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Managing
Human Resources 18th Edition
SCOTT A. SNELL SHAD S. MORRIS

Professor of Business Administration, Associate Professor of Management,
University of Virginia Brigham Young University
Australia • Brazil • Mexico • Singapore • United Kingdom • United States
Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
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Managing Human Resources, © 2019, 2016 Cengage Learning, Inc.
Eighteenth Edition
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Scott Snell and Shad Morris
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Printed in the United States of America

Print Number: 01 Print Year: 2017

Brief Contents
Part 1 Human Resources Management in Perspective

1 The Rewards and Challenges of Human Resources Management 1
2 Strategy and Human Resources Planning 38
Part 2 Meeting Human Resources Requirements

3 Equal Employment Opportunity and Human Resources Management 84
4 Job Analysis and Job Design 121
Part 3 Developing Effectiveness in Human Resources

5 Expanding the Talent Pool: Recruitment and Careers 152
6 Employee Selection 205
7 Training and Development 241
8 Performance Management 279
Part 4 Implementing Compensation and Security

9 Managing Compensation 318
10 Pay-for-Performance: Incentive Rewards 356
11 Employee Benefits 385
12 Promoting Safety and Health 416
Part 5 Enhancing Employee-Management Relations

13 Employees Rights and Discipline 448
14 The Dynamics of Labor Relations 481
Part 6 Expanding Human Resources Management Horizons

15 International Human Resources Management 515
16 Implementing HR Strategy: High-Performance Work Systems 556
Integrative Cases 585

Glossary 611
Name Index 622
Organization Index 624
Subject Index 627
iii

Contents
Part 1 Human Resources Management in Perspective

Chapter 1 T
he Rewards and Challenges of
Human Resources Management 1
1.1 Why Should You Study Human Resources Management? Will It Pay Off? 2
1.1a Human Capital and Organizational Culture 3
1.2 Strategic and Global Challenges 5
1.2a Responding Strategically to Changes and Disruptions in the Marketplace 5
1.2b Competing, Recruiting, and Staffing Globally 7
1.2c Setting and Achieving Corporate Social Responsibility and Sustainability Goals 9
1.3 Technology Challenges 10
Highlights in HRM 1: Factors to Consider When Evaluating a
Human Resources Information System 14
1.4 Productivity and Cost Challenges 15
1.4a Maximizing Productivity 15
1.4b Managing the Size of the Workforce 15
1.4c Managing Pay and Benefits 16
1.5 Employee Challenges 18
1.5a Responding to the Demographic and Diversity Challenges
of the Workforce 18
1.5b Educational Shifts Affecting the Workforce 23
1.5c Adapting to Cultural and Societal Changes
Affecting the Workforce 24
1.6 The Role HR Managers Play and Their Partnership with Other Managers 27
1.6a Responsibilities of Human Resource Managers 28
1.6b Competencies Human Resource Managers Require 29
Highlights in HRM 2: SHRM Code of Ethical and Professional Standards
in Human Resource Management 30
Summary 32
Key Terms 33
Discussion Questions 33
Case Study 1: New HR Strategy Makes Lloyd’s a “Best Company” 34
Case Study 2: Shell’s Top Recruiter Takes His Cues from Marketing 34
Notes and References 36
iv

Contents v
Chapter 2 Strategy and Human Resources Planning 38

2.1 Strategic Planning and Human Resources Planning 39
2.1a Strategic Planning and HR Planning:
Linking the Processes 40
2.2 Step One: Mission, Vision, and Values 42
2.2a Developing a Mission Statement 42
2.2b HR’s Role in Establishing and Reinforcing a Firm’s Mission,
Vision, and Values 43
2.3 Step Two: External Analysis 43
2.3a The Business Environment 44
2.3b The Competitive Environment 45
2.3c HR’s External Analysis 48
Highlights in HRM 1: HRM Metrics 50
2.4 Step Three: Internal Analysis 50
2.4a Core Capabilities 51
2.4b Sustaining a Competitive Advantage
Through People 52
2.4c Types of Talent and Their Composition
in the Workforce 52
2.4d Corporate Culture 54
2.4e Forecasting 56
Highlights in HRM 2: HR Planning and Strategy Questions
to Ask Business Managers 58
2.4f Assessing a Firm’s Human Capital Readiness:
Gap Analysis 61
Highlights in HRM 3: Succession-Planning Checklist 62
2.5 Step Four: Formulating a Strategy 64
2.5a Corporate Strategy 64
2.5b Business Strategy 66
2.5c HR Strategy 67
2.6 Step Five: Executing a Firm’s Strategy 67
2.6a HR’s Role in Strategy Execution 69
2.7 Step Six: Evaluation 70
2.7a Evaluating a Firm’s Strategic Alignment 70
Summary 73
Key Terms 74
HRM Experience: Customizing HR for Different Types
of Human Capital 75
Case Study 1: How a Strategy Change Led to Nike’s Formation 75
Case Study 2: Domino’s Tries to Get Its Strategic Recipe Right 76

vi Contents
Appendix: Calculating Employee Turnover

and Absenteeism 80
A.1 Employee Turnover Rates 80
A.1a Computing the Turnover Rate 80
A.1b Determining the Costs of Turnover 81
A.2 Employee Absenteeism Rates 81
A.2a Computing Absenteeism Rates 81
Highlights in HRM 4: Costs Associated with the Turnover of One Computer Programmer 82
A.2b Comparing Absenteeism Data 82
A.2c Costs of Absenteeism 83
A.2d Absenteeism and HR Planning 83
Part 2 Meeting Human Resources Requirements

Chapter 3 E
qual Employment Opportunity
and Human Resources Management 84
3.1 Historical Perspective of EEO Legislation 86
3.1a Changing National Values 86
3.1b Early Legal Developments 87
3.2 Government Regulation of Equal Employment Opportunity 88
Highlights in HRM 1: Test Your Knowledge of Equal Employment Opportunity Law 89
3.2a Major Federal Laws 89
3.2b Other Federal Laws and Executive Orders 97
3.2c Fair Employment Practice Laws 98
3.3 Other Equal Employment Opportunity Issues 98
3.3a Sexual Harassment 98
Highlights in HRM 2: Questions Used to Audit Sexual Harassment
in the Workplace 100
3.3b Sexual Orientation 100
3.3c Immigration Reform and Control 102
3.3d Emerging Employment Discrimination Issues 102
3.4 U niform Guidelines on Employee Selection Procedures 104
3.5 Enforcing Equal Employment Opportunity Legislation 106
3.5a Record-Keeping and Posting Requirements 106
3.5b Processing Discrimination Charges 106
Highlights in HRM 3: EEOC Poster Supplement for 2016 107
3.5c Preventing Discrimination Charges 109
3.6 Affirmative Action and Diversity Management 109
3.6a Court Decisions 110
Highlights in HRM 4: Basic Steps in Developing an Effective
Affirmative Action Program 111
3.6b Beyond Affirmative Action: Leveraging Diversity 112

Contents vii
Highlights in HRM 5: Embracing Diversity and Leveraging

Employee Differences 113
Summary 113
Key Terms 114
Case Study 1: Going to the Dogs 115
HRM Experience: Sexual Harassment: A Frank Discussion 116
Case Study 2: Misplaced Affections: Discharge for
Sexual Harassment 116
Appendix: Determining Adverse Impact 120

