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Company’sStrategic GoalsEmployee Competenciesand Behaviors Requiredfor Company to AchieveThese Strategic GoalsSd Legalic anteg nmenttra nviroERecrPla und nteHR Policies and PracticesRequired to ProduceEmployee Competenciesand Behaviorsandent titm emencCompensationEmployeeRelationsTraiDeve ninglop amWHERE WE ARE NOWThe framework above introduces eachchapter and makes the following point:That the firm’s HR policies and practicesshould produce the employee skills andbehaviors the company needs to achieveits strategic aims.A01 DESS2780 16 SE FM.indd 124/10/2018 23:05
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Human ResourceManagementSixteenth EditionGARY DESSLERFlorida International UniversityA01 DESS2780 16 SE FM.indd 324/10/2018 23:05
FOR CLAUDIAVice President, Business, Economics, and UK Courseware:Donna BattistaDirector of Portfolio Management: Stephanie WallDirector, Courseware Portfolio Management: Ashley DodgeSenior Sponsoring Editor: Neeraj BhallaDevelopment Editor: Kerri TomassoEditorial Assistant: Linda AlbelliVice President, Product Marketing: Roxanne McCarleySenior Product Marketer: Carlie MarvelProduct Marketing Assistant: Marianela SilvestriManager of Field Marketing, Business Publishing: AdamGoldsteinField Marketing Manager: Nicole PriceVice President, Production and Digital Studio, Arts andBusiness: Etain O’DeaDirector, Production and Digital Studio, Business andEconomics: Ashley SantoraManaging Producer, Business: Melissa FeimerContent Producer: Yasmita HotaOperations Specialist: Carol MelvilleDesign Lead: Kathryn FootManager, Learning Tools: Brian SuretteLearning Tools Strategist: Michael TrinchettoManaging Producer, Digital Studio and GLP: James BatemanManaging Producer, Digital Studio: Diane LombardoDigital Studio Producer: Regina DasilvaDigital Studio Producer: Alana ColesFull Service Project Management: Pearson CSC,Ann Pulido and Roberta ShermanInterior Design: Pearson CSCCover Design: Pearson CSCCover Art: Katty2016/ShutterstockPrinter/Binder: LSC Communications, Inc/OwensvilleCover Printer: Phoenix Color/HagerstownMicrosoft and/or its respective suppliers make no representations about the suitability of the information contained in thedocuments and related graphics published as part of the services for any purpose. All such documents and related graphicsare provided “as is” without warranty of any kind. Microsoft and/or its respective suppliers hereby disclaim all warrantiesand conditions with regard to this information, including all warranties and conditions of merchantability, whetherexpress, implied or statutory, fitness for a particular purpose, title and non-infringement. In no event shall Microsoft and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resultingfrom loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or inconnection with the use or performance of information available from the services.The documents and related graphics contained herein could include technical inaccuracies or typographical errors.Changes are periodically added to the information herein. Microsoft and/or its respective suppliers may makeimprovements and/or changes in the product(s) and/or the program(s) described herein at any time. Partial screen shotsmay be viewed in full within the software version specified.Microsoft and Windows are registered trademarks of the Microsoft Corporation in the U.S.A. and other countries. Thisbook is not sponsored or endorsed by or affiliated with the Microsoft Corporation.Copyright 