Professor Cascio is past president of the Society for Human Resource Management Foundation and the Human Resources Division of the Academy of Management, and past president of the Society for Industrial and Organizational Psychology. He received the Distinguished Career award from the HR department of the Academy of Management in 1999, an honorary doctorate from the University of Geneva, Switzerland, in 2004, and in 2008 he was named by the Journal of Management as one of the most influential researchers in management over the last 25 years.
Career Management: Self-Focused Individuals 379 Choosing a Job Field and Employer 380 Knowing Where You Stand 380. Early Career: The Impact of First Employment 384 Managing Men and Women in Mid-Career 386 Managing Older Workers 388 .
181 Business Example: Small Businesses Confront Succession Planning 183 Impact of Strategic Workforce Planning on Productivity, Quality of Work Life, and the Bottom Line 186. 311 Business Example: The Container Store: Foundation Week 315 Impact of Training and Development on Productivity, Quality of Work Life, and the Bottom Line 318.
WHAT’S NEW IN THE EIGHTH EDITION?
Ultimately, the purpose of each chapter is to teach potential managers to make decisions based on accurate diagnoses of situations involving people—. Numerous real-world applications of concepts allow the student to learn from the experiences of others, and the dynamic design of each chapter allows the student to move back and forth from concept to proof to practice—then back to concept evaluation.
NEW TOPICS IN THE EIGHTH EDITION
The updated chapter opening vignette highlights key factors as well as barriers to making the business case for a diverse workforce. Chapter 9, on performance management, begins with an updated outline of the chapter opener, "Performance Reviews: The Forced Ranking Dilemma."
HELP FOR INSTRUCTORS AND STUDENTS
ORGANIZATION AND PLAN OF THE BOOK
It is only for ease of exposition that the book presents them separately in Parts 4, 5 and 6.
ACKNOWLEDGMENTS
ENVIRONMENT 1
They provide both direction and perspective for the management of human resources in the new millennium.
1 HUMAN RESOURCES IN A GLOBALLY COMPETITIVE
The 21st century society that emerges will in many ways be the polar opposite of the organizations they helped shape. To stay ahead of the steep curve for new products, it will be critical for companies to attract and retain the best thinkers.
THE ENTERPRISE IS THE PEOPLE
Rather than focusing exclusively on issues of concern to the human resource specialist, we will examine human resource management (HRM) issues in terms of their impact on management in general. To study these impacts, we will look at the latest theory and research in each topical area, plus examples of real company practice.
MANAGING PEOPLE: A CRITICAL ROLE FOR EVERY MANAGER
For some, the activities of staffing, retention, development and adaptation are the special responsibility of the HR department. A particular goal of the HR department is to help line managers manage these employees more effectively.
FEATURES OF THE COMPETITIVE BUSINESS ENVIRONMENT
Commerce
Consider this prediction: “The Internet will change the relationship between consumers and producers in ways that are more profound than you can imagine. As Figure 1–1 shows, between 2000 and 2020 there will be a sharp decline in labor force growth among prime-age workers, especially college-educated workers.
RESPONSES OF FIRMS TO THE NEW COMPETITIVE REALITIES
This means that even more women and minorities will enter the workforce – and also the boardrooms. According to the American Society for Quality, 82 of the 100 largest companies in the United States have embraced Six Sigma, companies as diverse as DuPont, Textron, Bank of America and Sun Microsystems.
ETHICAL DILEMMA
The HR leader closes in on the CEO and the rest of the organization thinks the HR leader is not trustworthy and cannot be a confidant,” explains Conaty. Immelt noted, "I call Bill the 'first friend' — the guy who could walk into my office and kick my butt when needed."
PRODUCTIVITY: WHAT IS IT AND WHY IS IT IMPORTANT?
In the next two sections, we will examine the concepts of productivity and quality of working life. These ideas are shown graphically in Figure 1–5 and illustrated by the company example on the next page.
QUALITY OF WORK LIFE: WHAT IS IT?
However, many workers would like to see a closer connection between working smarter and the tangible and psychological rewards they get from doing their jobs well.
