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bus303_front_matter.pdf
Carolyn Youssef Bellevue University
Bridgepoint Education, Inc.
Human Resource Management
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®
Carolyn M. Youssef
Human Resource Management
Bridgepoint Education, Inc.
VP of Learning Resources: Beth Aguiar
AVP, Editor-in-Chief: Erik Evans
Editorial Director: Steve Wainwright
Director of Editorial Technology: Peter Galuardi
Sponsoring Editor: Greer Lleuad
Development Editor: Barbara Armentrout
Assistant Editor: Jaime Anderson
Editorial Assistant: Teresa Bdzil
Media Editor: Lindsay Serra
Copyeditor: Christopher Disman
Printing Services: Bordeaux
Composition/Illustration: Lachina Publishing Services
Cover Design: Bernier Graphics
Cover Image: Colin Walton/Getty Images
ISBN-10: 1935966162
ISBN-13: 9781935966166
Published by Bridgepoint Education, Inc., 13500 Evening Creek Drive North, Suite 600, San Diego, CA 92128.
Copyright © 2012, Bridgepoint Education, Inc.
All rights reserved.
GRANT OF PERMISSION TO PRINT: Bridgepoint Education, Inc., the copyright owner of this material, hereby grants
the holder of this publication the right to print these materials for personal use. The holder of this material may
print the materials herein for personal use only. Any print, reprint, reproduction or distribution of these materials
for commercial use without the express written consent of Bridgepoint Education, Inc. constitutes a violation of the
Copyright Law of the United States of 1976 (P.L. 94-553).
www.bridgepointeducation.com I content.ashford.edu
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Brief Contents
Chapter 1: Introduction to Human Resource Management . . . . . 1
Chapter 2: Strategic HR Planning . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Chapter 3: Job Analysis and Job Design . . . . . . . . . . . . . . . . . . . . 55
Chapter 4: Recruitment: Attracting the Right Talent . . . . . . . . . 81
Chapter 5: Selection, Placement, and Job Fit . . . . . . . . . . . . . . . 109
Chapter 6: Performance Appraisal: Measurement, Assessment, and Management . . . . . . . . . . . . . . . . . 139
Chapter 7: Training and Development . . . . . . . . . . . . . . . . . . . . 165
Chapter 8: Compensation and Incentives . . . . . . . . . . . . . . . . . . 193
Chapter 9: Benefits and Benefit Administration . . . . . . . . . . . . . 219
Chapter 10: The Future of Human Resource Management . . . 243
Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 265
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279
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About the Author xv
Acknowledgments xvii
Chapter 1 Introduction to Human Resource Management 1
1.1 What Is HRM? 2
1.2 From Personnel Administration to Strategic HRM 4 The strategic value of HRM for employees and the organization 5 Strategic HRM perspectives 6
1.3 What Do HR Managers Do? 7 Provide guidance and advice 8 Provide service 9 Create and implement policies 9 Advocate for employees 9
1.4 What Are the Responsibilities of the HR Department? 10 Planning and alignment 10 Staffing 11 Preparing compensation offers 12 Orchestrating cultural change 12
1.5 The Legal Environment 13 Unions and labor relations 13 Health and safety regulations 13
1.6 The HRM Process 14 1. Strategic HR planning 15 2. Job analysis and job design 15 3. Attracting and recruiting talent 15 4. Selection and job fit 16
Table of Contents
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CONTENTS
5. Performance appraisal/management 16 6. Training and development 17 7. Compensation 18 8. Benefits and benefit administration 19
1.7 Opportunities, Challenges, and Recent Trends in HRM 23 Globalization and outsourcing 24 The economy 24 Sociocultural factors: Demographics, diversity, and changing employee expectations 25
Chapter Summary 27
Key Terms 27
Critical Thinking Questions 29
Chapter 2 Strategic HR Planning 31
2.1 The Big Picture: An Organization’s Strategic Planning Process 32
2.2 The Strategic HR Planning Process 33 1. Environmental scanning 34 2. Labor market analysis and forecasting 36 3. Internal analysis and forecasting 37 4. Gap analysis 38 5. Developing HR plans and strategies 38 6. HR strategy implementation and assessment 40
2.3 Linking Strategic HR Planning to the HRM Process 41
