•-V-? __ THIRTEENTH EDITION H U MAN RESOURCE MANAGEMENT GLOBAL EDITION GARY DESSLER FLORIDA INTERNATIONAL UNIVERSITY PEARSON Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo
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•-V-? __
THIRTEENTH EDITIONH U MANRESOURCEMANAGEMENTGLOBAL EDITION
GARY DESSLERFLORIDA INTERNATIONAL UNIVERSITY
PEARSONBoston Columbus Indianapolis New York San Francisco Upper Saddle River
Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto
Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo
G O N T E N T S
Preface 23
Acknowledgments 27
PART ONE INTRODUCTION 28
1 Introduction to Human Resource Management 28WHAT IS HUMAN RESOURCE MANAGEMENT AND WHY IS IT IMPORTANT?
What Is Human Resource Management? 30
Why Is Human Resource Management Important to All Managers? 31
Line and Staff Aspects of Human Resource Management 32
Line Managers' Human Resource Duties 33
Human Resource Manager's Duties 33
New Approaches to Organizing HR 35
Cooperative Line and Staff HR Management: An Example 35
THE TRENDS SHAPING HUMAN RESOURCE MANAGEMENT 36Globalization and Competition Trends 37
Indebtedness ("Leverage") and Deregulation 38
Technological Trends 38
Trends in the Nature of Work 39
• HR AS A PROFIT CENTER: Boosting Customer Service 40
Workforce and Demographic Trends 40
Economic Challenges and Trends 42
THE NEW HUMAN RESOURCE MANAGERS 43Human Resource Management Yesterday and Today 43
They Focus More on Strategic, Big Picture Issues 43
• THE STRATEGIC CONTEXT: Building LL.Bean 43
They Use New Ways to Provide Transactional Services 44
They Take an Integrated, "Talent Management" Approach to Managing
Human Resources 45
They Manage Ethics 45
They Manage Employee Engagement 45
They Measure HR Performance and Results 45
They Use Evidence-Based Human Resource Management 46
They Add Value 46
They Have New Competencies 47
HR Certification 48
THE PLAN OF THIS BOOK 48The Basic Themes and Features 48
Departmental Managers' Strategic Planning Roles in Action: Improving Mergers and
Acquisitions 105
STRATEGIC HUMAN RESOURCE MANAGEMENT 106
Defining Strategic Human Resource Management 106
Human Resource Strategies and Policies 108
• HR AS A PROFIT CENTER: Albertsons Example 108
Strategic Human Resource Management Tools 108
HR METRICS AND BENCHMARKING 110Types of Metrics 111
Improving Productivity Through HRIS: Tracking Applicant Metrics for Improved Talent
Management 111
Benchmarking in Action 112
Strategy and Strategy-Based Metrics 113
Workforce/Talent Analytics and Data Mining 113
• HR AS A PROFIT CENTER: Using Workforce/Talent Analytics 114
What Are HR Audits? 115
Evidence-Based HR and the Scientific Way of Doing Things 116
WHAT ARE HIGH-PERFORMANCE WORK SYSTEMS? 117
High-Performance Human Resource Policies and Practices 118
CHAPTER SECTION SUMMARIES 119DISCUSSION QUESTIONS 120INDIVIDUAL AND GROUP ACTIVITIES 120
EXPERIENTIAL EXERCISE: DEVELOPING AN HR STRATEGY FOR STARBUCKS 121APPLICATION CASE: SIEMENS BUILDS A STRATEGY-ORIENTED HR SYSTEM 121CONTINUING CASE: CARTER CLEANING COMPANY 122
TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE 122KEY TERMS 124ENDNOTES 125PART 1 VIDEO CASES APPENDIX 126
PART TWO RECRUITMENT, PLACEMENT, AND TALENTMANAGEMENT 128
4 Job Analysis and the Talent Management Process 128THE TALENT MANAGEMENT PROCESS 130
What Is Talent Management? 130
THE BASICS OF JOB ANALYSIS 131
Uses of Job Analysis Information 132
• THE STRATEGIC CONTEXT: Daimler Alabama Example 133
Conducting a Job Analysis 133
• HR AS A PROFIT CENTER: Boosting Productivity through Work Redesign 134
Job Analysis Guidelines 136
METHODS FOR COLLECTING JOB ANALYSIS INFORMATION 136
D MANAGING THE NEW WORKFORCE: Writing Job Descriptions That Comply
with the ADA 148
Standards of Performance and Working Conditions 148