2020, 2017, 2015 by Pearson Education, Inc. or its affiliates. All Rights Reserved. Manufactured in theUnited States of America. This publication is protected by copyright, and permission should be obtained from thepublisher prior to any prohibited reproduction, storage in a retrieval system, or transmission in any form or by anymeans, electronic, mechanical, photocopying, recording, or otherwise. For information regarding permissions, requestforms, and the appropriate contacts within the Pearson Education Global Rights and Permissions department, pleasevisit www.pearsoned.com/permissions/.Acknowledgments of third-party content appear on the appropriate page within the text, which constitutes an extension ofthis copyright page.PEARSON, ALWAYS LEARNING, and MYLAB are exclusive trademarks owned by Pearson Education, Inc. or itsaffiliates in the U.S. and/or other countries.Unless otherwise indicated herein, any third-party trademarks, logos, or icons that may appear in this work are theproperty of their respective owners, and any references to third-party trademarks, logos, icons, or other trade dress arefor demonstrative or descriptive purposes only. Such references are not intended to imply any sponsorship, endorsement,authorization, or promotion of Pearson’s products by the owners of such marks, or any relationship between the owner andPearson Education, Inc., or its affiliates, authors, licensees, or distributors.Library of Congress Cataloging-in-Publication DataNames: Dessler, Gary, author.Title: Human resource management / Gary Dessler, Florida InternationalUniversity.Description: Sixteenth Edition. New York : Pearson, [2018] Revisededition of the author’s Human resource management, [2017]Identifiers: LCCN 2018036314 ISBN 9780135172780 (casebound)Subjects: LCSH: Personnel management.Classification: LCC HF5549 .D4379 2018 DDC 658.3--dc23LC record available at https://lccn.loc.gov/2018036314ISBN 10: 0-13-517278-0ISBN 13: 978-0-13-517278-0A01 DESS2780 16 SE FM.indd 424/10/2018 23:05
BRIEF CONTENTSPreface xxviiAcknowledgments xxxvPART ONE123INTRODUCTION1Introduction to Human Resource Management 1Equal Opportunity and the Law31Human Resource Management Strategy and Performance69PART TWO RECRUITMENT, PLACEMENT, AND TALENTMANAGEMENT 974567PART THREE8910PART FOUR111213Job Analysis and the Talent Management Process 97Personnel Planning and RecruitingEmployee Testing and Selection130169Interviewing Candidates 205TRAINING AND DEVELOPMENT236Training and Developing Employees236Performance Management and AppraisalManaging Careers and RetentionCOMPENSATION277311348Establishing Strategic Pay Plans348Pay for Performance and Financial Incentives389Benefits and Services 419PART FIVE ENRICHMENT TOPICS IN HUMAN RESOURCEMANAGEMENT 45314 Building Positive Employee Relations 45315 Labor Relations and Collective Bargaining16 Safety, Health, and Risk Management 51717 Managing Global Human Resources 56218 Managing Human Resources in Smalland Entrepreneurial Firms483590APPENDICESAPPENDIX AHRCI’s PHR and SPHR Certification Body of Knowledge614Continued A01 DESS2780 16 SE FM.indd 5v24/10/2018 23:05
vi BRIEF CONTENTSAPPENDIX B bout the Society for Human Resource Management (SHRM)ABody of Competency & Knowledge Model and CertificationExams 620APPENDIX CComprehensive CasesGlossary635651Name/Organization IndexSubject IndexA01 DESS2780 16 SE FM.indd 666067024/10/2018 23:05
