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Human
Resource
Management
Twelfth Edition

John M. Ivancevich
Cullen Professor of Organizational
Behavior and Management
C.T. Bauer College of Business
University of Houston

Robert Konopaske
Associate Professor of Management
McCoy College of Business Administration
Texas State University
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Brief Contents
Preface vi 10 Compensation: An Overview 297
Acknowledgments ix 11 Compensation: Methods and
Policies 328
PART ONE 12 Employee Benefits and Services 358
Introduction to Human Resource
Management and the Environment 1 PART FOUR
1 Human Resource Management 2 Developing Human Resources 389
2 A Strategic Approach to Human Resource 13 Training and Development 390
Management 29 14 Career Planning and Development 432
3 Legal Environment of Human Resource
Management: Equal Employment PART FIVE
Opportunity 64 Labor–Management Relations and
4 Global Human Resource Promoting Safety and Health 467
Management 95 15 Labor Relations and Collective
Bargaining 468
PART TWO
16 Managing Employee Discipline 502
Acquiring Human Resources 127
17 Promoting Safety and Health 528
5 Human Resource Planning 128
6 Job Analysis and Design 150 APPENDIXES 557
7 Recruitment 186
8 Selecting Effective Employees 217 GLOSSARY 581

PART THREE PHOTO CREDITS 591

Rewarding Human Resources 253
9 Performance Evaluation and INDEXES 593
Management 254

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Contents
Preface vi Appendix 1A
Careers in HRM 25
Acknowledgments ix Notes 27

PART ONE Chapter 2

INTRODUCTION TO HUMAN A Strategic Approach to Human Resource
RESOURCE MANAGEMENT AND THE Management 29
ENVIRONMENT 1
A Model to Organize HRM 32
Chapter 1 ARDM: A Diagnostic Approach to HRM 33
External Environmental Influences 34
Human Resource Management 2
Government Law and Regulations 34
A Brief History of Human Resource Management 5 The Union 35
Strategic Importance of HRM 7 Economic Conditions 36
HRM and Organizational Effectiveness 9 Competitiveness 37
Objectives of the HRM Function 10 Composition and Diversity of the Labor Force 38
Helping the Organization Reach Its Goals 11 Geographic Location of the Organization 41
Efficiently Employing the Skills and Abilities of the Internal Environmental Influences 42
Workforce 11 Strategy 42
Providing Well-Trained and Well-Motivated Goals 43
Employees 12 Organization Culture 44
Increasing Employees’ Job Satisfaction and Nature of the Task 45
Self-Actualization 12 Work Group 46
Achieving Quality of Work Life 12 Leader’s Style and Experience 46
Communicating HRM Policies to All Employees 12 Strategies HRM: An Important Key to Success 47
Maintaining Ethical Policies and Socially Responsible Strategic Challenges Facing HRM 48
Behavior 13 Technology 48
Managing Change 13 Diversity: Building a Competitive Workforce 49
Managing Increased Urgency and Caliber of the Workforce 52
Faster Cycle Time 13 Organizational Restructuring and Downsizing 53
Who Performs HRM Activities 14 Contingent Workers 53
Outsourcing 14 People and the HRM Diagnostic Framework 54
The Interaction of Operating and HR Managers 15 Abilities of Employees 54
HRM’s Place in Management 15 Employees’ Attitudes and Preferences 54
HR Department Operations 16 Motivation of Employees 54
HRM Strategy 16 Personality of Employees 55
Clarifying Meaningful HRM Objectives 17 Desirable End Results 55
HRM Policy 17 Summary 56
HRM Procedures 18 Key Terms 58
Organization of an HR Department 19 Questions for Review and Discussion 58
Summary 21 Exercise 2–1
Key Terms 21 Dissecting the ARDM Model and Its
Questions for Review and Discussion 22 Application 58
Application Case 1–1 Application Case 2–1
The Human Resource Manager and Managing Gen Y Rocks the Business World 59
Multiple Responsibilities 22 Notes 61
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Contents xiii