BUSINESS TRENDS AND HR COMPETENCIES
IMPACT OF EFFECTIVE HRM ON PRODUCTIVITY, QUALITY OF WORK LIFE, AND THE BOTTOM LINE
They are "business literate", because they understand the company and how it works, the economy and the strategic issues.
IMPLICATIONS FOR MANAGEMENT PRACTICE
THE 21ST-CENTURY CORPORATION
The fundamental premise of high-quality management systems is that organizations perform at a higher level when they can leverage the ideas, skills and efforts of all their people. Sam Walton, founder of Wal-Mart, was one of the most underpaid CEOs in the United States.
SUMMARY
The competitive business environment of the 21st century reflects factors such as an aging and changing workforce in a high-tech workplace that requires and rewards ever-increasing skills, and increasing global competition in almost every sector of the economy. One of the most pressing demands we face today is improving productivity: getting more out of what we have, doing better with what we have, and working smarter, not harder.
DISCUSSION QUESTIONS
In response, new organizational forms such as the virtual corporation, the virtual workplace, and the modular corporation are emerging. It involves giving workers the opportunity to make decisions about their jobs, designing their jobs and ensuring a work-life balance.
KEY TERMS
APPLYING YOUR KNOWLEDGE
Ressler and Thompson say all Best Buy groups that have switched to a looser structure report similar results. It also sets Best Buy up to be fully operational if disaster strikes,” says Thompson.
However, it is worth remembering that most large companies fail to grow at the rate of inflation. We want to revolutionize the way work is done.” Admit that you're rooting for them too.
THE FINANCIAL IMPACT OF HUMAN RESOURCE
MANAGEMENT ACTIVITIES
39AND PROFITABILITY *
All of the material in this chapter is based on a simple principle, namely that HR measurements are valuable to the extent that they improve critical decisions about talent and its organization. Talent refers to the potential and realized capabilities of individuals and groups and how they are organized, including those within the organization and those who may join the organization.
ORIENTATION
The methods can and should be used in cooperation with the HR department, but they are not the exclusive domain of this department. They are general enough to be used by any manager in any department to measure the costs and benefits of employee behavior.
THE LAMP MODEL: FOUNDATION FOR WORKFORCE MEASUREMENT *
Armed with such systems, managers "slice and slice" the data in a wide variety of ways (ethnicity, skills, performance, and so on), with each manager pursuing his own pet theory about employee turnover and why it matters. . That is why the logic component of the LAMP model is so important for sound measurement.
FINANCIAL EFFECTS OF EMPLOYEE ATTITUDES
In summary, Sears built a model, revised it three times, and created a sort of balanced scorecard for the company—the Sears Total Performance Indicators, or TPI—that showed causality from employee attitudes to profits. Once the data was available, Sears executives then began holding store managers accountable for elements of the model.
COSTING EMPLOYEE ABSENTEEISM
Figure 2–5 is a diagram showing how to estimate the total cost of absenteeism during each period. At a later time (we'll call this "Time 2"), the total cost of the shortage must be measured again.
COSTING EMPLOYEE TURNOVER
The sum of these eight cost elements represents the total cost of replacing those who leave. The sum of these three cost elements represents the total replacement cost of training for those who leave.
FINANCIAL EFFECTS OF WORK-LIFE PROGRAMS
To illustrate, we will consider the financial effects of just two of the many possible interventions between work and private life: childcare and flexible working arrangements. 36 In a cost-benefit analysis of its sick-child care programs, Honeywell found that it saved $68,000 over and above program costs in the first nine months of operation.
COSTING THE EFFECTS OF TRAINING ACTIVITIES
Thus, the cost of training program evaluation was approximately 0.2 percent of the training budget during the same period. In the control group stores, only 49 of the original 64 were still working as sales associates one year later.
LINKING WORKER BELIEFS TO INCREASED PRODUCTIVITY AND PROFITABILITY
It also took some vigilance to ensure that the data required for the study was maintained in a consistent and conscientious manner at each store. Evidence that the training program had a measurable effect on sales was certainly more compelling in demonstrating the value of the program than participants' mere belief that the training was worthwhile.” 54.