CONTENTSPreface xxviiAcknowledgments xxxvPART ONE11INTRODUCTION1Introduction to Human Resource Management 1WHAT IS HUMAN RESOURCE MANAGEMENT? 3Why Is Human Resource Management Important to All Managers?Line and Staff Aspects of Human Resource Management 5Line Managers’ Human Resource Management Responsibilities 5The Human Resource Department 63THE TRENDS SHAPING HUMAN RESOURCE MANAGEMENT 7Workforce Demographics and Diversity TrendsTrends in Jobs People Do 87 HR AND THE GIG ECONOMY: ON-DEMAND WORKERS 8 IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: Boosting Customer Service 9Globalization Trends 10Economic Trends 10Technology Trends 12IMPORTANT COMPONENTS OF TODAY’S NEW HUMAN RESOURCE MANAGEMENT 13A Brief History of Personnel/Human Resource Management 13Distributed HR and the New Human Resource Management 14 TRENDS SHAPING HR: DIGITAL AND SOCIAL MEDIA: Digital and Social Media Toolsand the New Human Resource Management14A Quick Overview 14Strategic Human Resource Management16 IMPROVING PERFORMANCE: THE STRATEGIC CONTEXT: Building L.L.Bean 16Performance and Human Resource Management 16Sustainability and Human Resource Management 17Employee Engagement and Human Resource ManagementEthics and Human Resource Management 1818THE NEW HUMAN RESOURCE MANAGER 18HR Manager Certification 19HR and the Manager’s Human Resource Philosophy20THE PLAN OF THIS BOOK 21The Basic Themes and Features 21Practical Tools for Every Manager 21Chapter Contents Overview 22The Topics Are Interrelated 23CHAPTER SECTION SUMMARIES 23DISCUSSION QUESTIONS 24INDIVIDUAL AND GROUP ACTIVITIES 24EXPERIENTIAL EXERCISE 25APPLICATION CASE: JACK NELSON’S PROBLEM 25CONTINUING CASE: CARTER CLEANING COMPANY 26KEY TERMS 27ENDNOTES 27viiA01 DESS2780 16 SE FM.indd 724/10/2018 23:05
viii CONTENTS22Equal Opportunity and the Law 31EQUAL OPPORTUNITY LAWS ENACTED FROM 1964 TO 1991 33Title VII of the 1964 Civil Rights Act33 HR AND THE GIG ECONOMY: DISCRIMINATION IN THE GIG ECONOMY? 33Executive Orders 34Equal Pay Act of 1963 34Age Discrimination in Employment Act of 1967 34Vocational Rehabilitation Act of 1973 34Pregnancy Discrimination Act of 1978 34Federal Agency Guidelines 35Early Court Decisions Regarding Equal Employment Opportunity35THE LAWS ENACTED FROM 1991 TO THE PRESENT 36The Civil Rights Act of 1991 36The Americans with Disabilities Act 37Uniformed Services Employment and Reemployment Rights ActGenetic Information Nondiscrimination Act of 2008 (GINA) 38State and Local Equal Employment Opportunity Laws 39Religious Discrimination 39Trends in Discrimination Law 39Sexual Harassment 4038 IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS AND SMALLBUSINESSES: How to Address Sexual Harassment 42 TRENDS SHAPING HR: DIGITAL AND SOCIAL MEDIA 44DEFENSES AGAINST DISCRIMINATION ALLEGATIONS 44The Central Role of Adverse Impact 44Bona Fide Occupational Qualification 47Business Necessity 48 KNOW YOUR EMPLOYMENT LAW: Examples of What You Canand Cannot Do 48THE EEOC ENFORCEMENT PROCESS 51Voluntary Mediation 53Mandatory Arbitration of Discrimination Claims53 IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS AND SMALLBUSINESSES 54DIVERSITY MANAGEMENT 55Potential Threats to Diversity55 IMPROVING PERFORMANCE: HR AS A PROFIT CENTER 56Managing Diversity 56Implementing the Affirmative Action Program 57Reverse Discrimination 58CHAPTER SECTION SUMMARIES 59DISCUSSION QUESTIONS 60INDIVIDUAL AND GROUP ACTIVITIES 60EXPERIENTIAL EXERCISE 61APPLICATION CASE: SEEKING GENDER EQUITY AT STARBUCKSCONTINUING CASE: CARTER CLEANING COMPANY 62KEY TERMS 63ENDNOTES 633362 uman Resource Management StrategyHand Performance 69THE STRATEGIC MANAGEMENT PROCESS 71The Management Planning ProcessWhat Is Strategic Planning? 72The Strategic Management ProcessA01 DESS2780 16 SE FM.indd 8717224/10/2018 23:05
