EDITION 1

PRINCIPLES OF
HUMAN RESOURCE
MANAGEMENT

Scott SnelL
Professor of Business Administration,
University of Virginia

Professor Emeritus of Management,

Arizona State University

SOUTH-WESTERN
CENGAGE Learning-

Australia • Brazil 'Japan • Korea • Mexico • Singapore • Spain • United Kingdom • United States
PART Human Resource Management in Perspective

Chapter 1 The Challenge of Human Resources Management 2

Why Study Human Resources Management? 4
Competitive Challenges and Human Resources Management 5
Challenge 1: Competing, Recruiting, and Staffing Globally 5
Challenge 2: Embracing New Technology 7
Highlights in HRM 1: A Guide to HR Internet Sites 8
Highlights in HRM 2: Automation of Talent Management Functions 11
Challenge 3: Managing Change 12
Challenge 4: Managing Talent, or Human Capital 13
Challenge 5: Responding to the Market 15
Challenge 6: Containing Costs 17
Demographic and Employee Concerns 22
Demographic Changes 22
Highlights in HRM 3: Social Issues in HRM 23
Cultural Changes 28
Highlights in HRM 4: Why Diversity? 30
The Partnership of Line Managers and HR Departments 31
Responsibilities of the Human Resources Manager 32
Competencies of the Human Resources Manager 33
Highlights in HRM 5: SHRM Code of Ethical and Professional
Standards in Human Resource Management 35
Role of the Line Manager 38
Summary 39
Key Terms 40
Discussion Questions 41
HRM Experience: Balancing Competitive Challenges and Employee
Concerns 41

vii
Contents

Case Study 1: A Chip off the Rock: Outsourcing HR at

Prudential 42
Case Study 2: Managing "Daddy Stress" at Baxter
Healthcare 43
Notes and References 45

Chapter 2 Strategy and Human Resources Planning 48

Strategic Planning and Human Resources 50
Strategic Planning and HR Planning: Linking the Processes 51
Step One: Mission, Vision, and Values 51
Step Two: Environmental Analysis 53
Competitive Environment 53
Step Three: Internal Analysis 57
The Three Cs: Culture, Capabilities, and Composition 57
Forecasting: A Critical Element of Planning 61
Highlights in HRM 1: HR Planning and Strategy Questions to Ask
Business Managers 64
Assessing a Firm's Human Capital Readiness: Gap Analysis 67
Highlights in HRM 2: Succession-Planning Checklist 68
Step Four: Formulating Strategy 70
Corporate Strategy 70
Business Strategy 72
Highlights in HRM 3: Key HR Activities Associated with Merger or
Acquisition Phases 73
Functional Strategy: Ensuring Alignment 75
Step Five: Strategy Implementation 76
Taking Action: Reconciling Supply and Demand 77
Step Six: Evaluation and Assessment 79
Evaluation and Assessment Issues 79

Highlights in HRM 4: Ten Measures of Human Capital 80

Measuring a Firm's Strategic Alignment 81
Ensuring Strategic Flexibility for the Future 82
Summary 84
Key Terms 85
Discussion Questions 85
HRM Experience: Customizing HR for Different Types of
Human Capital 86
Contents IX

Case Study 1: Misplaced Affections: Discharge for

Sexual Harassment 87
Case Study 2: A "Bad Hair Day" or Religious Custom? 89
Notes and References 90

Appendix: Calculating Turnover and Absenteeism 93

Employee Turnover Rates 93
Computing the Turnover Rate 93
Determining the Costs of Turnover 94
Employee Absenteeism Rates 94
Computing Absenteeism Rates 94

Highlights in HRM 5: Costs Associated with the Turnover

of One Computer Programmer 95
Comparing Absenteeism Data 96
Costs of Absenteeism 96
Absenteeism and HR Planning 96
Notes and References 97