2.4 Opportunities, Challenges, and Recent Developments 44 Political, economic, and sociocultural dynamics 44 Technology and computer-based HR planning 45 Turnover and retention 46 Succession planning 46 Career planning 47 Mergers and acquisitions 48 Outsourcing 49 Downsizing 50
Chapter Summary 52
Key Terms 52
Critical Thinking Questions 54
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CONTENTS
Chapter 3 Job Analysis and Job Design 55
3.1 Job Analysis 56 Types of job analysis 58 Data sources for job analysis 60 Job descriptions 62 Job specifications 63
3.2 Job Design 65 Hackman & Oldham’s job characteristics model 65 Job enlargement, enrichment, and rotation 67 Flexible work schedules 67 Team-based approaches to job design 68
3.3 Linking Job Analysis and Job Design to the HRM Process 70
3.4 Opportunities, Challenges, and Recent Developments in Job Analysis and Job Design 72 Legal aspects of job analysis and job design: Essential job functions, ADA, and FLSA 72 Health and safety concerns and the implications of job design 74 Implications of demographics, diversity, and globalization for job design 75 Alternative work arrangements 76 Organizational change, job redesign, and the psychological contract 76
Chapter Summary 78
Key Terms 78
Critical Thinking Questions 80
Chapter 4 Recruitment: Attracting the Right Talent 81
4.1 Finding Talent in the External Labor Market 82 Advertising jobs 82 Employment agencies 84 Web recruiting 85 Colleges and universities 87 Professional employer organizations and temp agencies 87 Unsolicited resumes and applications 88 Soliciting specific applicants 88 Advantages and disadvantages of external recruitment 89
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CONTENTS
4.2 Finding Talent Internally 89 Promoting from within 90 Lateral transfers 91 Employee referrals 91 Advantages and disadvantages of internal recruitment 92
4.3 Designing an HR Talent Inventory 92
4.4 Linking Recruitment to the HRM Process 96
4.5 Opportunities, Challenges, and Recent Developments in Recruiting Talent 97 Competitive challenges: The war for talent 97 Legal dimensions of recruitment: Equal employment opportunity and discrimination 97 Economic challenges: The rising costs of recruitment 98 Becoming the employer of choice for a broader pool of applicants 99 Technological developments in recruitment: Social networking 100 Alternative work arrangements: Outsourcing, contracting, and contingent workers 101 Recruiting globally 102 Internal challenges to effective recruitment: Organizational structure, culture, and politics 103 Unions, labor relations, and recruitment practices 103 Realistic job previews and psychological contracts 103
Chapter Summary 106
Key Terms 106
Critical Thinking Questions 107
Chapter 5 Selection, Placement, and Job Fit 109
5.1 What Should You Select For? 110 1. Individual differences 110 2. Human capital: Knowledge, skills, and abilities 112 3. Social capital 113 4. Positive psychological capital 113 5. Attitudes 114 Prioritizing selection criteria 115
5.2 Job Fit 115 Person-organization fit 115 Person-job fit 116
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CONTENTS
5.3 Selection Methods 116 1. Resumes and application forms 116 2. Testing 117 3. Interviews 117 4. Reference checks 119 5. Honesty tests, medical exams, and drug testing 119
5.4 Foundational Concepts in Designing and Evaluating Selection Methods 120 Validity 121 Reliability 123
5.5 Increasing the Validity and Reliability of the Selection Process 124 1. Better by design: Creating and using more valid and reliable methods 124 2. Better by implementation: Training those who select and overcoming
personal biases 125 3. Better by integration: Linking selection to the HRM process 126
5.6 Legal Issues in Selection 126 Equal employment opportunity 126 Age discrimination 126 Discrimination based on disability 127 Other employment laws 127 Foundational concepts for the enforcement of employment laws 128
5.7 Opportunities, Challenges, and Recent Developments in Employee Selection and Job Fit 130 Legal and regulatory opportunities and challenges in employee selection 130 Sociocultural developments: You may have selected them, but what will make them select you? 131 Global and competitive factors 131 Impact of selection and job fit on employee motivation, morale, productivity, and retention 132 Selection, unions, and labor relations 133
Chapter Summary 134
Key Terms 135
Critical Thinking Questions 137