CONTENTS ixTYPES OF STRATEGIES 74Corporate Strategy 74Competitive Strategy 75Functional Strategy 76Managers’ Roles in Strategic Planning76STRATEGIC HUMAN RESOURCE MANAGEMENT 76What Is Strategic Human Resource Management?76 IMPROVING PERFORMANCE: THE STRATEGIC CONTEXT: The Shanghai Ritz-CarltonPortman Hotel77 IMPROVING PERFORMANCE: HR AS A PROFIT CENTER: The Zappos “WOW” Way 78Sustainability and Strategic Human Resource ManagementStrategic Human Resource Management Tools 7878HR METRICS, BENCHMARKING, AND DATA ANALYTICS 81Benchmarking 81Strategy-Based Metrics 82What Are HR Audits? 82 TRENDS SHAPING HR: DIGITAL AND SOCIAL MEDIA 83 TRENDS SHAPING HR: SCIENCE IN TALENT MANAGEMENT 84HIGH-PERFORMANCE WORK SYSTEMS 85EMPLOYEE ENGAGEMENT GUIDE FOR MANAGERS: EMPLOYEE ENGAGEMENTAND PERFORMANCE 87The Employee Engagement Problem 87What Can Managers Do to Improve Employee Engagement? 87How to Measure Employee Engagement 87How Kia Motors (UK) Improved Performance with an HR Strategy Aimed at BoostingEmployee Engagement 88CHAPTER SECTION SUMMARIES 90DISCUSSION QUESTIONS 90INDIVIDUAL AND GROUP ACTIVITIES 90EXPERIENTIAL EXERCISE 91APPLICATION CASE: TESLA’S STRATEGY 91CONTINUING CASE: CARTER CLEANING COMPANY 92TRANSLATING STRATEGY INTO HR POLICIES AND PRACTICES CASE: IMPROVINGPERFORMANCE AT THE HOTEL PARIS 92KEY TERMS 94ENDNOTES 94PART TWO RECRUITMENT, PLACEMENT, AND TALENTMANAGEMENT 9744Job Analysis and the Talent M anagement Process 97TALENT MANAGEMENT PROCESS 99Talent Management Software99THE BASICS OF JOB ANALYSIS 100What Is Job Analysis? 100Uses of Job Analysis InformationConducting a Job Analysis 101101 IMPROVING PEFORMANCE: HR AS A PROFIT CENTER: Boosting ProductivityThrough Work Redesign 102METHODS FOR COLLECTING JOB ANALYSIS INFORMATION 104The Interview 104Questionnaires 105Observation 108Participant Diary/Logs 108Quantitative Job Analysis TechniquesOnline Job Analysis Methods 109A01 DESS2780 16 SE FM.indd 910824/10/2018 23:05
x CONTENTSWRITING JOB DESCRIPTIONS 111Diversity Counts 111Job Identification 112Job Summary 112Relationships 113Responsibilities and Duties115 TRENDS SHAPING HR: DIGITAL AND SOCIAL MEDIA 116 KNOW YOUR EMPLOYMENT LAW: Writing Job Descriptions That Complywith the ADA116Standards of Performance and Working Conditions117 IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS AND SMALLBUSINESSES 117WRITING JOB SPECIFICATIONS120Specifications for Trained versus Untrained PersonnelSpecifications Based on Judgment 120120 HR AND THE GIG ECONOMY: DO GIG WORKERS NEED JOBSPECIFICATIONS? 121Job Specifications Based on Statistical Analysis 121The Job-Requirements Matrix 121Employee Engagement Guide for Managers 122USING COMPETENCIES MODELS 122 IMPROVING PERFORMANCE: THE STRATEGIC CONTEXT: Daimler Alabama 12355How to Write Competencies Statements 123CHAPTER SECTION SUMMARIES 124DISCUSSION QUESTIONS 125INDIVIDUAL AND GROUP ACTIVITIES 125EXPERIENTIAL EXERCISE 126APPLICATION CASE: THE FLOOD 126CONTINUING CASE: CARTER CLEANING COMPANY 127TRANSLATING STRATEGY INTO HR POLICIES AND PRACTICES CASE: IMPROVINGPERFORMANCE AT THE HOTEL PARIS 127KEY TERMS 128ENDNOTES
CONTINUING CASE: CARTER CLEANING COMPANY 26 KEY TERMS 27 ENDNOTES 27 1 A01_DESS2780_16_SE_FM.indd 7 24/10/2018 23:05. viii CONTENTS 2 Equal Opportunity and the Law 31 EQUAL OPPORTUNITY LAWS ENACTED FROM 1964 TO 1991 33 Title VII of the 1964 Civil Rights Act 33 HR AND THE GIG ECONOMY: DISCRIMINATION IN THE GIG ECONOMY? 33 Executive