Chapter 3 The Expatriate Manager in the Multinational

Legal Environment of Human Resource Corporation 104
Selecting the Expatriate Manager 104
Management: Equal Employment
Culture Shock and the Expatriate Manager 106
Opportunity 64
Training the Expatriate Manager 107
How Did EEO Emerge? 67 Compensating the Expatriate Manager 109
Societal Values and EEO 67 Host Country Nationals and the Global
Economic Status of Minorities: Before 1964 68 Corporation 111
The Government 68 The Legal and Ethical Climate of
Equal Employment Opportunity Laws: Content and Global HRM 111
Court Interpretations 68 Labor Relations and the International
Title VII of the 1964 Civil Rights Act 68 Corporation 113
Title VII and Sexual Harassment 72 Summary 115
Title VII and Pregnancy Discrimination 74 Key Terms 116
Title VII and Religious Minorities 74 Questions for Review and Discussion 116
Title VII and “English-Only” Rules 75 Exercise 4–1
Civil Rights Act of 1991 75 Development of Global Managers 116
Executive Order 11246 (1965) 76 Exercise 4–2
Equal Pay Act of 1963 76 Avoiding Costly International HRM Mistakes 117
Age Discrimination in Employment Act (ADEA) Application Case 4–1
of 1967 76 A One-Year Assignment to China: Go Solo or Bring the
Americans with Disabilities Act (ADA) of 1990 77 Family? 118
Americans with Disabilities Act Amendments Act Application Case 4–2
(ADAAA) of 2008 78 Reverse Offshoring: A New Source of Jobs for College
State Laws 78 Graduates? 119
Enforcing the Law 79 Notes 120
Equal Employment Opportunity Commission (EEOC) 79
The Courts 81
Affirmative Action in Organizations 83 PART TWO
What Is Affirmative Action? 83 ACQUIRING HUMAN RESOURCES 127
Voluntary Affirmative Action Plans 83
Involuntary Affirmative Action Plans 83 Chapter 5
Affirmative Action Issues 84
Summary 86
Human Resource Planning 128
Key Terms 87 Human Resource Planning 129
Questions for Review and Discussion 87 Strategic and Human Resource Planning 130
Exercise 3–1 The HR Planning Process 131
Dissecting the Diagnostic Model and Its Application 88 Situation Analysis and Environmental Scanning 131
Application Case 3–1 Forecasting Demand for Employees 131
Sexual Harassment Cases Are Becoming More Analyzing the Current Supply of Employees 135
Complex 90 Action Decisions in Human Resource Planning 137
Notes 92 Human Resource Information Systems 139
Employees’ Privacy, Identity Theft, and HRIS 142
Chapter 4 Summary 143
Key Terms 144
Global Human Resource Management 96
Questions for Review and Discussion 144
A Global Perspective 97 Application Case 5–1
The Cultural Nature of Global HRM 99 Human Resource Planning and Virtual Human
The Concept of “Fit” in Global HRM 100 Resource Management 145
Multinational and Global Corporations 100 Notes 146
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xiv Contents

