Union Campaigns

November 29, 2022/in Uncategorized /by SK

Read chapters 6 and 7 of the text. While the material refers to both union campaigns and union avoidance, we will combine the study of the two. To this end:

1. When elections for unions occur, the process can be very adversarial and contentious, as many elections can be. Put yourself in the position working on a union election. Which of these 3 roles would suit you best and why, knowing the information you now are learning about labor relations:

Running the campaign of a union candidate
Monitoring election outcomes
Informing all parting of legal rules regarding campaign organization and the election process.

Explain your answer and tell us a bit about yourself and your personality.

2. Read the GMFC case on 189 and state your answer to the problem, as listed in the last sentence on 190.

3. What is your opinion of the philosophy-laden approach to employee relations?

Submission Instructions: (www.turnitin.com)

Any papers/assignments should at a minimum contain 3-4 pages of content (double spaced), include a properly formatted cover page, and a reference listing page with at least three (3) NEW references properly listed at the end of your work. Providing additional references to your assignments demonstrate your desire to conduct additional research on the topic area and can improve your research skills.

With all assignments, include properly formatted in-text citations within the body of your work for each of your listed references so the reader can ascertain what is your original thought or ideas and what portion of your work is taken from credible sources to support your work. It is really important to identify work from other sources to ensure that proper credit is provided to researchers in the field.

152

Chapter Six

Union Organizing Campaigns This chapter is the first of two chapters that examine how unions organize new bargaining units and how and why employers attempt to avoid being unionized. Chapter 6 covers union organizing campaigns, the election process, and the roles of the National Labor Relations Board (NLRB) and the National Mediation Board (NMB). Chapter 7 covers employers’ overall strategies for avoiding unionization and operating without unions.

Recall from Chapter 2 the long history of employer resistance to union organizing in the United States. In the mid-1930s the Wagner Act strongly facilitated and institutionalized collective bargaining as the preferred method for resolving workplace conflicts where employees chose it.

Recall also from the introductory chapters that employees become union- ized only if a single union receives a majority of votes from employees in the unit. The concept of exclusive representation establishes a “winner- takes-all” outcome in representation elections. This requirement, which contributes to the adversarial relationship that exists between employers and unions, begins with an organizing campaign.

Organizing is highly adversarial and heavily regulated. Most employ- ers actively resist. Union campaigns usually stress unfair treatment by employers, the lack of a forum for effectively voicing complaints, and the necessity of organizing to gain outcomes the employer should grant but won’t without unionization. Organizing campaigns are waged intensively by both sides. The NLRB or NMB acts as a referee in the process. Where recognition disputes occur, the boards provide a forum for their settlement and rule on the permissibility of the parties’ campaign conduct, if ques- tioned. From a regulatory standpoint, this chapter will focus primarily on the NLRB’s role since the preponderance of elections are conducted under its auspices.

Chapter 1 introduced some of the reasons that workers unionize. This chapter examines the flow of organizing campaigns, involvement of the NLRB, strategies and tactics used by employers and unions during elec- tion campaigns, and recent results in NLRB-monitored representation

Chapter 6 Union Organizing Campaigns 153

elections. Chapter 7 focuses in detail on employers’ increasing interest in operating “union-free” and the strategies and tactics they use to avoid unionization.

In studying this chapter, consider the following questions:

1. At what points and in what ways is the NLRB involved in representa- tion elections?

2. What effects have employer campaigns had on union organizing success?

3. What strategies and tactics do employers and unions use during orga- nizing campaigns?

4. How successful are unions in organizing new units? 5. What new strategies are unions now using, and how effective are they?

ORGANIZING AND UNION EFFECTIVENESS

Chapter 1 noted that unions create an opportunity through negotiated contracts for employees to have a voice in addressing workplace problems and effectively create a labor supply monopoly. Monopoly power gener- ally leads to a union wage premium.

The ability to gain a wage premium depends on the proportion of an industry that is organized. This means that unions have a strong interest in organizing workers in industries and labor markets where nonunion competition reduces their monopoly power. However, with increasing globalization, eliminating nonunion competition is impossible.

Unions depend on members’ dues to operate. More members create economies of scale. Thus the level and scope of member services are related to some extent to a union’s size. Organizing new units, accreting expanded facilities, and merging with or absorbing other unions are all mechanisms used to expand membership and enhance union effectiveness. Strategies and tactics that increase the probability of success in organizing and main- taining majority status in existing units should lead to greater chances for effectiveness in bargaining and representation.

HOW ORGANIZING BEGINS

Campaigns to organize unrepresented workers begin at either the local or the national union level. National unions target specific employers or geographic areas and send professional organizers to encourage and assist local employees in unionizing. Sometimes organizers apply for jobs in the targeted firm to gain closer contact with employees. Employers cannot legally refuse to hire applicants based on union membership or concur- rent union employment even if their primary purpose is to organize the

154 Labor Relations

workforce. 1 National union campaigns often occur if a unionized firm opens a new nonunion plant. The union representing employees in the firm’s other plants campaigns to organize the new plant to maintain com- mon employment practices across the firm. National organizing may also

1 NLRB v. Town & Country Electric Inc., 516 U.S. 85 (1995). See also M. D. Lucas, “Salting and Other Union Tactics: A Unionist’s Perspective,” Journal of Labor Research, 18 (1997), pp. 55–64.

Yes

Yes Yes

No No

Yes

YesNo

Present employees contact union

Union field representative contacts employees

NLRB determines bargaining unit

NLRB holds election

Union gets

> 50%

Bargaining begins

Election barred for one year

Union requests representation election

> 50% ?

< 30%

< 50%< 30% Authorization card campaign

Petition for an

election

Recognition denied?

Union requests

recognition

FIGURE 6.1 Sequence of Organizing Events

Chapter 6 Union Organizing Campaigns 155

target nonunion firms in predominantly unionized industries. Most orga- nizing begins at the local level when some employees decide they would be better off if they could bargain collectively with the employer. 2

The Framework for Organizing Organizing begins with an authorization card campaign and most often ends with the NLRB certifying the election results. Figure 6.1 presents a generalized sequence of the organizing events that will be described in the following sections. This section covers activities leading to a recogni- tion request, petitions to the NLRB for elections, and elections in which bargaining-unit determination is uncontested. Subsequent sections exam- ine bargaining-unit determination, the election campaign, and election certifications.

Authorization Card Campaign An authorization card campaign tries to enroll employees in the union in the unit the union seeks to represent. Organizers contact employees individually to persuade them to sign cards authorizing the union to act as their agent in negotiating wages, hours, and terms and conditions of employment. Figure 6.2 shows an authorization card.

Recognition Requests If a majority of workers signs authorization cards, the union can request rec- ognition as the employees’ bargaining agent. A union seldom requests rec- ognition unless a substantial majority has signed because employers often question whether some workers are eligible to be represented or to vote in an election. Employers faced with a recognition request usually claim that the union’s majority status is doubtful. The union may offer to have a neu- tral third party match the authorization card signatures with an employee list to determine whether a majority actually exists. If a majority has signed and the employer is satisfied with the appropriateness of the proposed bar- gaining unit, the employer can grant recognition voluntarily. 3

2 For an expanded examination of union organizing activities and permissible active management responses, see K. Bronfenbrenner, S. Friedman, R. W. Hurd, R. A. Oswald, and R. L. Seeber, eds., Organizing to Win: New Research on Union Strategies (Ithaca, NY: Cornell University Press, 1998); M. A. Spognardi, “Conducting a Successful Union-Free Campaign: A Primer (Part I),” Employee Relations Law Journal, 24, no. 2 (1998), pp. 35–42; M. A. Spognardi, “Conducting a Successful Union-Free Campaign: A Primer (Part II),” Employee Relations Law Journal, 24, no. 3 (1998), pp. 31–55; and J. J. Lawler, Unionization and Deunionization: Strategy, Tactics, and Outcomes (Columbia: University of South Carolina Press, 1990). 3 See J. W. Budd and P. K. Heinz, “Union Representation Elections and Labor Law Reform: Lessons from the Minneapolis Hilton,” Labor Studies Journal, 20, no. 4 (1996), pp. 3–20, for an example of a situation in which the employer agreed ahead of time to a card check as an appropriate method for determining majority status.

156 Labor Relations

A union may picket an unorganized employer for up to 30 days, demanding recognition as the employees’ bargaining agent. This rarely happens, but if it occurs, the employer can petition the NLRB for an elec- tion in the employee unit the union seeks to represent. If the union loses, further recognitional picketing would be an unfair labor practice (ULP).

Representation Elections Representation elections are held to determine whether a majority of employees desires union representation and, if so, by which union. Elections in units where employees are not currently represented are called certification elections. If employees are currently represented, but at least 30 percent of them indicate they do not want continued represen- tation, a decertification election is held. If a majority votes against rep- resentation, the union loses representation rights. So-called raid elections occur when at least 30 percent of employees indicate they would prefer a different union to represent them. Elections cannot be held if an election result was certified within the previous year. Decertification elections may not be held while a contract is in effect. Figure 6.3 shows that if inter- est in an election is sufficient, the union (or the employer in the absence of a demand for recognition) can petition the NLRB to hold an election to determine employees’ desires. The next section traces the basic steps involved in conducting an election.

I, the undersigned employee (Company)

authorize the International Association of Machinists and Aerospace Workers (IAM) to act as my collective bargaining agent for wages, hours and working conditions. I agree that this card may be used either to support a demand for recognition or an NLRB election at the discretion of the union.

Name (print) Date

Home Address

City

Job Title

Sign Here

Phone

State

Dept.

Zip

Shift

X Note: This authorization to be SIGNED and DATED in Employee’s own hand- writing. YOUR RIGHT TO SIGN THIS CARD IS PROTECTED BY FEDERAL LAW.

RECEIVED BY (Initial)

FIGURE 6.2 Authorization Card

Chapter 6 Union Organizing Campaigns 157

Election Petitions The union may petition the NLRB to hold an election in the unit it is try- ing to organize and include the signed authorization cards as evidence of support. The NLRB checks the signed cards against a roster of employees in the unit. If fewer than 30 percent have signed, the petition is dismissed. If more than 30 percent have signed, the union is legally within its juris- diction, and if the employer doesn’t contest the appropriateness of the proposed unit, the NLRB schedules an election. The employer frequently contests the makeup of an appropriate bargaining unit, requiring that the NLRB decide which employees should be included. The criteria the board uses to decide whether a proposed unit is appropriate are discussed later in this chapter.

When an appropriate bargaining unit is defined and at least 30 percent of employees in the unit have signed authorization cards, the NLRB will order an election unless the union withdraws its petition. If the union

Intervention

Second union begins organizing

Union pickets for recognition

Yes

Union requests election

NoNo

Yes Yes

No No

Recognition

Union requests recognition

Employer requests election

Election denied

NLRB orders election

30%Majority

Employer recognizes

Union is bargaining representative

Yes

Intervention denied

10%

Employee(s) request election

Decertification

Picketing

FIGURE 6.3 Avenues to Election Petitions

158 Labor Relations

receives a majority of the eligible votes cast, the board certifies it as the employees’ bargaining agent and contract negotiations can begin. If the union loses, the board certifies the results, and elections are barred in that unit for one year. In effect, certification guarantees the union or nonunion status of a bargaining unit for at least one year. 4

An election petition may be filed by a union, employer, or employee. In certain types of elections, employers cannot file petitions because early petitions might preempt union campaign efforts. Proof of inter- est must be shown when a petition is filed or within 48 hours. The union must specify the group of employees it desires to represent. If an employer has had a recognition demand, it can directly petition the board to hold an election. A union or an employee can file a decertifica- tion petition asking for removal of the present bargaining agent. Under certain stringent conditions, an employer may petition for a decertifica- tion election if it has a good-faith doubt about the union’s continued majority status, but an employer cannot withdraw recognition until a lack of majority status is proved. 5

Preelection Board Involvement There are two types of elections: (1) consent elections, in which the par- ties agree on the proposed bargaining unit and on which employees will be eligible to vote, and (2) board-directed (petition) elections, in which the NLRB regional director determines, after hearings, an appropriate bargaining unit and voter eligibility. In a petition election, the employer must provide within 7 days a so-called Excelsior list containing names and addresses of employees in the designated bargaining unit. 6 After 10 days but within 30 days, the election will normally be held. Figure 6.4 details board procedures before the election.

The Election The NLRB conducts the secret-ballot election. Company and union observ- ers may challenge voter eligibility but cannot prohibit anyone from voting. After the votes are counted and challenges decided, the choice receiving a majority is declared the winner. If more than two choices (e.g., two differ- ent unions and no union) are on the ballot and none obtains an absolute majority, a runoff is held between the two highest choices. After any chal- lenges are resolved, the regional director certifies the results. Figure 6.5 shows an NLRB election ballot.

4 Brooks v. NLRB, 348 U.S. 96 (1954). 5 T. C. Stamatakos and T. J. Piskorski, “Levitz Furniture: NLRB Rewrites the Book on Employer Efforts to Oust Incumbent Unions,” Employee Relations Law Journal, 27 (2001), pp. 31–44. 6 Excelsior Underwear, Inc., 156 NLRB 1236 (1966).

Chapter 6 Union Organizing Campaigns 159

Outline of representation procedures under Section 9(c)

Petition filed with NLRB Regional Office

Investigation and Regional Determination

Petition may be withdrawn by petitioner

Petition may be dismissed by Regional Director. Dismissal may be appealed to Board

Agreement for Consent Election: Parties sign agreement waiving hearing and consenting to election resulting in Regional Director’s Determination

Stipulation for Certification upon Consent Election: Parties sign agreement waiving hearing and consenting to election resulting in certification issued by Regional Director on behalf of Board if results are conclusive, otherwise determination by Board

Formal Procedures

Request for Review: Parties may request Board to review Regional Director’s action. Opposition to request may be filed

Ruling on request: Board issues ruling, denies or grants request for review

Board action if request for review is granted: Board issues decision affirming, modifying, or reversing Regional Director

Board issues decision directing election (or dismissing case)

Regional Director issues Decision directing election (or dismissing case)

Consent Procedures

Election Conducted by Regional Director

Regional Director or Board Directed

Regional Director may serve on parties or direct Hearing Officers to serve on parties a report containing recommendation to Board

Hearing may be ordered by RD to resolve factual issues

If Results Are Not Conclusive (challenges determinative and/or objections filed)

Regional Director investigates objection and/or challenges (subsequent action varies depending on type of election)

Stipulated Election

Consent Election

Board considers Report and any exceptions filed thereto. Board issues Supplemental Decision directing appropriate action or certifying representative or results of election

Regional Director issues Certification of Representatives or Results

Regional Director issues final report to parties disposing of issues and directing appropriate action or certifying representative or results of election

Regional Director may issue Supplemental Decision disposing of issues and directing appropriate action or certifying representative or results of election (Supplemental Decision subject to Review Procedures set forth above)

Board considers Report and any exception filed thereto. Board issues Supplemental Decision directing appropriate action or certifying representative or results of election

If Results Are Not Conclusive (challenges not determinative

and/or no objections filed)

Regional Director serves upon parties a Report containing his recommendations to Board

Formal Hearing Conducted by Hearing Officer. Record of hearing to Regional Director or Board

Case may be transferred to Board by Order of Regional Director at close of Hearing or subsequently

FIGURE 6.4 NLRB Involvement in Petition to Election

160 Labor Relations

BARGAINING-UNIT DETERMINATION

The NLRB considers a variety of factors to determine the bargaining unit: (1) legal constraints, (2) the constitutional jurisdiction of the orga- nizing union, (3) the union’s likely success in organizing and bargaining, (4) the employer’s desires to resist organizing or promote stability in the bargaining relationship, and (5) its own philosophy.

