t,Anr 3 |

()RGANTZiNG

CHApTER
thcse factors, u4uch a;'ejob-based and business or industry-based. One factor that's criticirl is the organizrtion's philosophy toward compensation. Sone organizations. for instance, don't pai, emploi,ces any more tltan they haYe to. In the absence of a union contract lhat stipulates Lommunrcaie openly .nd honestly:

z I vanac$Le

HUt!,iAr! RESot_rR.

203

wage levels, those organizations only have to pay rninimurr rvage for most of tlieirjobs. On tlle other hand. some organizations are conrrnitted lo a colnpensation philosophy ol pafin,q their employces at or above area wagc levels in ordcr to emphasize that they rNant lo altfrcl

. . .

lnform those being et go as soon as possibie fuil surulving employees the nelv ooals and expeclatiors Explain impact of layoifs

rnJ kuep the bcst pool oltrlerrr. it{any organizations are using alternati\,e approaches to deternrining conlpen\,rriorl including skill-based pay and variable pay. Skill-bqsed poy systems reward erlploj,ees for thejob skills and competencies tlrey can demonsr:rte. Under rhis type olpay sy-srcnr, an employee's job title doesn't defrne his or her pal category, skills do.r0 Research shows that these t)'pes of pa1, systems tend to be more successful in mlnufacturing organizations than in service olganizations and in orqanizations pursuing technical innovations.ll On the other hand, many organizatious use vo.ioirle poy systenrs. in rvhich an individual's compensation is continient on pelfornrance-9O percent ol U.S. organiz-ations use variable pay plans. and 8[ percent of Canadian and Taiu,anese
organizations do.42

Follorv anv laits iegulatrng severance pay or benefds Provide supporVcounselinq

Reassign roles Focus
f

cr suruiving employees
and backgrounds

acrording tc InCividuals'ialenis

on boosting morale:

. . .

Offer indiv o'ualized reassurance Continue

to communiaale, especialiy ooe-of-one

Rem3in involveC anri available

WHY DO ORGANIZATIONS OFTER EMPTOYEE BENEFITS? When an organization designs its overall compensation package, it has to look fudher thanjust an hourly wage or annual

helped layoff victims by offering a variety ofjob-heip services, psychological coLrnselinc. support gr0ups, severance pay, extended health insurance benefits. and detailed commu_

salary.

It

has to take into account another element, employee benefiis, $hicl'i are

nicalions. AlLhough some individuals react negatively to being laid off (the u,orst cases in'olve individuals returning to their former organization and comnitting a
vrolent act), offers of assistauce reveal that an organization does care about irs fornrer empioyees. While those being laid off get to start over with a clean slate and a clear

nonfinancial rewards designed to enrich employees'lives. They have grown in imponance

and variety over the past several decades. Once viewed as "fringesi'today's benefit packages reflect efforts to provide something that each employee values. The benehts offered by an organization var';, widely in scope. Most organizations are legally required to provide Social Security and workers' and unemployment compensation, but organizations may also provide an array of benefits such as paid time off from u,ork, life and disabilitv insurance, retirement prograrns, and health insurance.+3 The costs
of some of these. such as retirement and health insurance benefits, may be paid by both the employer and tire emplovee, although as you'll see in the next section, organizatiorrs rle cutting back or putting stipulations on these two costly benefits

conscience, survivors don't. Unfortunately, the ,,survivors,' who retain their jobs and have the task of keeping the organization going or even of revitalizing it seldorn receive attention. one negative consequence appears to be whar is being called loyotf. survivor sickness, a set of attitudes, perceptions, and behaviors of employees who survive involuntary staff reductions.45 Symptoms include job insecuritv, perceptions of unfairness, guilt, depression, stress from increased workload, fear of change, ioss of lovalty and commitment, reduced effort, and an unwillingness to do an)(hjng he),ond the required minimum.
To show concern forjob survivors, managers inay wani to provide oppor.Luniries foL employees to talk to counselors about their guilt, anger, and anxiety.a6 Group discus_ sions can be a way for the survivors to vent their feelings. Some organizations hirr,e used downsizing as the spark to irnplement increased employee participation prugrants such as en.rpowerment and self-managed work teams. In short, to keep morale and pro, ductivity high, managers should make every attempt to ensure that those inclividuals