IMPACT OF HUMAN RESOURCE MANAGEMENT ACTIVITIES ON PRODUCTIVITY, QUALITY OF WORK LIFE, AND THE BOTTOM LINE
According to Gallup's Coffman, “Talent never becomes 'talented' without being given a role in which it can shine.” The best managers continually encourage their employees to look in the mirror and assess themselves to find the kind of work that brings out their best talents. Murphy (eds.), From Work-Family Balance to Work-Family Interaction: Changing the Metaphor (pp. 49–63.
3 THE LEGAL CONTEXT OF EMPLOYMENT
DECISIONS
In Burlington Northern, the Supreme Court faced a fundamental question: What type of employer conduct constitutes retaliation under Title VII of the Civil Rights Act of 1964. The Court held that the statute's anti-retaliation sweep extends to any employer conduct, even when not job-related, it is severe enough to prevent a reasonable employee from exercising her legal right to object to discrimination.
SOCIETAL OBJECTIVES
The court also ruled that whether such conduct meets this threshold cannot be fully spelled out. Such an action could deter a reasonable employee from complaining about discrimination, and could therefore constitute illegal, retaliatory conduct, according to the court.
EEO AND UNFAIR DISCRIMINATION
Whenever members of such heterogeneous groups must work together, there is the possibility of unfair discrimination. Civil rights laws have been enacted at the federal and state levels to provide legal remedies to job applicants or employees who feel they have been the victims of unfair discrimination.
WHAT ARE THEY?
Cases proven by indirect evidence of intent to discriminate (see the McDonnell Douglas v. Green test, p. 83), including cases that rely on statistical evidence as a method of indirectly proving intent to systematically discriminate against groups of individuals. Mixed motive cases (a hybrid theory) that often rely on both direct evidence of intent to discriminate on some impermissible basis (e.g., sex, race, disability) and evidence that the employer's stated legitimate basis for its employment decision is in fact just a pretext for illegal discrimination.
THE LEGAL CONTEXT OF HUMAN RESOURCE DECISIONS
Railway Express Agency Inc., the Supreme Court held that while the Civil Rights Act of 1866 relates primarily to racial discrimination in the making and enforcement of contracts, it also provides a federal remedy against racial discrimination in private employment. The Civil Rights Act of 1866 allows for jury trials and punitive damages * for victims of intentional racial and ethnic discrimination.
An appeals court has ruled that rejecting an older employee because he or she is overqualified can be a pretext to mask the real reason for the rejection - the employee's age. With these strategies in mind, give applicants a realistic view of what the job will be like—the good, the bad, and the ugly.
ENGLISH-ONLY” RULES—NATIONAL ORIGIN DISCRIMINATION?
Duke Power Co., the most important EEO case ever, decided in favor of Griggs. Such a disguised quota system denied other applicants the equal protection of the law guaranteed by the Fourteenth Amendment to the Constitution, and thus was declared illegal.
IMPACT OF LEGAL FACTORS ON PRODUCTIVITY, QUALITY OF WORK LIFE, AND THE BOTTOM LINE
RETALIATION: A NEW LEGAL STANDARD AND SOME PREVENTIVE MEASURES
If you don't get out of here right now, I'm going to call Ron Hanson at home and tell him you're preventing me from completing the ticket report." It was true that none of the agency's management staff had been guilty of sexual harassment.
4 DIVERSITY AT WORK
Now four of our seven businesses are located outside the United States in different regions of the globe” (Procter & Gamble). The labor force will continue to age, with the annual growth rate of the 55 and older group projected to be 4.1 percent, 4 times the rate of growth of the overall labor force.
WORKFORCE DIVERSITY: AN ESSENTIAL COMPONENT OF HR STRATEGY
The labor force share of Asians, American Indians, Alaska Natives and Pacific Islanders will increase from 4.3 to 5.1 percent, the Hispanic share will increase from 13.1 to 15.9 percent, and the African American share will remain stable at about 12 percent between 2004 and 2014. In contrast, the annual growth rate of the 25 to 54 age group will be 0.3 percent, and that of the younger 16 to 24 age group will be essentially flat.
WORKFORCE DIVERSITY
When a company's vision includes the growing mix of the talent pool and the customer base, then the real argument for diversity is the business case." 11. 12 However, the resources of the new enterprise also include people, and that means creating ' a partnership that spans different corporate cultures.
