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Brief Contents
Part Five Labor Relations, Employee Relations, Safety, and Health 305
Chapter 11 Labor Unions and Collective Bargaining 306
Chapter 12 Internal Employee Relations 338
Chapter 13 Employee Safety, Health, and Wellness 362
vii
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ix
x CONTENTS
Organization Development and the Learning at Barker Enterprise 274 • INCIDENT 2: The Controversial
Organization 234 Job 274 • Endnotes 275
OD Interventions 234
Learning Organization 235 Chapter 10 Indirect Financial Compensation
Preparing for Exams/Quizzes 236 • Key Terms 237 (Employee Benefits) 278
Questions for Review 237 • Preparing for My Career 237 Indirect Financial Compensation (Employee Benefits) 279
■■ETHICS DILEMMA: Consequences of Inadequate Legally Required Benefits 280
Training Design 238 Social Security 281
HRM Is Everyone’s Business 238 • HRM by the Unemployment Insurance 281
Numbers 239 • Working Together: Team Exercise 239 Workers’ Compensation 281
INCIDENT 1: Career Development at Meyers and Brown 239 Health Care 282
INCIDENT 2: There’s No Future Here! 240 • Endnotes 240 Discretionary Benefits 285
Retirement Plans 286
Part Four Compensation 243 Life Insurance and Disability Insurance 288
Paid Time-Off 288
Chapter 9 Direct Financial Compensation Employee Services 291
(Monetary Compensation) 244 Workplace Flexibility (Work–Life Balance) 293
Total Compensation and the Environment of Compensation Flextime 294
Practice 245 Compressed Workweek 294
Direct and Indirect Financial Compensation 246 Job Sharing 295
Structure of Direct Financial Compensation Plans 247 Two-in-a-Box 295
Contextual Influences 248 Telecommuting 295
Direct Financial Compensation Components 252 Part-Time Work 296
Base Pay 252 ■■HR BLOOPERS: The Job-Sharing Problem at SunTrust
Cost-of-Living Adjustments 252 Bank 297
Seniority Pay 252 Customized Benefit Plans 297
Performance-Based Pay 253
Communicating Information about the Benefits Package 297
■■HR BLOOPERS: Motivating Software Development
Preparing for Exams/Quizzes 298 • Key Terms 298
Teams 258
Questions for Review 299
Person-Focused Pay 259
■■ETHICS DILEMMA: A Poor Bid 299
Building Job Structures 260
HRM Is Everyone’s Business 300 • HRM by the
Ranking Method 260
Numbers • 300 • Working Together: Team
Classification Method 261 Exercise 301 • INCIDENT 1: Flextime 301 • INCIDENT 2:
Factor Comparison Method 261 Communicating Benefits at Seaview Property Management
Point Method 261 Company 301 • Endnotes 302
Establishing Competitive Compensation Policies 261
Pay Level Compensation Policies 262 Part Five Labor Relations, Employee
Pay Mix 263 Relations, Safety, and
Building Pay Structures 263 Health 305
Pay Grades 264
Pay Ranges 265 Chapter 11 Labor Unions and Collective
Broadbanding 265 Bargaining 306
Two-Tier Wage System 266 The Role of Labor Unions 307
Adjusting Pay Rates 266 Why Employees Join Unions 308
Pay Compression 267 Prevalence of Unions 309
Exceptions to the Rules: Sales Professionals, Contingent Union Structure and Labor Strategies 310
Workers, and Executives 267 Structure of Unions 310
Sales Professionals 267 Organized Labor’s Strategies for Promoting a Stronger Labor
Contingent Workers 268 Movement 312
Executive Compensation 268 Laws Affecting Collective Bargaining 314
Preparing for Exams/Quizzes 270 • Key Terms 271 National Labor Relations Act 314
Questions for Review 272 ■■HR BLOOPERS: Stopping Unionization at Packer
■■ETHICS DILEMMA: Sales Tactics at Wells Fargo Industries 315
Bank 272 Labor-Management Relations Act 315
HRM Is Everyone’s Business 272 • Questions for Antidiscrimination Laws and Executive Orders 316
Review 272 • HRM by the Numbers 273 • Working Bargaining Unit Formation and the Collective Bargaining
Together: Team Exercise 274 • INCIDENT 1: The Pay Gap Process 316
CONTENTS xiii
HRM
HRMIsIs Everyone’s Business
Everyone’s Business CHAPTER 2 • BUSINESS ETHICS, CORPORATE SOCIAL RESPONSIBILITY, AND SUSTAINABILITY 47
Most
Mostcompany
company leaders andemployees
leaders and employeeswillwill face
face ethical
ethical challenges
challenges at oneattime
oneortime or another.
another. Some employees
Some employees will intentionally
will intentionally
commit
commitethics
ethicsviolations forpersonal
violations for personalgain.
gain. Other
Other employees
employees may may unknowingly
unknowingly do so. Whether
do so. Whether you are ayou areHRM
manager aormanager or HR profes- Business
Is Everyone’s
HR profes-
sional—an
sional—anemployee
employee maymay bring
bringconcerns
concerns about
about possible
possible ethical
ethical violations
violations to yourtoattention
your attention or you
or you may maythem
observe observe them yourself.
yourself.