Discuss

contemporary
issues in managing human
rESO
U

Wh{,AT 0#h$T'$fbq[:]. h?AffiY F{Rf',$ E$St"6E$i FAC::ii &.GEftS

HR issues that face today's managers include downsizing, workforce
diversity. sexuhl harassment, u,orkplace spirituality, and HR costs.

still u,orking in the organization know that they,re valuabie and

much-needed

lesources. Exhibit 7-10 summarizes some ways that managers can reduce the trauma associated with downsizing.aT

TCES.

How Can Managers Manage Downsizing?

How Can Workforce Diversity Be Managed?

Although we discussed the changing makeup of the workforce in Chapter 3, *,orkfor.ce di'ersity also affects such basic HRM activities as recruitment, selection, and orieutatiou.as Improving workforce diversity requires managers to widen their recruiting net. For example, the popular practice of relying on current employee referrals as a source of ne' job applicants tends to produce candidates who have sirnilar characteristics to
those of present employees. So managers have to look for applicants in places u.here they haven't typically looked before. To increase diversity, managers are increasinrly

pownsizing is the planned elintination ofjobs in an organization. Because dorvnsizing q,picallv involves shrinking the organization's workforce. it's an importantissue rn liRlvl.
When an organization has too many employees-which may happeu rvhen it's faced wittr an cconomic crisis. declining market share, overly aggressile growth, or lvhen it's been

poorly managed-one option for improving profits is to eliminate excess u,orkers. Over. the last feiv years, many rvell-known companies have gone through several rounds of downsizing-Boeing. \iolkswagen" N,licrosoft, Dell, General Motors, Unisys. Sienens. Merck, and Toyota, among othels. How can managers best manage a dou'nsized worklorce?

After downsizing. disruptions in the u'olkplace a.rd in ernployees' personai lives are to be expected. Stress, frustration, anriety, and anger ae typical reactions ol both individuals bcin_g laid o11 and ti':ejob sun,ivors. And it may surprise you tc learn rltat both victims and suri,ivors experience thosc feelings.{1 Nlany organizittions haie

skill.b0sed pdy
A pey system that rewards empioyees ior rhe job skills ihey demonstrate

employee benefils
Membemhip-based rewards designed

l0yoii-sur\ri!or sicl:nes9
io enrich
A ser

cl attituCes, perce.i

.ji:

aaj ir,

employees'lives

earployees urho sun,vr:

l;r;1i;

vorioble pqy
A pay system in which ar incliviCual! compersation is continqent on pedormance

doy/nsizing
The plaoned elimination

oflobs in

an organiTaticn

.:.: i,,ii3

:(.(

,)t.|7t..)
cHApTER turning
sources such rs women's job nenvorks. over-50 clubs, urban job banks. disabled people's training centers, ethnic newspapers, and gay rights organizarions- This type of outreach shouid enable an

ZI

turnNa,.rr,.rc HuMAN RESOURCES

2l

to nontraditional recruitme[t

r\ny un\\,anted action or activity of a sexLnl nature that explicitty or implicitly aftects an individual's emplol,ment, perlormance. or work envi_ ronnlent can be regarded as sexuol horossrrenl. It can occur betrveen
menibers oi the opposite or. of the sanre sex between entployees oi rhe orsauiz-ation or betu,een enrployee and nonenrployee.SS Although such an activit} has been generally prohibited under'l'itie Vll (sex discrini)nation)
in the Llnited States, in recent years this problem has gained more recoqui_

ll

,l

li

lir

llr

: airollenQing issue lor HR monogers.ag Dy emplovees Foufleen sl0lss ond the Districl of

ir r i) ilrrirt!.r0

orsanization to broaden its pool ofapplicants. Once a diverse set of applicants exists, elforts nllrst be made to ensure that the selection process does not discr.iminate. I{oreoyer, applicants need to be made comfortable lvith
the organization's culture and be made ar.vare of management's