Duty: Accurately Posting Accounts Payable 148
Using the Internet for Writing Job Descriptions 148
WRITING JOB SPECIFICATIONS 152
Specifications for Trained Versus Untrained Personnel 152
Specifications Based on Judgment 152
Job Specifications Based on Statistical Analysis 153
Using Task Statements 153
PROFILES IN TALENT MANAGEMENT 154
Competencies and Competency-Based Job Analysis 154
How to Write Job Competencies-Based Job Descriptions 156
CHAPTER SECTION SUMMARIES 157DISCUSSION QUESTIONS 158INDIVIDUAL AND GROUP ACTIVITIES 158
EXPERIENTIAL EXERCISE: THE INSTRUCTOR'S JOB DESCRIPTION 158APPLICATION CASE: RECRUITING IN EUROPE 159CONTINUING CASE: CARTER CLEANING COMPANY 159TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTELPARIS CASE 160KEY TERMS 160ENDNOTES 160
Personnel Planning and Recruiting 162INTRODUCTION 164
WORKFORCE PLANNING AND FORECASTING 164
Strategy and Workforce Planning 164
• THE STRATEGIC CONTEXT: KPMG 165
Forecasting Personnel Needs (Labor Demand) 165
Improving Productivity Through HRIS: Computerized Personnel Forecasting 168
Forecasting the Supply of Inside Candidates 168
Forecasting the Supply of Outside Candidates 170
Talent Management and Predictive Workforce Monitoring 170
Developing an Action Plan to Match Projected Labor Supply and Labor Demand 171
The Recruiting Yield Pyramid 171
THE NEED FOR EFFECTIVE RECRUITING 172
Why Recruiting Is Important 172
What Makes Recruiting a Challenge? 172
Organizing How You Recruit 172
INTERNAL SOURCES OF CANDIDATES 173
Using Internal Sources: Pros and Cons 173
Finding Internal Candidates 173
Rehiring 173
Succession Planning 174
Improving Productivity Through HRIS: Succession and Talent Planning Systems 174
• HR AS A PROFIT CENTER: Personnel Planning and Recruiting 188
Improving Productivity Through HRIS: An Integrated Approach to Recruiting 188
RECRUITING A MORE DIVERSE WORKFORCE 188Single Parents 188
Older Workers 189
Recruiting Minorities 189
Welfare-to-Work 190
The Disabled 190
DEVELOPING AND USING APPLICATION FORMS 190Purpose of Application Forms 190
Application Guidelines 192
Application Forms and EEO Law 192
Using Application Forms to Predict Job Performance 193
Mandatory Arbitration 193
CHAPTER SECTION SUMMARIES 193DISCUSSION QUESTIONS 194INDIVIDUAL AND GROUP ACTIVITIES 194EXPERIENTIAL EXERCISE: THE NURSING SHORTAGE 195APPLICATION CASE: YA KUN KAYA TOAST 195CONTINUING CASE: CARTER CLEANING COMPANY 196TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTELPARIS CASE 196KEY TERMS 197ENDNOTES 197
6 Employee Testing and Selection 200WHY CAREFUL SELECTION IS IMPORTANT 202
Person and Job/Organization Fit 202
• THE STRATEGIC CONTEXT: Crowd Sourcing at Google 202
BASIC TESTING CONCEPTS 203Reliability 203
Validity 204
Evidence-Based HR: How to Validate a Test 206
Bias 208
Utility Analysis 208
• HR AS A PROFIT CENTER: Reducing Turnover at Key Bank 209
Validity Generalization 209
Test Takers' Individual Rights and Test Security 209
How Do Employers Use Tests at Work? 210
Computerized and Online Testing 211
TYPES OF TESTS 212Tests of Cognitive Abilities 212
Tests of Motor and Physical Abilities 213
Measuring Personality and Interests 213
Achievement Tests 216
WORK SAMPLES AND SIMULATIONS 216Using Work Sampling for Employee Selection 216
Situational Judgment Tests 217
Management Assessment Centers 217
Situational Testing and Video-Based Situational Testing 218
The Miniature Job Training and Evaluation Approach 219
Realistic Job Previews 219
HR in Practice: Testing Techniques for Managers 219
Summary 220
12 CONTENTS
BACKGROUND INVESTIGATIONS AND OTHER SELECTION METHODS 220Why Perform Background Investigations and Reference Checks? 220
The Legal Dangers and How to Avoid Them 221
How to Check a Candidate's Background 222
The Social Network: Checking Applicants' Social Postings 224
