Managing Human Resources (PDF)

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M a k e t h e G r a d e w i t h C o u r s e M a t e ! The more you study, the better the results. Cengage Learning’s Management CourseMate helps you make the most of your study time by accessing everything you need to succeed in one place. features include: • An Interactive eBook with highlighting, note taking, and an interactive glossary. • Interactive Learning Tools— read your textbook, take notes, review flashcards, watch videos, and take practice quizzes—online with CourseMate. • It’s Affordable—about half the cost of a traditional printed textbook. To access additional course materials including CourseMate, please visit www.cengagebrain.com. At the CengageBrain.com home page, enter the ISBN of your title (from the back cover of your book) using the search box at the top of the page. This will take you to the product page where these resources can be found. Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Snell SE IFC CourseM.indd 1 10/12/11 12:14:41 PM

16e Managing Human Resources Scott Snell Professor of Business Administration, University of Virginia George Bohlander Professor Emeritus of Management, Arizona State University Australia • Brazil • Japan • Korea • Mexico • Singapore • Spain • United Kingdom • United States Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. 32826_FM_ptg01_hr_i-xxxvii.indd 1 10/18/11 12:52:21 PM

This is an electronic version of the print textbook. Due to electronic rights restrictions, some third party content may be suppressed. Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. The publisher reserves the right to remove content from this title at any time if subsequent rights restrictions require it. For valuable information on pricing, previous editions, changes to current editions, and alternate formats, please visit www.cengage.com/highered to search by ISBN#, author, title, or keyword for materials in your areas of interest. Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. 32826_SubjectIndex_ptg01_hr_781-796.indd 794 10/20/11 11:01:05 AM

Managing Human Resources, Sixteenth © 2013, 2010 South-Western, Cengage Learning Edition ALL RIGHTS RESERVED. No part of this work covered by the copyright Scott Snell and George Bohlander herein may be reproduced, transmitted, stored, or used in any form or by any means graphic, electronic, or mechanical, including but not Vice President of Editorial, Business: limited to photocopying, recording, scanning, digitizing, taping, web Jack W. Calhoun distribution, information networks, or information storage and retrieval Senior Acquisitions Editor: Michele Rhoades systems, except as permitted under Section 107 or 108 of the 1976 Developmental Editor: Jennifer King United States Copyright Act, without the prior written permission of Editorial Assistant: Tamera Grega the publisher. Marketing Manager: Gretchen Swann For product information and technology assistance, contact us at Marketing Coordinator: Leigh Smith Cengage Learning Customer & Sales Support, 1-800-354-9706 Senior Marketing Communications For permission to use material from this text or product, Manager: Jim Overly submit all requests online at www.cengage.com/permissions Senior Art Director: Tippy McIntosh Further permissions questions can be emailed to [email protected] Rights Acquisitions Specialist: Sam A. Marshall Library of Congress Control Number: 2011939722 Rights Acquisitions Director: Audrey Pettengill Student Edition ISBN 13: 978-1-111-53282-6 Manufacturing Planner: Student Edition ISBN 10: 1-111-53282-6 Ron Montgomery Production Manager: Kim Kusnerak South-Western Media Editor: John Rich 5191 Natorp Boulevard Interior Design, Production Management, Mason, OH 45040 and Composition: PreMediaGlobal USA Cover Designer: Grannan Graphic Design, Ltd. Cengage Learning is a leading provider of customized learning solutions Cover Image: ©Diana Ong, Fotosearch with ofce locations around the globe, including Singapore, the United Kingdom, Australia, Mexico, Brazil, and Japan. Locate your local ofce at: international.cengage.com/region Cengage Learning products are represented in Canada by Nelson E ducation, Ltd. For your course and learning solutions, visit www.cengage.com Purchase any of our products at your local college store or at our preferred online store www.cengagebrain.com Printed in the United States of America 1 2 3 4 5 6 7 15 14 13 12 11 Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. 32826_FM_ptg01_hr_i-xxxvii.indd 2 10/18/11 12:52:21 PM

Brief Contents Part Human Resources Management in Perspective 1 1 The Challenge of Human Resources Management 2 2 Strategy and Human Resources Planning 44 Part Meeting Human Resources Requirements 2 3 Equal Employment Opportunity and Human Resources Management 94 4 Job Analysis and Job Design 142 Part Developing Effectiveness in Human Resources 3 5 Expanding the Talent Pool: Recruitment and Careers 178 6 Employee Selection 242 7 Training and Development 290 8 Performance Management and the Employee Appraisal Process 342 Part implementing Compensation and Security 4 9 Managing Compensation 392 10 Pay-for-Performance: Incentive Rewards 434 11 Employee Benefits 472 12 Promoting Safety and Health 514 Part Enhancing Employee-Management Relations 5 13 Employee Rights and Discipline 558 14 The Dynamics of Labor Relations 600 Part Expanding Human Resources Management Horizons 6 15 International Human Resources Management 648 16 Creating High-Performance Work Systems 698 Integrative Cases, 733 Glossary, 763 Name Index, 775 Organization Index, 777 Subject Index, 781 iii Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. 32826_FM_ptg01_hr_i-xxxvii.indd 3 10/18/11 12:52:24 PM ©Diana Ong, Fotosearch

Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. 32826_FM_ptg01_hr_i-xxxvii.indd 4 10/20/11 10:41:06 AM

Contents Part Human Resources Management in Perspective 1 Chapter 1 The Challenge of Human Resources Management 2 Why Study Human Resources Management? 4 Human Capital and HRM 4 Competitive Challenges and Human Resources Management 6 Challenge 1: Responding Strategically to Changes in the Marketplace 6 Human Resources Managers and Business Strategy 7 Challenge 2: Competing, Recruiting, and Staffing Globally 8 Challenge 3: Setting and Achieving Corporate Social Responsibility and Sustainability Goals 10 Challenge 4: Advancing HRM with Technology 11 Highlights in HRM 1: A Guide to HR Internet Sites 12 Highlights in HRM 2: Factors to Consider When Evaluating a Human Resources Information System 15 Challenge 5: Containing Costs While Retaining Top Talent and Maximizing Productivity 15 C hallenge 6: Responding to the Demographic and Diversity Challenges of the Workforce 21 Challenge 7: Adapting to Educational and Cultural Shifts Affecting the Workforce 26 Highlights in HRM 3: Demographic and Cultural Issues Changing HRM 29 The Partnership of Line Managers and HR Departments 30 Responsibilities of Human Resources Managers 31 Competencies Human Resources Managers Require 31 Highlights in HRM 4: SHRM Code of Ethical and Professional Standards in Human Resource Management 32 Summary 36 Key Terms 37 Discussion Questions 37 v Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. 32826_FM_ptg01_hr_i-xxxvii.indd 5 10/18/11 12:52:26 PM ©Diana Ong, Fotosearch

vi Contents On the Job: video Cases 38 Case Study 1: New HR Strategy Makes Lloyd’s A “Best Company” 38 Case Study 2: Shell’s Top Recruiter Takes His Cues from Marketing 39 Notes and References 41 Chapter 2 Strategy and Human Resources Planning 44 Strategic Planning and Human Resources 46 Strategic Planning and HR Planning: Linking the Processes 47 Step One: Mission, vision, and values 47 Step Two: Environmental Analysis 49 Competitive Environment 49 Step Three: internal Analysis 53 The Three Cs: Capabilities, Composition, and Culture 53 Forecasting: A Critical Element of Planning 57 Highlights in HRM 1: HR Planning and Strategy Questions to Ask Business Managers 61 Assessing a Firm’s Human Capital Readiness: Gap Analysis 63 Highlights in HRM 2: Succession-Planning Checklist 65 Step Four: Formulating Strategy 67 Corporate Strategy 67 Business Strategy 69 Functional Strategy: Ensuring Alignment 70 Highlights in HRM 3: Key HR Activities Associated with Merger or Acquisition Phases 71 Step Five: Strategy implementation 72 Taking Action: Reconciling Supply and Demand 73 Step Six: Evaluation and Assessment 75 Evaluation and Assessment Issues 75 Measuring a Firm’s Strategic Alignment 76 Highlights in HRM 4 77 Ensuring Strategic Flexibility for the Future 78 Summary 80 Key Terms 81 Discussion Questions 81 HRM Experience: Customizing HR for Different Types of Human Capital 82 On the Job: video Cases 83 Case Study 1: Small Company Uses HR as a Strategic Tool for Growth 83 Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. 32826_FM_ptg01_hr_i-xxxvii.indd 6 10/18/11 12:52:26 PM

Contents vii Case Study 2: Staffing, Down to a Science at Capital One 85 Working Backward 85 Managing Demand and Supply 86 Notes and References 87 Appendix: Calculating Employee Turnover and Absenteeism 89 Employee Turnover Rates 89 Computing the Turnover Rate 89 Determining the Costs of Turnover 90 Employee Absenteeism Rates 90 Computing Absenteeism Rates 90 Highlights in HRM 5: Costs Associated with the Turnover of One Computer Programmer 91 Comparing Absenteeism Data 92 Costs of Absenteeism 92 Absenteeism and HR Planning 92 Notes and References 92 Part Meeting Human Resources Requirements 2 Chapter 3 Equal Employment Opportunity and Human Resources Management 94 Historical Perspective of EEO Legislation 96 Changing National Values 97 Early Legal Developments 98 Government Regulation of Equal Employment Opportunity 98 Major Federal Laws 100 Highlights in HRM 1: Test Your Knowledge of Equal Employment Opportunity Law 102 Other Federal Laws and Executive Orders 109 Fair Employment Practice Laws 111 Other Equal Employment Opportunity issues 112 Sexual Harassment 112 Sexual Orientation 113 Highlights in HRM 2: Questions Used to Audit Sexual Harassment in the Workplace 114 Immigration Reform and Control 114 Emerging Employment Discrimination Issues 115 Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. 32826_FM_ptg01_hr_i-xxxvii.indd 7 10/18/11 12:52:26 PM