Bargaining units can differ depending on whether the focus is on orga- nizing or contract negotiations. For example, several retail stores in a given chain may constitute an appropriate bargaining unit for representation election purposes; while for negotiating purposes, several retail stores owned by different companies may practice multiemployer bargaining. This chapter’s discussion is concerned only with bargaining units for rep- resentation; bargaining units for negotiations are discussed in Chapter 8.

Legal Constraints Legal constraints limit the potential scope of a bargaining unit, but within these constraints, the contending parties—labor and management—are free to jointly determine an appropriate unit. If they agree on the proposed unit, a consent election results. If they do not, the NLRB determines unit appropriateness.

UNITED STATES OF AMERICA

National Labor Relations Board

FOR CERTAIN EMPLOYEES OF

Do you wish to be represented for purpose of collective bargaining by —

MARK AN “X” IN THE SQUARE OF YOUR CHOICE

YES NO

DO NOT SIGN THIS BALLOT. Fold and drop in ballot box. If you spoil this ballot return it to the Board Agent for a new one.

FIGURE 6.5 Specimen NLRB Ballot

Chapter 6 Union Organizing Campaigns 161

Section 9(b) of the Taft-Hartley Act constrains unit determination. First, no unit can include both professional and nonprofessional employees without majority approval of the professionals. Second, a separate craft unit may not be precluded simply because the board had earlier included it in a broader group. However, the NLRB has broadly interpreted this subsection by continuing to include craft groups in larger units. Third, no bargaining unit may include both guards hired by employers to enforce company’s rules and other employees. Fourth, supervisors and managers may not be included in a unit and/or bargain collectively because Section 2 defines their roles as agents of the employer.

The 1974 amendments to Taft-Hartley permitting representation in pri- vate, nonprofit health care facilities established special constraints on bargaining. In response, the board determined that separate units would be appropriate for registered nurses, physicians, other professionals, tech- nical employees, skilled maintenance workers, business office clericals, guards, and all other nonprofessional employees.

The major difference between the Wagner Act and the Railway Labor Act (RLA) is that the RLA requires that bargaining units be formed on a craft basis.

Jurisdiction of the Organizing Union Some unions organize certain occupations or industries. Others organize outside their traditional jurisdictions. If an AFL-CIO union is attempting to raid another affiliate, the NLRB will notify the AFL-CIO when a petition is filed to allow it to activate its internal procedures to adjudicate the prob- lem. Problems are usually resolved because, as a condition of affiliation, unions agree to let the federation resolve internal disputes.

The Union’s Desired Unit Unless it seeks to represent all eligible employees within an employer, a union faces several problems in deciding which bargaining-unit configu- ration it desires. It must balance the unit that would be the easiest to orga- nize against future objectives in contract negotiations. A craft union would likely seek a bargaining unit that includes only workers of relatively simi- lar skills. Industrial unions usually seek plantwide units.

A union must be recognized before it can bargain. But organizing a unit that would have little impact on business if the union were to strike would be futile. For example, gaining a majority in a manufacturing plant custo- dial unit may be relatively easy, but negotiating a favorable contract would be difficult because the employer could readily subcontract the work for little incremental cost during a strike.

The union, then, has two bargaining-unit goals: (1) creating a “ winnable” unit and (2) creating a unit that will have bargaining power with the employer.

162 Labor Relations

The Employer’s Desired Unit The employer often desires a unit different from, but not necessarily the opposite of, what the union wants. It prefers a unit the union is unlikely to win. If a craft union is organizing, the employer would favor a plant- wide unit. If unskilled workers are the most interested and they are a majority of the workforce, the employer may seek to exclude craft groups. Figure 6.6 shows why management might argue for a smaller unit than the union desires. Assume in this case that 60 percent of production and maintenance employees favor representation, while only 40 percent of other occupations would vote for the union. If the election were held in the union’s desired unit and all employees voted, the union would win by 860 to 790. If management were able to exclude other employee groups, only the production and maintenance employees would be unionized.

The employer also would like a unit configured to minimize union bargaining power if the union wins. Thus, the employer might desire functionally independent units, which would allow continued operations if a strike occurred. But it would also like to avoid fragmented units, which would decrease bargaining power if different contract expiration dates enable unions to threaten a sequence of strikes.

NLRB Policy NLRB policy determines bargaining-unit appropriateness where disputes exist. Although not completely consistent in determining units, the board has applied the following criteria: 7

1. Community of interests. The mutuality of interests among employees in bargaining for wages, hours, and working conditions is frequently applied. 8 However, the community of interests criterion is difficult to

Union’s desired unit

Management’s desired unit

N = 50 N = 1,000 N = 200 N = 400

Skilled trades

Production and maintenance

Shipping and receiving

Office clericals

FIGURE 6.6 Conflicting Unit Desires

7 J. E. Abodeely, R. C. Hammer, and A. L. Sandler, The NLRB and the Appropriate Bargaining Unit, rev. ed., Labor Relations and Public Policy Series, report no. 3 (Philadelphia: Industrial Research Unit, Department of Industry, Wharton School of Finance and Commerce, University of Pennsylvania, 1981); see also www.nlrb.gov/nlrb/legal/manuals/online_chap 12.25p. 8 Continental Baking Co., 99 NLRB 777 (1952), and NLRB v. Action Automotive, 469 U.S. 490 (1985).

Chapter 6 Union Organizing Campaigns 163

interpret because no benchmark is used to define the degree of similar- ity necessary between employee groups.

2. Geographic and physical proximity. The more geographically separated two or more locations are, the more difficult it is for a single union to represent employees. This factor carries considerable weight when the employer’s policies differ substantially across locations.

3. Employer’s administrative or territorial divisions. If a firm’s labor relations or human resource management were uniform over a given territory (e.g., 46 grocery stores located in five counties of southeastern Michigan and managed as a territorial subdivision of a multistate chain), then this unit, rather than a single store or subset of stores, may be appropriate.

4. Functional integration. This refers to the extent to which all potentially includable employees are required to provide the company’s output. For example, in the Borden Co. decision the board recognized that although 20 different facilities with varying human resource policies were involved in the seemingly independent processes of manufac- turing (3) and distributing (17) ice cream, an appropriate unit would contain all 20 plants because of the interrelationships among facilities necessary to market the final product. 9

5. Interchange of employees. If employees transfer frequently across plants or offices, their community of interest may be similar, leading the board to designate a multiplant unit.

6. Bargaining history. In applying this factor, the board may consider the past practices of the union and the employer (if it is a decertification or unit clarification election) or typical industry practices in bargaining. 10 For example, if an employer had a companywide unit that had served the mutual bargaining interests of both the employer and the union, the board would probably leave it undisturbed.

7. Employee desires. Early in the board’s history, the Globe Doctrine was developed. 11 Where a bargaining history involving several units exists, the board may allow employees to vote for or against their inclusion in a more comprehensive unit.

8. Extent of organization. After these factors have been analyzed, the board may consider the degree to which organizing has occurred in a proposed unit, although this is not considered the prime factor. 12 The Supreme Court has ruled that the board could consider it because Section 9(c)(5) of the Taft-Hartley Act requires that the board consider allowing employees the fullest freedom to exercise their rights.

9 Borden Co., Hutchinson Ice Cream Div., 89 NLRB 227 (1950). 10 Dallas Morning News, 126 LRRM 1346 (1987). 11 Abodeely et al., NLRB and the Appropriate Bargaining Unit, pp. 66–68. 12 NLRB v. Metropolitan Life Insurance Co., 380 U.S. 438 (1965).

164 Labor Relations

Many of these factors are related. For example, employee interchange is more likely to occur within a defined administrative unit, and, in turn, an interchange should establish a broader community of interests. Thus the board’s determination frequently rests on several factors. Although these factors are generally used, there have been exceptions to each. 13

Craft Severance The term craft severance means that a group of employees with a sub- stantially different community of interests is allowed to establish a sepa- rate unit. Craft severance can occur during initial unit determination or when a group of employees votes to leave their bargaining unit. Severance is easier during initial organizing.

The NLRB will allow craft severance only when the following condi- tions are present: (1) a high degree of skill or functional differentiation between groups and a tradition of separate representation; (2) a short bar- gaining history in the present unit and a low degree of likely disruption if severance is granted; (3) a distinct separateness in the established unit among members of the proposed unit; (4) a different collective bargaining history in the industry; (5) low integration in production; and (6) a high degree of experience as a representative for the craft of the union desiring severance. 14 Craft severance has been allowed in cases where a recogniz- able difference exists in the communities of interest and there is no prior contrary bargaining history. 15

What Factors Are Used? Except in health care, no administrative rules apply. The board determines bargaining-unit appropriateness on a case-by-case basis. For severance, the overriding factor is bargaining history, buttressed by functional inte- gration in an employer’s operation. For representation, community of interest and functional integration are important. The workers’ commu- nity of interest is affected by the production process, transfer policies, geographic proximity, and administrative decision making.

There are few judicial precedents, and bargaining-unit determina- tions are unappealable because they are not final orders. If an employer believed the board’s determination was wrong, it would refuse to bar- gain if it lost the election and the board would seek enforcement of its order in the courts. 16 In most cases, the courts leave board unit orders undisturbed.

13 Abodeely et al., NLRB and the Appropriate Bargaining Unit, pp. 11–86. 14 Mallinckrodt Chemical Works, 162 NLRB 387 (1966). 15 E. I. duPont de Nemours & Co., 162 NLRB 413 (1966), and Anheuser-Busch, Inc., 170 NLRB No. 5 (1968). 16 Abodeely et al., NLRB and the Appropriate Bargaining Unit, pp. 28–29.

Chapter 6 Union Organizing Campaigns 165

Other Issues in Unit Determination Organizational structures change over time. What was initially an appro- priate unit may not be appropriate now. Major factors involved in the ongoing definition of a unit include new facilities and acquisitions, reorga- nization, job reclassification, sale to another firm, or joint employment.

Accretion Accretion occurs when a new facility is added to the bargaining unit or when an existing union in an employer wins representation rights for employees previously represented by another union. The NLRB generally applies the same criteria to accretion as it applies to initial unit determina- tion. However, the board gives extra weight to the desires of employees in the unit subject to accretion. 17

Reorganization and Reclassification An employer occasionally reclassifies jobs or reorganizes administrative units. These changes might make a previously defined bargaining unit inappropriate, and the parties may redefine the unit by consent. Failing this, the employer would have to refuse to bargain, and the union would have to file a ULP charge for the board to reexamine appropriateness.

Successor Organizations A firm that acquires or merges with another firm assumes existing contractual obligations. 18 Where ownership changes but operations con- tinue unchanged, the new owner must recognize the union but does not need to honor the existing contract. 19 Where operations continue but, because of layoffs and/or new hires, the union lacks a majority, the employer has no obligation to honor a contract. 20 When a closed firm is reopened by new owners, the bargaining relationship continues if a majority of the employees worked for the former company and were in a represented unit. 21

17 Compare Consolidated Edison Co., 48 LRRM 1539 (1961), where no accretion to an established unit was permitted but a distinct unit was ordered, with Textile, Inc., 46 LRRM 1264 (1960) and Special Machine & Engineering Inc., 124 LRRM 1219, where accretion occurred, and Honeywell, Inc., Semiconductor Division, 140 LRRM 1147, where no accretion was allowed due to employee desires. 18 John Wiley & Sons, Inc. v. Livingston, 376 U.S. 543 (1964). 19 NLRB v. Burns International Security Services, 406 U.S. 272 (1972). 20 Howard Johnson Co., Inc. v. Detroit Local Joint Executive Board, Hotel and Restaurant Employees & Bartenders International Union, AFL-CIO, 417 U.S. 249 (1974). 21 Fall River Dyeing and Finishing Corp. v. NLRB, 482 U.S. 27 (1987); see also R. F. Mace, “The Supreme Court’s Labor Law Successorship Doctrine after Fall River Dyeing,” Labor Law Journal, 39 (1988), pp. 102–109.

166 Labor Relations

Joint Employers Occasionally a group of employees has two employers. If an employ- ment agency supplies temporary employees to another and both can fire, discipline, change wages, and so on, then they are joint employers. An appropriate bargaining unit can include temporary joint employees, regardless of whether the employer that hires and pays them consents. 22 Agency employees have tried unsuccessfully to organize in Microsoft and Amazon.com. Even if successful, they would face the possibility that the units in which they work would be sold. They have had some success in being legally classified as company employees for benefit purposes. 23

THE ORGANIZING CAMPAIGN

Organizing campaigns are highly contentious. Increasingly, unions and employers fight bitterly over the future of the employment relationship for the targeted work group. The discussion to this point has focused on the overall framework and basic rules for determining whether a majority of employees want union representation. The campaign has many of the characteristics of a political campaign. This section examines the actual practices of unions and employers during organizing campaigns and pro- vides examples of how the parties, particularly employers, bend the rules to gain an advantage in influencing the outcome of the campaign.