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CONTENTS
Chapter 6 Performance Appraisal: Measurement, Assessment, and Management 139
6.1 What Is Performance? 140 1. Employee productivity 140 2. Employee attitudes 140 3. Work behaviors 141 4. Team performance 143
6.2 What Is Performance Appraisal and Why Is It Important? 143
6.3 Common Performance Appraisal Methods 145
6.4 Performance Measurement 146 Objective versus subjective performance measures 146 Absolute versus relative performance standards 147 Validity and reliability revisited 148 Advantages and disadvantages of various performance measures 148
6.5 Linking Performance Appraisal to the HRM Process 149 Performance appraisal as an internal resource for strategic HR planning 150 Job analysis as a source of information for performance appraisal 150 Performance appraisal as a tool for identifying, recruiting, and selecting the right talent 151 Performance appraisal as an indicator of training needs and knowledge gaps 151 Performance appraisal as a determinant of fair compensation and reward distribution practices 151
6.6 Opportunities, Challenges, and Recent Developments in Performance Management 153 Jobs that defy objective measurement 154 Legal implications of performance appraisal 154 Employee attitudes toward performance appraisal 155 Global and cross-cultural considerations in performance appraisal 156 Performance appraisal, organizational culture, and politics 156 Using performance evaluations for employee discipline 156 Avoiding common biases when evaluating others’ performance 157
Chapter Summary 161
Key Terms 161
Critical Thinking Questions 163
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CONTENTS
Chapter 7 Training and Development 165
7.1 The Strategic Value of Training and Development 166
7.2 The Training Process 167 Training needs assessment 167 Training design 170 Training development 172 Training delivery: Decisions about types of training 173 Training evaluation: A multi-level perspective 177
7.3 Forms of Training and Development 179 Orientation and onboarding 179 Technical and nontechnical training 180 Ongoing professional development 180 Mentoring and coaching 181 Job rotation and temporary transfers 181 International assignments 182 Leadership development and management training 182 Career development 183
7.4 Linking Training and Development to the HRM Process 184
7.5 Opportunities, Challenges, and Recent Trends in Training and Development 187 Economic considerations: The increasing costs of training 187 Technological developments: Online and open-source training 187 Training and development for succession planning 188 Effects of training and development on employees 188 Diversity training 189 Safety training 189
Chapter Summary 190
Key Terms 190
Critical Thinking Questions 192
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CONTENTS
Chapter 8 Compensation and Incentives 193
8.1 The Motivational Role of Pay and Rewards: A Psychological Framework 194 Content perspectives 194 Process and equity perspectives 197 Behavioral perspectives 199
8.2 Pay Structures 202
8.3 Types of Pay 204 Hourly pay 204 Piece-rate pay 204 Competency-based pay 205 Outcome-based incentives 205 Salaries and exempt positions 206 Team-based pay 206 Compensating independent contractors 206 Executive pay 207 Ownership rewards 210
8.4 Linking Compensation to the HRM Process 210 HR laws governing compensation 212 Labor unions and compensation 212
8.5 Opportunities, Challenges, and Recent Developments in Compensation 213 Economic challenges: Payroll costs 213 Global challenges: Competitive pay structures or sweatshops? 213 Compensation for international assignments 214 Extrinsic rewards and intrinsic motivation 214 Diversity, demographics, and changing views of compensation 215
Chapter Summary 215
Key Terms 215
Critical Thinking Questions 218
Chapter 9 Benefits and Benefit Administration 219
9.1 The Strategic Importance of Benefits 220
9.2 Types of Benefits 222 Mandatory benefits 222
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Voluntary benefits 223 Legal considerations in offering and administering benefits 225 Flexible benefits 225 Work-life benefits and flexible work arrangements 226 Special benefits for unique assignments 227
9.3 Benefits Program Design and Administration 228 Program goals 229 Participants 229 Communication 231 Monitoring costs 234 Monitoring utilization 234 Assessment 235