Once
Once youare
you areaware
aware of
of aa situation
situationwhere
whereethics are are
ethics in question, you are
in question, youobligated to respond.
are obligated to respond. Most company leaders and employees will face ethical challenges at one time or another. Some employees will intentionally
commit ethics violations for personal gain. Other employees may unknowingly do so. Whether you are a manager or HR profes-
Actionchecklist
Action checklist for
for managers
managersand
andHR—responding to allegations
HR—responding of unethical
to allegations behavior
sional—anbehavior
of unethical employee may bring HRMabout
$$ concerns Ispossible
Everyone’s Business.
ethical violations to your attentionThis feature
or you may explains
observe them yourself.
Once you are aware of a situation where ethics are in question, you are obligated to respond.
HR takes the lead
HR takes the lead
Work with managers to ensure that they understand the company’s code of ethics and communicate theAction procedures for
how HR professionals and managers throughout
checklist for managers and HR—responding to allegations of unethical behavior
Work with managers
addressing
addressing
instances oftopotential
ensureethical
that they understand the company’s code of ethics and communicate the procedures for
violations.
HR takes the lead the organization work together to address important
Encourageinstances
managers toofshare
potential ethical violations.
the company’s code of ethics with employees, lead open discussions about everyone’s obliga-
Encourage managers
tion to behave ethically,toand
share theacompany’s
create codefor
safe environment of employees
ethics withto employees, lead open
report their concerns discussions
about Work
about
possible ethical with managers
everyone’s
violations obliga- workplace issues by highlighting specific connec-
to ensure that they understand the company’s code of ethics and communicate the procedures for
addressing instances of potential ethical violations.
tion to behave
to the ethically,
appropriate and create a safe environment for employees to report their concerns about possible
authority. ethical violations
toGuide managers through
the appropriate the process of handling employees who are suspected of committing ethical violations.
authority.
Encourage managers to tions and the reality that HR activities are never
share the company’s code of ethics with employees, lead open discussions about everyone’s obliga-
tion to behave ethically, and create a safe environment for employees to report their concerns about possible ethical violations
Guide managers
Managers take thethrough
lead the process of handling employees who are suspected of committing ethicaltoviolations. the appropriate authority. performed in isolation.
Guide managers through the process of handling employees who are suspected of committing ethical violations.
Educate
Managers HR on
take thecertain
leadaspects of employee roles to better understand how unethical behavior may manifest in your depart-
ment. Bringing HR up to speed creates a partnership for more effectively responding to possible ethical violations. Managers take the lead
Educate
DiscussHR on certain
concerns with HR aspects
about of employee
possible roles
ethical to better
violations andunderstand how
follow through unethical
based behavior
on company may
policy andmanifest
procedures.in your depart-
ment. Educate HR on certain aspects of employee roles to better understand how unethical behavior may manifest in your depart-
WorkBringing HR HR
together with up to to speed creates
implement a partnership
a training forcompany’s
plan on the more effectively
code of responding to possible
ethics and creating ethical
hypothetical violations.
scenarios
ment. Bringing HR up to speed creates a partnership for more effectively responding to possible ethical violations.
Discuss concerns
illustrating ethicalwith HR about
and unethical possible
behavior ethical
relevant violations
to your and follow
departmental through based on company policy and procedures.
activities. Discuss concerns with HR about possible ethical violations and follow through based on company policy and procedures.
Work together with HR to implement a training plan on the company’s code of ethics and creating hypothetical
Work together scenarios
with HR to implement a training plan on the company’s code of ethics and creating hypothetical scenarios
illustrating ethical and unethical behavior relevant to your departmental activities. illustrating ethical and unethical behavior relevant to your departmental activities.
42 PART 1 • SETTING THE STAGE
HRM by the Numbers
Paying the Price for Underpaying Workers Also, long before the enormous oil spill in 2010, BP promoted itself as being eco-friendly.
HRM by the Numbers HRM by the Numbers
Its literature stated that BP stood for “Beyond Petroleum.” BP marketed itself as a producer of
An additional HRM by the Numbers exercise can be found on MyLab Management.