A WORD ABOUT TERMINOLOGY
Young and old, male and female, American-born and non-American-born, better and less well-educated—these are just some of the dimensions along which team members can differ. A key source of problems in mergers, acquisitions and strategic international alliances is differences in corporate cultures.
WHY IS A DIVERSITY PROGRAM SO DIFFICULT TO IMPLEMENT?
In the following sections we will examine the concept of culture and then briefly focus on some key issues specific to the three races. Initiate formal mentoring and succession programs to ensure minorities are in the leadership pipeline.
BOTTOM-LINE BENEFITS OF DIVERSITY AT PEPSICO 35
Minorities as a group comprise 55.6 percent of the workforce, 38.6 percent of officials and managers, and 57 percent of new hires. Almost three-quarters of men have children, while only 49 percent of women do.
IBM—CHAMPION OF GLOBAL DIVERSITY AND FAMILY-FRIENDLY POLICIES 65
Women in paid employment still bear most of the responsibility for family care and housework. Many members of the Silent Generation currently hold positions of power (eg, business leaders, members of Congress).
MANAGING DIVERSITY
What does work is commu- nicating information in multiple ways (oral and written, formal and informal) thereby addressing different generations’ learning styles. Cedar Rapids, Iowa-area employers have banded together with colleges and other organizations to promote diversity in the community.
COMPANY EXAMPLE PEPSICO, BANK OF AMERICA, AND ABBOTT LABORATORIES
At PepsiCo, for example, “diversity is no longer about counting heads; it's about making heads count.” 75. For example, at Steelcase, the office equipment manufacturer, two employees may share a title, workload, salary, health benefits, and vacation.
As important elements of the diversity mix, progressive organizations will continue to develop and use these assets effectively. In fact, according to the Job Accommodation Network, more than half of the accommodations needed by employees and job applicants with disabilities cost absolutely nothing.
IMPACT OF DIVERSITY ON PRODUCTIVITY, QUALITY OF WORK LIFE, AND THE BOTTOM LINE
However, companies generally tend to measure success in these programs by looking at indicators other than the bottom line. To maximize the potential of all members of the workforce, concerns about diversity link to every business strategy: recruitment, selection, placement, succession planning, performance management, and.
MAKING THE BUSINESS CASE FOR DIVERSITY
EMPLOYMENT 2
Now that you understand the competitive, legal and social environments within which HR management activities take place, it is time to address three main aspects of the employment process: analyzing the work to be done, determining the type of skills needed to doing the work, and hiring employees. Logically, before an organization can select employees, it must be able to specify the type of work to be done, how it is to be done, the number of people required and the personal qualities needed to do the job .
5 PLANNING FOR PEOPLE
ORGANIZATIONS *
We consider the first of these needs, business strategy, HR strategy and job design, in the following sections. As one observer noted in connection with the Citigroup and Merrill Lynch CEO searches, .
BUSINESS STRATEGY—FOUNDATION FOR ALL ORGANIZATIONAL DECISIONS
The most important audience for a mission statement is employees because it helps build a common understanding of an organization's purpose and the basis of its intended competitive advantage in the marketplace. Business strategy provides an overall direction and focus for the organization as a whole, including for each functional area of the business.
RELATIONSHIP OF HR STRATEGY TO BUSINESS STRATEGY
They focus on questions such as these: What do the proposed business strategies entail in terms of human resources? On the other hand, people-related business issues such as workforce diversity, changing managerial skill requirements, no-growth assumptions, mergers, retraining.
THE END OF THE JOB?
In short, forward-thinking companies recognize that people-related business issues will have a profound impact on their strategic business and workforce plans for the foreseeable future. We'll talk more about workforce designs in a later section, but first we need to focus on job designs and the types of personal attributes they require.
ALTERNATIVE PERSPECTIVES ON JOBS
CORPORATE BANK ROBBER
COMPANY EXAMPLE TECHNOLOGY INNOVATION LEADS TO CHANGES IN JOB DESIGN
Scientific management was the dominant approach to job design in 20th century industrial society. The result of the job analysis process is a job description (a general written summary of job requirements) and a job specification (a general written summary of employee requirements).
DISABILITIES ACT (ADA) OF 1990