Using Preemployment Information Services 225
The Polygraph and Honesty Testing 225
Graphology 227
"Human Lie Detectors" 227
Physical Exams 227
Substance Abuse Screening 228
Complying with Immigration Law 229
Improving Productivity Through HRIS: Using Automated Applicant Tracking and Screening
Systems 230
CHAPTER SECTION SUMMARIES 230DISCUSSION QUESTIONS 231INDIVIDUAL AND GROUP ACTIVITIES 231
EXPERIENTIAL EXERCISE: A TEST FOR A RESERVATION CLERK 232APPLICATION CASE: KPMG 232
CONTINUING CASE: HONESTY TESTING AT CARTER CLEANING COMPANY 233TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE 233KEY TERMS 234ENDNOTES 234
7 Interviewing Candidates 238BASIC TYPES OF INTERVIEWS 240• THE STRATEGIC CONTEXT: Whirlpool Corp. 240
Structured Versus Unstructured Interviews 240
Interview Content (What Types of Questions to Ask) 241
How Should We Administer the Interview? 244
• HR AS A PROFIT CENTER: Great Western Bank 246
Three Ways to Make the Interview Usefulness 247
THE ERRORS THAT UNDERMINE AN INTERVIEW'S USEFULNESS 247First Impressions (Snap Judgments) 248
Not Clarifying What the Job Requires 248
Candidate-Order (Contrast) Error and Pressure to Hire 248
Nonverbal Behavior and Impression Management 249
Effect of Personal Characteristics: Attractiveness, Gender, Race 249
• MANAGING THE NEW WORKFORCE: Applicant Disability and the EmploymentInterview 250
Interviewer Behavior 250HOW TO DESIGN AND CONDUCT AN EFFECTIVE INTERVIEW 251
Designing a Structured Situational Interview 251
How to Conduct an Effective Interview 252
Talent Management: Profiles and Employee Interviews 255
CHAPTER SECTION SUMMARIES 255
DISCUSSION QUESTIONS 256
INDIVIDUAL AND GROUP ACTIVITIES 256
EXPERIENTIAL EXERCISE: THE MOST IMPORTANT PERSON YOU'LL EVER HIRE 257
APPLICATION CASE: NURSE RECRUITMENT AT GULF HOSPITAL 257
CONTINUING CASE: CARTER CLEANING COMPANY 258
TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE 258
KEY TERMS 259
ENDNOTES 259
APPENDIX 1 FOR CHAPTER 7 APPLICANT INTERVIEW GUIDE 262
APPENDIX 2 FOR CHAPTER 7 INTERVIEW GUIDE FOR INTERVIEWEES 264
PART 2 VIDEO CASES APPENDIX 266
CONTENTS 13
PART THREE TRAINING AND DEVELOPMENT 268
8 Training and Developing Employees 268ORIENTING AND ONBOARDING NEW EMPLOYEES 270
The Purposes of Employee Orientation/Onboarding 270
The Orientation Process 270
OVERVIEW OF THE TRAINING PROCESS 272
Aligning Strategy and Training 272
• THE STRATEGIC CONTEXT: CapitaLand 272
Training and Performance 273
The ADDIE Five-Step Training Process 273
Conducting the Training Needs Analysis 273
Designing the Training Program 276
Developing the Program 279
IMPLEMENTING TRAINING PROGRAMS 279
On-the-Job Training 279
Apprenticeship Training 281
Informal Learning 281
Job Instruction Training 281
Lectures 282
Programmed Learning 282
Audiovisual-Based Training 283
Vestibule Training 283
Electronic Performance Support Systems (EPSS) 283
Videoconferencing 284
Computer-Based Training (CBT) 284
Simulated Learning 284
Interactive Learning 285
Internet-Based Training 285
Improving Productivity Through HRIS: Learning Management Systems 286
Mobile Learning 286
The Virtual Classroom 287
Lifelong and Literacy Training Techniques 287
• MANAGING THE NEW WORKFORCE: Diversity Training 288
Team Training 288
IMPLEMENTING MANAGEMENT DEVELOPMENT PROGRAMS 289
Strategy and Development 289
Managerial On-the-Job Training 289
Off-the-Job Management Training and Development Techniques 290
Leadership Development at GE 292
Talent Management and Mission-Critical Employees: Differential Development
Assignments 293
MANAGING ORGANIZATIONAL CHANGE PROGRAMS 294
What to Change 294
Lewin's Change Process 295
Leading Organizational Change 295
Using Organizational Development 296
EVALUATING THE TRAINING EFFORT 298
Designing the Study 298
Training Effects to Measure 299
• HR AS A PROFIT CENTER: Judging Training's Impact 300