PART Meeting Human Resources Requirements

Chapter 3 Equal Employment Opportunity and Human Resources

Management 98
Historical Perspective of EEO Legislation 101
Changing National Values 101
Economic Disparity 102
Early Legal Developments 102
Government Regulation of Equal Employment
Opportunity 102
Major Federal Laws 103

Highlights in HRM 1: Test Your Knowledge of Equal Employment

Opportunity Law 104
Other Federal Laws and Executive Orders 114
Fair Employment Practice Laws 115
Other Equal Employment Opportunity Issues 116
Sexual Harassment 116
Highlights in HRM 2: Questions Used in Auditing Sexual
Harassment 118
Contents

Highlights in HRM 3: Basic Components of an Effective Sexual

Harassment Policy 119
Sexual Orientation 120
Immigration Reform and Control 120
Uniform Guidelines on Employee Selection Procedures 121
Enforcing Equal Employment Opportunity Legislation 124
The Equal Employment Opportunity Commission 124
Record-Keeping and Posting Requirements 125
Highlights in HRM 4: 2007 EEO-1 Survey 127
Processing Discrimination Charges 128

Highlights in HRM 5: EEOC Poster 129

Highlights in HRM 6: EEOC Guidelines on Retaliation 131
Preventing Discrimination Charges 132
Diversity Management: Affirmative Action 133
Establishing Affirmative Action Programs 133

Highlights in HRM 7: Basic Steps in Developing an Effective

Affirmative Action Program 134
Managing Diversity: Affirmative Action 135
Summary 137
Key Terms 138
Discussion Questions 138
HRM Experience: Sexual Harassment: A Frank Discussion 139
Case Study 1: Building a Stealth Fighter with Virtual Teams 140
Case Study 2: Empty Cubicles: How Would You Manage
the Vacancy? 141

Appendix: Determining Adverse Impact 143

Notes and References 144

Chapter 4 Job Analysis, Employee Involvement, and Flexible

Work Schedules 148
Relationship of Job Requirements and HRM Functions 150
Recruitment 150
Selection 151
Training and Development 151
Performance Appraisal 151
Compensation Management 151
Contents XI

Job Analysis 152

Job Analysis and Essential Job Functions 152
Gathering Job Information 153
Controlling the Accuracy of Job Information 154
Approaches to Job Analysis 155
Job Descriptions 158
Highlights in HRM 1: Job Description for an Employment Assistant 159
Problems with Job Descriptions 161
Writing Clear and Specific Job Descriptions 161 ,
Job Design 162
Behavioral Concerns 162
Highlights in HRM 2: Empowered Employees Achieve Results 165
Industrial Engineering Considerations 166
Ergonomic Considerations 167
Designing Work for Group/Team Contributions 168
Flexible Work Schedules 174

Highlights in HRM 3: How to Request a Flexible Work Schedule 175

Summary 179
Key Terms 180
Discussion Questions 180
HRM Experience: Establishing Ground Rules for Team Success 180
Case Study 1: Human Resources Planning at Donna Karan
International 182
Case Study 2: Moen's Recruiting Faucet 183
Notes and References 184

PART Developing Effectiveness in Human Resources

Chapter 5 Expanding the Talent Pool: Recruitment and

Careers 186
Recruiting Talent Externally 188

Highlights in HRM 1: Marriott's Recruitment Principles 189

Outside Sources for Recruitment 190
The Global Labor Market 198
Improving the Effectiveness of External Recruitment 198
Recruiting Talent Internally 200
Xii Contents

Advantages and Limitations of Recruiting from Within 201

Methods for Identifying Qualified Candidates 202
Career Management: Developing Talent over Time 205
The Goal: Matching Individual and Organizational Needs 206
Identifying Career Opportunities and Requirements 207
Highlights in HRM 2: Career Path of Jeffrey Immelt, CEO, General
Electric 210
Career Development Initiatives 214
Developing a Diverse Talent Pool 220
Recruiting and Developing Women 221
Eliminating Women's Barriers to Advancement 221
Glass Ceiling Audits 223
Preparing Women for Management 223
Accommodating Families 224
Recruiting and Developing Minorities 224
Providing Minority Internships 225
Advancing Minorities to Management 225
Highlights in HRM'3: Diversity Recruitment That Works 226
Other Important Talent Concerns 227
Recruiting the Disabled 227
Less Publicized Disadvantages 229