,),r

r r,

II

L|a ri iiljLtun0 wLllroul leor of being prosecuted. Federol ptose-

desire to acconntodate their needs. Fol instance, at TGI Friday's. company managers rvork diligenriy to accommodale
differences and create rvorkplace choices for a diverse nork-

tion. By most a.counts, prior to the mid-1980s, occurreoces were gener_ allr' vicwed as isolated incidents, u,ilh rhe individual committins the act
being solely responsible (ifat all) for his or her acrions.59 Today, charees of sexual harassment continue to appear in the headlines on an airlost reguial basis.

ruir,:'
Lr

r!,r br,:;r drrecled Dy the currenl ndtninlslrcti0n nol to bring

,rlrlil(],ts uU0insl n)0tjju0n0 usets \,,rlo lOllOv,/ lheir slotes'

ri:..
iir
;.i

r,.r,,r v.r, llrrl puls E[]pOyers in o oifficull posilicn 0s they try

: r

force; so, too, do cornpanies such as Sodexo, Johnson & Johnson, Ernst & Young, lvlarriot Inrernational, IBN,l. and
Bank of America.50

Nluch

of the

probleni associated lvith sexual harassnient

is

irJ|lt,:lulel0u/S0nntedcClm0nju000USey/hilenovlnglo 0t c0utpcny dtlg-use policies lhot ore bosed

Li ,. ;-il'.i{r (u !s

r. r r li\,r i.llhoLrUh couds h0ve generoily ruled thol comp0nles .1.. : r,'ir 1,, icc0mn.l0dole medtc0l m0|juon0 users, legol guidiri ,: rj rl noi 0lr thcl cleor. Legcl expeds hove worneC employers ii iiur iJl ulOnl 0i oisobilily cnd privocy lovvs.' ln oddition lo the i;irl i::sl -irs employers ore concerned 0boul the chcllenge of riir l,j ir at il soiey/otkillocg
ri

Finally, orientation is often difficult lor women and minorities. N{any organizations, such as Lotus and HervlettPackard, provide special workshops ro raise diversity consciousness among cu[ent employees as rvell as programs for new employees that focus on diversiry issues. The rhrust of these efforts is to increase individual understanding of the differences each of us brings to the workplace. A number of
companies also have special mentoring programs to deal with the reality that lorver-level female and minority managers have few role models with *,hom to identity.sl

determining what constirutes rhis illegal behavior.60 In I993, the EEOC cited three situations in which sexual harassment can occur. I[ these instanc:s. verbal or physical conduct toward u individLrai:

Creltes an intirnidating, offensive, or hoslile environrnenr. Unreasonablv inrerferes with an individual's wor.k. Adversely affects an employee's employment opportunities For man1, organizations. it's the offensive or hostile environment issue that's problernatic.6l What constitutes such an environment,J
Challenging hostile environment situations gained much support from the Suprenre Court case of Meritor Scuirg,s Ban,t v. Vinso,t.62 This case stemn)ed from a situation in which Ms. Vinson iuidally retused the sexual
adr,ances

lil, i lrr lnr fils iss!

cl1?cl HR .otocesses such 0s fecru

lmenl, Seleclion,

i:iili;iJn;a
i

monogemeii, CCmp0solion oncj beneiils, 0nd S0lely ond

'.,,li i
rs mrghl be rnoocled by lttis? ln whcl woys mighl

What ls Sexual Harassment?

Sexual harassment is a serious issue in both public and privar: sector organizations. Soms 12,000 complaints are filed with

of her boss. However, out of fear of reprisal, she ultirnately

,A

irli rrili:i slJfeilol lliij'[r rIiprCled?