A.1 The Four-Fifths Rule 120
Chapter 4 Job Analysis and Job Design 121

4.1 What Is a Job Analysis and How Does It Affect
Human Resources Management? 123
4.1a Major Parts of the Job Analysis 125
4.2 Sources of Job Analysis Information 126
4.2a Controlling the Accuracy of the Job Data Collected 126
4.2b Other Sources of Job Analysis Information 126
Highlights in HRM 1: Job Analysis Interview Questions 127
4.2c Parts of a Job Description 130
Highlights in HRM 2: An Example of a Job Description 132
4.2d Writing Clear and Specific Job Descriptions 133
4.3 Job Design 133
4.3a Ergonomics 134
4.3b Enrichment 135
Highlights in HRM 3: Empowered Employees
Achieve Results 138
4.4 Employee Teams and Flexible Work Schedules 139
4.4a Employee Teams 139
4.4b Flexible Work Schedules 143
Summary 146
Key Terms 146
HRM Experience: Establishing Ground Rules
for a Team’s Success 147
Case Study 1: The Zappos Experiment 148
Case Study 2: Are Firms Moving Away from Telecommuting? 149

viii Contents
Part 3 Developing Effectiveness in Human Resources

Chapter 5 Expanding the Talent Pool: Recruitment and Careers 152
5.1 Business Strategies and Their Link to Strategic Recruiting 153
5.1a Elements of a Recruiting Strategy 153
Highlights in HRM 1: Marriott’s Recruitment Principles: Living Up to the Employment
Brand 156
5.2 External and Internal Recruiting Methods 159
5.2a External Recruiting Methods 159
Highlights in HRM 2: Making Employee Referral Programs Work 164
Highlights in HRM 3: Making Your Internship Program a Success 166
5.2b Internal Recruiting Methods 168
Highlights in HRM 4: Is a Worker an Independent Contractor—or Not? 169
5.3 Improving the Effectiveness of Recruiting 171
5.3a Using Realistic Job Previews 171
5.3b Surveys and Employee Profiles 172
5.3c Recruiting Metrics 172
5.3d Retention: How Do We Keep Our Talent? 175
5.4 Career Management: Developing Talent over Time 176
5.4a The Goal: Matching the Needs of the Organization to the Needs of Employees 176
5.4b Identifying Career Opportunities and Requirements 178
Highlights in HRM Box 5: Career Path of Jeff Bezos, Founder of Amazon.com 180
5.4c Career Development Initiatives 183
Highlights in HRM 6: Myths about Mentors 184
Highlights in HRM 7: Establishing a Relationship with a Mentor 185
5.5 Developing a Diverse Talent Pool 186
5.5a Women 187
5.5b Minorities 189
5.5c People Who Are Disabled 189
Highlights in HRM 8: Tips for Enhancing a Firm’s Diversity 190
5.5d Veterans 191
5.5e Older Employees 191
Summary 192
Key Terms 193
HRM Experience: Career Management 194
Case Study 1: A Lifecycle Approach to Talent 194
Case Study 2: Homegrown Talent: Mary Barra Rises to GM’s Top Post 195
Appendix: Personal Career Development 199

A.1 Developing Personal Skills and Competencies 199
A.2 Choosing a Career 199

Contents ix
A.3 Self-Evaluation 199

Highlights in HRM 9: “Must Have” Career Competencies 200
A.3a Interest Inventories 200
A.3b Informational Interviews, Job Shadowing, and Internships 201
A.4 Choosing an Employer 202
A.5 Consider the Boundaryless Career 202
A.6 Keeping Your Career in Perspective 202
Highlights in HRM 10: Questions to Ask Yourself Before
You Accept a Job 203
A.6a Developing Off-the-Job Interests 203
A.6b Balancing Marital and/or Family Life 203
A.6c Planning for Retirement 204
Key Terms 204
Chapter 6: Employee Selection 205

6.1 Overview of the Selection Process 206
6.1a Begin with a Job Analysis 207
6.1b Steps in the Selection Process 207
6.1c Obtaining Reliable and Valid Information 207
6.2 Initial Screening 208
6.2a Initial Screening Methods 208
Highlights in HRM 1: What to Include—and Not to Include—on a Job Application
Form 212
6.3 Employment Interviews 212
6.3a Types of Interviews 213
6.3b Methods for Administering Interviews 214
Highlights in HRM 2: Sample Situational Interview Question 215
Highlights in HRM 3: Hiring Managers Reveal Mistakes Candidates Make during Job
Interviews 216
6.3c Diversity Management: Could Your Questions Get You into
Legal Trouble? 217
6.4 Post-Interview Screening 217
6.4a Reference Checks 217
Highlights in HRM 4: Appropriate and Inappropriate Interview Questions 218
6.4b Background Checks 218
Highlights in HRM 5: Sample Reference-Checking Questions 219
6.5 Preemployment Tests 220
6.5a Types of Tests 221
6.5b Determining the Validity of Tests 227
6.6 Reaching a Selection Decision 229
6.6a Summarizing Information about Applicants 229
6.6b Decision-Making Strategy 231
6.6c Final Decision 233

x Contents
Summary 234
Key Terms 235
HRM Experience: Designing Selection Criteria and Methods 236
Case Study 1: Job Candidate Assessment Tests Go Virtual 236
Case Study 2: Pros and Cons of Cleaning Up the “Resu-mess” 237
Chapter 7 Training and Development 241

7.1 The Scope of Training 242
7.1a A Strategic Approach to Training 243
7.2 Phase 1: Conducting the Needs Assessment 244
7.2a Organization Analysis 245
7.2b Task Analysis 246
7.2c Person Analysis 247
7.3 Phase 2: Designing the Training Program 247
7.3a Developing Instructional Objectives 247
Highlights in HRM 1: A Competency Assessment for a Managerial Position 248
7.3b Assessing the Readiness and Motivation of Trainees 248
7.3c Incorporating the Principles of Learning 249
7.3d Characteristics of Instructors 252
7.4 P hase 3: Implementing the Training Program—Training Delivery Methods 253
7.5 Additional Training and Development Programs 262
7.5a Orientation and Onboarding 262
Highlights in HRM 2: Checklist for Orienting New Employees 263
7.5b Basic Skills Training 264
7.5c Team Training 264
7.5d Cross-Training 266
7.5e Ethics Training 267
7.5f Diversity and Inclusion Training 267
7.6 Phase 4: Evaluating the Training Program 268
7.6a Criterion 1: Reactions 269
7.6b Criterion 2: Learning 269
7.6c Criterion 3: Behavior 269
7.6d Criterion 4: Results, or Return on Investment (ROI) 270
Highlights in HRM 3: Benchmarking HR Training 271
Summary 271
Key Terms 272
HRM Experience: Training and Learning Principles 273
Case Study 1: Whirlpool Mixes Up Its Managerial Training: Closed-Looped Method Brings
Learning Full Circle 273

Contents xi
Case Study 2: Loews Hotels: Training for Four-Diamond Service and More 274
Chapter 8 Performance Management 279

8.1 Performance Management Systems 280
8.1a The Purposes of Performance Management 280
8.1b Why Performance Management Systems Sometimes Fail 282
8.2 Developing an Effective Performance Management System 284
8.2a What Are the Performance Standards? 284
8.2b Do Your Performance Reviews Comply with the Law? 287
8.2c Sources of Performance Review Information 288
8.2d Putting It All Together: 360-Degree Evaluations 290
8.2e Training Appraisers 291
8.3 Performance Review Methods 295
Highlights in HRM 1: Supervisor’s Checklist for a Formal Performance Review Meeting 296
8.3a Trait Methods 296
Highlights in HRM 2: A Graphic Rating Scale with Comments 297
Highlights in HRM 3: Example of a Mixed-Standard Scale 298
8.3b Behavioral Methods 298
8.3c Results Methods 299
Highlights in HRM 4: BARS and BOS Examples 300
Highlights in HRM 5: A Balanced Scorecard that Translates to a Personal Scorecard 302
8.3d Which Performance Review Method Should You Use? 302
8.4 Performance Review Meetings and Feedback Sessions 303
8.4a Types of Performance Review Meetings and Feedback Sessions 304
8.4b Conducting the Performance Review Meeting
or Feedback Session 304
8.4c Improving Performance 307
Summary 309
Key Terms 310
HRM Experience: Performance Diagnosis 311
Case Study 1: Adobe Ditches Formal Performance Reviews—And Wants to Help Other
Companies Do So Too 311
Case Study 2: “Project Oxygen” Resuscitates Google’s Poor-Performing Bosses 313
Part 4 Implementing Compensation and Security