Highlights in HRM 4: Resources and Tips for Hiring and Retaining

Employees with Disabilities 229
Employing the Older Workforce 231
Employing Dual Career Couples 232
Summary 233
Key Terms 234
Discussion Questions 234
HRM Experience: Career Management 235
Case Study 1: Nike: Hiring Gets Off on the Right Foot 235
Case Study 2: Small Companies Need Diversity Too 237
Notes and References 238

Appendix: Personal Career Development 241

Developing Personal Skills and Competencies 241
Choosing a Career 241
Highlights in HRM 5: Career Competencies at Caterpillar 242
Contents

Use of Available Resources 242

Accuracy of Self-Evaluation 243
The Significance of Interest Inventories 243

Highlights in HRM 6: Campbell Interest and Skill Survey: Individual

Profile 244
Evaluating Long-Term Employment Opportunities 246
Choosing an Employer 246
Questions to Ask Yourself Before You Accept a Job Offer 247
Becoming an Entrepreneur 247
Keeping a Career in Perspective 248
Developing Off-the-Job Interests 248
Balancing Marital and/or Family Life 249
Planning for Retirement 249
Key Term 250
Notes and References 250

Chapter 6 Employee Selection 252

Matching People and Jobs 254
Person-Job Fit: Beginning with Job Analysis 255
Person-Organization Fit 255
The Selection Process 255
Obtaining Reliable and Valid Information 256
Sources of Information about Job Candidates 259
Application Forms 260
Online Applications 262
Biographical Information Blanks 262
Background Checks 263

Highlights in HRM 1: Sample Reference-Checking Questions 265

Polygraph Tests 267
Honesty and Integrity Tests 267
Graphology 268
Medical Examinations 269
Drug Testing 269
Employment Tests 271
Nature of Employment Tests 271

Highlights in HRM 2: Best Practices for Employee Testing

and Selection 272
Classification of Employment Tests 272
Contents

The Employment Interview 277

Interviewing Methods 277

Highlights in HRM 3: Sample Situational Interview Question 279

Highlights in HRM 4: iring Managers Reveal Top Five Biggest
Mistakes Candidates Make During Job Interviews in CareerBuilder.
com Survey 280
Guidelines for Employment Interviewers 283
Diversity Management: Are Your Questions Legal? 286
Highlights in HRM 5: Appropriate and Inappropriate Interview
Questions 287
Reaching a Selection Decision 288
Summarizing Information about Applicants 288
Decision-Making Strategy 288
Final Decision 291
Summary 292
Key Terms 293
Discussion Questions 293
HRM Experience: Designing Selection Criteria and Methods 294
Case Study 1: Tapping Unused Resources in Lean Times 295
Case Study 2: Kodak Gets the Picture in Executive
Education 297
Notes and References 299

Chapter 7 Training and Development 304

The Scope of Training 306
Investments in Training 306
A Systems Approach to Training 307
Phase 1: Conducting the Needs Assessment 308
Organization Analysis 309
Highlights in HRM 1: Notes on Rapid Needs Assessment 310
Task Analysis 311
Highlights in HRM 2: A Competency Assessment for a Managerial
Position 312
Person Analysis 314
Phase 2: Designing the Training Program 314
Instructional Objectives 315
Trainee Readiness and Motivation 315
Contents XV