,,

conceded. But according to coun records, it didn't stop therc. vinson's boss continued to harass Vinson, subjecting her to severe hostility that affected herjob.63 In addition to supporr-

peertraining p.ooram ai lhe U.S Na!al

Academy is designeC to prevent at the military coliege Navy and

se\!a orl

the EEOC each year,52 with more than l6 percent of the cornplaints filed by males.53 Setrlements in some of these cases incurred a substantial cost to the companies in terms ol Iitigation. It's estimated that sexual harassment is the single Iargest financial risk facing companies today-and can result in decreases (sometimes greater than 301o) tn a company's stock price.54 At Mitsubishi, for example, rhe company paid out more than $34 million to 300 rvomen for the rarrpant sexual.harassment to which they rvere etposed.i5 But it's more than-just jurv arvards. Sexual harassment results il millions iost in ab5enfeeism. low productivitr. rnd turnorer.i6 Sexual harassrlent, fuilhermore, is not just a U.S. phenomenon. It's a global issue. For instance, nearly 10 percent of workers responding to a global survey reported that ritey had been harassed sexually or physically at u,ork. The survey coveled countiies such as India, China, Saudi Arabia. Sweden, France, Belgium, Germany. Great Britain, and Poland, among others.5? Even though discussions of sexual harassment cases ofien focus on the large awards granted by a court, employers
face other concerns. Sexual harassment creates an unpleasant u,ork environment for organization nren:bers and undermines

ing hostile enr,ironment claims, rhe Meritor case also identified employer liabiiity; that is, in ';exual harassment cases, an organization can be held Iiable for sexual harassment actiols by its manegers. employees, and even customers!64

harassment, a high profi e problem noL

b!t .isc

in ihe U.S.

u.5

Marine Ccrps The Sei!31

Ha.assment and Assault Preveniion Education (SHAPE) prograrn is an open forum that gives m;cishipmen the

Ahbcugh the Lleritor case has implications for organizations, horv do organizarional
menrber.s determine whether something is offensive? For instance, cloes sexually explicit Ianguage in the office create a hostile environnent? How about off-colorjokes? pictures of

oppod!nity to learn about and discuss

different aspec6 of sex!al h.rassment, including oender cliscrirnrnation .nd inappropriate langrege ihat can
harassment. Shown here are

nri;r

women totally undressed? The answer is it could I It depends on the people in the organization and the environment in which they work. The poirt here is that we all must be attuned to what makes fellow employees uncornfortable-and if we don,t kno[,, then we shoukl rskl Orcanizational success will, in part, rellect how sensitite each employee is towrrd

irili!ate

il/o st!dent trainers guiding a ci3ss, one oI l6 ihe

mldshipmen complei during rheir lour yei at the academv.

in the company. At DuPont, for e.rample, the colporate c,lture and diversity prograurs are designed to eliminate sexual hrrassment through awareness and respect ibr a1l indi'idLrais.65 It means understanding ote another and, inost imporrantly, respectinr:
anL)ther

others' rights. Sirnilar programs exist at FedEx, General Mills, and Levi-Strauss, among other cclrpanies.

If sexual harassment carries with il pote,tial cosrs to the organization, what can {l compan)r do to plotect itse]f?66 Tire courts want to know t\.\,o thines-did the orsaniT_rtion know about. or should it have known about, tlie allegecl behavior? And wiat did managers do to stop it?67 With the nuntber.and dollar amounts of the awards toclay. it's
even more important tbr organizations and managers to educate all etrplovees on sexual harassneur mattels and to have mechanisms available to monitor employees. Furthermore,

"victims"

no Ionger have to prove that their psvchological weli-being is seriously a{I'ectecl.

their ability to perform their jobs. But just whar is sexuai

harassment?

;?)r!:i horflssineni
Anv

rinriaiied sciion cr adivity cl

c

a sexual nature

tr:t erFiic,ily

+:c

or imolicit y affects an individual's .:'e.t_, pejo:nanc", or worL envi.on-erl

PART

3I

ORGANIztNG
The U.S. Suplenie Court ruled in 1993, in the case of Harris n .rbrklifl,S,l,srzru,

CHAPTER

N4AIJAG NG HL_lN,ir\ll

(ESai.tft,.,,: ?al

ftc..