Chapter 6 Methods of Recruiting 195

Job Analysis and Design 150 Internal Recruiting 195
External Recruiting 196
The Vocabulary of Job Analysis 152 Realistic Job Previews 202
The Steps in Job Analysis 152 Alternatives to Recruitment 203
The Uses of Job Analysis 153 Overtime 203
Who Should Conduct the Job Analysis? 154 Outsourcing 204
The Use of Charts 154 Temporary Employment 204
Methods of Data Collection 156 Cost–Benefit Analysis of Recruiting 205
Observation 156 Summary 206
Interviews 159 Key Terms 206
Questionnaires 159 Questions for Review and Discussion 207
Job Incumbent Diary or Log 159 Exercise 7–1
Which Method to Use? 160 Netiquette: Effectively Communicating with
Specific Quantitative Techniques 160 E-Mail 207
Functional Job Analysis 160 Application Case 7–1
Position Analysis Questionnaire 162 E-Recruiting: Too Much of a Good Thing? 208
Management Position Description Questionnaire 164 Application Case 7–2
Job Descriptions and Specifications 165 Are New Recruits Looking for Work–Life Balance? 210
Job Analysis and Strategic Human Resource Notes 212
Management 168
Competency Modeling 170
Job Design 170
Chapter 8
Scientific Management and the Mechanistic Selecting Effective Employees 217
Approach 171 Influences on the Selection Process 218
Job Enrichment: A Motivational Approach 172 Environmental Circumstances Influencing
Work–Family Balance and Job Design 173 Selection 218
Job Design in Teams 175 Selection Criteria 219
Summary 176 Categories of Criteria 220
Key Terms 177 Reliability and Validity of Selection Criteria 223
Questions for Review and Discussion 177 The Selection Process 225
Application Case 6–1 Step 1: Preliminary Screening 226
Job Analysis: Assistant Store Managers at Today’s Step 2: Employment Interview 228
Fashion 178 Step 3: Employment Tests 232
Application Case 6–2 Step 4: Reference Checks and Recommendations 237
Job Analysis and Maternity Leave: Calming the Boss’s Step 5: Selection Decision 238
and Co-workers’ Nerves 180 Step 6: Physical Examinations 239
Notes 181 Selection of Managers 240
Cost–Benefit Analysis for the Selection
Chapter 7 Decision 243
Summary 243
Recruitment 186
Key Terms 244
External Influences 189 Questions for Review and Discussion 244
Government and Union Restrictions 189 Exercise 8–1
Labor Market Conditions 190 Posting Your Résumé Online 245
Composition of Labor Force and Location of Application Case 8–1
Organization 191 Internet-Based Reference Checks:
Interactions of the Recruit and the A New Approach 245
Organization 191 Application Case 8–2
The Organization’s View of Recruiting 191 Online Résumés Are Here to Stay? 247
The Potential Employee’s View of Recruiting 192 Notes 248
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Contents xv

PART THREE Internal Influences on Compensation 307

REWARDING HUMAN The Labor Budget 309
Who Makes Compensation Decisions 309
RESOURCES 253
Pay and Employees’ Satisfaction 309
Pay and Employees’ Productivity 310
Chapter 9
Compensation Decisions 312
Performance Evaluation and The Pay-Level Decision 312
Management 254 Pay Surveys 313
The Case for Using Formal Evaluation 258 The Pay Structure Decision 315
Purposes of Evaluation 258 Delayering and Broadbanding 320
Legal Implications of Performance Evaluations 258 The Individual Pay Decision 321
Format of Evaluation 260 Summary 321
Establish Criteria 261 Key Terms 322
Set Policies on Who Evaluates, When, and Questions for Review and Discussion 322
How Often 261 Application Case 10–1
Who Should Evaluate the Employee? 262 The Comparable Worth Debate 322
Selected Evaluation Techniques 264 Notes 325
Individual Evaluation Methods 264
Multiple-Person Evaluation Methods 270 Chapter 11
Management by Objectives 273 Compensation: Methods and Policies 328
Which Technique to Use 275
Potential Problems in Performance Evaluations 276 Determination of Individual Pay 330
Opposition to Evaluation 276 Methods of Payment 331
System Design and Operating Problems 276 Flat Rates 331
Rater Problems 276 Payment for Time Worked 331
The Halo Effect 277 Variable Pay: Incentive Compensation 332
Eliminating Rater Errors 279 Ownership 342
Avoiding Problems with Employees 280 People-Based Pay 343
The Feedback Interview 281 Executive Pay 344
Summary 283 Issues in Compensation Administration 346
Key Terms 284 Pay Secrecy or Openness 347
Questions for Review and Discussion 284 Pay Security 348
Exercise 9–1 Pay Compression 349
Selecting and Appraising Administrative Assistants at Summary 349
Row Engineering 285 Key Terms 350
Application Case 9–1 Questions for Review and Discussion 350
Evaluating Store Managers at Bridgestone/Firestone Application Case 11–1
Tire & Rubber 287 Customizing Bonus Pay Plans 351
Application Case 9–2 Notes 354
The Politics of Performance Appraisal 291
Notes 294 Chapter 12
Employee Benefits and Services 358
Chapter 10
Background 360
Compensation: An Overview 297
Why Do Employers Offer Benefits and
Objective of Compensation 299 Services? 360
External Influences on Compensation 299 Who Makes Decisions about Benefits? 360
The Labor Market and Compensation 299 Mandated Benefits Programs 361
Economic Conditions and Compensation 302 Unemployment Insurance 362
Government Influences and Compensation 302 Social Security 363
Union Influences and Compensation 307 Workers’ Compensation 364
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xvi Contents