Principles of Learning 316

Characteristics of Instructors 319
Phase 3: Implementing the Training Program 320
Training Methods for Nonmanagerial Employees 320
Methods for Management Development 328
Phase 4: Evaluating the Training Program 333
Criterion 1: Reactions 333
Criterion 2: Learning 334
Criterion 3: Behavior 334
Criterion 4: Results, or Return on Investment (ROI) 335
Highlights in HRM 3: Calculating Training ROI: Examples 336
Highlights in HRM 4: Benchmarking HR Training 337
Special Topics in Training and Development 338
Orientation Training 338
Basic Skills Training 339
Highlights in HRM 5: Checklist for Orienting New Employees 340
Team Training and Cross-Training 341
Ethics Training 343
Diversity Training 344
Highlights in HRM 6: Additional Ethics Training Resources 345
Summary 347
Key Terms 348
Discussion Questions 348
HRM Experience: Training and Learning Principles 349
Case Study 1: UPS Delivers the Goods 350
Case Study 2: Preparing a Career Development Plan 351
Case Study 3: Kodak Gets the Picture in Executive
Education 352
Notes and References 355

Chapter 8 Appraising and Improving Performance 360

Performance Appraisal Programs 362
The Purposes of Performance Appraisal 363
Why Appraisal Programs Sometimes Fail 364
Developing an Effective Appraisal Program 366
What Are the Performance Standards? 367
XVI Contents

Are You Complying with the Law? 369

Who Should Appraise Performance? 370
Putting It All Together: 360-Degree Appraisal 374
Training Appraisers 376

Highlights in HRM 1: Supervisor's Checklist for the Performance

Appraisal 379
Performance Appraisal Methods 379
Trait Methods 380
Highlights in HRM 2: Graphic Rating Scale with Provision
for Comments 381
Highlights in HRM 3: Example of a Mixed-Standard Scale 382
Behavioral Methods 383

Highlights in HRM 4: BARS and BOS Examples 385

Results Methods 386
Highlights in HRM 5: Personal Scorecard 389
Which Performance Appraisal Method to Use? 390
Appraisal Interviews 391
Three Types of Appraisal Interviews 391
Conducting the Appraisal Interview 392
Improving Performance 395
Summary 398
Key Terms 399
Discussion Questions 400
HRM Experience: Performance Diagnosis 401
Case Study 1: Goodyear Ends Ratings System Ahead of
Discrimination Suit 402
Case Study 2: 360-Degree Appraisal at Johnson & Johnson 404
Notes and References 406

Implementing Compensation and Security

PART
Chapter 9 Managing Compensation 410
Strategic Compensation Planning 412
Linking Compensation to Organizational Objectives 413
The Pay-for-Performance Standard 414
The Bases for Compensation 418
Determining Compensation—The Wage Mix 418
Internal Factors 419
Contents XVli

Highlights in HRM 1: Comparison of Compensation Strategies 421

External Factors 422
Job Evaluation Systems 423
Job Ranking System 424
Job Classification System 424
Point System 424
Highlights in HRM 2: Point Values for Job Factors of the American
Association of Industrial Management 426
Work Valuation 426

Highlights in HRM 3: Description of Education Factor and Degrees of the

American Association of Industrial Management 427
Job Evaluation for Management Positions 428
The Compensation Structure 428
Wage and Salary Surveys 428
Highlights in HRM 4: Bureau of Labor Statistics National
Compensation Survey 430
The Wage Curve 431
Pay Grades 431
Rate Ranges 432
Competence-Based Pay 434
Government Regulation of Compensation 435
Highlights in HRM 5: Minimum Wage Laws in the States 436
Davis-Bacon Act of 1931 437
Walsh-Healy Act of 1936 437
Fair Labor Standards Act of 1938 (as Amended) 437

Highlights in HRM 6: The Federal Wage Poster 439

Significant Compensation Issues 441
The Issue of Equal Pay for Comparable Worth 442
The Issue of Low Salary Budgets 442
The Issue of Wage Rate Compression 442
Summary 444
Key Terms 445
Discussion Questions 445
HRM Experience: Why This Salary? 446
Case Study 1: Pay Decisions at Performance Sports 447
Case Study 2: Mission Possible: A Competency-Based Compensation Program
for BestSource and SCE Federal Credit Unions 448
Notes and References 449
XVlii Contents

