies can have varied results in different geographic regions

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
International Compensation for Expatriates
Primary approaches
Home-country-based approach
Objective is to maintain the standard of living the expatriate had in the home country
Can result in higher employer costs and more administrative complexity than other plans
Host-country-based approach
Compensates the expatriate at the same level as workers from the host country

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Employee Benefits around the World
Paid time off benefits
Employers in most countries are required to provide paid holidays, vacation, and sick leave
Health care programs
Financed by the employer, employee, or both
Statutory benefits
Programs of a firm should be compliant in the various countries where they have operations

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Employees and Labor Relations
M N E’s face particular complexities regarding employment policies and practices
Some firms adopt a comprehensive set of work rules that meet the standards of the most restrictive nation
H R policy decisions should align with the organization’s overall philosophy and global strategy

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Unions in the Global Arena
Ability of a country to remain competitive is influenced by its labor laws and attitude toward labor unions
H R professionals should be aware of diverse legal requirements and social mores when operating globally
Unions worldwide are facing changes as the world economy becomes more integrated

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
International Union Issues
Range of labor concerns is quite wide and varies from nation to nation
Collective bargaining methods vary from country to country
Labor unrest is common, and protests, work stoppages, and strikes occur in many nations
Some nations require codetermination
Codetermination: Union or worker representatives are given positions on a company’s board of directors

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Labor Organizations
International Labor Organization
Coordinates the efforts of labor unions worldwide and has issued some principles about rights at work
Such coordination is occurring as unions deal with multinational firms with operations in multiple countries
Union Network International (U N I)
Entity composed of unions from numerous countries
Works with other international groups to establish international policies on child labor, worker safety and health, and training

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
The United States and Global Differences
Union management relations in the United States differ from other countries in addressing the following issues:
Economic issues versus other concerns
United States: Unions focus on improving bread-and-butter issues for their members
Other countries: Unions focus on integration with ruling governmental and political power, activism, and economic issues

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
The United States and Global Differences (continued 1)
Organization by kind of job and employer
United States: People unionize based on companies or type of work
Other countries: National unions bargain with the government or with employer groups
Collective agreements as “contracts”
United States: Collective bargaining contracts usually spell out compensation, work rules, and conditions of employment for several years
Other countries: Agreements are made with the government and employers, sometimes for only one year because of political and social issues

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
The United States and Global Differences (continued 2)
Competitive relations
United States: Management and labor traditionally take the roles of competing adversaries who often clash to reach agreement
Other countries: Tripartite bargaining occurs between the national government, employers’ associations, and national labor federations with little conflict or obstruction

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Assignment Training
Success of an overseas assignment is affected by the orientation and training that expatriates and their families receive before departure
Companies recognize that it is important to prepare workers for overseas assignments and to offer training to smooth the transition
Global employers are providing intercultural competence training for employees sent abroad and those who manage workers in multiple countries

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Intercultural Competence Training
Incorporates a wide range of human social skills and personality characteristics
Three components require attention when training expatriates for global assignments
Cognitive: What does the person know about other cultures?
Emotional: How does the person view other cultures, and how sensitive is the person to cultural customs and issues?
Behavioral: How does the person act in intercultural situations?

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Intercultural Competence Training (continued 1)
Possible training for the components
Cognitive
Culture-specific training: Traditions, history, cultural customs, and so on
Language course
Emotional
Uneasiness: Social skills training focusing on new, unclear, and intercultural situations
Prejudices: Coaching may be clarifying
Sensitivity: Communication skills course (active listening, verbal/nonverbal cues, and empathy)

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Leadership Development
Competencies needed for global leadership are more complex than those focused on only one country
Managers need to manage paradoxes, appreciate the unique attributes of each context, and communicate effectively across time and geography
GLOBE studies
Resulted in the identification of leadership profiles for various societies or cultures

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Leadership Development (continued 1)
Suggest that leaders who recognize and value diverse cultures will be more effective than those who view the world from only one perspective
Consulting company I4cp recommends incorporating the following elements into a global development plan:
Make global cultural fluency an organization-wide priority
Tap into the best minds inside and outside of the organization to share knowledge and stories

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Leadership Development (continued 2)
Offer diverse hard and soft skills development
Leverage strategic workforce planning to determine skills gaps and to identify candidates for succession plans from the global workforce
Leadership development programs for diversified M N E’s should include participants from both developed and emerging economies
Increases knowledge sharing and speeds up the development of all participants

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Career Concerns
Many global employees experience anxiety about their continued career progression
Employers should take steps to ensure that the experience gained overseas benefits the employee and the firm
Repatriation
Involves planning and training for the reassignment of global employees back to their home countries
Returning expatriates may have concerns about:
Personal finances and reacclimating to the lifestyles in their home country

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Career Concerns (continued 1)
Their organizational status, such as what jobs they will have, whether their international experiences will be valued, and how they will be accepted back into the organization
Efforts should include focus on the individual employee’s needs and career aspirations and building organizational support to capitalize on the enhanced knowledge base of repatriating workers
Global development
Global management development must focus on developing local managers and global executives

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Career Concerns (continued 2)
Global competencies should also be developed early in careers, instead of assigning domestic-based senior executives to international positions
Organizations might:
Recruit foreign graduate students into fast-track development programs to staff global positions
Offer international assignments to leaders to improve their work experience
Utilize social networking to enhance training and development

H U M A N R E S O U R C E
MANAGEMENT
VA L E N T I N E M E G L I C H M AT H I S J A C K S O N
SIXTEENTH EDIT ION

Turn in your highest-quality paper
Get a qualified writer to help you with

“ Creative thinking and synthesis. ”

Get high-quality paper

NEW! AI matching with writer

Hire a Writer

Client Reviews

4.9

Sitejabber

4.6

Trustpilot

4.8

Our Guarantees

100% Confidentiality

Information about customers is confidential and never disclosed to third parties.

Original Writing

We complete all papers from scratch. You can get a plagiarism report.

Timely Delivery

No missed deadlines – 97% of assignments are completed in time.

Money Back

If you're confident that a writer didn't follow your order details, ask for a refund.

New to Your Trusted Assignment Help Service? Sign up & Save

Calculate the price of your order

Type of paper needed:

Pages:

You will get a personal manager and a discount.

Academic level:

We'll send you the first draft for approval by at

Total price:

$0.00

Power up Your Academic Success with the
Team of Professionals. We’ve Got Your Back.

Power up Your Study Success with Experts We’ve Got Your Back.

Order Now Order Now