Chapter 9 Managing Compensation 318
9.1 What Is Compensation? 319
9.2 Strategic Compensation 320

xii Contents
9.2a Linking Compensation to Organizational Objectives 321

9.2b The Pay-for-Performance Standard 323
9.2c The Bases for Compensation 326
9.3 Compensation Design—The Pay Mix 326
9.3a Internal Factors 327
Highlights in HRM 1: Comparison of Compensation Strategies 330
9.3b External Factors 330
9.4 Job Evaluation Systems 333
9.4a Job Ranking System 333
9.4b Job Classification System 333
9.4c Point System 334
9.4d Work Valuation 335
9.4e Job Evaluation for Management Positions 335
9.5 Compensation Implementation—Pay Tools 336
9.5a Wage and Salary Surveys 336
Highlights in HRM 2: Bureau of Labor Statistics National Compensation Survey 337
9.5b The Wage Curve 340
9.5c Pay Grades 340
9.5d Rate Ranges 341
9.5e Competence-Based Pay 343
9.6 Government Regulation of Compensation 344
Highlights in HRM 3: Minimum Wage Laws in the States 345
Highlights in HRM 4: Worldwide Minimum Wages 346
Highlights in HRM 5: The Federal Wage Poster 347
9.7 Compensation Assessment 348
Summary 350
Key Terms 350
HRM Experience: Why This Salary? 351
Case Study 1: Pay Decisions at Performance Sports 352
Case Study 2: An In-N-Out Pay Strategy: Costa Vida’s Decision to Boost Pay 352
Chapter 10 Pay-for-Performance: Incentive Rewards 356

10.1 Strategic Reasons for Incentive Plans 357
10.1a Incentive Plans as Links to Organizational Objectives 358
10.1b Requirements for a Successful Incentive Plan 359
10.2 Setting Performance Measures 360
Highlights in HRM 1: Setting Performance Measures—The Keys 361
10.3 Administering Incentive Plans 361
10.4 Individual Incentive Plans 362
10.4a Piecework 362

Contents xiii
10.4b Standard Hour Plan 363

10.4c Bonuses 363
10.4d Merit Pay 364
10.4e Incentive Awards and Recognition 365
Highlights in HRM 2: Lessons Learned: Designing Effective Team Incentives 367
10.4f Sales Incentives 368
10.5 Group Incentive Plans 369
10.5a Team Compensation 370
10.5b Gainsharing Incentive Plans 370
10.6 Enterprise Incentive Plans 372
10.6a Profit Sharing Plans 372
10.6b Stock Options 373
10.6c Employee Stock Ownership Plans 373
Highlights in HRM 3: How Stock Option Plans Work 374
10.7 Incentives for Professional Employees 375
10.8 Incentives for Executives 376
10.8a The Executive Pay Package 376
10.8b Executive Compensation: Ethics and Accountability 378
10.8c Executive Compensation Reform 379
Summary 379
Key Terms 380
HRM Experience: Awarding Salary Increases 381
Case Study 1: United States Auto Industry Back on Top … of CEO Pay 381
Case Study 2: Team-Based Incentives: Not Your Usual Office 382
Chapter 11 Employee Benefits 385

11.1 Elements of a Successful Benefits Program 386
11.1a Selecting Benefits 387
11.1b Administering Benefits 388
11.1c Communicating Employee Benefits 388
11.2 Employee Benefits Required by Law 394
11.2a Social Security Insurance 394
Highlights in HRM 1: A Personalized Statement of Benefits Costs 395
Highlights in HRM 2: Who Is Eligible to Collect Disability Payments under the
Social Security Act? 397
11.2b Unemployment Insurance 397
11.2c Workers’ Compensation Insurance 398
11.2d COBRA Insurance 398
11.2e Benefits Provided by the Patient Protection
and Affordable Care Act 399

xiv Contents
11.2f Benefits Provided under the Family

and Medical Leave Act 399
Highlights in HRM 3: Your Rights under the Family and Medical Leave Act 401
11.3 Work-Life Discretionary Benefits 402
11.3a Child and Elder Care 402
11.3b Payment for Time Not Worked 403
11.3c Life Insurance 405
11.3d Long-Term Care Insurance 406
11.3e Other Benefits and Services 406
11.3f Pension Plans 407
11.3g Domestic Partner Benefits 410
Summary 410
Key Terms 411
HRM Experience: Understanding Employer Benefit Programs 412
Case Study 1: Adobe’s Family-Friendly Benefits: An Unexpected Backlash 412
Case Study 2: Evaluate the Work-Life Climate in Your Company 413
Chapter 12 Promoting Safety and Health 416

12.1 Safety and Health: It’s the Law 417
12.1a OSHA’s Coverage 417
12.1b OSHA Standards 417
12.1c Enforcing OSHA Standards 420
12.1d OSHA Consultation Assistance 422
12.1e Responsibilities and Rights under OSHA 422
Highlights in HRM 1: What Are My Responsibilities under the OSH Act? 424
12.2 Promoting a Safe Work Environment 425
12.2a Creating a Culture of Safety 425
12.2b Enforcing Safety Rules 426
12.2c Investigating and Recording Accidents 426
Highlights in HRM 2: Test Your Safety Smarts 427
12.2d Safety Hazards and Issues 427
Highlights in HRM 3: Emergency Readiness Checklist 432
12.3 Creating a Healthy Work Environment 433
12.3a Ergonomics 433
12.3b Health Hazards and Issues 433
Highlights in HRM 4: Job Safety and Health Protection Poster 434
12.3c Building Better Physical and Emotional
Health among Employees 438
Summary 442
Key Terms 443

Contents xv

Case Study 1: Rambo Goes Violent 444
Case Study 2: Too Much Fatigue and Stress? You Decide 444
Part 5 Enhancing Employee-Management Relations

Chapter 13 Employees Rights and Discipline 448
13.1 Employee Rights and Privacy 449
13.1a Employee Rights versus Employer Responsibilities 449
13.1b Negligent Hiring 450
13.1c Job Protection Rights 450
Highlights in HRM 1: Examples of Employment-at-Will Statements 456
13.1d Privacy Rights 457
13.1e Digital Surveillance 459
13.2 Disciplinary Policies and Procedures 466
13.2a The Result of Inaction 466
13.2b Setting Organizational Rules 467
13.2c Investigating a Disciplinary Problem 467
13.2d Approaches to Disciplinary Action 469
13.2e Discharging Employees 470
13.2f Alternative Dispute Resolution Procedures 472
13.3 Managerial Ethics in Employee Relations 475
Summary 475
Key Terms 476
Case Study 1: Discharged for Off-Duty Behavior 476
Case Study 2: You Can’t Fire Me! Check Your Policy 477
Chapter 14 The Dynamics of Labor Relations 481