Chapter 10 Pay-for-Performance: Incentive Rewards 452

Strategic Reasons for Incentive Plans 454
Incentive Plans as Links to Organizational Objectives 454
Requirements for a Successful Incentive Plan 456
Setting Performance Measures 457
Administering Incentive Plans 457

Highlights in HRM 1: Setting Performance Measures—The Keys 458

Individual Incentive Plans 459
Piecework 459
Standard Hour Plan 460
Bonuses 460
Merit Pay 461
Lump Sum Merit Pay 462
Incentive Awards and Recognition 462
Sales Incentives 463

Highlights in HRM 2: Customize Your Noncash Incentive

Awards 464
Incentives for Professional Employees 465
The Executive Pay Package 466
Executive Compensation: Ethics and Accountability 469

Highlights in HRM 3: The "Sweetness" of Executive Perks 470

Executive Compensation Reform 470
Group Incentive Plans 471
Team Compensation 471
Gainsharing Incentive Plans 472
Highlights in HRM 4: Lessons Learned: Designing Effective
Team Incentives 473
Enterprise Incentive Plans 476
Profit Sharing Plans 476
Employee Stock Options Plans 477
Highlights in HRM 5: Employee Stock Option Plans 478
Employee Stock Ownership Plans (ESOPs) 479
Advantages of ESOPs 479
Summary 480
Key Terms 481
Discussion Questions 481
HRM Experience: Awarding Salary Increases 482
Contents

Case Study 1: Pay-for-Performance: The Merit Question 483

Case Study 2: Team-Based Incentive Rewards: It's Not
All Roses 484
Notes and References 485

Chapter 11 Employee Benefits 488

Employee Benefits Programs 490
HRIS and Employee Benefits 490
Requirements for a Sound Benefits Program 491
Communicating Employee Benefits Information 493
Concerns of Management 495

Highlights in HRM 1: Crafting an Effective Benefits Communication

Program 495
Highlights in HRM 2: A Personalized Statement of Benefits Costs 496
Highlights in HRM 3: U.S. Chamber of Commerce Employee Benefits
Survey—2007 497
Employee Benefits Required by Law 499
Social Security Insurance 499
Unemployment Insurance 500
Workers' Compensation Insurance 501
Consolidated Omnibus Budget Reconciliation Act (COBRA) 501
Family and Medical Leave Act 502
Older Workers Benefit Protection Act 503
Discretionary Major Employee Benefits 503
Health Care Benefits 503

Highlights in HRM 4: 'Your Rights": Another Federally Required Poster 504

Highlights in HRM 5: Employers Methods for Containing Health Care Costs 506
Payment for Time Not Worked 508
Supplemental Unemployment Benefits 509
Life Insurance 509
Long-Term Care Insurance 509
Retirement Programs 510
Pension Plans 511
Employee Services: Creating a Work/Life Setting 514
Employee Assistance Programs 515
Counseling Services 516
Child and Elder Care 516
Other Benefits and Services 517
XX Contents

Summary 518
Key Terms 519
HRM Experience: Understanding Employer Benefit Programs 519
Discussion Questions 520
Case Study 1: Using "Sticky" Awards: KFC Does It Right 521
Case Study 2: Adobe's Family-Friendly Benefits: An Unexpected Backlash 522
Notes and References 523

Chapter 12 Promoting Safety and Health 526

Safety and Health: It's the Law 528

Highlights in HRM 1: Test Your Safety Smarts 529

OSHA's Coverage 530
OSHA Standards 530
Enforcing OSHA Standards 530
OSHA Consultation Assistance 532
Responsibilities and Rights under OSHA 533