The usual catalyst for a campaign is employees’ frustration about their wages and benefits or their inability to influence outcomes in the work- place. It’s also possible that a national union that organizes similar types of employers identifies the employer as a ripe target for organizing. In the latter case, the national union needs to size up the organizing climate, including the economic and political climate; evidence of union interest or activity by employees; likely community attitudes or support; and the demographic characteristics of the potential unit. If a decision is made to pursue organizing, a strategy is developed. As soon as management becomes aware of any organizing activity, it also develops a strategy to thwart the activity. 24 Figure 6.7 presents a theoretical model of the organiz- ing and certification election process.

Unionization aims to permanently change the employment relationship by institutionalizing collective bargaining as the method through which managers and employees deal with each other about future wages, hours,

22 M. B. Sturgis, Inc., 331 NLRB 173 (2000). 23 D. D. van Jaarsveld, “Collective Representation among High-Tech Workers at Microsoft and Beyond: Lessons from WashTech/CWA,” Industrial Relations, 43 (2004), pp. 364–385; see also Vizcaino v. Microsoft Corp., 173 F.3d 713 (9th Cir. 1999). 24 K. Bronfenbrenner, “The Role of Union Strategies in NLRB Certification Elections,” Industrial and Labor Relations Review, 50 (1997), pp. 195–212.

Chapter 6 Union Organizing Campaigns 167

Essay Questions Of Human Resource Management

November 29, 2022/in Uncategorized /by SK

Chapter 3 end essay question:

Note: the submission should be typed and each response should not be longer than one typed page

1. Martha’s boss, Bill, constantly uses sexually explicitly language while communicating with his female subordinates. Though many female employees were bothered with this behavior, no one ever complained for fear of negative repercussions. However, Martha files a complaint against Bill with the Equal Employment Opportunity Commission (EEOC). Will this be considered as discriminatory behavior? Why or why not? Explain the prohibitions under Title VII for related behavior with examples.

Plz answer the question based on Chapter 3.

Fundamentals of Human Resource

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fundamentals of Human Resource Management

SIXTH EDITION

Raymond A. Noe The Ohio State University

John R. Hollenbeck Michigan State University

Barry Gerhart University of Wisconsin–Madison

Patrick M. Wright University of South Carolina

www.mhhe.com

FUNDAMENTALS OF HUMAN RESOURCE MANAGEMENT, SIXTH EDITION

Published by McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright © 2016 by McGraw-Hill Education. All rights reserved. Printed in the United States of America. Previous editions © 2014, 2011, and 2009. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of McGraw-Hill Education, including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning.

Some ancillaries, including electronic and print components, may not be available to customers outside the United States.

This book is printed on acid-free paper.

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ISBN 978-0-07-771836-7 MHID 0-07-771836-4

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All credits appearing on page or at the end of the book are considered to be an extension of the copyright page.

Library of Congress Cataloging-in-Publication Data

Noe, Raymond A. Fundamentals of human resource management / Raymond A. Noe, John R. Hollenbeck, Barry Gerhart, Patrick M. Wright.—Sixth edition. pages cm ISBN 978-0-07-771836-7 (alk. paper) 1. Personnel management. I. Title. HF5549.F86 2016 658.3–dc23 2014041580

The Internet addresses listed in the text were accurate at the time of publication. The inclusion of a website does not indicate an endorsement by the authors or McGraw-Hill Education, and McGraw- Hill Education does not guarantee the accuracy of the information presented at these sites.

In tribute to the lives of Raymond and Mildred Noe —R.A.N.

To my parents, Harold and Elizabeth, my wife, Patty, and my children, Jennifer, Marie, Timothy, and Jeffrey —J.R.H.

To my parents, Robert and Shirley, my wife, Heather, and my children, Chris and Annie —B.G.

To my parents, Patricia and Paul, my wife, Mary, and my sons, Michael and Matthew —P.M.W.

viii

John R. Hollenbeck holds the positions of University Distinguished Professor at Michigan State University and Eli Broad Professor of Man- agement at the Eli Broad Graduate School of Busi- ness Administration. Dr. Hollenbeck received his PhD in Management from New York University in 1984. He served as the acting editor at Organiza- tional Behavior and Human Decision Processes in 1995, the associate editor of Decision Sciences from 1999 to 2004, and the editor of Personnel Psychology from 1996 to 2002. He has published over 90 articles and book chapters on the topics of team decision making and work motivation. According to the Institute for Scientific Information, this body of work has been cited over 3,000 times by other researchers. Dr. Hollenbeck has been awarded fellowship status in both the Academy of Management and the Ameri- can Psychological Association, and was recognized with the Career Achievement Award by the HR Division of the Academy of Management (2011) and the Early Career Award by the Society of Industrial and Organizational Psychology (1992). At Michigan State, Dr. Hollenbeck has won several teaching awards including the Michigan State Distinguished Faculty Award, the Michigan State Teacher-Scholar Award, and the Broad MBA Most Outstanding Faculty Member.

Raymond A. Noe is the Robert and Anne Hoyt Designated Professor of Management at The Ohio State University. He was previously a profes- sor in the Department of Management at Michigan State University and the Industrial Relations Center of the Carlson School of Management, University of Minnesota. He received his BS in psychology from The Ohio State University and his MA and PhD in psychology from Michigan State University. Professor Noe conducts research and teaches undergraduate as well as MBA and PhD students in human resource management, managerial skills, quantitative methods, human resource information systems, training, employee development, and orga- nizational behavior. He has published articles in the Academy of Management Annals, Academy of Manage- ment Journal, Academy of Management Review, Journal of Applied Psychology, Journal of Vocational Behavior, and Personnel Psychology. Professor Noe is currently on the editorial boards of several journals including Personnel Psychology, Journal of Applied Psychology, and Journal of Organizational Behavior. Professor Noe has received awards for his teaching and research excel- lence, including the Ernest J. McCormick Award for Distinguished Early Career Contribution from the Society for Industrial and Organizational Psychol- ogy. He is also a fellow of the Society of Industrial and Organizational Psychology.

About the Authors

About the Authors ix

Barry Gerhart is Professor of Management and Human Resources and the Bruce R. Ellig Distinguished Chair in Pay and Organizational Effectiveness, School of Business, University of Wisconsin-Madison. He has also served as depart- ment chair or area coordinator at Cornell, Vander- bilt, and Wisconsin. His research interests include compensation, human resource strategy, interna- tional human resources, and employee retention. Professor Gerhart received his BS in psychol- ogy from Bowling Green State Univer sity and his PhD in industrial relations from the University of Wisconsin-Madison. His research has been pub- lished in a variety of outlets, includ ing the Academy of Management Annals, Academy of Management Jour- nal, Annual Review of Psy chology, International Journal of Human Resource Management, Journal of Applied Psychology, Man agement and Organization Review, and Personnel Psychology. He has co-authored two books in the area of compensation. He serves on the edi torial boards of journals such as the Academy of Management Journal, Industrial and Labor Rela- tions Review, International Journal of Human Resource Management, Journal of Applied Psychology, Jour nal of World Business, Management & Organization Review, and Personnel Psychology. Professor Ger hart is a past recipient of the Heneman Career Achievement Award, the Scholarly Achieve ment Award, and of the International Human Resource Management Scholarly Research Award, all from the Human Resources Divi sion, Academy of Management. He is a Fellow of the Academy of Management, the Amer- ican Psychological Association, and the Society for Industrial and Organizational Psychology.

Patrick M. Wright is the Thomas C. Vandiver Bicentennial Chair in the Darla Moore School of Business at the University of South Carolina. Prior to joining USC, he served on the faculties at Cornell University, Texas A&M University, and the Univer- sity of Notre Dame.

Professor Wright teaches, conducts research, and consults in the area of Strategic Human Resource Management (SHRM), particularly focusing on how firms use people as a source of competitive advantage and the changing nature of the Chief HR Officer role. For the past eight years he has been studying the CHRO role through a series of confidential interviews, public podcasts, small dis- cussion groups, and conducting the HR@Moore Survey of Chief HR Officers. In addition, he is the faculty leader for the Cornell ILR Executive Edu- cation/NAHR program, “The Chief HR Officer: Strategies for Success,” aimed at developing poten- tial succes sors to the CHRO role. He served as the lead edi tor on the recently released book, The Chief HR Officer: Defining the New Role of Human Resource Leaders, published by John Wiley and Sons.

He has published more than 60 research arti cles in journals as well as more than 20 chapters in books and edited volumes. He is the Incoming Editor at the Journal of Management. He has co edited a special issue of Research in Personnel and Human Resources Management titled “Strategic Human Resource Management in the 21st Cen tury” and guest edited a special issue of Human Resource Management Review titled “Research in Strategic HRM for the 21st Century.”

He has conducted programs and consulted for a number of large organizations, including Comcast, Royal Dutch Shell, Kennametal, Astra-Zeneca, BT, and BP. He currently serves as a mem ber on the Board of Directors for the National Academy of Human Resources (NAHR). He is a former board member of HRPS, SHRM Foun dation, and World at Work (formerly American Compensation Asso- ciation). In 2011, 2012, and 2013 he was named by HRM Magazine as one of the 20 “Most Influential Thought Leaders in HR.”

Managing human resources is a critical component of any company’s overall mis- sion to provide value to customers, shareholders, employees, and the community in which it does business. Value includes profits as well as employee growth and satisfac- tion, creation of new jobs, contributions to community programs, and protection of the environment. All aspects of human resource management, including acquiring, preparing, developing, and compensating employees, can help companies meet their daily challenges, create value, and provide competitive advantages in the global mar- ketplace. In addition, effective human resource management requires an awareness of broader contextual issues affecting business, such as the economy, legislation, and globalization.

Both the media and academic research show that effective HRM practices result in greater value for shareholders and employees. For example, the human resource practices at companies such as Google, SAS, The Boston Consulting Group, Edward Jones, and Quicken Loans helped them earn recognition on Fortune magazine’s recent list of “The Top 100 Companies to Work For.” This publicity creates a posi- tive vibe for these companies, helping them attract talented new employees, motivate and retain current employees, and make their products and services more desirable to consumers.

Our Approach: Engage, Focus, and Apply Following graduation, most students will find themselves working in businesses or not-for-profit organizations. Regardless of position or career aspirations, their role in directly managing other employees or understanding human resource management practices is critical for ensuring both company and personal success. As a result, Fun- damentals of Human Resource Management, Sixth Edition, focuses on human resource issues and how HR is used at work. Fundamentals is applicable to both HR majors and students from other majors or colleges who are taking an HR course as an elective or a requirement.

Our approach to teaching human resource management involves engaging students in learning through the use of real-world examples and best practices; focusing them on important HR issues and concepts; and applying what they have learned through chapter features and end-of-chapter exercises and cases. Students not only learn about best practices but are actively engaged through the use of cases and decision making. As a result, students will be able to take what they have learned in the course and apply it to solving HRM problems they will encounter on the job.

As described in the guided tour of the book that follows, each chapter includes sev- eral different pedagogical features. “Best Practices” provides examples of companies whose HR activities work well. “HR Oops!” highlights HRM issues that have been handled poorly. “Did You Know?” offers interesting statistics about chapter topics and

Preface

Preface xi

how they play out in real-world companies. “HRM Social” demonstrates how social media and the Internet can be useful in managing HR activities in any organization. “Thinking Ethically” confronts students with issues that occur in managing human resources. For this new edition, we have added questions to each of the features to assist students with critical thinking and to spark classroom discussions.

Fundamentals also assists students with learning “How to” perform HR activities, such as writing effective HR policies, being strategic about equal employment opportu- nities, and making the most of HR analytics. These are all work situations students are likely to encounter as part of their professional careers. The end-of-chapter cases focus on corporate sustainability (“Taking Responsibility”), managing the workforce (“Man- aging Talent”), and HR activities in small organizations (“HR in Small Business”).

Organization of the Sixth Edition Based on user and reviewer feedback, we have made several changes to the chapter organization for the Sixth Edition. The chapter on developing human resources now concludes Part 2, and the chapter on creating and maintaining high-performance organizations has been moved up to open Part 3. We believe these changes will help strengthen the discussion of key concepts.

Part 1 (Chapters 1–4) discusses the environmental forces that companies face in trying to manage human resources effectively. These forces include economic, tech- nological, and social trends; employment laws; and work design. Employers typically have more control over work design than trends and equal employment laws, but all of these factors influence how companies attract, retain, and motivate human resources. Chapter 1 discusses why HRM is a critical component to an organization’s overall suc- cess. The chapter introduces HRM practices and the roles and responsibilities of HR professionals and other managers in managing human resources.

Some of the major trends discussed in Chapter 2 include how workers continue to look for employment as the U.S. economy recovers from recession and how the recov- ery has motivated employees to look for new jobs and career opportunities. The chap- ter also highlights the greater availability of new and less expensive technologies for HRM, including social media and the Internet; the growth of HRM on a global scale as more U.S. companies expand beyond national borders; the types of skills needed for today’s jobs; and the importance of aligning HRM with a company’s overall strategy to gain competitive advantage. Chapter 3 provides an overview of the major laws affect- ing employees and the ways organizations can develop HR practices that comply with the laws. Chapter 4 highlights how jobs and work systems determine the knowledge, skills, and abilities that employees need to perform their jobs and influence employ- ees’ motivation, satisfaction, and safety at work. The chapter also discusses the process of analyzing and designing jobs.

Part 2 (Chapters 5–8) deals with acquiring, training, and developing human resources. Chapter 5 discusses how to develop a human resources plan. It empha- sizes the strengths and weaknesses of different options for dealing with shortages and excesses of human resources, including outsourcing, use of contract workers, and downsizing. Strategies for recruiting talented employees are highlighted, including use of electronic recruiting sources such as social media and online job sites.

Chapter 6 emphasizes that employee selection is a process that starts with screen- ing applications and résumés and concludes with a job offer. The chapter takes a look at the most widely used methods for minimizing mistakes in choosing employees, including employment tests and candidate interviews. Selection method standards,

xii Preface

such as reliability and validity, are discussed in understandable terms. Chapter 7 covers the features of effective training systems. Effective training includes not only creating a good learning environment but also hiring managers who encourage employees to use training content in their jobs and hiring employees who are motivated and ready to learn. Concluding Part 2, Chapter 8 demonstrates how assessment, job experiences, formal courses, and mentoring relationships can be used to develop employees for future success.

Part 3 (Chapters 9–11) focuses on assessing and improving performance. Chap- ter 9 sets the tone for this section of the book by discussing the important role of HRM in creating and maintaining an organization that achieves a high level of per- formance for employees, managers, customers, shareholders, and community. The chapter describes high-performance work systems and the conditions that contribute to high performance. Chapter 10 examines the strengths and weaknesses of different performance management systems. Chapter 11 discusses how to maximize employee engagement and productivity and retain valuable employees as well as how to fairly and humanely separate employees when the need arises because of poor performance or economic conditions.