14.1 The Labor Relations Process 482
14.1a Why Employees Unionize 484
14.1b Challenges of Unions to Management 486
14.1c Union Avoidance Practices 486
14.1d Organizing Campaigns 487
Highlights in HRM 1: Test Your Labor Relations Know-How 490
Highlights in HRM 2: What Happened to the American Labor Union? 491
14.1e Employer Tactics Opposing Unionization 492
Highlights in HRM 3: United Food and Commercial Workers International Union
Authorization Card 493

xvi Contents
14.1f How Employees Become Unionized 493

14.1g NLRB Representation Election 493
Highlights in HRM 4: Employer “Don’ts” during Union
Organizing Campaigns 494
Highlights in HRM 5: NLRB Election Poster 496
14.2 The Bargaining Process 497
14.2a Preparing for Negotiations 497
14.2b Gathering Bargaining Data 498
14.2c Developing Bargaining Strategies and Tactics 498
14.2d Negotiating the Labor Agreement 499
14.2e Good-Faith Bargaining 499
14.2f Interest-Based Bargaining 499
14.2g Management and Union Power in Collective Bargaining 500
14.2h Resolving Bargaining Deadlocks 502
14.3 The Labor Agreement 502
14.3a The Issue of Management Rights 502
Highlights in HRM 6: Items in a Labor Agreement 503
14.3b Union Security Agreements 504
14.4 Administration of the Labor Agreement 504
14.4a Negotiated Grievance Procedures 504
14.4b Grievance Arbitration 504
14.5 Contemporary Challenges to Labor Organizations 506
14.5a Decrease in Union Membership 506
14.5b Globalization and Technological Change 507
Summary 508
Key Terms 509
HRM Experience: Learn about Unions 510
Case Study 1: The New Union Battles: Public Unions vs.
Rich World Governments 510
Case Study 2: The Arbitration Case of Jesse Stansky 511
Part 6 Expanding Human Resources Management Horizons

Chapter 15 International Human Resources Management 515
15.1 Analyzing Your International Environment 516
15.1a Political Factors 517
15.1b Economic Factors 517
15.1c Sociocultural Factors 518
15.1d Technological Factors 519
15.1e Analyzing Your International Operations 520

Contents xvii
15.2 Managing Your International Operations 522

15.2a Recruiting Internationally 524
15.2b Selecting Employees Internationally 527
Highlights in HRM 1: Skills of Expatriate Managers 529
15.2c Training and Development 530
15.2d Content of Training Programs 531
Highlights in HRM 2: Nonverbal Communications in Different Cultures 533
Highlights in HRM 3: Repatriation Checklist 537
15.3 Compensation 538
15.3a Compensation of Host-Country Employees 538
15.3b Compensation of Host-Country Managers 540
15.3c Compensation of Expatriate Managers 541
15.3d Performance Appraisal 542
15.4 Analyzing the International Labor Environment 545
15.4a Collective Bargaining in Other Countries 546
15.4b International Labor Organizations 547
15.4c Labor Participation in Management 548
Summary 548
Key Terms 549
HRM Experience: An American (Expatriate) in Paris 550
Case Study 1: How about a 900 Percent Raise? 550
Case Study 2: A “Turnaround” Repatriate Plan: U.S. Company Moves Indian
Workers Back Home 551
Chapter 16 I mplementing HR Strategy: High-Performance Work

Systems 556
16.1 Fundamental Principles 558
16.1a Egalitarianism and Engagement 559
16.1b Shared Information and Trust 560
16.1c Knowledge Development 561
16.1d Performance-Reward Linkage 561
16.2 Designing High-Performance Work Systems 562
16.2a Work-Flow Design and Teamwork 562
16.2b Complementary Human Resources Policies and Practices 563
16.2c Supportive Information Technologies 566
16.3 Strategic Alignment 567
16.3a Ensuring Horizontal Fit 567
16.3b Establishing Vertical Fit 568
16.3c Assessing Strategic Alignment: The HR Scorecard 568
16.4 Implementing the System 568

xviii Contents
Highlights in HRM 1A: Diagnosing Horizontal Fit 569

16.4a Building a Business Case for Change and Engaging Stakeholders 569
Highlights in HRM 1B: Testing the Alignment of the HR System with HR Deliverables 570
Highlights in HRM 1C: Testing the Alignment of HR Deliverables 570
16.4b Establishing a Communications Plan 572
16.4c Evaluating and Sustaining the Success of the System 573
16.5 Outcomes of High-Performance Work Systems 575
16.5a Employee Outcomes and Quality of Work Life 575
16.5b Organizational Outcomes and Competitive Advantage 575
Summary 577
Key Terms 577
HRM Experience: Assessing the Strategic Fit of High-Performance Work Systems 578
Case Study 1: How Implementing an HPWS Fortified the Snack-Food Maker Snyder’s-Lance 579
Case Study 2: Whole Foods Market Faces Whole New Challenge 580
Integrative Cases 585

Glossary 611
Name Index 622
Organization Index 624
Subject Index 627

Preface
The 18th edition of Managing Human Resources will place your students at the fore-
front of understanding how organizations can gain a sustainable competitive advantage
through people. Today’s HR managers play an active role in the strategic planning and
decision making within their organizations. Those managers who are good at it have a
major impact on the success of their firms and elevate human resources in terms of its
importance in the C-suites of their organizations. But human resources management
is not limited to the HR staff. The best organizations recognize that managing people
is the job of every manager, working in partnership with HR.
Each edition of the book highlights the changes human resources management
is undergoing but reveals that the goal of utilizing an organization’s talent in the best
way possible never changes. Consequently, the purpose of this book is always twofold:
(1) to equip students with the tools and practices of HR management and give them
an appreciation for the changes they can make by understanding how best to manage
people, and (2) to present the most current challenges and opportunities graduating
students will face when it comes to today’s human resources management environment.
These challenges exist both for those who will become HR managers and those who
will go on to become other types of managers.
Toward that end, the first chapter of the book lays out in broad terms the key
challenges in HRM today. It includes a discussion of the HR strategies pursued by
firms and the importance of retaining and motivating employees in the process. Other
aspects broached include the strategies companies are using to continue to try to control
health care costs; how social media is affecting hiring, human resources management,
and employees’ privacy rights; and how good human resources practices can help a
firm achieve its corporate social responsibility and sustainability goals and make it an
employer of choice. The chapter also discusses the important partnership with line
managers and the competencies required of HR management. The textbook contin-
ues with the introduction, explanation, and discussion of the individual practices and
policies that make up HRM. We recognize the manager’s changing role and emphasize
current issues and real-world problems and the policies and practices of HRM used to
meet them.
Strategy and talent have become such central concerns of HR today that we con-
tinue to emphasize the topic in this edition of the book in Chapter 2. Chapter 5 focuses
on expanding and managing the talent pool in organizations. Employee diversity and
inclusion, and how firms can leverage all types of differences among their workers to
their strategic advantage, are examined.
Organizations in today’s competitive world are discovering that it is how the
individual HR topics are combined that makes all the difference. Managers typically
xix

xx Preface
don’t focus on HR issues such as staffing, training, and compensation in isolation

from one another. Each of these HR practices should be combined into an overall
system—one that furthers a firm’s strategy by enhancing employee involvement and
productivity. Managing Human Resources ends with a final chapter that focuses on
how high-performance work systems (HPWSs) are used to implement these strate-
gies. We outline the strategic processes used to implement HPWSs, including work-
flow design, HR practices, management processes, and supporting technologies as
well as the outcomes of an HPWS that benefit both the employee and the organiza-
tion as a whole.
Streamlined Coverage
Today’s students are extremely busy. They want to know what they need to learn and
be able to learn it as quickly as possible. Instructors also want to be able to cover all
of the material they want to teach during a semester. To help both groups, we made
a special effort to streamline our coverage in this edition. We did so without sacrific-
ing key material but by shortening the copy to make it readable and deleting extra-
neous information reviewers have indicated may be “TMI” (too much information)
for their students. Students and instructors will find that the copy is briefer, clearer,
and more engaging.
New Cutting-Edge Content