Paying the Price alternative
for Underpaying Workers
energies, an image that was seriously damaged by the devastating oil spill in the Gulf
Paying the Price
HR professionals shouldfor Underpaying
ensure Workers
that workers are paid for their work on a timely basis. Sometimes, companies pay workers less
An additional HRM of
by Mexico in 2010.
the Numbers Instead
exercise can beoffound
spending billions
on MyLab on eco-friendly
Management . energy and building an employer
than what they should and there are various possible reasons such as intent to save money or in error. Either way, paying employ-
An additional HRM by the Numbers exercise can be found on MyLab Management.
ees lesser amounts than owed may violate the law. For instance, the Fair Labor Standards Act (FLSA), which we brand campaign around it, many believe that BP would have been much better off if it had spent
HRwill discuss in should
professionals ensure that workers are paid for their work on a timely basis. Sometimes, companies pay workers less
more time
are and effort in training
reasons its employees
as intent toon
saveitsmoney
oil drilling platforms, establishing stronger
HRChapter 3, requires
professionals employers
should to pay
ensure thateligible
workers workers a higher
are paid pay for
for their overtime
work work. Specifically,
on a timely the overtime
basis. Sometimes, paywhat
than
companies rate they
equals
payshould and
workers there
less various possible such or in error. Either way, paying employ-
1.5 times the regular hourly pay rate for each additional hour exceeding 40 in a work week. safety protocols, and waiting until they were safe to operate. Even during this public relations
than what they should and there are various possible reasons such as intent to save money or in error. Either way, paying employ-may violate the law. For instance, the Fair Labor Standards Act (FLSA), which we will discuss in
ees lesser amounts than owed
You’ve learned that the company has not been paying employees appropriately for overtime work hours. It is your responsibil- , requires employers to pay eligible workers a higher pay for overtime work. Specifically, the overtime pay rate equals for
campaign, BP had a history of safety violation. BP had been “fined more than $100 million
ees lesser amounts than owed may violate the law. For instance, the Fair Labor Standards Act (FLSA)Chapter , which3we will discuss in
$
Chapter HRM by the Numbers. This feature provides an excel-
ity$ to calculate the amount of overtime pay owed to workers. After reviewing the payroll records, you discovered
3 , requires employers to pay eligible workers a higher pay for overtime work. Specifically,
1.5 the
the
following
times
overtime pay rate
safety
the regular hourly payviolations thatadditional
rate for each led to deaths of workers,
hour exceeding explosions
40 in a work week.of refineries, and leaking pipelines.”102
details: You’ve learned that equals
the company
The following hasWatch
not beenItpaying
video employees
describesappropriately for overtime
the environmental workofhours.
impact It is oil
another yourcompany’s
responsibil-spill
lent opportunity to think through concepts and their
1.5 times the regular hourly pay rate for each additional hour exceeding 40 in a work week.
1. Grouplearned
1: 225 workers. Each worker
ity to calculate the amount of overtime pay owed to workers.
and leadership’s reaction to the disaster. After reviewing the payroll records, you discovered the following
You’ve that the company hasearns a regular
not been hourly
paying pay rate ofappropriately
employees $18.00. For each
for of the past work
overtime 15 work weeks,
hours.
details: every-
It is your responsibil-
applications as well as analyze quantitative data to
one worked 45 hours.
ity to calculate the amount of overtime pay owed to workers. After reviewing the payroll records, you 1.
2. Group 2: 310 workers. Each worker earns a regular hourly pay rate of $21.00. For each of the past 20 work weeks,
discovered
Group theworkers.
1: 225
every-
following Each worker earns a regular hourly pay rate of $18.00. For each of the past 15 work weeks, every-
details:one worked 47 hours.
facilitate problem solving. one worked 45 hours.
2. Group 2: 310 workers. Each Watch It 2 a regular hourly pay rate of $21.00. For each of the past 20 work weeks, every-
worker earns
1.Every
Group 1: 225
worker workers.
received Each
regular pay worker earns
for all their a regular
hours worked,hourly
but theypay
didrate of $18.00.
not receive For eachovertime
an additional of the past
pay 15 work weeks, every-
amount.
one worked 47 hours. If your instructor has assigned this, go to www.pearson.com/mylab/management to watch
one worked 45 hours. a video titled Co Responsible for Oil Spill Under Fire and to respond to questions.
Questions Every workerweeks,
received regular pay for all their hours worked, but they did not receive an additional overtime pay amount.
2. Group 2: 310 workers. Each worker earns a regular hourly pay rate of $21.00. For each of the past 20 work every-
one Calculate
2-13. worked 47 thehours.
hourly overtime pay rate for each worker in (a) group 1 and (b) group 2.
Questions
2-14. How much money does the company owe all the workers in (a) group 1 over 15 weeks and (b) group 2 over 20 weeks?
2-13.pay?Calculate the hourly overtime
Brighterpay rate fora each
Planet, worker in (a)technology
sustainability group 1 and company,
(b) group 2.discovered in a recent survey that
Every
2-15.worker
How muchreceived
moneyregular
did thepay for allsave
company their
byhours worked,
not paying butworkers
all the they did not receive
(groups 1 and 2 an additional
combined) overtime
overtime pay amount.