thrLt

victinrs do not have to suffer substantiai mental distress to receive a jurv awaili. Fultherrnore. in June 1998. the Supreme Cour:t ruled that sexual harassment nra\, lrave occurred elen il the emp)oyee had not e:lperienced any "negative" job repercussions In this case. Kimberly Ellerth, a rnarketing a-csistant at Buriington Industries, filed hiirassl'nent charges asainst her boss because he "toucited her, su.ggested she tlerr slrort.r skirts, and told her durins l business hip Lhat he could make herjob 'r'ery hrrd or veLv eas1,'."' \\rhen ElLertlr refused, tire harasser never "punished" her; in fact, she even rcceived a pron'rotion during the time the harassment was ongoing. What the
Supreme Coult's decision in this case indicates is that "harassment is deirned by the uglv beiravior of the nlanager. not by rvhat happened to the rvorker subsequentll,."6!
Finai11,,

Eri

j,l!,S$ffi,r[,ii,if,ri,ffi$,ffi
-:j

ii.R/r.i:

r=!iajl

Strorg sense ol

purpcse

Organizational members know why ihe organjzaiicn exisis and what it values. Employees are valuabie and need to be nutured 10 helo therr grow; lhis characterisiic aiso includes a sense oi iob s-"airrjt!, Organizaticnal member reiationships ara characleflzrt b!, muluai trusi, honesty, af;d ogennass.

Focus on individuai

de!eiopment
Trust and opennsss Empicyee empov/ermenl Tolerance of

Employtrs are al owed to make work-related decisijns thal affrct them, highlighting a strong sense of delegaiion oi
authorily. The Jrganizaiional culture enccuraEes emplo),ees to be ihemseives and to express their mcods and feelinls ilithout ouilt cr fear oi reprimand.

in a sexuai harassntent matter. managers must remember that the Itarasser ma]

have rights, roo.69 No action sllould be tnken against someone until a tirorou-sh investiga-

expression

employee

tion has been conducted. Furthemtore, the rcsults of the investigation should be revierved
bv an inrlependent and objective individLral before any action against the alleged harassel is taken. Even ther. the harasser shouid be given an opportunity to respond to the allegation and have a disciplinary hcaring if desired. Additionally, an avenue for appeal should also exisi for the alleged harasser-an appeal heard by someone at a higher level ol nanagement u,ho is not associated with the case.

typically focus on trvo issues. First is the question of legitimacy. Specificalli,,

do

organizations have the right to impose spiritual values on their employees? Second is the question of cconomics. Are spirituality and profits compatible? Let,s brietlr, look

What ls Workplace Spirituality?

What do organizations such as Southwest Airlines, Ford Motor Company, Torn's of Maine, Hernan lvliller, Tyson Foods, or Hewlett-Packard have in cormon? Arnong otlier cha[rcteristics. t]ley're among a number of organizations that have emblaced workpiace spirihrality. \\orkplace spiritualitl, is not about organized re]igious practices, theoloel, or one's spiritual leader.r0 Rather, u,orkp!oce spirituqlii\i is about rtcognizing that employees lrave an inner life that oourishes and is nourished by meaningful work that takes place in the context of an organizational community. A recent studv of the concept idenrified thrtc factors: interconnection u,ith a higher porver, interconnection with human beinss, and inlcrconnection with nature and all living things.Tl Organizations that promote a spiritual cuLture recognize thrt employeei have both a mind and a spirit, seek to find meaning and purpose in thejr work, and possess a desire to connect with other employees and be part of
a

:t

rhese issues.

The potential for an emphasis on spiriruality to make some employees uneasy is cierr. Critics argue that organizations have no business imposing spiritual values on emplovees. This criticism is undoubtediy valid when sirirituality is defined as bringing religion ancl God into the q,otkplace.Ta However, the criticisrn appears less stinging when the _loal is lirnrte,i to heiping employees find meaning in their work lives. The issue ofwhether spirituality and profits are compatible goals is cefiainly re)evanr

for anvone in business, The evidence, although limited, indicates that the tlvo ntav

bc

conrpatible. Several studies show thai organizations that have introduced spirituaiit_v into the workplace have witnessed improved productivity, reduced turnover, greater employec satisfaction. and increased organizational commitment.i5

conrrnunitv.