As with other editions, a great deal of new information is provided in this revision to
accurately reflect HRM in today’s business world and help the reader understand today’s
HRM issues more effectively. Examples include the concerns of Millennial and Generation
Z employees, and how Big Data, HR analytics, mobile technology, and social media are
profoundly affecting the field, and the effects artificial intelligence and automation are
having. Ever-changing international HR concerns are covered, including the work-visa
challenges facing U.S. firms, immigration, human rights issues, global rights issues such as
data protection, and intellectual property rights. The International Labor Organization’s
“Agenda 2030 for Sustainable Development,” which places decent work for all at the heart
of the ILO’s current initiatives, resulted in numerous updates. Of course, the 18th edition
also includes a complete update of all laws, administrative rulings and guidelines, and
court decisions governing HRM. We also show a recent shift in the interest of Millennials
who are seeing collective action through unions as much more aligned with their interests
than previous generations.
Lastly, in addition to the changes we have already mentioned, to help instructors
incorporate the new material discussed into their courses, the following is a list of
chapter-by-chapter additions:
Chapter 1
•• Updated discussion on international trade, Brexit, and the H-1B visa debate.
•• The loss of middle-class jobs in the United States and new technology affecting
HR, such as robotics and automation.
•• New coverage on the employee experience.
•• New coverage on Generation Z.
•• Updated information on workforce demographic trends and the progress of
women and minorities in the workplace.

Another random document with
no related content on Scribd:
A SHIP ON THE WAYS
While a ship may look large on the water, she
looks gigantic when on land. The great hulls and the
collection of scaffolds and machinery in a shipyard
are always a source of surprise to the visitor who is
unfamiliar with the construction of ships.
The Norsemen went through a similar development. The seas

their ships were called upon to sail were almost always boisterous.
The principal use to which their ships were put was war. They had,
then, need to be both seaworthy and fast. The early crude attempts
of the Norsemen, therefore, grew slowly into those beautiful ships for
which they are famous. To-day the seaworthy whaleboat is very
similar to the finest examples of the old Norse “serpents.” These old
ships were long, narrow, pointed at bow and stern, and had both
ends raised, while amidships they were low. The sheer, that is, the
line from the high bow to the low section amidships, and from there
up again to the stern, was a beautiful sweeping curve. Such ships
readily rode rough seas, while their low “freeboard” amidships
permitted the oars to be used to good advantage, and their narrow
hulls presented a minimum of resistance to the water. This
refinement, however, can hardly be said to have resulted from
thought so much as from experience. By that I mean that these ships
at the highest stage of their development were not consciously
designed, but were outgrowths from experience, and that the
shipwrights, only after many generations, had learned that such a
design combined the advantages they particularly desired.
It was with the Crusades, as I have said before, that ships began
to improve more rapidly. This was due to the broadening spheres of
travel of western European sailors. They visited the Mediterranean
and Asia Minor, and found in that part of the world ships that were
strange to them. But in these strange ships they found
characteristics that they deemed desirable, and, combining these
desirable points with those of their own ships that were equally
desirable, they produced improved types. Thus they profited by the
experiences of others who, in their own little spheres of activity, had
gradually developed ships that answered, at least to a considerable
extent, the requirements of their own localities.
It hardly needs to be pointed out that the British, who sailed the
rough waters of the North and Irish seas and the English Channel,
developed ships far different from those developed by the peoples of
Mediterranean countries, where the distances sailed were shorter
and the weather conditions were so radically different.
After the Crusades had introduced the peoples of western Europe
to those of the Mediterranean, trade between the two increased,
and, so far as ships were concerned, each learned from the other.
Thus it was that by the time Columbus sailed on his famous voyage,
the sea-going ships of all the European countries had grown
somewhat similar in design and appearance.
A FLOATING DRY DOCK
And a ship undergoing repairs.
A few glimmerings of the complicated subject of naval architecture

became evident in the years that included and followed “the age of
discovery,” and ships, or at least some ships, were “designed” by
men who made a study of them. The designs, however, were largely
little more than the transfer of rule-of-thumb methods to paper, and a
real understanding of the subject was still far distant. Phineas Pett,
during the 17th Century, designed many ships for the British Navy,
and from these designs the ponderous ships of later days
developed. In France, however, naval architecture seems to have
been a better-understood art than in England, for many times British
designers improved their ships after studying captured French ships.
The designers in England for many years were guilty of one error
in particular which, while later corrected, proved to be the cause of
the loss of several of their very greatest ships. This fault was the
placing of the lowest tier of gunports so close to the water that when
the ships were under a press of sail the ports on one side or the
other, and they were not watertight even when closed, were under
water. During the reign of Henry VIII, a British ship named the Marie
Rose heeled over when getting under way, and the ports, which
were open and were only sixteen inches above the water when she
was on an even keel, permitted the water to enter in such quantities
that she sank. Years later Sir Walter Raleigh wrote that this defect
was being corrected, yet later still the Royal George was lost
because of the same fault.
It is interesting to quote a few lines of Raleigh’s writings on ship
design. Commenting on improvements in lines he said that ships
with these improvements “never fall into the sea after the head and
shake the whole body, nor sinck a sterne, nor stoope upon a wind.”
He also suggested that the lowest tier of gunports should not be less
than four feet above the water. Furthermore, he objected to the high
sterncastles which made the ships of the time both unseaworthy and
ridiculous.
Modern scientific naval architecture can properly be said to date
from the latter part of the 17th Century, for it was then that the first
studies were made of the passage through the water of various
shaped hulls. Before this, ships were built and if they were
successful were copied; if unsuccessful they had less influence on
later design. Now began a study that has been carried down to to-
day, and scientific deductions began to be made, and upon these
investigations and the results of them an important part of naval
architecture has been founded.
Still, however, this new science was crude. One reason for this
was that ships depended upon the wind for power, and it was a slow
task to compile comparative data. That this was not impossible,
though, is proved by the brilliant American designers of the first half
of the 19th Century, who suddenly evolved the clipper ships that so
far surpassed all previous sailing ships that comparison became
mere contrast.
But it was steam that made it possible for naval architects to
develop their profession to so high a point as it has reached. It was
during the 19th Century, then, that naval architecture made its
greatest progress. Since the 19th Century great improvements have
been made, it is true, and many facts have been discovered, and
naval architecture still is progressing, but the 19th Century made a
profession of it, and the 20th Century is only continuing its
development.
The profession of the naval architect is one that is not widely
recognized or understood. When Cass Gilbert designs a Woolworth
Building we recognize him as a great architect, and realize, to some
extent, the great task he has so successfully completed. When the
building is built we view it with interest, perhaps with awe, and
comment on the brilliance of the architect and the ability of the
constructor. And they deserve all the credit they get—and more.
But how often have you ever heard mention made of the architects
from whose brains were evolved the Mauretania and the Leviathan,
the Belgenland and the Majestic? True, it is commonplace to marvel
at their size. But who thinks of the titanic task that faced their
designers?
And now imagine a Woolworth Building being built on a sloping
runway, and, when completed, slid bodily into the water, across
thousands of miles of which mighty engines placed inside could drive
her at express-train speed. Imagine such a structure, with all the
magnificence of appointments that are to be found in the Woolworth
Building, forcing its way through winter storms with waves pounding
madly at its sides—waves which, striking the ironbound coasts of
Maine or Wales, sometimes tear away tons of the living rock and hurl
it about in a smother of foam. And then compare such a structure
with the greatest ships of to-day. There are several far longer than
the Woolworth Building is tall, but these vast steel hulls do not rest
on foundations of steel and concrete—immovable. They float in the
water, and may pitch and roll in the giant swells of the deep sea, but
still their huge steel frames easily bear the strain, and while a tremor
of the earth might dash skyscrapers disastrously about our ears, the
almost constant motion of the sea, whether violent or weak, affects
them little. For such work as this the architects of ships deserve all
praise.
In such huge and complicated structures as ships have grown to
be, repairs, naturally, are frequent and vital. The ordinary wear to
which the machinery is subjected necessitates constant adjustments
and replacements. Improved mechanical apparatus sometimes is
installed to take the place of less reliable or less economical
apparatus. The action of sea water on the exposed metal and the
collection below the water line of barnacles and other marine
growths require periodic attention, while paint seems for ever
necessary and, at least on warships, wet paint is omnipresent.
Before the introduction of iron and steel, ships were comparatively
small, and consequently it was a simpler job to haul them out of
water or ground them at high tide in order that, when the tide had
gone out, their underbodies could be examined and repaired.
Sometimes, again, tackle made fast to their masts and led to
anchors dropped well away from their sides or to points ashore
made it possible for ships to be hauled over to one side or the other,
bringing a large part of their underbodies above water, where their
crews could make the necessary repairs, or scrape off most of the
accumulation of marine growth.
THE OLYMPIC
A sister ship of the ill-fated Titanic, and operated by the
White Star Line.
Nowadays, however, when the very smallest of our ocean-going