Highlights in HRM 2: What Are My Responsibilities under the

OSH Act? 534
Right-to-Know Laws 535
OSHA's Enforcement Record 536
Promoting a Safe Work Environment 536
Creating a Culture of Safety 537
Enforcing Safety Rules 538
Investigating and Recording Accidents 539
Creating a Healthy Work Environment 539
Health Hazards and Issues 540
Highlights in HRM 3: Job Safety and Health Protection
Poster 541
Highlights in HRM 4: Holsum Bakery's Workplace Smoking
Policy 543
Workplace Violence 546
Building Better Health 549
Employee Assistance Programs 551

Highlights in HRM 5: Selected Items from Salt River Project's

Substance Abuse Policy 554
The Management of Stress 556
What Is Stress? 557
Contents XXI

Job-Related Stress 558

Coping with Stress 558
Summary 559
Key Terms 560
Discussion Questions 561
HRM Experience: Reducing Employee Stress 562
Case Study 1: Safety Training at Pro's Choice: It's Not
Working 563
Case Study 2: Coping with Stress at U.S. Customs 564
Notes and References 565

PART Enhancing Employee-Management Relations

Chapter 13 Employee Rights and Discipline 568

Employee Rights and Privacy 570
Employee Rights vs. Employer Responsibilities 571
Negligent Hiring 571
Job Protection Rights 571
Highlights in HRM 1: Examples of Employment-at-Will
Statements 576
Privacy Rights 578
Electronic Surveillance and Monitoring 581
Disciplinary Policies and Procedures 587
The Results of Inaction 588
Setting Organizational Rules 589
Defining Discipline 590
Investigating the Disciplinary Problem 591
Approaches to Disciplinary Action 593
Discharging Employees 594
Highlights in HRM 2: Banner Health System Corrective Action
Process 595
Alternative Dispute Resolution Procedures 598
Managerial Ethics in Employee Relations 601
Summary 602
Key Terms 604
Discussion Questions 604
XXii Contents

HRM Experience: Learning about Employee Rights 605

Case Study 1: Discharged for Off-Duty Behavior 606
Case Study 2: "You Can't Fire Me! I Passed the Test" 607
Notes and References 608

Chapter 14 The Dynamics of Labor Relations 612

Highlights in HRM 1: Test Your Labor Relations Know-How 615
Government Regulation of Labor Relations 616
Railway Labor Act 616
Norris-LaGuardia Act 616
Wagner Act 616
Taft-Hartley Act 618
Landrum-Griffin Act 619
The Labor Relations Process 619
Why Employees Unionize 619
Organizing Campaigns 621

Highlights in HRM 2: United Food and Commercial Workers

International Union Authorization Card 623
Employer Tactics Opposing Unionization 624

Highlights in HRM 3: Employer "Don'ts" during Union Organizing

Campaigns 625
How Employees Become Unionized 625
NLRB Representation Election 625
Impact of Unionization on Managers 626

Highlights in HRM 4: NLRB Election Poster 627

Structures, Functions, and Leadership of Labor Unions 628
Structure and Functions of the AFL-CIO 629
Structure and Functions of National Unions 629
Structure and Functions of Local Unions 630
Union Leadership Commitment and Philosophies 631
Labor Relations in the Public Sector 631
The Bargaining Process 632
Preparing for Negotiations 633
Gathering Bargaining Data 634
Developing Bargaining Strategies and Tactics 634
Negotiating the Labor Agreement 635
Good Faith Bargaining 635
Interest-Based Bargaining 637
Contents xxii

Management and Union Power in Collective Bargaining 637

Resolving Bargaining Deadlocks 639
The Labor Agreement 639
The Issue of Management Rights 640
Union Security Agreements 641
H i g h l i g h t s in HRM 5: I t e m s in a Labor Agreement 640
Administration of the Labor Agreement 641
Negotiated Grievance Procedures 641
The Grievance Procedure in Action 642
Grievance Arbitration 643
Contemporary Challenges to Labor Organizations 645
Foreign Competition and Technological Change 645
Decrease in Union Membership 645
Employers' Focus on Maintaining Nonunion Status 646
Summary 647
Key Terms 648
Discussion Questions 648
HRM Experience: Learn about Unions 649
Case Study 1: The Union Drive at Apollo Corporation: ULPs and Organizing
Tactics 650
Case Study 2: The Arbitration Case of Jesse Stansky 651
Notes and References 652