2-14. How much money does the company owe all the workers in (a) group 1 over 15 weeks and (b) group 2 over 20 weeks?
although more firms are engaging in green activities, the effectiveness of these efforts has
Questions 2-15. How much money did the company
declined. 103 save by not paying all the workers (groups 1 and 2 combined) overtime pay?
Some believe that the problem with CSR is that it consists of a universal set of
2-13. Calculate the hourly overtime pay rate for each worker in (a) group 1 and (b) group 2. guidelines such as the “triple bottom line” (society, environment, and economy) mentioned previ-
Working
2-14. How much Together:
money doesTeam Exercise
the company owe all the workers in (a) group 1 over 15 weeks and (b) group 2 over 20 weeks? ously. To be “socially responsible,” each firm should follow the same guidelines instead of what
2-15. How much money did the company save by not paying all the workers (groups 1 and 2 combined) overtime pay? would be the most appropriate strategy for each firm. Using this logic, it would be more logical
In small groups of three or four, come up with specific answers to the following questions. Talk through your Working Together: Team Exercise
perspectives and
come up with a brief team response. Be prepared to share your ideas with the class. for oil companies such as BP to focus on being profitable, yet be an environmentally conscious
In small groups of threeoilorcompany.
four, comeFast-food
up with specific answers
restaurants to the
such following questions.
as McDonald’s Talk through
and retailers your
such as perspectives
Walmart shouldandeach
come up with a brief team response. Be $ prepared
$ Working Together. This feature offers oppor-
to share your ideas with the class.
use a different set of rules to do the same thing in their own industries.
Working Together: Team Exercise There are those who believe that all shareholders should not be required to be involved in
tunities for students to collaborate through
CSR investments. They think that only investors who want to be involved should participate. These
In small groups of three or four, come up with specific answers to the following questions. Talk through your perspectives
come up with a brief team response. Be prepared to share your ideas with the class.
investors sharing ideas, listening to others’ ideas, and
and would do so with the understanding that the objective is not just to make money but also
to do good. For example, an oil company such as Exxon could establish an alternative-energy
coming up with a cohesive team response to
subsidiary. Exxon would own a controlling stake, but funding would come from new investors
who want to support alternative energy and thus be socially responsible. If the subsidiary was
the assignment.
unsuccessful, the losses would be confined to the new investors. If it succeeded, the profits would
be shared by all shareholders.104
☛ FYI
The 2017 Global 100 Most Sustainable Corporations were most commonly found in the following
$$ FYI. This feature provides tidbits of information from survey countries:
research and extensive databases (e.g., employment statistics) that ● United States: 19 companies
● France: 12 companies
illuminate trends, opinions, and the use of specific HR practices. ● United Kingdom: 11 companies
● Canada and Germany: 6 companies
● Netherlands: 5 companies105
Corporate Sustainability
Corporate sustainability has evolved from the more traditional view of CSR. According to the
xv
World Commission on Environment and Sustainability, the narrow definition of sustainability
is, “meeting the needs of the present without compromising the ability of future generations
to meet their own needs.”106 The Dow Jones World Sustainability Index (DJSI) provides a
good working definition of this term. They define it as, “An approach to creating long-term
shareholder value by embracing opportunities and managing risks deriving from economic,
xvi PREFACE
2
author conveys content and the choice of pedagogical features can pique interest in the subject
Business Ethics, Corporate Social matter and enhance learning and development of seven critical employability skills, which I have
PART 1 • discussed
34 SETTING THE STAGEin the Developing Employability Skills section in Chapter 1.
Responsibility, and Sustainability I approach the study of HRM in a realistic, practical, interesting, and stimulating manner.
2.2 Explore human resource Creating an Ethical Culture and a Code of Ethics
I focus on showing how HRM is practiced in the real world. Throughout the book, you will
management’s (HRM) role in Ethics is an important component of an organization’s culture. And it’s turning out to be more
see and
creating an ethical culture examples
a keyof for how organizations
organizations to conduct practice HRM. In explaining a concept, I often quote HRM
LEARNING OBJECTIVES After
code of ethics. completing this chapter, students should be able to: business in an ethical fashion. Why? The public insists on it.
professionals and other
Customers call for it.business professionals,
Most companies yet allhaveHRM
that take ethics seriously a code ofdiscussion is based on sound
ethics that codifies
ethical principles and guides employees to behave ethically. Let’s explore HR professionals’ roles
2.1 Discuss what ethics means and the theoretical
2.4 Explainconcepts
the concepts and
and practice.
practices Where appropriate,
in facilitating ethical cultures and codes of ethics. the strategic role of HRM is apparent in
sources of ethical guidance. related to corporate social responsibility
the discussion
and corporate
of each major
sustainability.