steamers is many times the size of Columbus’s largest ship, such
methods avail little. Sometimes, still, in harbours where there is a
large rise and fall of tide the smaller ships avail themselves of it for
minor repairs, but for most modern ships such methods are
impossible and dangerous.
Yet even the greatest ships must from time to time be taken out of
the water for repairs and for the inspection of the hulls, and for this
purpose dry docks, or, as they are sometimes called, graving docks,
came to be designed.
Dry docks are long narrow basins, the dimensions of which are
slightly larger than the largest ships they can accommodate.
Nowadays they are usually built of reenforced concrete, although
brick and stone are sometimes used, and formerly timber dry docks
were not uncommon in the United States. The entrances to these
basins are equipped with hinged gates, or a floating or sliding
caisson. Dry docks in the United States ordinarily use the floating
caisson. European dry docks commonly use the other two. These
seal the mouths of the dry docks, preventing the entrance of water
from the outside as powerful engines pump the water from the dock
itself.
The sides of dry docks are usually built in steps, so that at the top
they are wider than at the bottom. The bottom is very nearly level,
but there are careful arrangements made for draining all the water
into pits from which it is pumped out.
Extending almost the length of the centre of a modern dry dock is
a row of large wooden blocks, called keel blocks. These can be
moved and are made fast when they are put in place. Often this row
of blocks is paralleled on each side by a row of somewhat similar
blocks called bilge blocks which run along tracks laid at right angles
to the line of keel blocks. The bilge blocks can be moved individually
along these tracks by means of ropes and pulleys. These ropes are
extended up the sides of the dock so that, even when the dock is
filled with water, each individual bilge block, and there are scores of
them in each row, can be moved back and forth by men beside the
dock.
When it is necessary for a ship to be docked her docking plans are
given to the man in charge of the dock. He then arranges the keel
blocks so that the line along their tops is the same as the line along
the keel of the ship. Certain marks are then made at the top of the
dock’s side walls to show just how far the ship is to be hauled into
the dock. When these arrangements are completed the dock is
flooded, the gates are opened, or the caisson is floated out and the
ship is very carefully and very slowly hauled into the dock. She never
goes in under power, for the clearance between her sides and the
sides of the dock is often very small, and the greatest of care must
be taken to keep her from coming in contact with the masonry.
When she has been hauled up to the point marked on the dock
side she is carefully made fast with cables, and the entrance to the
dock is closed. The ship must be riding on an even keel, for if she is
listing—that is, leaning to one side or the other—she may damage
herself when the water is pumped out and she comes to rest on the
keel blocks.
As the water level is reduced her keel slowly settles on the keel
blocks which support the whole weight of the ship, but in order to
prevent the ship from toppling over sideways the bilge blocks are
pulled carefully under her. As they are slightly higher than the keel
blocks they touch her bottom at some distance from the keel, and as
there is a row of them on each side they keep her securely upright.
Care must be taken that none of these bilge blocks come in contact
with the ship where any of her numerous underwater valves project,
for if that happened the valves would be damaged. The docking plan
referred to, however, shows where such protuberances are and such
accidents need not occur.
In dry docks where bilge blocks are not used, the ship is supported
instead by “shores.” A “shore” is a long timber which is placed with
one end against the ship and the other against the side of the dock.
In order to make them fit snugly great numbers of varying lengths
are kept on hand and are chosen so that they come within a few
inches of filling the space between the ship’s sides and the dock
wall. Then large wooden wedges are driven in between the dock wall
and the end of each shore. Dozens of these are placed about a ship
and serve the same purpose as is served by the bilge blocks.
A ship I was on some years ago was rammed by a coal barge
while at anchor in the harbour of Brest, France, and was forced to go
into dry dock for repairs. Being familiar with dry-dock procedure only
in the United States I was unprepared for what has always since
seemed to me to be a thoroughly picturesque method of placing the
shores.
Our ship was hauled into the dock, the gates were closed, and the
pumps began to lower the water. Finally she settled on to the keel
blocks and the shores were floated into place, each end being held
from above by a line. As the water sank lower the wedges were
inserted between the shores and the dock walls, and a man with a
large wooden mallet took his place at each wedge. Then the
foreman, standing at the head of the dock began a song which the
mallet bearers took up, singing beautifully in unison, their voices
booming upward from the dry dock, halfway down the sides of which
they stood. And as they sang they kept time with great strokes of
their mallets on the wooden wedges, the musical wooden sound
ringing in unison with their song as every man drove his crashing
blows with every other man.
I stood on the bridge of the ship listening to the lilting song, and
the great musical crashes that punctuated it, every man striking at
exactly the same instant that every other man struck. Never before
or since have I seen a more practical demonstration of the uses of
song or heard so beautiful a song of industry. It was an “Anvil
Chorus” with a different setting.
There is another type of dry dock that is widely used and is of
great importance where it is too expensive or difficult to build the
type to which I have just referred. This other type is the floating dry
dock. In principle it is a huge barge, rectangular in shape, and with
highly raised and very thick sides and open ends. Its bottom is built
up of many compartments and its “reserve buoyancy” must be at
least a little greater than the total weight of the largest ship it is
designed to accommodate. That is, it must be able to float while
carrying a load of 15,000 tons if it is meant to be used by ships up to
that displacement.
THE AQUITANIA
A British built ship operated by the Cunard Line.
These floating dry docks need only to be placed in a sheltered