Part 4 (Chapters 12–14) covers rewarding and compensating human resources, including how to design pay structures, recognize good performers, and provide ben- efits. Chapter 12 discusses how managers weigh the importance and costs of pay to develop a compensation structure and levels of pay for each job given the worth of the jobs, legal requirements, and employee judgments about the fairness of pay levels. Chapter 13 covers the advantages and disadvantages of different types of incentive pay, including merit pay, gainsharing, and stock ownership. Chapter 14 highlights the contents of employee benefits packages, the ways organizations administer benefits, and what companies can do to help employees understand the value of benefits and control benefits costs.

Part 5 (Chapters 15–16) covers other HR topics including collective bargaining and labor relations and managing human resources on a global basis. Chapter 15 explores HR activities as they pertain to employees who belong to unions or who are seeking to join unions. Traditional issues in labor–management relations such as union membership and contract negotiations are discussed. The chapter also highlights new approaches to labor relations, the growing role of employee empowerment, and the shrinking size of union membership.

Concluding Part 5, Chapter 16 focuses on HR activities in international settings, including planning, selecting, training, and compensating employees who work overseas. The chapter also explores how cultural differences among countries and workers affect decisions about human resources.

New Features and Content Changes In addition to all new or revised chapter pedagogy, the Sixth Edition of Fundamentals contains the following features:

• New Format for Chapter Summaries: To help students learn chapter content, the Chapter Summary has been revamped to highlight key points in a bulleted list format for each chapter learning objective.

• Review Questions Keyed to Learning Objectives: As a way of pinpointing key concepts, the chapter review questions now tie in to specific chapter learning objectives for quick student reference.

Preface xiii

• Key Terms in Discussion Order: To assist students in learning important chap- ter topics, key terms are now listed in discussion order rather than alphabetical order at the end of the chapter. The key terms and definitions are also listed in the end-of-book glossary for additional study.

• HR in Small Business: A case has been added to each chapter that highlights some of the HR challenges faced by small businesses.

The following content changes help students and instructors keep current on important HR trends and topics:

• Chapter 1 addresses the new chapter reorganization in Figure 1.1 and Table 1.3. It also discusses a recent trend in which some companies are doing away with sepa- rate HR departments, encouraging managers and other employees to handle HR issues as they arise. Table 1.2 has been updated to list the top qualities employers look for in potential employees. Figure 1.3 has been revised to reflect the compe- tencies and example behaviors defined by the Society of Human Resource Man- agement (SHRM). Figure 1.6 has been updated to reflect current median salaries for HRM positions.

• Chapter 2 provides updated workforce statistics, including projections for num- ber of workers over the next several years, as well as a discussion on various age and ethnic groups within the workforce. Chapter figures have been revised to reflect current labor force data. Other trends discussed include which occupa- tions are expected to gain the most jobs in the coming decade. A new section on the trends in cost control and the impact of the Affordable Care Act is touched on and revisited later in the benefits chapter (Chapter 14). New sections on declining union membership and reshoring of jobs back to the United States have been added.

• Chapter 3 has been updated to include a discussion on the Lilly Ledbetter Fair Pay Act and its impact on pay discrimination and employment law. Chapter figures have been updated to reflect current statistics on age discrimination, dis- ability complaints filed under ADA, types of charges filed with the EEOC, and rates of occupational injuries and illnesses. A section has been added about how to keep emergency response workers safe as they aid victims of disasters.

• Chapter 4 includes a new discussion on analyzing teamwork and an updated dis- cussion on the growing trend among companies to encourage telework arrange- ments with workers.

• Chapter 5’s discussion on downsizing, reducing hours, and outsourcing includes new company examples that help students understand how real-world companies deal with the ups and downs of everyday business and decisions relating to human resources.

• Chapter 6 has several topics that have been updated, including the importance of hiring workers who will fit in well with a company’s culture; how the legalization of marijuana may impact drug testing as part of the employee selection process; and how companies are changing their approach to subjectivity when it comes to interviewing job candidates.

• In the training chapter (Chapter 7), new examples explore how some compa- nies are thinking differently about training strategies, employing virtual reality, simulations, teamwork exercises, and social media for learning reinforcement and employee motivation.

xiv Preface

• Chapter 8 focuses on development and includes an updated section on the use of assessment tools, including the DiSC assessment tool.

• Chapter 9 provides an updated discussion of how HRM practices can contribute to high performance of any organization, including job design, recruitment and selec- tion, training, performance management, and compensation.

• Chapter 10 includes a new discussion on how managers should adjust their approach to performance feedback to the level of performance demonstrated by individual employees.

• Chapter 11 provides an expanded discussion on implementing strategies to ensure a company’s discipline system follows procedures consistent for all employees.

• Chapter 12’s discussion about earnings data for women, men, and minorities has been updated, as well as the discussion about HRM salaries in various parts of the country. The chapter also contains current statistics about CEO pay and compensation.

• Chapter 13 focuses on recognizing employee contributions with pay, including new real-world examples about how businesses are rethinking their approach to performance bonuses, tying them to company performance, and the increased use of retention bonuses for executives and other key employees as part of company mergers and acquisitions.

• Chapter 14 includes updated data on employee benefits as a percentage of total compensation, Social Security information, and taxes paid by employers and employees. The section on health care benefits, including updates about the Patient Protection and Affordable Care Act, has been revised to include current informa- tion and requirements.

• Chapter 15 has been updated with current trends and statistics in union member- ship. Content on work stoppages and lockouts has been added. New sections focus on increased cooperation between unions and management and highlight several nonunion representation systems currently being used by companies across the country.

• Concluding the Sixth Edition, Chapter 16 highlights trends in managing human resources globally, including the issue of labor relations in various countries, which may impact a company’s ability to be successful on foreign soil.

The author team believes that the focused, engaging, and applied approach of Funda- mentals distinguishes it from other books that have similar coverage of HR topics. The book has timely coverage of important HR issues, is easy to read, has many features that grab the students’ attention, and gets students actively involved in learning.

We would like to thank those of you who have adopted previous editions of Fun- damentals, and we hope that you will continue to use upcoming editions. For those of you considering Fundamentals for adoption, we believe that our approach makes Fundamentals your text of choice for human resource management.

Acknowledgments The Sixth Edition of Fundamentals of Human Resource Management would not have been possible without the staff of McGraw-Hill Education. Despite the uncertainty surrounding the reorganization at McGraw-Hill, Mike Ablassmeir and Anke Weekes, the editors who worked on this edition of Fundamentals, deserve kudos for their laser focus on ensuring

Preface xv

that we continue to improve the book based on the ideas of both adopters and students. Also, we appreciate that they gave us creative license to use new cases and examples in the chapter pedagogy and text to keep Fundamentals interesting and current. John Weimeister, our former editor, helped us develop the vision for the book and gave us the resources we needed to develop a top-of-the-line HRM teaching package. Jane Beck’s valuable insights and organizational skills kept the author team on deadline and made the book more visu- ally appealing than the authors could have ever done on their own. We would also like to thank Cate Rzasa who worked diligently to make sure that the book was interesting, practical, and readable and remained true to findings of human resource management research. We also thank Michael Gedatus for his marketing efforts for this new edition.

We would like to extend our sincere appreciation to all of the professors who gave of their time to offer their suggestions and insightful comments that helped us to develop and shape this new edition:

Glenda Barrett University of Maryland, University College

Marian Canada Ivy Tech Community College

Jeanie Douglas Columbia College

Joseph Eppolito Syracuse University

Betty Fair Georgia College and State University

Amy Falink University of Minnesota

Lisa Foeman University of Maryland, University College

Deborah Good University of Pittsburgh

Jonathon Halbesleben University of Alabama, Birmingham

Tanya Hubanks Chippewa Valley Technical College

Roy Johnson Iowa State University

Chris McChesney Indian River State College

Garry McDaniel Franklin University

Liliana Meneses University of Maryland, University College

Barbara Minsky Troy State University, Dothan

Richard Murdock Utah Valley University

Dan Nehring Morehead State University

James Phillips Northeastern State University

David Ripley University of Maryland, University College

Rudy Soliz Houston Community College

Gary Stroud Franklin University

Gary Thurgood Texas A&M University, College Station

Sheng Wang University of Nevada, Las Vegas

Donna Wyatt University of Maryland, University College

Joy Young University of South Carolina, Columbia

Our supplement authors deserve thanks for helping us create a first-rate teaching package. Joyce LeMay of Bethel University wrote the newly custom-designed Instruc- tor’s Manual and Dr. Connie Sitterly authored the new PowerPoint presentation.

xvi Preface

We would also like to thank the professors who gave of their time to review the previous editions through various stages of development.

Michelle Alarcon, Esq. Hawaii Pacific University

Dr. Minnette A. Bumpus University of the District of Columbia

Brennan Carr Long Beach City College/El Camino College

Tom Comstock Gannon University

Susie S. Cox McNeese State University

Juan J. DelaCruz Lehman College—CUNY

AnnMarie DiSienna Dominican College

Lorrie Ferraro Northeastern University

Carla Flores Ball State University

Linette P. Fox Johnson C. Smith University

Britt Hastey UCLA, Chapman University, and Los Angeles City College

Kim Hester Arkansas State University

Samira B. Hussein Johnson County Community College

Joseph V. Ippolito Brevard College

Adonis “Sporty” Jeralds The University of South Carolina–Columbia

Guy Lochiatto Mass Bay Community College

Liliana Meneses University of Maryland University College

Kelly Mollica The University of Memphis

Tami Moser Southern Oklahoma State University

Richard J. Wagner University of Wisconsin–Whitewater

Brandon L. Young Embry-Riddle Aeronautical University

Raymond A. Noe John R. Hollenbeck Barry Gerhart Patrick M. Wright

xviixvii

The sixth edition of Fundamentals of Human Resource Management continues to offer students a brief introduction to HRM that is rich with examples and engaging in its application.

Please take a moment to page through some of the highlights of this new edition.

xviiixviii

Students who want to learn more about how human resource management is used in the everyday work environment will fi nd that the sixth edition is engaging, focused, and applied, giving them the HRM knowledge they need to succeed.

WHAT DO I NEED TO KNOW?

2 Trends in Human Resource Management What Do I Need to Know? After reading this chapter, you should be able to:

LO 2-1 Describe trends in the labor force composition and how they affect human resource management.

LO 2-2 Summarize areas in which human resource management can support the goal of creating a high-performance work system.

LO 2-3 Defi ne employee empowerment, and explain its role in the modern organization.

LO 2-4 Identify ways HR professionals can support organi- zational strategies for growth, quality, and effi ciency.

LO 2-5 Summarize ways in which human resource management can support organizations expanding internationally.

LO 2-6 Discuss how technological developments are affecting human resource management.

LO 2-7 Explain how the nature of the employment relationship is changing.

LO 2-8 Discuss how the need for fl exibility affects human resource management.

Introduction Business experts point out that if you want your company to gain an advan- tage over competitors, you have to do something differently. Some manag- ers are taking a hard look at human resources management, asking if it needs to be a department at all. At the consulting firm LRN Corporation, management decided to eliminate the human resources department. Their idea was that if all managers were responsible for managing talent, they would make those decisions in a way that directly served their group’s per- formance. Beam, the maker of spirits such as Maker’s Mark bourbon and Jim Beam whiskey, made its line managers responsible for hiring, training, and making compensation decisions. They are advised by a small group of “business partners,” who consult with the line managers on HR questions.1

Is this the end of human resource management? Probably not. The typ- ical company today is maintaining the size of its human resource depart- ment and even spending a little more on the function.2 At LRN, current and former employees have said line managers sometimes struggle with mak- ing HR decisions. For example, a line manager needs time to figure out how to define a job and set a salary range for it, which slows down the whole hiring process. At Beam, the HR business partners are playing a more strategic role than a traditional HR staffer focused on routine processes.

noe18364_ch02_029-061.indd 29 07/11/14 12:22 PM

A lot of managers are disappointed in the support they get from their HR teams, according to a survey by the Hay Group, a global consulting fi rm. The survey questioned line manag- ers and HR directors in China, the United Kingdom, and the United States about their working relation- ships. The results suggest that those relationships are often strained.

HR directors reported being chal- lenged by cutbacks in their depart- ment. One-third said they spend 21% to 50% of their time responding to inquiries from managers, and three- fourths said line managers want immediate responses. For their part, 41% of line managers in the United States said the HR department is too

slow in responding, and 47% said they could make decisions better and faster if they had more informa- tion from the department. An embar- rassing 29% rated Google above the HR department for providing perti- nent information.

Hay’s consultants suggest that human resource managers need to focus on how they can empower line managers by providing them with easy access to relevant information.

Questions

1. Suggest one way that HR managers might improve their helpfulness to line managers

2. Suggest one way that line managers can improve communications with HR managers, so they get the support they need.

Sources: Laurence Doe, “Relationship between Line Managers and HR under Increasing Strain, Hay Group Finds,” HR Magazine (UK), November 21, 2013, http://www.hrmagazine.co.uk; Hay Group, “More Managers Turn to Google for HR Information,” Business Wire, November 20, 2013, http://www .businesswire.com; Philip Spriet, “‘Power On’: From Passing the Buck to Activating the Line,” Hay Group Blog, October 16, 2013, http://blog .haygroup.com.

Less Helpful than a Search Engine?

HR Oops!

noe18364_ch02_029-061.indd 40 07/11/14 12:23 PM

Engage students through examples of companies whose HR departments have fallen short. Discussion questions at the end of each feature encourage student analysis of the situ- ation. Examples include “Few Companies Are Prepared for Future Talent Needs,” “401(k) Plans Are a Missed Opportunity for Many,” and “Cross-Cultural Management Mishaps.”

HR Oops!

UPDATED!

Assurance of learning: • Learning objectives open each chapter. • Learning objectives are referenced in the page mar-

gins where the relevant discussion begins and are referenced in each Review and Discussion Question at the end of the chapter.

• The chapter summary is written around the same learning objectives and is provided in an easy-to-read bulleted list format.

• Instructor testing questions are tagged to the appropriate objective they cover.