CHAPTER SECTION SUMMARIES 301
DISCUSSION QUESTIONS 301
INDIVIDUAL AND GROUP ACTIVITIES 302
EXPERIENTIAL EXERCISE: FLYING THE FRIENDLIER SKIES 302
APPLICATION CASE: THE MENTORSHIP PROGRAM AT TVH 303
CONTINUING CASE: CARTER CLEANING COMPANY 303
14 CONTENTS
TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE 304KEY TERMS 304ENDNOTES 304
9 Performance Management and Appraisal 308BASIC CONCEPTS IN PERFORMANCE MANAGEMENT AND APPRAISAL 310
The Performance Appraisal Process 310
Why Appraise Performance? 311
• HR AS A PROFIT CENTER: Setting Performance Goals at Ball Corporation 312
The Importance of Continual Feedback 312
Performance Management 312
• THE STRATEGIC CONTEXT: TRW 313
Defining the Employee's Goals and Performance Standards 313
Who Should Do the Appraising? 314
TECHNIQUES FOR APPRAISING PERFORMANCE 316
Graphic Rating Scale Method 316
Alternation Ranking Method 320
Paired Comparison Method 320
Forced Distribution Method 320
Critical Incident Method 321
Narrative Forms 322
Behaviorally Anchored Rating Scales 322
Mixed Standard Scales 325
Management by Objectives 326
Computerized and Web-Based Performance Appraisal 326
Electronic Performance Monitoring 327
Appraisal in Practice 327
DEALING WITH APPRAISAL PROBLEMS AND INTERVIEWS 328
Potential Appraisal Problems 329
Guidelines for Effective Appraisals 330
Appraisals and the Law 332
Managing the Appraisal Interview 332
PERFORMANCE MANAGEMENT 335
Performance Management vs. Performance Appraisal 335
Using Information Technology to Support Performance Management 336
TALENT MANAGEMENT PRACTICES AND EMPLOYEE APPRAISAL 337
Appraising and Actively Managing Employees 337 '
Segmenting and Actively Managing Employees in Practice 337
CHAPTER SECTION SUMMARIES 338
DISCUSSION QUESTIONS 339
INDIVIDUAL AND GROUP ACTIVITIES 339
EXPERIENTIAL EXERCISE: GRADING THE PROFESSOR 340
APPLICATION CASE: APPRAISING THE SECRETARIES AT SWEETWATER U 340
CONTINUING CASE: CARTER CLEANING COMPANY 341
TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE 342
KEY TERMS 342
ENDNOTES 342
1 0 Employee Retention, Engagement, and Careers 346MANAGING EMPLOYEE TURNOVER AND RETENTION 348
Costs of Turnover 348
• HR AS A PROFIT CENTER 348
Managing Voluntary Turnover 348
Retention Strategies for Reducing Voluntary Turnover 349
A Comprehensive Approach to Retaining Employees 350
• THE STRATEGIC CONTEXT: IBM Aims for Flexibility 350
Managing Involuntary Turnover 351
CONTENTS 15
Talent Management and Employee Retention 351
Job Withdrawal 351
EMPLOYEE ENGAGEMENT 352Why Engagement Is Important 352
Actions That Foster Engagement 352
Monitoring Employee Engagement 352
CAREER MANAGEMENT 353Careers Terminology 353
Careers Today 354
Psychological Contract 354
The Employee's Role in Career Management 354
The Employer's Role in Career Management 356
Career Management Systems 356
Gender Issues in Career Development 358
The Manager's Role 359
IMPROVING COACHING SKILLS 359Building Your Coaching Skills 359
Building Your Mentoring Skills 360
Improving Productivity Through HRIS: Integrating Talent Management and Career
and Succession Planning 362
MAKING PROMOTION DECISIONS 363Decision 1: Is Seniority or Competence the Rule? 363
Decision 2: How Should We Measure Competence? 363
Decision 3: Is the Process Formal or Informal? 364
Decision 4: Vertical, Horizontal, or Other? 364
Practical Considerations 364
Sources of Bias in Promotion Decisions 364
Promotions and the Law 365
Managing Transfers 365
^Managing Retirements 366
CHAPTER SECTION SUMMARIES 367
DISCUSSION QUESTIONS 367
INDIVIDUAL AND GROUP ACTIVITIES 368
EXPERIENTIAL EXERCISE: WHERE AM I GOING . . . AND WHY? 368
APPLICATION CASE: GOELECTRIX 369
CONTINUING CASE: CARTER CLEANING COMPANY 369
TRANSLATING STRATEGY INTO HR POLICIES & PRACTICES CASE: THE HOTEL PARIS CASE 369