Voluntary Benefits 366 Introduction to Training 395

Compensation for Time Off 366 Goals of Training 396
Paid Holidays 367 Learning Theory and Training 397
Paid Vacations 367 Training Activities 398
International Vacation Benefits 368 Managing the Training Program 399
Personal Time Off 368 Determining Needs and Objectives 399
Sick Leave 368 Choosing Trainers and Trainees 403
Family Leave 369 Training and Development Instructional
Maternity and Parental Leave 369 Methods 403
Employer-Purchased Insurance 370 On-the-Job Training 403
Health Insurance 370 Case Method 405
Life Insurance 372 Role-Playing 405
Disability Income Replacement Insurance 373 In-Basket Technique 406
Income in Retirement 373 Management Games 406
Retirement Income from Savings and Work 373 Behavior Modeling 407
Individual Retirement Accounts (IRAs) 373 Outdoor-Oriented Programs 407
SEP (Simplified Employee Pension) IRAs 374 Which Training and/or Development Approach Should
401(k) Plans 374 Be Used? 408
Employee Services 376 Management Development: An Overview 414
Stock Ownership Plans 376 What Is Management Development? 414
Education Programs 376 Development: Individual Techniques 415
Preretirement Programs 377 Goal Setting 415
Child Care 377 Behavior Modification 417
Elder Care 377 Development: Team Building 421
Financial Services 377 Evaluation of Training and Development 422
Social and Recreational Programs 378 Criteria for Evaluation 422
Flexible Benefits Plans and Reimbursement A Matrix Guide for Evaluation 423
Accounts 378 Summary 424
Managing an Effective Benefits Program 379 Key Terms 425
Step 1: Set Objectives and Strategies for Benefits 379 Questions for Review and Discussion 426
Step 2: Involve Participants and Unions 380 Exercise 13–1
Step 3: Communicate Benefits 380 Assessing Training Needs 426
Step 4: Monitor Costs Closely 380 Application Case 13–1
Cost–Benefit Analysis of Benefits 380 Dunkin’ Donuts and Domino’s Pizza: Training for
Summary 381 Quality and Hustle 426
Key Terms 382 Notes 428
Questions for Review and Discussion 382
Application Case 12–1 Chapter 14
Benefits Are Vanishing 382
Career Planning and Development 432
Notes 385
The Concept of Career 434
PART FOUR Career Stages 436
Career Choices 438
DEVELOPING HUMAN RESOURCES 389
Career Development: A Commitment 442
Chapter 13 Career Development for Recent Hirees 443
Causes of Early Career Difficulties 443
Training and Development 390
How to Counteract Early Career Problems 444
Introduction to Orientation 393 Career Development during Midcareer 446
Goals of Orientation 394 The Midcareer Plateau 446
Who Orients New Employees? 394 How to Counteract Midcareer Problems 447
Orientation Follow-Up 395 Preretirement Problems 448
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Contents xvii