F e a t u r e s

xixxix

Expanding into Global Markets LO 2-5 Summarize

Land O’Lakes is an example of a company that has successfully re- duced costs by outsourcing human resource activities. Best known for its butter and other dairy products, the company is a food and agricul- ture cooperative owned by the farm- ers who participate in the business. The co-op’s 10,000 employees work toward a strategy of delivering strong fi nancial performance for its farmer- owners while providing programs and services that help the farmers operate more successfully.

In support of that strategy, Pam Grove, the senior director of ben- efi ts and HR operations, led Land O’Lakes to outsource the adminis- tration of employee benefi ts. Man- agement determined that benefi ts administration was not an activity that contributed to the company’s

strategy, and Land O’Lakes already had successfully used an outside fi rm to administer its 401(k) retire- ment savings plan. So Grove ar- ranged to have a fi rm administer its health insurance and pension plans as well.

Outsourcing achieved the basic goal of reducing costs, but that was not the only advantage. Grove freed up time for focusing on strategy- related activities, and she says the outsourcing arrangement also has improved service to employees. When the company tackled health benefi t costs by offering a high- deductible health plan, which shifts spending decisions to employees, Grove and her staff visited 100 Land O’Lakes locations to explain the new option. Employee enrollment was double her expectations, helping

the company save millions of dollars while keeping employees satisfi ed with their benefi ts.

Questions

1. When does outsourcing make strategic sense for an organization such as Land O’Lakes?

2. How does Grove ensure that a cost-conscious practice such as outsourcing is well received by employees?

Sources: Land O’Lakes Inc., “Com- pany,” http://www.landolakesinc .com, accessed April 22, 2014; Land O’Lakes Inc., “Careers,” http://www .landolakesinc.com/careers, accessed April 22, 2014; Susan J. Wells, “Benefi ts Strategies Grow: And HR Leads the Way,” HR Magazine, March 2013.

Outsourcing Enriches the Bottom Line for Land O’Lakes

Best Pract ices

noe18364_ch02_029-061.indd 45 07/11/14 12:23 PM

Engage students through examples of companies whose HR departments are work- ing well. Examples include “Morton Salt’s Prize-Winning Safety Program,” “Employees Are Quicken Loans’ Most Valuable Asset,” and “Machinists and Steelworkers Unions Help Harley-Davidson Get Lean.”

In the age of social networking, information sharing has become far more powerful than simply a means of increasing effi ciency through self-service. Creative organizations are enabling information sharing online to permit a free fl ow of knowledge among the

i ti ’ l E il I t ti l i l t ki t i l i i

Software companies are creating apps that let employees view their pay stubs, request time off, check the amounts of their bonuses, fi ll out and approve time sheets, look up coworkers in company directories, and more. At the same time, a grow- ing number of employees expect to be able to use their mobile devices for looking up work-related infor- mation. Given the possibility of and pressure for mobile HRM, here are some guidelines for making it work:

• Learn which mobile devices employees are using. Make sure applications will run properly on all the devices.

• Set priorities for introducing mobile applications that support your company’s strategy.

• Make sure your company has mobile-friendly versions of

its careers website. Many of today’s job hunters are look- ing for leads on their mobile devices, and they expect to be able to submit an application that way.

• If your company uses online training, create versions that run well on mobile devices.

• Select vendors that not only have software for existing mobile devices but also will be fl exible as hardware changes. Check references to fi nd out whether vendors have a history of keep- ing up with changing technology.

• Investigate the security protec- tion built into any app you are considering.

• Test mobile HRM apps to be sure they are easy to use and understand.

Questions

1. How could offering a mobile version of its careers website support an organization’s strategy?

2. What could be an advantage of using a software vendor for mobile HR apps, instead of having your organization’s employees create the apps?

Sources: Dave Zielinski, “The Mobiliza- tion of HR Tech,” HR Magazine, February 2014, Business Insights: Global, http:// bi.galegroup.com; Jennifer Alsever, “Objective: Hire Top Talent,” Fortune, January 23, 2014, http://money.cnn.com; Tom Keebler, “New Considerations for HR Service Delivery Success: Where to Begin?” Workforce Solutions Review, December 2013, pp. 17–19.

Providing HR Services on Mobile Devices

HR How To

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Engage students through examples of how HR departments use social media as part of their daily activities. Examples include “The Discrimination Risk of Using Social Media in Hiring,” “Salary Talk Is Trending,” and “Social Support for Getting Healthy.”

Some managers believe organiza- tions need policies restricting em- ployees’ access to social media such as Twitter and Facebook. Their belief is based on the assumption that using social media is merely a distraction from doing real work. However, the research evidence for this assumption is mixed—and the impact of social media may vary across generations of workers.

Some studies simply ask em- ployees for their opinions about their access to social media. A survey of Canadian workers found that almost two-thirds have been distracted by social media, e-mail, or Web browsing. One-third re- ported losing more than an hour a day in checking e-mail and social media, and two-thirds said they would get more done if they were

international survey of information workers, almost half said using so- cial media had increased their pro- ductivity. The younger the workers, the more likely they were to asso- ciate social-media use with greater productivity and to say they could do their jobs even better if their em- ployer would loosen restrictions on the use of social media.

Another study, conducted by the Warwick Business School, in the United Kingdom, measured output instead of opinions. According to the researchers, using social media was associated with greater productiv- ity. The two-year study of employees at a telecommunications company found that they were more produc- tive when they used social media to communicate with customers. The mixed results suggest that a single

Questions

1. Thinking about your current job or a job you would like to have, would access to social media help or distract you? Do you think your age plays a role in your opinion? Why?

2. How could human resource management support decisions about creating a policy for using social media?

Sources: Thomson Reuters, “Two-Thirds of Workers Distracted by Emails, Inter- net, Social Media: Survey,” Canadian HR Reporter, April 17, 2014, http://www. hrreporter.com; Shea Bennett, “Social Media Increases Offi ce Productivity, but Management Still Resistant, Says Study,” MediaBistro, June 26, 2013, http://www. mediabistro.com; Bernhard Warner, “When Social Media at Work Don’t Create Productivity Killing Distractions ” Bloomberg

What Social-Media Policies Are Suitable across Generations?

HRM Social

noe18364_ch02_029-061.indd 32 07/11/14 12:23 PM

Engage students through specific steps to create HRM programs and tackle common challenges. Examples include “Writing Effective HR Policies,” “Providing HR Ser- vices on Mobile Devices,” and “Complying with the Affordable Care Act.”

Did You Know?

Half of employed workers are look- ing for a new job or would welcome an offer, according to a U.S. survey by the Jobvite software company. Looking at both employed and

unemployed workers, Jobvite found that 71% are actively seeking or open to a new job. Jobvite’s CEO notes that workers with mobile devices are looking for jobs “all the time.”

Question

What challenges and opportuni- ties do employers face in a climate where half of an organization’s em- ployees feel ready to leave?

Sources: Bureau of National Affairs, “Half of Workers Open to or Actively Seeking New Job, Jobvite Survey Finds,” HR Focus, March 2014, p. 16; Dinah Wisenberg Brin, “Study: Most U.S. Workers Willing to Quit,” Society for Human Resource Management, February 25, 2014, http://www.shrm. org; company website, “Jobvite Seeker Nation Study,” 2014, http://recruiting. jobvite.com.

Half of U.S. Employees Interested in Changing Jobs

U.S. labor force

Employed workers

Workers Seeking or Open to a New Job

noe18364_ch02_029-061.indd 52 07/11/14 12:23 PM

Engage students through interesting sta- tistics related to chapter topics. Examples include “Half of U.S. Employees Interested in Changing Jobs,” “Selection Decisions Affect the Bottom Line,” and “Employers Stress Merit Pay to Retain Workers.”

Best Pract ices

HRM Social Did You Know?

HR How To UPDATED! UPDATED!

UPDATED! UPDATED!

xxxx

Focused on ethics. Reviewers indicate that the Thinking Ethically feature, which confronts students in each chapter with an ethical issue regarding managing human resources, is a high- light. This feature has been updated throughout the text.

Apply the concepts in each chapter through comprehensive review and discussion questions, which are now keyed to chapter learning objectives.

Apply concepts in each chapter through three cases that focus on corporate sustainability, talent management, and HR in small business. These cases can be used as the basis for class lectures, and the questions provided at the end of each case are suitable for assignments or discussion.

THINKING ETHICALLY

HOW SHOULD EMPLOYERS PROTECT THEIR DATA ON EMPLOYEES’ DEVICES?

One area in which business managers might consult with HR managers involves the treatment of company data on employees’ electronic devices. In the past, or- ganizations stored their data on their own hardware. But laptop computers and, more recently, tablet computers and smartphones make it possible for employees to carry around data on these mobile devices. Increasingly often, the devices are not even owned by the company, but by the employees themselves. For example, an em- ployee’s smartphone might include business as well as personal contacts in several mobile apps.

The situation is convenient for everyone until something goes wrong: a device is lost, an employee becomes upset with a manager, or the organization lays off some workers. From the standpoint of pro- tecting data, the obvious solution is to remove the data from the devices. So far, no law forbids this. However, it has consequences for the employees. Remotely wiping data from a device will remove all of it, including the user’s personal data, such as photos and addresses.

Companies are addressing concerns by crafting se- curity policies for employees who want to use their own devices for work-related tasks such as e-mail. Typi- cally, the policy requires the employee to download a program for mobile device management. If specifi ed

conditions arise, such as loss of the device or termina- tion of the employee, the company can use the software to send the device a message that wipes out all the data stored on the device. The company also can give the employee some notice, allowing time to save personal data, but this increases the risk to the company. Some employees have complained about their phones being unexpectedly erased after they left a company. They admit they might have been given a link to terms and conditions but tend not to read the terms of using a pro- gram such as company e-mail.

Questions

1. Imagine you work in the human resources depart- ment of a company considering a policy to protect its data on employees’ mobile devices. In advising on this policy, what rights should you consider?

2. What advice would you give or actions would you take to ensure that the policy is administered fairly and equitably?

Sources: “Using Your Personal Phone for Work Could Cost You,” CBS Miami, March 26, 2014, http://miami.cbslocal.com; Lauren Weber, “BYOD? Leaving a Job Can Mean Losing Pic- tures of Grandma,” Wall Street Journal, January 21, 2014, http:// online.wsj.com; Society for Human Resource Management, “Safety and Security Technology: Can an Employer Remotely Wipe/Brick an Employee’s Personal Cell Phone?” SHRM Knowledge Center, November 5, 2013, http://www.shrm.org.

noe18364_ch02_029-061.indd 54 07/11/14 12:23 PM

REVIEW AND DISCUSSION QUESTIONS

1. What is the role of each branch of the federal gov- ernment with regard to equal employment oppor- tunity? (LO 3-1)

2. For each of the following situations, identify one or more constitutional amendments, laws, or execu- tive orders that might apply. (LO 3-2)

a. A veteran of the Vietnam conflict experiences lower-back pain after sitting for extended peri- ods of time. He has applied for promotion to a supervisory position that has traditionally involved spending most of the workday behind a desk.

b. One of two female workers on a road construc- tion crew complains to her supervisor that she feels uncomfortable during breaks, because the other employees routinely tell off-color jokes.

c. A manager at an architectural firm receives a call from the local newspaper. The reporter wonders how the firm wishes to respond to calls from two of its employees alleging racial discrimination. About half of the firm’s employ- ees (including all of its partners and most of its architects) are white. One of the firm’s clients is the federal government.

3. For each situation in the preceding question, what actions, if any, should the organization take? (LO 3-4)

4. The Americans with Disabilities Act requires that employers make reasonable accommodations for individuals with disabilities. How might this

requirement affect law enforcement offi cers and fi refi ghters? (LO 3-4)

5. To identify instances of sexual harassment, the courts may use a “reasonable woman” standard of what constitutes offensive behavior. This standard is based on the idea that women and men have dif- ferent ideas of what behavior is appropriate. What are the implications of this distinction? Do you think this distinction is helpful or harmful? Why? (LO 3-5)

6. Given that the “reasonable woman” standard re- ferred to in Question 5 is based on women’s ideas of what is appropriate, how might an organization with mostly male employees identify and avoid be- havior that could be found to be sexual harassment? (LO 3-5)

7. What are an organization’s basic duties under the Occupational Safety and Health Act? (LO 3-6)

8. OSHA penalties are aimed at employers, rather than employees. How does this affect employee safety? (LO 3-7)

9. How can organizations motivate employees to pro- mote safety and health in the workplace? (LO 3-8)

10. For each of the following occupations, identify at least one possible hazard and at least one action employers could take to minimize the risk of an in- jury or illness related to that hazard. (LO 3-8)

a. Worker in a fast-food restaurant b. Computer programmer c. Truck driver d. House painter

noe18364_ch03_062-100.indd 96 07/11/14 12:24 PM

58 e u a esou ce o e t

Netflix Treats Workers “Like Adults” When Patty McCord talks about human resource man- agement at Netfl ix, she refers to treating people “like adults.” McCord, until recently the company’s chief tal- ent offi cer, means the company hires people who are mature enough to take responsibility and then simply gives them responsibility. The result, McCord insists, is that employees live up to what is expected of them. If not, the company feels free to fi nd someone else. That direct approach makes sense to the knowledge work- ers who populate the results-oriented, data-respecting world of information technology.

When McCord was at Netfl ix, she and CEO Reed Hastings settled on fi ve principles that would direct the company’s approach to human resource management:

1. Hire, reward, and keep only “fully formed adults.” For McCord and Hastings, such employees use common sense, address problems openly, and put company in- terests ahead of their own. People like this need not be managed with endless policies. Rather, the com- pany can trust them to take off time when they need it and spend money appropriately. The employees also are literally adults; Netfl ix favors hiring experi- enced workers over recruiting at colleges.

2. Tell the truth about performance. Managers are expected to make performance feedback part of their routine conversations with employees. If an employee is no longer working out, managers are supposed to let him or her know directly, offering a good severance pack- age to smooth a dignifi ed path to the exit.

3 Managers are responsible for creating great teams The

4. The company’s leaders must create the company culture. Netfl ix executives are supposed to model behaviors such as truth-telling and treating people like adults.

5. HR managers should think of themselves fi rst as business- people. As chief talent manager, McCord focused on the company’s fi nancial success and products, not on employee morale. She assumed that if employees, as adults, were able to make Netfl ix a high-performance organization and be compensated fairly, that would improve morale more than anything.