spot where the water is deep enough for the dock to be sunk so that
the dock floor is a little farther beneath the surface than is the keel of
the ship that is to be docked. When everything is in readiness—that
is, when the keel blocks are properly placed and the incoming ship
has been otherwise prepared for—water is allowed to enter the inner
compartments of the dry dock. Gradually the whole thing sinks until
only the two high sides are visible above the water. When it has sunk
until there is enough water over the dock floor for the incoming ship
to float in, the valves are closed and the ship is hauled in and made
fast. Then giant pumps begin to expel the water that has been
allowed to enter the compartments. This causes the dry dock to
come once more to the surface, and as it rises beneath the ship the
keel blocks press up on the ship’s keel, shores or bilge blocks are
put in place, and when the ponderous float regains the surface there
is the ship, high and dry, where men can scrape and paint and repair
her or accomplish the other tasks assigned to them.
It is interesting to watch the labours of a crew of workmen in a dry
dock. If a ship looks large in the water, it looks startlingly gigantic in a
dry dock, especially if one walks down to the dock floor and views
the high bow or the overhanging stern from the level of the keel.
Propellers from a distance look small, but with half-a-dozen men
realigning their blades or working about them, they look huge
indeed.
THE PARIS
The greatest French Merchant ship, operated by the French Line.
A hundred men may be swinging on scaffolds which are hung over
the ship’s side by lines from the deck, and they remind one who is
watching from a distance of flies or ants on a wall. A regiment of
workmen may disappear beneath the huge bulge of the ship’s
underbody in order to scrape or paint or repair. Fathoms of cable
may follow an anchor from the hawse pipes to the dock floor as the
“ground tackle”—that is, the anchors and cables—is cleaned,
painted, and examined. Propellers or sections of propeller shafts
may be swung over the yawning dock and lowered into it by great
cranes, to take the places of others lost or damaged. Sections of the
ship bent or cut by collision may be replaced to the raucous tune of
nerve-shattering riveting hammers. Rivets loosened by the “working”
of the plates or by galvanic action may be renewed. Plates damaged
by any of a hundred causes may be replaced, and great piles of
barnacles scraped from the steel skin of a ship that has been
overlong between dockings may accumulate on the dock floor. Sea
valves are reground, the rudder is examined, propeller-shaft
supports are looked over, and, when the work on the ship’s great
underbody is completed, the workmen take their tools and depart,
great valves are opened in the dry dock walls, the water enters, and
once more the great ship floats. The dock gate or the caisson is
removed, and carefully the monster of the sea is backed from her
gigantic hospital, fit, so far as her underwater parts are concerned,
for another round of duty at sea.
But dry docks are not necessary for all the repairs a ship might
need to undergo. To replace or repair engines she may go alongside
a quay or a pier, and for any of a thousand jobs she need never stop
her regular voyages. But repairs or changes are always under way.
To the voyager on a handsome liner little of this is apparent, but it is
always known to the crew, and rare indeed is the time on a
steamship when repairs are neither under way nor contemplated.
This continuous round of repairs does not mean, though, that the
steamships of to-day are not properly designed and built. It only
means that a great ship is so vastly complicated that some part of it
is always just a bit below par. A small town needs repair men to keep
its electric-light system properly working. Its water system is similarly
under constant supervision. Its gas, its paving, and a dozen other
parts of its equipment are always being repaired, renewed, or
extended. The same is true on board ship, except that, at least on
the giant liners, the ship’s equipment is more complicated than the
town’s.
This wandering discussion presents a few of the difficulties that
face the designer, the builder, and the operator of ships. Such
difficulties are all but infinite in number, and constant vigilance is vital
to the efficient operation of the ships of to-day. But so reliable have
these great structures grown to be that one of the greatest—the
Mauretania—while launched in 1907, was able after fifteen years of
constant and efficient service consistently to defeat newer ships of
greater size and greater power in her constant voyages to and fro
across the Atlantic. Such results as this must be credited to the
designer, the builder, and the officers and crews of these
complicated structures of the sea.
CHAPTER XIII
SHIPPING LINES
T HE development of ships has been largely influenced by