HRM function. In addition, I show how HRM topics are related
2.2 Explore human resource management’s to other HRM Ethical Culture
topics. For instance, a firm that emphasizes recruiting top-quality
once said, “Always do right. This will gratify some people and astonish the rest.”37
candidates but
(HRM) role in creating an ethical culture 2.5 DescribeMark Twain
a social audit.
and a code of ethics. neglects to This provide satisfactory
is certainly good advice forcompensation
both employees and is employers
wastingif time,
the firmeffort, and money.
wants to create an If a firm’s
2.3 Define human resource ethics. compensation system
ethical pays that
culture. Saying below-market
a company has anwages, the and
ethical culture firm will
having onealways
may be two bediffer-
hiring and training
ent things. Culture is concerned with the way people think, which affects the way that they act.
new employees Changing an organization’s culture thus requires modifying the common way of thinking of itsBesides this one
only to see the best leave for a competitor’s higher wages.
example, the interrelationship
members. 38
Organizations withof HRM practices
strong ethical cultures set in atodynamic
take steps business
ensure that their standardsenvironment will
are widely accessible, promoted, and followed by their leaders and employees.39 For example,
MyLab Management become more obvious as these topics are addressed throughout the
the Volkswagen debacle was not supposed to happen. The Volkswagen Code of Conduct was 24
book. These interrelation-
Improve Your Grade! ships are also pagesshown
long andtohadbea important as organizations
foreword by Martin Winterkorn, who wasoperate
then thewithin
company’s the global
CEO, and environment. I
other top executives saying, “We stand for respectable, honest, and actions in everyday business
If your professor is using MyLab Management, visit included several features
www.pearson.com/mylab/management that appear in the textbook and MyLab, designed
that are in accordance with rules, and we commit ourselves to the following Code of Conduct.”40
to enhance student
for videos, simulations, and writing exercises.
learning by Even actively
with theengaging
ethical code,students.
it is apparent that Volkswagen’s top management pursued business
as usual.
One way for a firm to create and sustain an ethical culture is to audit ethics, much like a
company audits its finances each year. Learn
41 It Practice
An ethics audit is simply a systematic, independent,
Learn It
and documented
If your professor has chosen to assign this, go to www.pearson.com/mylab/management process for Students
obtaining evidencecan be assigned
regarding the status ofthe Chapter Warm-Up before
an organization’s
ethical2 culture. It. takes a closer look at a firm’s ethical culture instead of just allowing it
to see what you should particularly focus on and to take the Chapter Warm-Up coming to class. Assigning these questions ahead of time
to remain unexamined. An ethical culture is made up of factors such as ethical leadership,
accountability, and values. The climatewill ensure
with that students
top management are coming
is fundamental to class prepared.
to a company’s
ethical culture.42 Ethical leadership begins with the board of directors and CEO and contin-
ues to middle managers, supervisors, and employees.43 Building an ethical culture that lasts
Watch It Videos
requires a foundation of practices that continue even when leaders change.44 The following
Watch It video illustrates how employees and members of management are brought together
Recommends a video clip that can be assigned to students for outside classroom viewing or that
to enact a change within the company. Their goal is to limit the negative environmental
can be watched in ofthe
impacts classroom.
their company as much Theasvideo corresponds
possible by applying theto the
best chapter
practices material
concept to their and is accompa-
everyday
nied by multiple activities.
choice questions that reinforce student’s comprehension of the chapter content.
Watch It 1
If your instructor has assigned this, go to www.pearson.com/mylab/management to watch
a video titled Patagonia: Ethics and Social Responsibility and to respond to questions.
According to the Corporate Executive Board in Arlington, Virginia, companies with weak
ethical cultures experience 10 times more misconduct than companies with strong ethical cul-
tures.45 In workplaces with a strong ethical culture, only 4 percent of employees feel pressure
support of minority enterprises, pollution control, corporate giving, involvement in selected com-
munity projects by executives, and a hard-core unemployment program. The ideal social audit
would go well beyond a simple listing and involve determining the true benefits to society of any
socially oriented business activity.
PREFACE xvii
Try It!
Try It Mini Simulations
If your instructor has assigned this, go to www.pearson.com/mylab/management to Recommends a mini simulation that can be assigned to stu-
complete the Management & Ethics simulation and test your application of these concepts
when faced with real-world decisions. dents as an outside classroom activity or it can be done in the
classroom. As the students watch the simulation they will be
46 PART 1 • SETTING THE STAGE asked to make choices based on the scenario presented in the simulation. At the end of the simula-
tion the student will receive immediate feedback based on the answers they gave. These simula-
Key Terms tions reinforces the concepts of the chapter and the students’ comprehension of those concepts.