To put these principles into action, Netfl ix rewards high- performing employees with fair pay and a fl exible sched- ule. Employees who do not perform up to standards are asked to leave. Rewarding high performance, in fact, makes it easier to allow fl exibility and empowerment, be- cause managers do not have to police every action and decision. It also creates an environment in which employ- ees do not assume they have a Netfl ix job forever. Rather, they are responsible for doing good work and developing the skills that continue to make them valuable to their employer. Netfl ix’s approach to talent helps the company stay agile—perhaps agile enough to withstand the shift- ing winds of entertainment in the digital age.

Questions 1. How well suited do you think Netfl ix’s principles are

to managing the knowledge workers (mainly soft- ware engineers) who work for Netfl ix? Explain.

2. What qualities of Netfl ix support the idea that it is a high-performance work system? What other quali-

MANAGING TALENT

noe18364_ch02_029-061.indd 58 07/11/14 12:23 PM

F e a t u r e s

xxi

Across the country, instructors and students continue to raise an important question: How can Human Resource Management courses further support students throughout the learning process to shape future business leaders? While there is no one solution, we see the impact of new learning technologies and innovative study tools that not only fully engage students in course material but also inform instructors of the stu- dents’ skill and comprehension levels.

Interactive learning tools, including those offered through McGraw-Hill Connect, are being implemented to increase teaching effectiveness and learn- ing efficiency in thousands of colleges and universities. By facilitating a stron- ger connection with the course and incorporating the latest technologies—such as McGraw-Hill LearnSmart, an adaptive learning program—these tools enable students to succeed in their college careers, which will ultimately increase the per- centage of students completing their postsecondary degrees and create the business leaders of the future.

McGraw-Hill Connect

business

® Connect is an all-digital teaching and learning environment designed from the ground up to work with the way instructors and students think, teach, and learn. As a digital teaching,

assignment, and assessment platform, Connect strengthens the link among faculty, stu- dents, and coursework, helping everyone accomplish more in less time.

LearnSmart THE SMARTEST WAY TO GET FROM B TO A

LearnSmart is the most widely used and intelligent adaptive learning resource. It is proven to strengthen memory recall, improve course retention, and boost grades by distinguishing between what students know and what they don’t know and honing in on the concepts that they are most likely to forget. LearnSmart con- tinuously adapts to each student’s needs by building an individual learning path. As a result, students study smarter and retain more knowledge.

Results-Driven Support

Grade Distribution

Without LearnSmart

A 30.5%

B 33.5%

C 22.6%

A 19.3%

B 38.6%

C 28.0%

With LearnSmart

58% more As with LearnSmart

With LearnSmart

Without LearnSmart

Student Pass Rate

25% more students passed with LearnSmart

xxii Results-Driven Support

SmartBook A REVOLUTION IN READING

Fueled by LearnSmart, SmartBook is the first and only adaptive reading experience available today. SmartBook personalizes content for each student in a continuously adapting reading experience. Reading is no longer a passive and linear experience, but an engaging and dynamic one where students are more likely to master and retain important concepts, coming to class better prepared.

LearnSmart Achieve EXCEL IN YOUR CLASS

Accelerate student success with Learn- Smart Achieve™—the first and only adap- tive study experience that pinpoints

individual student knowledge gaps and provides targeted, interactive help at the moment of need.

Interactive Applications A HIGHER LEVEL OF LEARNING

These exercises require students to APPLY what they have learned in a real-world scenario. These online exercises will help students assess their understanding of the concepts.

Media Rich eBook Connect provides students with a cost-saving alternative to the traditional textbook. A seamless integration of a media rich eBook features the following:

• A web-optimized eBook, allowing for anytime, anywhere online access to the textbook.

• Powerful search function to pinpoint and connect key concepts in a snap. • Highlighting and note-taking capabilities as well as access to shared instructors’

notations.

xxiii

Connect and LearnSmart allow students to present course material to students in more ways than just the explanations they hear from me directly. Because of this, students are processing the material in new ways, requiring them to think. I now have more students asking questions in class because the more we think, the more we question.

Instructor at Hinds Community College

business

® McGraw-Hill strengthens the link between faculty, students, and coursework, helping everyone accomplish more in less time.

Efficient Administrative Capabilities Connect offers you, the instructor, auto-gradable material in an effort to facilitate teaching and learning.

The Best Instructor Support on the Market

60 minutes without Connect

Reviewing Homework

60 minutes without Connect

15 minutes with Connect

60 minutes without Connect

0 minutes with Connect

12 minutes with Connect

Giving Tests or Quizzes Grading

Student Progress Tracking Connect keeps instructors informed about how each student, section, and class is per- forming, allowing for more productive use of lecture and office hours. The progress tracking function enables instructors to:

• View scored work immediately and track individual or group performance with assignment and grade reports.

• Access an instant view of student or class performance relative to learning objectives. • Collect data and generate reports required by

many accreditation organizations, such as AACSB.

Actionable Data Connect Insight is a powerful data analytics tool that allows instructors to leverage aggregated information about their courses and students to provide a more per- sonalized teaching and learning experience.

xxiv The Best Instructor Support on the Market

Connect Instructor Library Connect’s instructor library serves as a one-stop, secure site for essential course materi- als, allowing you to save prep time before class. The instructor resources found in the library include: • Instructor’s Manual: The custom-designed Instructor’s Manual includes chapter

summaries, learning objectives, an extended chapter outline, key terms, description of text boxes, discussion questions, summary of end-of-chapter cases, and additional activities.

• Test Bank: The Test Bank has been revised and updated to reflect the content of the Sixth Edition of the book. Each chapter includes multiple-choice, true/false, and essay questions.

• EZ Test: McGraw-Hill’s EZ Test is a flexible and easy-to-use electronic testing program. The program allows instructors to create tests from book-specific items. It accommodates a wide range of question types and instructors may add their own questions. Multiple versions of the test can be created and any test can be exported for use with course management systems such as BlackBoard, D2L, or Moodle. The program is available for Windows and Macintosh environments.

• PowerPoint: The slides include lecture material, additional content to expand concepts in the text, and discussion questions, and the PowerPoint slides also include detailed teaching notes.

• Videos: Human Resource Management Video DVD, volume 3, offers video clips on HRM issues for each chapter of this edition. You’ll find a new video produced by the SHRM Foundation entitled “Once the Deal Is Done: Making Mergers Work.” Three new videos specifically address employee benefits: “GM Cuts Ben- efits and Pay,” “Sulphur Springs Teachers,” and “Google Employees’ Perks.” Other new videos available for this edition include “E-Learning English” for the chapter on employee development and “Recession Job Growth” for the chapter on HR planning recruitment. Two new videos specifically address recession-related HR issues: “Some Workers Willing to Sacrifice to Avoid Layoffs” and “Stretched Small Business Owners Forced to Lay Off Employees.” Other notable videos available for this edition include “Johnson & Johnson eUniversity” for the chapter on training and “Hollywood Labor Unions” for the chapter on collective bargaining and labor relations.

Video Library DVDs McGraw-Hill offers the most comprehensive video support for the Human Resource Management classroom through course library video DVDs. This discipline has library volume DVDs tailored to integrate and visually reinforce chapter concepts. The library volume DVD contains more than 40 clips! The rich video material, organ- ized by topic, comes from sources such as PBS, NBC, BBC, SHRM, and McGraw- Hill. Video cases and video guides are provided for some clips.

Destination CEO Videos These video clips feature CEOs on a variety of topics. Accompanying each clip are multiple-choice questions and discussion questions to use in the classroom or assign as a quiz.

The Best Instructor Support on the Market xxv

Create Instructors can now tailor their teach- ing resources to match the way they teach! With McGraw-Hill Create, www. mcgrawhillcreate.com, instructors can

easily rearrange chapters, combine material from other content sources, and quickly upload and integrate their own content, like course syllabi or teaching notes. Find the right content in Create by searching through thousands of leading McGraw-Hill text- books. Arrange the material to fit your teaching style. Order a Create book and receive a complimentary print review copy in three to five business days or a complimentary electronic review copy via e-mail within one hour. Go to www.mcgrawhillcreate. com today and register.

Binder-Ready Loose-Leaf Text (ISBN 9781259304415) This full-featured text is provided as an option to the price-sensitive student. It is a four-color text that’s three-hole punched and made available at a discount to students. It is also available in a package with Connect.

Tegrity Campus

Tegrity makes class time available 24/7 by auto- matically capturing every lecture in a searchable format for students to review when they study and

complete assignments. With a simple one-click start-and-stop process, you capture all computer screens and corresponding audio. Students can replay any part of any class with easy-to-use browser-based viewing on a PC or Mac. Educators know that the more students can see, hear, and experience class resources, the better they learn. In fact, studies prove it. With patented Tegrity “search anything” technology, students instantly recall key class moments for replay online or on iPods and mobile devices. Instructors can help turn all their students’ study time into learning moments imme- diately supported by their lecture. To learn more about Tegrity, watch a two-minute Flash demo at http://tegritycampus.mhhe.com.

Blackboard® Partnership McGraw-Hill Education and Blackboard have teamed up to simplify your life. Now you and your students can access Connect and Create right from within your Black- board course—all with one single sign-on. The grade books are seamless, so when a student completes an inte- grated Connect assignment, the grade for that assignment automatically (and instantly) feeds your Blackboard grade center. Learn more at www.domorenow.com.

McGraw-Hill Campus™ McGraw-Hill Campus is a new one-stop teach- ing and learning experience available to users of any learning management system. This institutional service allows faculty and students

xxvi The Best Instructor Support on the Market

to enjoy single sign-on (SSO) access to all McGraw-Hill Higher Education materials, including the award-winning McGraw-Hill Connect platform, from directly within the institution’s website. With McGraw-Hill Campus, faculty receive instant access to teaching materials (e.g., eBooks, test banks, PowerPoint slides, animations, learning objects, etc.), allowing them to browse, search, and use any instructor ancillary content in our vast library at no additional cost to instructor or students.

Course Design and Delivery In addition, students enjoy SSO access to a variety of free content (e.g., quizzes, flash cards, narrated presentations, etc.) and subscription-based products (e.g., McGraw- Hill Connect). With McGraw-Hill Campus enabled, faculty and students will never need to create another account to access McGraw-Hill products and services. Learn more at www.mhcampus.com.

Assurance of Learning Ready Many educational institutions today focus on the notion of assurance of learning, an important element of some accreditation standards. Fundamentals of Human Resource Management is designed specifically to support instructors’ assurance of learning ini- tiatives with a simple yet powerful solution. Each test bank question maps to a specific chapter learning objective listed in the text. Instructors can use our test bank software, EZ Test and EZ Test Online, to easily query for learning objectives that directly relate to the learning outcomes for their course. Instructors can then use the reporting fea- tures of EZ Test to aggregate student results in similar fashion, making the collection and presentation of assurance of learning data simple and easy.

AACSB Tagging McGraw-Hill Education is a proud corporate mem- ber of AACSB International. Understanding the importance and value of AACSB accreditation, Fun- damentals of Human Resource Management recognizes

the curricula guidelines detailed in the AACSB standards for business accreditation by connecting selected questions in the text and the test bank to the six general knowl- edge and skill guidelines in the AACSB standards. The statements contained in Fun- damentals of Human Resource Management are provided only as a guide for the users of this textbook. The AACSB leaves content coverage and assessment within the purview of individual schools, the mission of the school, and the faculty. While the Fundamen- tals of Human Resource Management teaching package makes no claim of any specific AACSB qualification or evaluation, we have labeled selected questions according to the six general knowledge and skills areas.

McGraw-Hill Customer Experience Group Contact Information At McGraw-Hill Education, we understand that getting the most from new technology can be challenging. That’s why our services don’t stop after you purchase our products. You can e-mail our Product Specialists 24 hours a day to get product training online. Or you can search our knowledge bank of Frequently Asked Questions on our support website. For Customer Support, call 800-331-5094 or visit www.mhhe.com/support. One of our Technical Support Analysts will be able to assist you in a timely fashion.

xxvii

Brief Contents

Preface x

PART 1

The Human Resource Environment 1 1 Managing Human Resources 2

2 Trends in Human Resource Management 29

3 Providing Equal Employment Opportunity and a Safe Workplace 62

4 Analyzing Work and Designing Jobs 101

PART 2

Acquiring, Training, and Developing Human Resources 131 5 Planning for and Recruiting Human

Resources 132

6 Selecting Employees and Placing Them in Jobs 167

7 Training Employees 200

8 Developing Employees for Future Success 236

PART 3

Assessing and Improving Performance 269 9 Creating and Maintaining High-

Performance Organizations 270

10 Managing Employees’ Performance 298

11 Separating and Retaining Employees 332

PART 4

Compensating Human Resources 365 12 Establishing a Pay Structure 366

13 Recognizing Employee Contributions with Pay 395

14 Providing Employee Benefits 423

PART 5

Meeting Other HR Goals 459 15 Collective Bargaining and Labor

Relations 460

16 Managing Human Resources Globally 495

Glossary 530

Credits 540

Name and Company Index 541

Subject Index 555

xxviii

Contents

Preface x

PART 1

The Human Resource Environment 1 1 Managing Human Resources 2 Introduction 2

Human Resources and Company Performance 3

Responsibilities of Human Resource Departments 5 Analyzing and Designing Jobs 7 Recruiting and Hiring Employees 7 Training and Developing Employees 8 Managing Performance 8

BEST PRACTICES

How Abbott Laboratories Creates a Healthy Business 9

Planning and Administering Pay and Benefits 9 Maintaining Positive Employee Relations 10 Establishing and Administering Personnel Policies 10

HR HOW TO

Writing Effective HR Policies 11

Managing and Using Human Resource Data 11 Ensuring Compliance with Labor Laws 12 Supporting the Organization’s Strategy 12

HR OOPS!

“Talent Management Sounds Great, but . . .” 13

Skills of HRM Professionals 14

DID YOU KNOW?

CEO and CFO Relationships with HRM 16

HR Responsibilities of Supervisors 17

Ethics in Human Resource Management 18 Employee Rights 18 Standards for Ethical Behavior 19

Careers in Human Resource Management 20

HRM SOCIAL

SHRM’s Social-Media Presence 21

Organization of This Book 22

THINKING ETHICALLY

How Should an Employer Weigh Conflicting Values? 23

Summary 23

Key Terms 24

Review and Discussion Questions 24

Taking Responsibility: How “Good Things Happen to” Costco 25

Managing Talent: Ingersoll Rand’s Problem-Solving Approach to HRM 26

HR in Small Business: Managing HR at a Services Firm 26 Notes 27

2 Trends in Human Resource Management 29

Introduction 29

Change in the Labor Force 30 An Aging Workforce 30

HRM SOCIAL

What Social-Media Policies Are Suitable across Generations? 32

A Diverse Workforce 32 Skill Deficiencies of the Workforce 35

High-Performance Work Systems 35 Knowledge Workers 36 Employee Empowerment 38 Teamwork 38

Focus on Strategy 39

HR OOPS!