PART Expanding Human Resources Management Horizons

Chapter 15 International Human Resources Management 656

Managing across Borders 658
How Does the Global Environment Influence Management? 660
Domestic versus International HRM 663
International Staffing 664
Recruiting Internationally 665
Selecting Employees Internationally 668

Highlights in HRM 1: Global Laws and Pacts Prohibiting

Discrimination 669
Highlights in HRM 2: Skills of Expatriate Managers 671
Training and Development 673
Content of Training Programs 674
Contents

Highlights in HRM 3: Nonverbal Communications in Different

Cultures 677
Highlights in HRM 4: Repatriation Checklist 682
Compensation 683
Compensation of Host-Country Employees 683
Compensation of Host-Country Managers 685
Compensation of Expatriate Managers 686
Performance Appraisal 688
Who Should Appraise Performance? 688
Home versus Host-Country Evaluations 689
Performance Criteria 689
Providing Feedback 690
The Labor Environment Worldwide 691
Collective Bargaining in Other Countries 691
International Labor Organizations 692
Labor Participation in Management 693
Summary 694
Key Terms 695
Discussion Questions 695
HRM Experience: An American (Expatriate) in Paris 696
Case Study 1: International HRM at Molex, Inc. 697
Case Study 2: How Deloitte Builds Global Expertise 699
Notes and References 703

Chapter 16 Creating High-Performance Work

Systems 708
Fundamental Principles 710
Egalitarianism and Engagement 711
Shared Information 713
Knowledge Development 714
Performance-Reward Linkage 714
Anatomy of High-Performance Work Systems 715
Work-Flow Design and Teamwork 716
Complementary Human Resources Policies and Practices 716
Management Processes and Leadership 718
Contents XXV

Supportive Information Technologies 719

Fitting It All Together 719
Ensuring Internal Fit 719
Establishing External Fit 720
Assessing Strategic Alignment: The HR Scorecard 721
Implementing the System 721
Highlights in HRM 1A: Diagnosing Internal Fit 722
Highlights in HRM IB: Testing the Alignment of the HR System with
HR Deliverables 723
Highlights in HRM 1C: Testing the Alignment of HR
Deliverables 724
Building a Business Case for Change 724
Establishing a Communications Plan 725
Involving Unions 726
Navigating the Transition to High-Performance Work Systems 728
Evaluating the Success of the System and Sustaining It 730
Outcomes of High-Performance Work Systems 731
Employee Outcomes and Quality of Work Life 731
Organizational Outcomes and Competitive Advantage 732
Highlights in HRM 2: The Impact of High-Performance Work
Systems 733
Summary 734
Key Terms 734
Discussion Questions 735
HRM Experience: Assessing the Strategic Fit of High-Performance
Work Systems 735
Case Study 1: HPWS at Tomex Incorporated 737
Case Study 2: HPWS at Xerox Corporation 738
Notes and References 740

Cases 745
Case 1: United Technologies Seeks Intangibles with
Education Plan 745
Case 2: Running the Global Recruiting Machine: ClientLogic 749
Case 3: Job Analysis and Hiring Decisions at Ovania Chemical 752
Case 4: Ill-Fated Love at Centrex Electronics 757
XXVI* Contents

Case 5: Returning Ethics to Putnam 758

Case 6: Realigning HR Practices at Egan's Clothiers 763
Case 7: A Performance Appraisal Snafu 765
Case 8: The Last Straw for Aero Engine 769
Case 9: I.B.M.: Take as Much Vacation Time as You Want To? 771
Case 10: Newell's Decision to Downsize: An Ethical Dilemma 774
Case 1 1 : Someone Has to Go: A Tough Layoff Decision 776
Glossary 778
Name Index 789
Organization Index 791
Subjet Index 801