RING FOR EXAMS/QUIZZES
ethics 29
code of ethics 35
corporate social responsibility
(CSR) 39
corporate sustainability
social audit 44
39 CHAPTER 2 • BUSINESS ETHICS, CORPORATE SOCIAL RESPONSIBILITY, AND SUSTAINABILITY 39
HR BlooperswhatExercises
s what ethics means and the sources of ethical and compliance a process for determining how employees
Sales Incentives at Pinser Pharmaceuticals
ce. Ethics is the discipline dealing with MyLabis Management are compensated.
nd bad, right and wrong, HRorBloopers
with moral present
duty
If your
and scenarios
instructor is
3. Definethat human
using MyLab Management describe
resource ethics. Human resource ethics is Quarterly sales reports are in at Pinser Phar-
, go to www.pearson.com/mylab/ Apparently, many of the sales representatives are using some of
on. Business ethics addresses matters of choices to completethe theapplication of ethical principles
icon . to HR relationships
maceuticals and andBen Ross looks forward to sharing the reports with their own extra earnings to earn the favor of the doctors. Gifts, dinners,
potential mistakes
ight and wrong made by business leaders. One
management
that may occur in
problems marked
activities. HR
with this the sales team. As a compensation analyst, Ben calculates sales and other incentives are provided to the doctors to encourage them to
commissions for the sales representatives, and high sales mean big write Pinser prescriptions. At first he thought there might be a problem
use numerous sourcespractice.
to determineQuestions
what is right that 4.follow Explain the in concepts
MyLab and practices related paychecksfor
to corporate the team. The sales representatives receive incentive pay with this practice, but Ben knows that Pinser has a Code of Ethics and
bonuses based on how many times doctors in their sales territory pre- provides ethics training to all employees, so the sales representatives
ng, good or bad, and moral or immoral, such social responsibility and corporate sustainability. Cor-
Management provide students
books or one’s conscience. Another source of
with the
porate social responsibility is the implied, enforced,
scribe Pinser drugs. The number of prescriptions has increased with
several of theorpopular drugs Pinser makes and the sales representatives
must know that their practices are acceptable. Ben understands that
this is just the way business is done, and Ben’s job is just to make sure
guidance is the behaviorQuestions
opportunity for
and advice ofto Review
test their understanding
people, and acting in their official
felt obligation of managers, that have the doctors writing the most prescriptions stand to benefit
capac- they get paid what they have earned.
significantly. Ben knows that they have steep competition on some of
ng our parents, friends, 2-and
1. What
role models
are andbusiness ethics?
ethics and ity, tobased
serve or protect 2-the
7. What
interests
are theofareas
groups other
in which HRthan
professionals can have
recall
2- 2. Whatofare the
some
rs of our churches, clubs, and associations. For
chapter
sources of material
ethical guidance? on the a major impact
themselves, and corporate sustainability focuses on
their
ethics?
products,
ahead of
but he has also heard
oncompetitors.
the
some rumors about how they stay
Action checklist for managers ☛and HR—understanding and applying selection concepts
place issues. This feature highlights some
andisother
If Randy givendecision
acceptConsider
him as their leader.
makers you
the promotion,
private sector
James,
are aware
companies
are notofcertain
the pitfalls.
that hold
on the other
the workers will
hand,government
2-11. What would you do?
contracts 2-
is a hard worker to12.
understand whatand
What factor(s) in thismethods
additional standards
ethics dilemmamay be placed
might
FYI
influence a person ● Eighty-eight percent feel their job is more fulfilling when they are provided opportunities to make
of the specific connections between man-
and ison them
well because
liked of their relationship
and respected by the others,withincluding
the federal government.
Randy. As to make a less-than-ethical
HR takes the decision?
lead a positive impact on social or environmental issues.83
Provide
you labor over legal updates you
the decision, to managers
think about because legislation
how unfair is changing
it would be quickly (particularly in these times). Many law firms
agers and HR professionals, and the reality
provide these services via pro bono teleconferences. In-house employment lawyers can also Review
provide
considered.
thethese
appropriate
For
updates. For
example,
guidelines for evaluating applications and résumés. Communicate what should and should not be
some people list birthdate or marital status on their résumés and this information should never be
instance, we learned in this chapter that the EEOC considers treating gay, lesbian, bisexual, and transgender employees less
that HR activities are never performed in
favorably than others as a form of sex discrimination under the Civil Rights Act of 1964. considered when formulating interview questions or making the selection decision.
Make sure that the legislative necessities create a starting point for establishing company policy Discuss
and notwhether
merely the testing will add useful information for making more accurate selection decisions.
justifica-
isolation.
tion for doing the bare minimum. Review the guidelines for conducting effective interviews and coordinate the types of interview questions that will be asked
Managers take the lead by HR and the questions that will be asked by managers.
Speak openly about the importance of mutual respect and lead by example. HR professionals conduct background checks.
Identify employees who fall into a group addressed specifically by law or company policy (e.g.,HRADA)professionals
which mayshare their evaluations of the job candidates, and inform managers whether the results of the background
be a new
check warrant
experience for you to work with as a manager (e.g., in most jobs, you will have more experience working further consideration.
with minority
employees than disabled employees or transgender employees).