Less Helpful than a Search Engine? 40

Contents xxix

Mergers and Acquisitions 40 High Quality Standards 41 Cost Control 42

BEST PRACTICES

Outsourcing Enriches the Bottom Line for Land O’Lakes 45

Expanding into Global Markets 45

Technological Change in HRM 47 Electronic Human Resource Management (e-HRM) 48 Sharing of Human Resource Information 49

HR HOW TO

Providing HR Services on Mobile Devices 50

Change in the Employment Relationship 50 A Psychological Contract 51 Declining Union Membership 51

DID YOU KNOW?

Half of U.S. Employees Interested in Changing Jobs 52

Flexibility 52

THINKING ETHICALLY

How Should Employers Protect Their Data on Employees’ Devices? 54

Summary 55

Key Terms 56

Review and Discussion Questions 56

Taking Responsibility: Taking Care of People Gives Cisco Systems a Strategic Advantage 57

Managing Talent: Netflix Treats Workers “Like Adults” 58

HR in Small Business: Radio Flyer Rolls Forward 58

Notes 59

3 Providing Equal Employment Opportunity and a Safe Workplace 62

Introduction 62

Regulation of Human Resource Management 63

Equal Employment Opportunity 64 Constitutional Amendments 64 Legislation 66 Executive Orders 72

The Government’s Role in Providing for Equal Employment Opportunity 73

Equal Employment Opportunity Commission (EEOC) 73

HR HOW TO

Being Strategic about EEO 74

Office of Federal Contract Compliance Programs (OFCCP) 75

Businesses’ Role in Providing for Equal Employment Opportunity 76 Avoiding Discrimination 76

HRM SOCIAL

The Discrimination Risk of Using Social Media in Hiring 78

HR OOPS!

Lack of Rewards May Explain “Leaky Pipeline” 80

Providing Reasonable Accommodation 81 Preventing Sexual Harassment 82 Valuing Diversity 83

Occupational Safety and Health Act (OSH Act) 84 General and Specific Duties 85 Enforcement of the OSH Act 87 Employee Rights and Responsibilities 87 Impact of the OSH Act 88

Employer-Sponsored Safety and Health Programs 88 Identifying and Communicating Job Hazards 89

BEST PRACTICES

Morton Salt’s Prize-Winning Safety Program 90

Reinforcing Safe Practices 91

DID YOU KNOW?

Top 10 Causes of Workplace Injuries 92

Promoting Safety Internationally 93

THINKING ETHICALLY

Is Discrimination against the Unemployed Ethical? 93

Summary 94

Key Terms 95

Review and Discussion Questions 96

Taking Responsibility: Keeping Sprint’s Subcontractors Safe 96

Managing Talent: Walmart’s Struggle to Manage Diversity and Safety on a Grand Scale 97

xxx Contents

Managing Talent: Amazon’s Warehouse Jobs: Good or Grueling Work? 128

HR in Small Business: Inclusivity Defines BraunAbility’s Products and Its Jobs 128

Notes 129

PART 2

Acquiring, Training, and Developing Human Resources 131 5 Planning for and Recruiting Human

Resources 132 Introduction 132

The Process of Human Resource Planning 133 Forecasting 133 Goal Setting and Strategic Planning 136

HR OOPS!

Trimming More Than Just Fat 139

HR HOW TO

Using Temporary Employees and Contractors 142

Implementing and Evaluating the HR Plan 144

DID YOU KNOW?

The Biggest Hiring Challenges Involve Recruiting 145

Applying HR Planning to Affirmative Action 145

Recruiting Human Resources 146

Personnel Policies 147

Recruitment Sources 148 Internal Sources 148

BEST PRACTICES

Sources of Talent for Advanced Technology Services 149

External Sources 149

HRM SOCIAL

Social Networks Can Also Be Career Networks 152

Evaluating the Quality of a Source 155

Recruiter Traits and Behaviors 156 Characteristics of the Recruiter 157 Behavior of the Recruiter 157 Enhancing the Recruiter’s Impact 157

THINKING ETHICALLY

Is Something Wrong with a Mutual Agreement Not to “Steal” Employees? 159

Summary 160

HR in Small Business: Company Fails Fair- Employment Test 98

Notes 99

4 Analyzing Work and Designing Jobs 101 Introduction 101

Work Flow in Organizations 102 Work Flow Analysis 102 Work Flow Design and an Organization’s Structure 103

HR OOPS!

Workers Often Don’t Have What They Need to Succeed 104

Job Analysis 105 Job Descriptions 105 Job Specifications 106

HR HOW TO

Identifying Relevant KSAOs 108

Sources of Job Information 109 Position Analysis Questionnaire 109 Fleishman Job Analysis System 110 Analyzing Teamwork 111 Importance of Job Analysis 111

HRM SOCIAL

With Good Analysis, Work Isn’t Just a Game 112

Competency Models 112 Trends in Job Analysis 114

Job Design 114 Designing Efficient Jobs 115 Designing Jobs That Motivate 115

BEST PRACTICES

Big Data for High Efficiency at UPS 116

DID YOU KNOW?

Occasional Telework Dominates Flexibility Options 121

Organizational Design And Structure

November 29, 2022/in Uncategorized /by SK

I need someone to complete these responses for me. They must be at least 400 words with at least 2 searchable refernces. Thank you!

1. Chapter 1: Why is shared information so important in a learning organization in comparison to an efficient performance organization? Discuss how an organization’s approach to sharing information may be related to other elements of organization design such as structure, tasks, strategy, and culture.

One can agree that sharing information across a company’s department is a very imperative tool for current and future success. Shared information is essential in a learning organization as compared to an efficient performance organization because sharing information endorses and encourages communications and partnership enabling people to be involved in ascertaining and solving various problems. This allows an organization to unceasingly advance and expand its capability. The three characteristics of a learning organization as follows:

“It develops both individual and collective knowledge;
It uses learning to improve performance and boost competitive advantage; and
It continuously enhances its capacity, through reflexive praxis, to adapt to its external environment. “(Lyle, E. R. 2012)

Furthermore, within the learning organization, shared information keeps the organization operational at an ideal level, instead of using the information to take hold of the employees; a fundamental part of the manager’s day-to-day operations is to find efficient and effective ways to open up channels of communication so that ideas can flow in every direction. Shared information maintains open lines of communication with customers, suppliers and at times even competitors to enhance the structure, learning, culture and strategy capabilities. There’s a correlation between information sharing and structure; during 1776 in the time of Adam Smith, organization information was only kept between top executives and the design of the organizations were very vertical. The hierarchy provided the mechanism for total supervision and control, the strategy was constructed by the top management and executed on the organization. Over time, most organizations have gone away of the traditional vertical structures and implemented horizontal structures such as the learning organization. The new structures dispersed the boundaries between top management and the workers.

Then, new and update structures changed the task performances from monotonous tasks to empowered roles. For the task were broken into specialized separate parts as a machine, and now a task is assigned to one worker. This also allowed for the empowered employees to have the strategy change in such a way that employees are now in with identifying needs and finding solutions, thus participating in the strategy making. Furthermore, the new collaboration strategy has changed the culture in which organizations do business from the old rigid culture into a more adaptive culture. Contrarily, in an efficient performance organization, there is no need for sharing information for the flow of production is linear. A great example of an efficient performance organization is a manufacturing company, where parts are made in order and each department is different from the other.

Chapter 1: What are some differences that one might anticipate the expectations of stakeholder for a nonprofit organization versus a for-profit business? Do you believe nonprofit managers have to pay more attention to stakeholders than business managers?

One of the key differences between non-profit organizations and for-profit businesses is that for-profit organizations use more factors for production labor to maximize profit. Such factors include capital, land, and technology intensive. Non-profit organizations totally depend on goodwill donations from public, private sectors, citizens, and government entities. Most for –profit financial activities are contingent upon marketing strategies and profit on the sale of goods and services (Daft, 2013). Other differences that one may anticipate in regards to stakeholders for nonprofit and for-profit organizations as opposed to for-profit organizations is as following; stakeholders in for-profit organizations are more engrossed on the level in which their products appeal to consumers and in what ways does it maximize profits.

Non-profit organizations focus their attention toward volunteering individuals and communities for donations. In addition, for-profit has great prospects on profit margin where they expect the business to have more profits than expenses, whereas non-profit organizations are more focused on how the organization can bring about change in the life of an individual or a community (Daft,2013). Though non-profit and for-profit organization stakeholders have different interest, they both have the responsibility to conduct their job to better the company and the stakeholder’s interest. Business managers represent the stakeholders and are entrusted to bring about profit and revenue toward the business, whereas non-profit managers rely on the stakeholders to raise funds in order to run the day-to-day operations of the organization, thus, I believe that non-profit managers have to pay more attention to stakeholders than business managers.

Chapter 2: How might a company’s goals for employee development be related to its goals for innovation and change? How might a company’s goals for employee development be related to its goals for productivity? Explain the ways that these types of goals may conflict in an organization?

Overall, employee development may be looked at as a requirement for innovation or productivity. Goals for innovation and change may stimulate different approaches by different employees, leading to conflict. Correspondingly, execution for productivity may be approached so differently by different employees that it would lead to conflict. Such conflict, if in the form of constructive disagreement, can be healthy for determination of the best path.

Some goals may initially cause a decrease in profit and employee development can be costly. Richard Daft mentioned that employee development, goals for innovation and change are all operational goals; and at times, they are related. If a company is in need of an enthusiastic staff that’s passionate about providing excellent customer service, thus, the company bust invests a lot of time and money in its employee development. In regards to productivity, employee development will speed up the process and at times reduce production cost and improve service times and many other vital aspects of customer service.

Moreover, successful companies became successful by having a clear and concise vision, it is very important for one to understand and follow what God States “without a vision the people perish, and if the blind lead the blind they will both fall into the ditch” (KJVB”. If the top management heads have different goals than what their employees have, the organization will have conflicting views. There needs to be a balance between enlargement and keeping the process at hand.

Chapter 2: Suppose you have been asked to evaluate the effectiveness of the police department in a medium-sized community. Where would you begin? How would you proceed? What effectiveness approach would you prefer?

One can agree that it is very difficult to use the goal approach or system resource approach alone. One way to evaluate the effectiveness of the police department would be to follow a procedure to identify indicator goals, system resources, and internal process indicators. The measures can then be formulated into a combined approach to testing the effectiveness of the medium-sized community.

Chapter 3: What types of organizational activities do you believe are most likely to be outsourced? What types are least likely? How can/should a biblical worldview be applied?

Outsourcing is best described as a way to contract certain tasks or functions, such as manufacturing, human resources, or credit processing, to other companies” (Daft R., 2013). Outsourcing is a way fro companies to save money and cut back on expenses and they can also increase their output by providing services in different areas in which they were not able to provide before. Types of organizational activities that are likely to be outsourced include sanitization and janitorial duties and even food services. Also, marketing, IT, accounting and public relations can also be outsourced depending on the size of the company. Human resources are least likely to be outsourced because other than profit, it is one of the most important part of a company. Their main mission is to support the employees and keep the CEO, COO out of harms way.

A biblical worldview can be applied to reflect the culture and the nature in which one wants to run the company, manage employees, and donate. Romans 10:14 states, “How then shall they call on him in whom they have not believed? and how shall they believe in him of whom they have not heard? and how shall they hear without a preacher (KJV)?” Philippians 2:14-15 states “Do all things without grumbling or questioning, that you may be blameless and innocent, children of God without blemish in the midst of a crooked and twisted generation, among whom you shine as lights in the world”.

References:

Baker, H. E., & Paulson, S. K. (2007). Experiential exercises in organization theory & design. Mason, OH: Thomson South-Western.

Daft, R. (2013). Organization theory & design (11th ed.). Mason, OH: South-Western Cengage Learning. ISBN: 9781111221294.

Johnston, L. (2009). Employee development that matters. Canadian HR Reporter, 22(15), 35. Retrieved from http://search.proquest.com/docview/220782179?accountid=12085

Lyle, E. R. (2012). LEARNING ORGANISATION AL] LEARNING: International Journal of Business and Social Science, 3(6) Retrieved from http://search.proquest.com/docview/924460837?accountid=12085rticl

The King James Bible

2. Chapter 1: Why is shared information so important in a learning organization in comparison to an efficient performance organization? Discuss how an organization’s approach to sharing information may be related to other elements of organization design such as: structure, tasks, strategy, and culture.

Within learning organizations sharing information is a significant component because without this very important tool progression can be hindered or stalled. An efficient performance strategy is fashioned by upper managers and imposed on the organization. Employees have a very essential role and without being able to share information the aspect of teamwork becomes more difficult to obtain. The end results will be delays in work and service.

Sharing information also causes for a culture that is more positive and open because everyone is involved and has a sense of importance in the overall functionality of the organization from top to bottom. “If the structure doesn’t fit the information requirements of the organization, people either will have too little information or will spend time processing information that is not vital to their tasks, thus reducing effectiveness” (Daft, 2013, p. 96).” Efficiency is one of the goals of managers for the proper function of the organization so communicating with the employees who are in constant contact with customers and suppliers will create an environment of productivity and not unproductivity.

Chapter 1: What are some differences that one might anticipate among the expectations of stakeholder for a nonprofit organization versus a for-profit business? Do you believe nonprofit managers have to pay more attention to stakeholders than business managers?

One of the first differences that might be anticipated among the expectations of stakeholder for a nonprofit organization versus a for-profit is in the management. “The primary difference is that managers in businesses direct their activities toward earning money for the company, whereas managers in nonprofits direct their efforts toward generating some kind of social impact (Daft, 2013, p. 13). Managers in nonprofit organizations have the challenge of not only attracting diversity with their stakeholders but they also require volunteers and donors in order to operate on a daily basis. Managers in for-profit organizations are focused on making profits for the organization without too much focus on the overall social impact.

I do believe that nonprofit managers need to pay more attention to stakeholders because of their social impact. For example, if a church is accepting donations from an organization like Planned Parenthood, this can cause for a problem for its volunteers seeing that there is a difference in belief with what the bible teaches and what Planned Parenthood supports.