How to Minimize Retirement Adjustment Collective Bargaining 480

Problems 448 Prenegotiation 481
Career Planning and Pathing 449 Selecting the Negotiators 481
Career Planning 449 Developing a Bargaining Strategy 482
Career Pathing 451 Using the Best Tactics 483
Career Development Programs: Problems and Reaching a Formal Contractual Agreement 484
Issues 452 Contract Ratification 484
Managing Dual Careers 452 Failure to Reach Agreement 484
Career Planning and Equal Employment Strikes 485
Opportunity 454 Lockouts 485
Downsizing and Job Loss 455 Permanent Replacements 486
Summary 459 Third-Party Intervention 486
Key Terms 460 Administering the Contract 487
Questions for Review and Discussion 460 Discipline 487
Exercise 14–1 Grievances 487
My Career Audit 461 Arbitration 489
Application Case 14–1 The Changing Climate of Unionization in the
The Dual-Career Couple 461 United States 490
Notes 464 Union Membership Trends 490
Global Unionization 491
Union Organizing Trends 491
PART FIVE Summary 493
LABOR–MANAGEMENT RELATIONS Key Terms 494
AND PROMOTING SAFETY AND Questions for Review and Discussion 494
HEALTH 467 Exercise 15–1
Reporting on Labor Unions 495
Chapter 15 Exercise 15–2
Union–Management Contract Negotiations 495
Labor Relations and Collective
Application Case 15–1
Bargaining 468
Boeing’s Decision to Build the 787 Dreamliner in
Early Collective Action and Union Formation 470 South Carolina: Good Business Decision or Union
Labor Legislation Overview 472 Busting? 498
National Labor Relations Act (Wagner Act) 472 Notes 499
Labor Management Relations Act
(Taft-Hartley Act) 473 Chapter 16
Labor–Management Reporting and Disclosure Act
Managing Employee Discipline 502
(Landrum-Griffin Act) 473
Structure and Management of Unions 473 Categories of Difficult Employees 504
Federation of Unions 473 Category 1: Ineffective Employees 504
Intermediate Union Bodies 474 Category 2: Alcoholic and Substance-Abusing
National Unions 475 Employees 505
Local Unions 475 Category 3: Participants in Theft, Fraud, and Other
The Union Organizing Campaign 475 Illegal Acts 507
Authorization Card Campaign and Union Category 4: Rule Violators 509
Certification 476 The Discipline Process 512
Union Security 477 Approaches to Discipline 514
Levels of Union Security 478 The Hot Stove Rule 514
Right-to-Work Requirements 478 Progressive Discipline 514
Public Employee Associations 479 Positive Discipline 515
Background 479 The Disciplinary Interview: A Constructive
Public Sector Labor Legislation 480 Approach 516
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xviii Contents

Legal Challenges to Discipline and Termination 517 Indoor Environmental Quality (IEQ) 544
Employment at Will 517 HIV-AIDS in the Workplace 546
Alternative Dispute Resolution 519 Cumulative Trauma Disorders (CTDs) 548
Summary 521 Evaluation of Safety and Health Programs 549
Key Terms 521 Summary 550
Questions for Review and Discussion 522 Key Terms 551
Exercise 16–1 Questions for Review and Discussion 551
Making Difficult Decisions 522 Exercise 17–1
Application Case 16–1 Preparing for an OSHA Inspection 551
The High Cost of Theft and Fraud 523 Application Case 17–1
Notes 525 Campus Food Systems 552
Notes 554
Chapter 17
Promoting Safety and Health 528 Appendix A
Measuring Human Resource
Background 529
Causes of Work-Related Accidents and Illnesses 532
Activities 557
Who Is Involved with Safety and Health? 532 Appendix B
Governmental Responses to Safety and Health Where to Find Information, Facts, and
Problems 543 Figures about Human Resource
OSHA Safety Standards 534
Management 563
OSHA Inspections 536
OSHA Record Keeping and Reporting 536 Appendix C
OSHA: A Report Card 537 Career Planning 571
Organizational Responses to Safety and
Health Issues 538 Glossary 581
Safety Design and Preventive Approaches 538
Inspection, Reporting, and Accident Research 538
Photo Credits 591
Safety Training and Motivation Programs 539 Name Index 593
Preventive Health Programs: A Wellness
Approach 539 Company Index 601
Safety and Health Issues 541
Stress Management 542
Subject Index 603
Violence in the Workplace 543