Encourage employees to discuss in confidence with managers and HR professionalsManagers any concernstake thehave
they may leadabout
Review
instances of possible illegal discrimination whether it be about themselves or out of concern for the top candidates
their coworkers. It is impor-with HR after prescreening applications and résumés.
tant to provide a safe haven for employees who come forward. If testing is considered relevant, explain the minimum performance standards expected of successful employees.
Share interview questions with HR to ensure job-relatedness.
Consider all the job-related information and discuss whether a job offer should be made.
HRM by the Numbers
Detecting Adverse Impact
An additional HRM by the Numbers exercise can be found on MyLab Management. HRM By The Numbers Exercises
HRM by the Numbers
Adverse impact usually takes place when an employment decision, practice, or policy has a disproportionately negative effect
on a protected group. HR professionals rely on the “four-fifths” or “80 percent” rule to judge whether adverse impact may have
As noted earlier, HRM by the Numbers provides an excel-
occurred. Consider the situation for men and for women: Measuring Selection Outcomes lent opportunity to sharpen problem solving skills through
Sex Total Applicants Selected Applicants Selection Rate the analysis
An additional HRM by the Numbers exercise can be foundof numerical
on MyLab Management.
data, creating the foundation
You were hired to develop a new recruitment and selection system to fill marketing assistant jobs. The Vice President of HR
Female
Male
750
1,050
375
450
for quantifying HRM concepts and practices. There are
asked you to calculate various metrics to judge the effectiveness of the system using data from the previous calendar year. You
Total 1,800 825 two data-driven
have the following data to judge the effectiveness exercises per chapter, one in the book
of the selection system:
3-18. Calculate (a) the selection rate for females and (b) the selection rate for males. and both in MyLab Management. Answers are found in
3-19. What is the ratio of the female selection rate to the male selection rate?
3-20. Based on your answer to question 3-19, is there evidence of possible adverse impact? the Instructor’s Manual and in MyLab Management.
MyLab Management
Reach every student with MyLab
MyLab is the teaching and learning platform that empowers you to reach every student. By com-
bining trusted author content with digital tools and a flexible platform, MyLab personalizes the
learning experience and improves results for each student. Learn more at MyLab Management.
Test Bank More than 2,000 multiple-choice, true/false, and short-answer questions with these annotations:
$$ Difficulty level (1 for easy, 2 for moderate, 3 for difficult)
$$ Type (Multiple-choice, true/false, short-answer, essay
$$ Learning outcome
$$ AACSB learning standard (Written and Oral Communication, Ethical Understanding and
Reasoning; Analytical Thinking; Information Technology; Diverse and Multicultural Work;
Reflective Thinking; Application of Knowledge; Interpersonal Relations and Teamwork)
PowerPoints Slides include many of the figures and table in the textbook
PowerPoints meet accessibility standards for students with disabilities. Features include, but not
limited to:
$$ Keyboard and Screen Reader access
Acknowledgments
I wish to give a special thank you to R. Wayne Mondy whose dedication and expertise in the
first 14 editions have positively impacted thousands of students’ educational experiences. I am
thrilled and honored to carry the torch forward in pursuit of doing the same for thousands more.
At Pearson, I wish to thank my editor, Dan Tylman, who provided excellent insights through-
out the preparation of this edition. Many others at Pearson provided excellent advice throughout
the process and project management oversight, including Yasmita Hota, Ashley Santora, Melissa
Feimer, and Stephanie Wall. At SPi Global, I thank Raja Natesan and Nicole Suddeth. In a ddition,
student feedback has made this book an invaluable resource. Finally, the support and encourage-
ment of many practicing HRM professionals and faculty members has helped to make this book
possible.
Chapter 2
Business Ethics, Corporate Social Responsibility,
and Sustainability
Chapter 3
Equal Employment Opportunity, Affirmative
Action, and Workforce Diversity
1 Human Resource Management:
An Overview
LEARNING OBJECTIVES After completing this chapter, students should be able to:
1.1 Define human resource management 1.5 Summarize HRM issues for small
(HRM) and the importance of studying it. businesses.
1.2 Describe who performs HRM. 1.6 Identify ways that country culture
influences global business.
1.3 Explain how the HRM function serves
as a strategic business partner and 1.7 Explore essential skills for developing
the elements of the dynamic HRM your career in HR or any other career
environment. path.
MyLab Management
Improve Your Grade!
If your professor is using MyLab Management, visit www.pearson.com/mylab/management
for videos, simulations, and writing exercises.
Learn It
If your professor has chosen to assign this, go to www.pearson.com/mylab/management
to see what you should particularly focus on and to take the Chapter 1 Warm-Up.
2
Like many students, you’ve probably had a job (or two) at some time or another while working
on your degree. Your work experiences are likely to have been influenced by the knowledge and
skills of a human resource (HR) manager and your manager. Both HR professionals and manag-
ers work together to recruit and hire the right individuals as well as evaluating and rewarding job
performance. This textbook is about the important work that HR managers accomplish and how
they work with managers and employees to promote a mutually beneficial employment experi-
ence. Mutually beneficial employment experiences can be described by goal-directed managers
who create a positive environment for you to achieve exemplary job performance, which, together
with other employees, will help the company meet its strategic objectives.