competition. The ship that can make the quickest voyages can
demand the highest freight rates for most things. Furthermore, a fast
ship can make more voyages than a slow one, and the owner may
make a greater profit because of the greater amount of freight
handled. These factors, and others less evident, enter into the
operation of ships.
To-day great shipping lines control most of the earth’s merchant
ships. As we know these lines they are a growth of hardly more than
a hundred years, but thousands of years ago their counterparts
existed.
Phœnicia was the greatest trading nation of the ancient world.
Ships sent out by the traders of Phœnicia sailed to every corner of
the Mediterranean, and even went out into the Atlantic, where they
braved the rough waters of the Bay of Biscay and sailed up the
English Channel on their adventurous trading voyages. For every
ship that sailed to distant parts, however, many remained nearer
home, visiting ports but a little distance off, and returning with less
romantic but equally important cargoes.
Many merchants of Tyre, of Acre, and of Sidon were shipowners.
Some sent their ships to Egypt, some to Greece, some to Sicily and
Italy, some to the Bosphorus and the Black Sea. Some traded with
Cyprus and the Ægean Isles, some with Asia Minor. Some again
sent their ships to the Adriatic. It was only a few who risked their
ships and cargoes on those long voyages to the ends of the world,
out beyond the Pillars of Hercules, and north along the tide-washed
coasts of western Europe to where the days were far longer in the
summer than the nights, and where the winter nights left but little of
the day.
Naturally, the traders who were successful built other ships, and
sent them in the same trade that had made their fortunes, for that
was the trade they knew. If a ship-owner had had great success in
sending his ships to the Bosphorus, the natural thing for him to do
with any new ships he might build was to send them there. When he
died and his son came to rule over the destinies of his business,
what would be more natural than for him to continue to send his
ships to the same part of the world?
Naturally, the frequent wars of ancient times upset the plans of
merchants even as wars upset such plans to-day, but barring such
unfortunate events, trade went on in the more or less even tenor of
its ways, save for rather numerous difficulties caused by pirates and
by storm or shipwreck.
One can almost imagine Tyre and Sidon with their streets of
merchants’ houses, over the doors of which, if they were given to the
modern idea of signs, which is unlikely, hung shingles reading
“Ithobal and Son, Traders to the Bosphorus and the Euxine.”
“Assurbani-pal, Ship-owner and Trader to the Valley of the Nile.” But
whether or not their places of business were decorated with such
signs, their warehouses were full, and ever and anon their ships
departed and returned, laden with goods of value that they carried
across the seas.
Properly enough, then, some of these old traders may be
considered the operators of some of the very earliest shipping lines.
One can almost imagine some old and experienced trader talking
solemnly with the builder of his ships.
“Tuba’lu, my friend,” one can think of him as saying, “that last
galley thou builtest for me was all but lost while on her very first
voyage to the Bosphorus. Tiglath, her captain, tells me that just as
he passed the rocks that lie off the island of Chios, a summer storm,
not great, but rather sudden, smote him. His ship was so distressed
by it that he all but gave himself up for lost. He has told me that, had
his prayers to the gods to end the storm availed him not, most
certainly would he have been dashed to pieces, and all my cargo of
precious wares would have been lost. He tells me that the ship is not
fit for storms, and that had he not, by the goodness of the gods,
been favoured by good weather for all the rest of his voyage, he
could never have returned with his cargo, which has made for me so
good a return upon my moneys. What thinkest thou of the ship?”
“My good friend Ithobal,” the builder of ships might be supposed to
have replied, “methinks the ship was just a bit too deeply laden when
she left Tyre. So deeply did she lie upon the waters that I warned
Tiglath against the very danger that he later came upon. Yet did he
heed me not, saying that to make moneys for his master he had
need to carry many goods.”
“And so he has, Tuba’lu, my friend,” Ithobal might have replied.
“My ships must carry many goods to make profits for me on such
long and dangerous voyages.”
“Then, Ithobal, my friend,” the ship-builder possibly replied, “but let
me raise her sides by a cubit and mount upon her stern a larger
steering oar. Methinks her safety will be then assured.”
So it might be supposed that ships were improved in those far-
distant days.
Traders similar to those of Phœnicia were common in Greece, in
Carthage, in Rome, in Venice, and Genoa, and in other ports for
thousands of years. Until the introduction of machinery and the use
of steam power for manufacturing goods the cargoes of ships were
limited largely to valuable goods taking up but little space, and so
such methods were efficient enough, especially as the purchasing
power of the masses was small, and their necessities were almost
entirely homemade.
The period following the 11th Century showed some increase in
the amount of freight handled, and a result of the discovery of
America was to enlarge this still more. Still, however, the greater
portion of the population of European nations had simple wants and
simpler pocketbooks, and not for another three hundred years did
the mighty purchasing power of great numbers of people begin to
make itself felt in a demand for imported goods.
With the introduction of machinery, however, and especially with
the introduction of steam, the workmen found it possible to purchase
what had theretofore been unthinkable luxuries, and the demand for
imported goods grew enormously.
The East India Company was an early concern in this new epoch
of world trade. In 1600 this organization was founded and, by
government charter, was given a monopoly on trade to the Far East.
Because there was no competition this company grew fabulously
rich, bringing to Great Britain wonderful cargoes of goods not
securable except in India and China. This, however, was but a
greater attempt at trading, and except in size and in organization
was not greatly different from the methods in vogue two thousand
years before.
It was not until the 19th Century that shipping lines as we know
them came into existence. Actually it was the steamship that brought
about the introduction of shipping lines, although the famous old
packet lines that ran between Europe and America went by the
name of lines several years before the first steamship line was
organized. The first of these packet lines was the Black Ball Line,
which was established in 1816. So successful did this line become
that it was followed within the next few years by several others. The
Red Star Line, the Swallowtail Line, and the Dramatic Line were
some of the most important. Winter and summer the packets
operated by these lines raced across the Atlantic, sailing on
scheduled dates, and making remarkably short passages, and giving
remarkably good service for the times. The ships were not large,
some of them being hardly more than three hundred tons burden,
but for the first ten years of the Black Ball Line’s existence the ships
of that line averaged twenty-three days for the eastward passage
and forty days for the westward, which was much lower than the
average of other ships of the time. These packet lines continued in
operation until about 1850, when they had largely faded from the
sea, unable to compete with the steamships then becoming reliable,
comfortable, regular, and fast.
The first steamship line to organize was the City of Dublin Steam
Packet Company, which began operations in 1823. During the
following year the General Steam Navigation Company was
incorporated, and several other British steamship lines followed
rapidly. At first these were for the coasting trade, where the regular
service they maintained was valuable in the extreme, for railroads
had not yet appeared. Before long, however, these lines began
visiting the continent, and the transatlantic voyages of the Savannah
in 1819 and the Royal William in 1833 drew the attention of
steamship-builders and operators to the advantages of transoceanic
routes.
In 1837 three companies were organized—the British and
American Steam Navigation Company, the Atlantic Steamship
Company, and the Great Western Steamship Company. In 1838 their
first ships sailed to America. The Great Western made her first
crossing in 13 days and a few hours, almost equalling at her very
first attempt the fastest voyage (and that from America to Europe) a
sailing ship ever made. Brave as was the start made by these three
lines, however, they soon went out of business.
It is probable that one of the most serious blows they received in
their short periods of activity resulted from the success of Samuel
Cunard in securing from the British Government the contract for
carrying the mails from Liverpool to Boston and Halifax. This
contract, which included a fairly sizable subsidy, required that
Cunard build and operate four steamships, which the subsidy
enabled him to operate successfully despite the competition of the
other three lines. Cunard’s steamers, being all alike and of very
nearly the same speed, and being despatched at regular intervals,
soon took from his competitors the little business they had, and they
went out of business or transferred their ships to other duties.
The Cunard Line, then, from the Fourth of July, 1840, when the
Britannia sailed for Boston, has been a successful transatlantic line,
and is to-day the oldest transatlantic line in existence, as well as one
of the finest and most powerful. At first this company was known as
the “British and North American Royal Mail Steam Packet Company,”
and its first ships, the Britannia, the Acadia, the Caledonia, and the
Columbia, were each 207 feet long, about 1,150 tons, and could
carry 115 cabin passengers and 225 tons of cargo.
In 1840 the Pacific Steam Navigation Company obtained its
charter and was the pioneer steamship line along the western coast
of South America. Earlier than this, however—in 1835—a firm of
London merchants began to run steamers from England to the Far
East. These steamers, sailing more regularly and with more dispatch
than the sailing vessels, were given the contract to carry the mails.
This service became the Peninsular and Oriental Steam Navigation
Company, which is still a vigorous and enterprising line, although
now it sails out and back through the Suez Canal and not by the long
route around the Cape of Good Hope.
One of the two oldest existing steamship lines is the General
Steam Navigation Company, which I have already mentioned.
Founded in 1824, this line still runs steamers from England and
Scotland to the continent and the Mediterranean. In 1846 one of its
ships—the Giraffe—carried the first cargo of live cattle to England.
While the Allan Line has operated steamships only since 1852, it
may be said to have been founded about 1816, when Captain
Alexander Allan began running several sailing vessels between
Scotland and Canada. Although this line did not adopt steamships
until thirty-six years after it was founded, it has had a leading place in
the development of steamships. An Allan liner inaugurated the “spar
deck” in order that a clear promenade deck might be constructed.
The first Atlantic steamship to be built of steel—the Buenos Ayrean
—was an Allan liner built in 1879. The Virginian and the Victorian
were built in 1905 and were the first transatlantic steamships
propelled by turbines. Such developments as these entitle a
steamship line to great credit.
The largest privately owned shipping company in the world is the
Wilson Line, and it is also one of the oldest. It traces its beginnings
to 1835 and operates ships between Great Britain and Scandinavia
as well as between Britain and the Far East, and to the United
States. It also operates ships to South America and other parts of
the world.
The World War radically affected steamship lines, almost
eliminating some and crippling many. The peace brought about the

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Managing Human Resources 18th

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Part 1 Human Resources Management in Perspective

Part 2 Meeting Human Resources Requirements

Part 3 Developing Effectiveness in Human Resources

Part 4 Implementing Compensation and Security

Part 5 Enhancing Employee-Management Relations

Part 6 Expanding Human Resources Management Horizons

Integrative Cases 585

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Part 1 Human Resources Management in Perspective

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Chapter 2 Strategy and Human Resources Planning 38

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Appendix: Calculating Employee Turnover

Part 2 Meeting Human Resources Requirements

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Highlights in HRM 5: Embracing Diversity and Leveraging

Appendix: Determining Adverse Impact 120

Chapter 4 Job Analysis and Job Design 121

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Part 3 Developing Effectiveness in Human Resources

Appendix: Personal Career Development 199

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A.3 Self-Evaluation 199

Chapter 6: Employee Selection 205

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Chapter 7 Training and Development 241

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Chapter 8 Performance Management 279

Part 4 Implementing Compensation and Security

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9.2a Linking Compensation to Organizational Objectives 321

Chapter 10 Pay-for-Performance: Incentive Rewards 356

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10.4b Standard Hour Plan 363

Chapter 11 Employee Benefits 385

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11.2f Benefits Provided under the Family

Chapter 12 Promoting Safety and Health 416

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Discussion Questions 443

Part 5 Enhancing Employee-Management Relations

Chapter 14 The Dynamics of Labor Relations 481

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14.1f How Employees Become Unionized 493

Chapter 2 Strategy and Human Resources Planning 38

Appendix: Calculating Employee Turnover

Highlights in HRM 5: Embracing Diversity and Leveraging

11.2f Benefits Provided under the Family

Chapter 16 I mplementing HR Strategy: High-Performance Work