Chapter 2: How might a company’s goals for employee development be related to its goals for innovation and change? How might a company’s goals for employee development be related to its goals for productivity?

A company’s goals for employee development are directly related to its goals for innovation and change. The innovation and change for the company cannot take place unless its employees are well training and advanced in multiple areas. This means that investing in the development of their employees will pose to be most beneficial to the entire company as a whole. When companies seek out new employees they are sure to ask about education, training, and experience because they want to be adding to their company and not taking away.

If the company has the most trained and developed employees the productivity also increases. “Remember that workforce training helps (1) workers adjust to changes in your industry, (2) employees respond successfully to customer needs while adjusting their performance to meet changing expectations, (3) reduce workforce accidents by ensuring that employees know how to react to high-risk situations, and (4) employees at all levels adapt to changes in technology” (Four Reasons to Have a Well-Trained Workforce , 2015). This will result in fewer mistakes which will result in cost savings and better productivity.

Chapter 2: Suppose you have been asked to evaluate the effectiveness of the police department in a medium-sized community. Where would you begin? How would you proceed? What effectiveness approach would you prefer?

In order to evaluate the effectiveness of a police department in a medium-sized community I would proceed to use the resource based approach which is a model that considers resources as the main key factor to superior firm performance. For a police department it may be difficult to measure performance since they are very much comprised of teams of specialized units so examining how they are currently using their resources will give a better picture then using one of the other approaches.

Chapter 3: What types of organizational activities do you believe are most likely to be outsourced? What types are least likely?

Some of the types of organizational activities that are most likely to be outsourced are manufacturing, technology, and consultants. In a small business, cutting costs help support the financial health of the business and outsourcing adds to savings. The top reasons for outsourcing are to (1) reduce and control operating costs, (2) improve company focus, (3) gain access to exceptional capabilities, (4) free internal resources for other purposes, (5) resources are not available internally, (6) maximize restructuring benefits, (7) function difficult to manage or out of control, (8) make capital funds available, and (9) reduce risk. At the same time, with outsourcing the business may lose control over how services are delivered which then causes more liability.

The types that are less likely to be outsourced are human resources, distribution and finance, and lawyers although the list is much broader than these. Retaining control over certain parts is necessary because they are too important to outsource. For example, if a business is facing a difficult situation and need legal representation face to face interactions would be the only way to go.

How can/should a biblical worldview be applied?

Christians are called to be the light in the world. This means we are to illuminate God’s spirit everywhere we go and God’s spirit evokes change for the betterment of mankind. Training and development are the same in relation to business. In a business, the job of management is to increase in all areas and that includes investing in their employees. This will give the business a huge advantage against competitors and help them to build a reputation as being the best in their field. In order to maintain such a reputation will require all members of the team to work together with clear expectations and goals through clear communication.

As Christians, we are to teach others how to live a life called by God by being His representatives on earth. “But you are a chosen people, a royal priesthood, a holy nation, God’s special possession, that you may declare the praises of him who called you out of darkness into his wonderful light (1 Peter 2:9). Such a task cannot be done without perseverance and dedication. One must build a relationship with God through prayer, reading of the word, dwelling in His presence, exercising His teachings in daily life so that the world will know you belong to Him. God has invested much into us by giving up His Son on our behalf and as ambassadors of the Most High we should be pleased to invest in others as He has in us.

References

Four Reasons to Have a Well-Trained Workforce . (2015). Retrieved from Tidewater Community College Center for Workforce Solutions: http://www.tccworkforce.org/blog-categories/223-four-reasons-to-have-a-well-trained-workforce

Daft, R. L. (2013). Organization Theory and Design. Mason: Cengage Learning.

Ingram, D. (2014). Non Profit Organization Vs. Profit Organization. Retrieved from Hearst Newspapers, LLC: http://smallbusiness.chron.com/non-profit-organization-vs-profit-organization-4150.html

Staffing Metrics Evaluation

November 29, 2022/in Uncategorized /by SK

Resource: Strategic Staffing, Ch. 13

Staffing metrics can be short-term or long-term, and efficiency- or effectiveness-oriented. Short-term metrics can be used as leading indicators to gauge a company’s ability to place the right people in the right jobs at the right time. Long-term metrics are best for evaluating the effectiveness of a staffing system because they drive the financial impact of staffing for the organization.

Choose an organization with which you are familiar.

Evaluate in 700 to 1,050 words three metrics that are – or should be – used to determine how well the staffing process meets the needs of the organization.

Describe the metrics selected for discussion.

Assess how these help the organization determine effectiveness.

Use the information available in Strategic Staffing, Ch. 13, and supplement it with your own research.

Cite any sources according to APA formatting guidelines.

Chapter 13 Staffing System Evaluation and Technology

Staffing Metrics

Because people pay attention to what gets measured, carefully selecting key metrics to track can help focus employees on key behaviors and outcomes. But too much information makes it difficult to focus attention on the metrics and outcomes that are the most important. To evaluate its staffing success, telecommunication company Avaya sets goals for how many experienced employees it intends to acquire from its competitors. The company also measures the performance of individuals who move internally from one business to another compared with the average performance of employees in that division. One company representative says, “Most companies will say their recruitment is successful if they retain the people that they hire. We look beyond that and set very specific goals for ourselves.” 14

Southwest Airlines measures key metrics including cost per hire, new hire quality, compensation, time to productivity, and retention and promotion rates of high-potential employees and uses these measurements to continually improve its staffing and talent management process. If Southwest notices that an operational group is logging above average overtime, for example, it works with that group to reduce overtime by decreasing turnover or increasing staffing. 15

Staffing metrics can be thought of as long term or short term, and can be efficiency or effectiveness oriented. Next, we discuss these different types of metrics and how they are best used.

Long-Term and Short-Term Metrics

Metrics can be tracked over many different time periods. Short-term metrics help a firm evaluate the success of its staffing system in terms of the recruiting and new hire outcomes achieved. These metrics include:

· The percentage of hires for each job or job family coming from each recruiting source and recruiter

· The number of high-quality new hires coming from each recruiting source and recruiter

· The number of diverse hires coming from each recruiting source and recruiter

· The average time to start (by position, source, and recruiter)

· The average time to contribution (by position, source, and recruiter)

Long-term metrics help a firm evaluate the success of its staffing system in terms of the outcomes that occur some time after employees are hired. These metrics include:

· Employee job success by recruiting source and by recruiter

· Employee tenure by recruiting source and by recruiter

· Promotion rates by recruiting source and by recruiter

Short-term metrics are useful as leading indicators of a company’s ability to have the right people in the right jobs at the right time to execute its business strategy and to meet its immediate staffing goals. Long-term metrics are useful as lagging indicators. They are best used for evaluating the effectiveness of the firm’s long-term staffing system—for example, the long-term, on-the-job success of employees and their turnover and promotion rates.

Staffing Efficiency Metrics

Staffing efficiency refers to the amount of resources used in the staffing process. Efficiency metrics are analyzed to make process improvements designed to minimize the amount of resources needed to staff a firm—specifically, the firm’s hiring costs and replacement costs. A firm’s hiring costs include sourcing, recruiting, screening, referral bonuses, travel expenses, advertisements, the cost of assessing and doing background checks on candidates, and the meals and transportation associated with their recruiting processes. Replacement costs include hiring costs as well as the productivity losses that occur while positions remain unfilled. Staffing efficiency metrics include the cost per hire, the time to fill positions, and the number of requisitions handled per full time equivalent (FTE) staffing member. Many firms also calculate onboarding costs, such as training and time-to-contribution costs, which can also be used as indicators to measure a firm’s staffing efficiency.

Staffing Efficiency

the amount of resources used in the staffing process

The critical factor to remember when tracking staffing efficiency metrics is that it is necessary to be efficient but also meet the needs of a firm’s customers. On the one hand, time-to-fill rates that are below a certain benchmark might reflect that the firm is staffing itself efficiently. On the other hand, the same rates might indicate that hiring managers are not spending enough time interviewing enough candidates to ensure that they are hiring the best ones.

One way to compute staffing efficiency is as a percentage of the amount of new hires’ compensation. The staffing efficiency ratio can be calculated by dividing a firm’s total staffing costs by the total compensation of its new hires recruited, and then multiplying the result by 100. For example, a staffing efficiency of 12 percent means it costs $0.12 cents to bring in $1.00 of compensation, or $12,000 to hire someone who makes $100,000 a year. 16 An organization that hires 400 employees annually, each with a compensation of $40,000 annually, would save about $320,000 in staffing costs every year by improving its staffing efficiency by just 2 percent (400 × $40,000 = $16 million total compensation recruited; 2 percent of $16 million = $320,000). By relying more on technology to source, recruit, and screen their employees, many firms could easily achieve such a 2 percent savings. 17

Staffing Effectiveness Metrics

Strategic staffing is not simply hiring a large number of people or hiring them quickly or cheaply. Strategic staffing is hiring people who become successful in the job, are a good fit with the company, and stay with the organization. Although efficiency and cost are often the initial focus of a firm’s staffing evaluation efforts, many companies subsequently shift their focus toward measuring their staffing effectiveness . 18 Staffing effectiveness relates to how well the staffing process meets the needs of a firm’s stakeholder needs and contributes to the organization’s strategy execution and performance. Staffing effectiveness metrics help answer questions such as “Is the number and caliber of finalists being sent to hiring managers meeting their needs?” and “Is the hiring experience and speed acceptable to candidates?” Staffing efficiency is often easier to measure and evaluate than staffing effectiveness. For example, it is relatively easy to measure how many jobs each recruiter is filling (staffing efficiency), but what is often more important is whether the jobs are being filled with the right people (staffing effectiveness).

Staffing Effectiveness

how well the staffing process meets the needs of a firm’s stakeholders and contributes to the organization’s strategy execution and performance

There are many possible measures of staffing effectiveness. Perhaps the most obvious measure of staffing effectiveness is new hire job success. Job success refers to job performance as well as the new hire’s fit with his or her work group, unit, and organization, and the degree to which his or her values are consistent with the company’s culture and values. Tracking this metric by recruiting source, recruiter, and hiring manager can help improve a company’s future staffing efforts. The quality of hire reflects whether the company hired the people it set out to as defined by hiring managers’ predetermined job performance requirements. New hire job success starts with the quality of the people hired. The quality of hire can be assessed using new hires’ performance ratings after an appropriate time on the job, hiring manager satisfaction surveys, objective employee productivity measures, and even safety, absenteeism, and turnover rates. New hire quality matters when it comes to an organization’s performance. The War for Talent study, published in 2001 by McKinsey & Co., revealed that high performers in operations roles increased the productivity of their firms by 40 percent; high performers in managerial roles increased their firms’ profits by 49 percent; and high-performing salespeople created 67 percent more revenue for their firms than average or low-performing employees.

Overall retention or turnover rates might seem like good metrics, but remember that retaining poor performers can actually impose a cost on the firm. Tracking the voluntary turnover rate of top performers as well as measuring the turnover rate of bottom performers, as we discussed in the last chapter, can provide more meaningful information. Tracking monthly turnover by hiring manager, department, or business unit and by race, gender, or age group need not take a lot of time and can reveal patterns that might suggest poor staffing or poor management. Measuring the turnover of employees based on the sources from which they were hired can help identify the return on investment (ROI) from each source. Jeff Cottle, senior vice president of human resources and organizational strategy at SCT, a global information-technology company, tracks turnover by employee type to assess controllable voluntary turnover and understand what’s causing it. Says Cottle, “Our perspective on the use of metrics…is based on our belief that human-capital metrics have a direct correlation to financial metrics.” 19

Evaluating the value of top performers can also be a useful metric. When a competitor was pursuing one of its top technical employees, Texas Instruments (TI) wanted to find out what the employee was worth. TI added up all the ideas that the employee had generated for the company, and what those ideas were worth in terms of patents. TI decided that the employee was probably fairly valued at about $25 million and decided it was worth its trouble to get him to stay. TI gave him a nice amount of stock, structured in a way that provided him an incentive to stay another decade. The company even arranged for a week of private golf lessons for his wife and him at a famous golf resort. 20

Measuring what a top employee is worth, and comparing that to what an average employee is worth, can be a useful indicator. McDonald’s knows that a top manager is worth 35 percent more in profits than an average manager. 21 Calculating the value of a company’s top performers can help managers justify what it is worth to invest more in recruiting, hiring, and retaining them. TI doesn’t track, and isn’t concerned about, what it spends to hire key technology workers. The company understands that these employees will produce far more for the company than what they’re paid, and believes that hiring costs are too small a percentage of an employee’s value to worry about. 22

Many other metrics are possible. To identify which divisions in the company are creating new talent, Cisco Systems uses a metric that tracks why a person moved within the company rather than simply how many people moved. High performers tend to want to take on new challenges so tracking their movement inside the company is a way to make sure managers serve as talent “launching pads,” rather than talent hoarders. Once identified, those managers who “launch” talent are rewarded accordingly. 23

Some of the key staffing metrics utilized by Valero Energy include: 24

· Brand-related metrics. Valero measures the value of its employment brand by calculating the cost savings related to the positions it fills via its corporate Web page, community referrals, and nonemployment-related TV ads. The recruiting department estimates that the Valero brand saved the company $4,309,005 in recruiting costs.

· Staffing efficiency metrics. Valero utilizes the staffing efficiency measure developed by Staffing.org , an independent and nonproprietary nonprofit corporation that develops standard human resource performance metrics. Valero calculates its staffing efficiency by dividing the firm’s total recruiting costs by the total compensation for all the positions it fills annually (the sum of the base starting salaries for each external hire during their first year). Staffing efficiencies in the range of 5 to 9 percent are considered excellent, and those above 16 percent indicate inefficiency. 25 However, these ranges can vary by industry, organizational size, and region.

· Sourcing channel metrics. Some of the measures Valero applies to each sourcing channel are:

· The staffing cost of the source

· The percentage of the firm’s budget the source represents

· The percentage of applicants recruited via the source

· The percentage of positions filled via the source

· The source’s speed

· The source’s efficiency

· The turnover at 12 months of new hires recruited from the source

· The dependability of the source

· The average salary of the position filled via the source

· Internal recruiters are also monitored on the preceding metrics.

Union Campaigns

Essay Questions Of Human Resource Management

Organizational Design And Structure

References

Staffing Metrics Evaluation

Chapter 13 Staffing System Evaluation and Technology

Staffing Metrics

Long-Term and Short-Term Metrics

Staffing Efficiency Metrics

Staffing Effectiveness Metrics

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