This chapter will enable you to describe and understand the human resource management
function and why it is worthwhile to study it. In the sections that follow, we introduce you to the
functions that make up human resource management (HRM) and identify who is responsible for
managing it. Next, we discuss HRM as a strategic business partner and the dynamic role of the
environment that influences HRM practice, followed by considering the role of HRM in building
corporate culture and employer branding. Then, we turn our attention to HRM in small businesses
and the influence of country culture on global business. Finally, we explore essential skills for
developing your career in HR or any other career path.
1.1 Define human resource Human Resource Management: What It is and Why
management (HRM) and the
importance of studying it.
It is Important
Human resource management (HRM) is the use of individuals to achieve organizational objec-
tives. Basically, all managers get things done through the efforts of others. Consequently, manag-
human resource management ers at every level must concern themselves with HRM. Individuals dealing with human resource
(HRM) matters face a multitude of challenges, ranging from a constantly changing workforce to ever-
Utilization of individuals to achieve present government regulations, a technological revolution, and the economy of the United States
organizational objectives. and the world. Furthermore, global competition has forced both large and small organizations to
3
4 PART 1 • SETTING THE STAGE
be more conscious of costs and productivity. Because of the critical nature of human resource
issues, these matters must receive major attention from upper management.
FIGURE 1-1
Human Resource Human Resource
Management Functions Development
ng
ffi
Sta
Co
mp
en
Human
sat
Resource
ion
management
Pe nag
ma
rfo em
rm en
an t
ce
alt d
He y an
h
fet
Sa
Employee and
Labor Relations
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II
Hilu tekee työtä niin pitkälle kuin jaksaa, lepää vain sen, mikä
välttämätöntä on, ja jatkaa sitten taas. Alussa tuntuu jäsenissä
hiukan pakotusta, työn päätyttyä ne joskus tuntuvat lopen
puutuneilta, mutta se johtuu vain tottumattomuudesta. Jonkun ajan
kuluttua käy kaikki kuin itsestään, hän ei huomaa, kuinka aika kuluu
ja kun hän sen viimein huomaa, ei hän malta lopettaa. Se on nyt
sellaista.
Niin, ja nyt sitä ollaan yhdessä Iinan kanssa. Iinalla on kyllä lapsi
jonkun rakennusmestarin kanssa, mutta se nyt on sen lapsenkin
kohta niinkuin se on. Alkujaankaan ei ole syytä Iinaa moittia ja
sitäpaitsi se asia on jo niin moneen kertaan sovittu. Oli syytä
hänessäkin, Hilussa, ja mikä tietää, vaikka hänestäkin olisi siinnyt
lapsi jonnekin… Mutta mitäpäs näitä, turhaan tulevat mieleen. Ollaan
nyt tässä, mihin ollaan pyrittykin. Siellä, kotona, Keinuvaaran
kupeella, on Iina. Aurinko paistaa tällä hetkellä suoraan ikkunoista
sisään ja pölyhiutaleet leijailevat valojuovissa. Iina odottaa häntä
kotiin myöhään lauantai-iltana, saattaa siksi tehdä juustonkin.
Heittäydytään levolle yhdessä… Ja kun heille lapsiakin tulee, niin ei
Kalle sen huonommalle osalle joudu. Ei tahdo aina muistaakaan,
ettei se ole omia, on päässyt siitä pitämäänkin niin… No, joko se
taas!
*****
— Vai talontapaista!
Mies naurahtaa eikä näytä lainkaan ystävälliseltä. Saattaa olla
joku yhtiön herroista.
— Se on vale.
— Vaikkapa!
— Hyvä on.
— Nytkö jo tänään?
Hilu sai mennä ja hän riensi sydän pamppaillen portaita alas. Vai
ovat asiat niin täpärällä. Hilu ei nimittäin tiennyt, että joskus oli
tapahtunut sellaistakin, että yhtiö oli jollakin jätkällään haetuttanut
uutistalon, auttanut kaikin puolin sen asianmukaiseen kuntoon
saamisessa niin että se mahdollisimman pian tuli perinnöksi ja
sukeltautui sitten metsään. Mutta metsäherra, hän oli kyllä tietoinen
konstista jos toisestakin, vaikka hän enimmäkseen piti suunsa kiinni.
III
— Kyllä se sanoi.
— Siinon, äijät.
— No niin. Tervetuloa!
— No, hyvästi nyt sitten ja voi hyvin. Joko sinä ajattelet syyniä eli
katselmusta, niinkuin sanotaan, tänä vuonna?
— Kyllä kai.
— Menehän nyt sitten. Kyllä talo irtausi. Kevein mielin astelee Hilu
pappilaa kohden.
Onhan se kuultu.