9.4 Linking Benefits to the HRM Process 236
9.5 Opportunities, Challenges, and Recent Developments in Benefits and Benefit Administration 237 Economic challenges: The rising costs of benefits 237 Demographic trends: The changing needs of a diverse population 237 Unions and benefits 238 Benefits for part-time employees 238 Outsourcing benefits 239
Chapter Summary 240
Key Terms 240
Critical Thinking Questions 241
Chapter 10 The Future of Human Resource Management 243
10.1 Globalization and HRM 244 The future of outsourcing 244 International assignments and political instability 245 Managing a global workforce from a distance 247
10.2 Technology and HRM 248
10.3 HR Legislation and the Future of HRM 250
10.4 The Future of Unions 252
10.5 The Characteristics and Expectations of the 21st-Century Workforce 253 Generational differences 254 Changing employer and employee expectations 255
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CONTENTS
10.6 Future Trends in Human Capital and Talent Management 259 Built-to-change organizations 259 Accounting for human capital: HR metrics for Wall Street 260
Chapter Summary 261
Key Terms 262
Critical Thinking Questions 264
Glossary 265
References 279
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Dr . Carolyn M . Youssef is an Associate Professor in the College of Business at Bellevue University, a core faculty member in the PhD in Human Capital Man- agement program, and a senior research associate of the Human Capital Lab . Her research focus is on pos- itivity in the workplace . She specializes in the devel- opment of measurable human resource strengths and positive psychological capacities that can lead to performance improvement in the workplace, such as self-efficacy, hope, optimism, and resiliency . She is the co-author of Psychological Capital: Developing the Human Competitive Edge (Oxford University Press, 2007) and a leading researcher, author, speaker, and consultant on developing and managing positivity in the workplace . Dr . Youssef’s work has been exten- sively published in and cited by top-tier journals and prestigious publications . She currently serves on the editorial boards for the Journal of Leadership and Organizational Studies and the Journal of Behavioral and Applied Management, and as an ad hoc reviewer for numerous other journals and book publishers . Dr . Youssef earned her BA in Business Administration and her MBA from the American University in Cairo, Egypt . She earned her PhD in Management from the Uni- versity of Nebraska, Lincoln .
Dr . Youssef has also worked in various capacities with global organizations such as Unile- ver, Shell Oil, the United States Agency for International Development (USAID), Thomas Cook, and the Natural Resources Institute (Kent, UK) . For example, prior to moving to the United States, Dr . Youssef was fully in charge of training and human resource develop- ment at the Egyptian subsidiary of Thomas Cook, a tourism and financial services multi- national with operations in more than 15 countries . For several years, she also worked as an Organizational Development Specialist/Assistant Manager at Wadi Holdings, Cairo, an international food-processing conglomerate . In addition, she has held teaching posi- tions at the American University in Cairo, the University of Nebraska, and now at Bel- levue University .
About the Author
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Acknowledgments
My thanks to everyone at Bridgepoint Education who made this book possible: Steve Wainwright, editorial director; Greer Lleuad, sponsoring editor; Barbara Armentrout, development editor; Jaime Anderson, assistant editor; Teresa Bdzil, editorial assistant; Lindsay Serra, media editor; Christopher Disman, copyeditor; and everyone at Lachina Publishing Services .
I’d also like to thank all the reviewers of this book for their feedback and insight: Murad Ali, Ashford University; Gary Corona, Florida Community College; Francisco Drumond, Ashford University; Marty Franklin, Wilkes Community College; Stan Malos, San José State University; Gwen McCants-Allen, Ashford University; Darlene Pomponio, Ashford University; Teddi Reilly, Ashford University; Beverly Williams, Ashford University; and Ryan Zimmerman, Texas A&M University .
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