WHAT DOES HRM HAVE IO DO WITH SplRtTUALtTy? Ironicaily, inrroducing spilituality into the organization is nothing new for HR. In acruality, manY ofthe areas that HRM addresses, and has done so for many years, are many ofthe same things rhaI
support spiritualtty.T6 For instance, matters such as rvork/life balances, proper selection ofempJoyees, setting performance goals and rewar-ding people for the rvork thev do. are

WHY THE EMPHASIS ON SPIRITUALITY lN TODAY'S ORGANTZATTONS? Hisroricat rnanagen'lent models had no roorr for spirituality.T2 These models typically focLrsed on

orgauizations that rvere efficiently run rvithout feelings towald others. SimilarLy. conccrn about an employee's inner Iife had no role in managing organizations. But just as rve'le con'te to realize that the study of emotions improves our urderstanding of hou, and rvhr people act the way they do in organizations, an awareness of spiritualitl can hcip one lretter understand employee u,ork behavior i11 the twellty-firsr-cenir]ry
organiz-ation.

all contponents of making the organization more,.spiritual.', In fact, as you re'ierv ihe characteristics of a spiritual organization, in every case, HRM is either the leader in making such things happen. or is rhe vehicle by which the organization helps enrpiol'ees understand their .esponsibilities and offers rhe requisite training ro maic thirgs happen. In the end. it's HRIvI that will make the workplace a supporrive work environmenl, one rvhere conmunication abounds and employees feel free to erpress
themselves.

WHAT DOES A SPIRITUAI ORGANIZATTON IOOK [tKE? The concepr of spirirua]iry drarvs on the ethics, r,alues, motivation, work/iife balance, and leadership elenrents of an organization. Spiritual organizations are concerned with helping employees develop and reach their full potential. They're also concerned rvith addressing problems created b1,

How and Why Are Organizations Controlling HR Costs?

HR costs are skyrocketing, especially those associated with employee health care anrj employee pensions. Organizations a:.e lookint for ways to control these costs_

rvork/li{e conflicts. What dillerentiates spiritua) olganizations from their nonspiritual counterparts? AlthoLigh resarrch is tairlv nerv iir this arena, several charaoter.istics tend to be associated rvith r spirirrrai organization.Tl We list them in Exhitrit 7-l 1. .\lthough rvorkpltce spirituality has genelated some interest in many oruanizr. tions, it's not \\'irhout iLs critics. Tlrose u,ho argue against spirituality in organizirLions

u,ci(pioce spiriiu0lily
A splrltual cuiture where crganizational values Promote a sense o{ purpose thrc!gh meaningiul work that takes plaae in the coniext of communrty

,;r r 3 l ,_p,-,1,]]lll!C
WHAT ABOUT EMptOyEE HEAITH CARE COSIS? Enplo_vees ar paychcx u,ho rundergo a conilde.rial hearth screering and risk assessment, anti for those rvho srnoke *hir ruree to enroil in a smoking cessation program. can free annual physicals.
-_get

c0l()ni)seopie\. al:d

detlLicril-.les and costs_

i00 percent coverxge of preventir,e care ls rvell as louer

At Black and Decker Ccrporation.
err.rplo;,,3s5 arld dependeuts

u'ir(' ccrrif)' in an ironor system that they ha'e been tcbrcco-free for at least sii montrrs par Sl5 less per month for their medical and dental coverage. At Amerioas propane, enpl(,\,ces rvere gir,en an ultimatum: get their medicrl checkups or lose their
healrh insurance. Sonre 67 perce-nt of employers are coucerned about the effects or obesity on rr:cJi. ;rl .'lrirrrs a^parsar.:'

.,

r ir-,:-,.r ;,'.iLi:-':i.

:the knou,ledse to do the job iI a ltrrnncr corrsi_rrrnt u,irh the org:rnization's gorls. Oricnl:rrion_job. u,o1

.rsrs

All these eramples iliustrate horv companies are trying ro control skyrocketing rmplo-vee hellth care costs. Since 2002, health care costs have risen an a'erage of l5 percenr a year and are expe*ed to doubre by the year 20r6 tiom the s2.2 rriilion spent in 1007. The nerv federal heahh care rnrndr,., ura.^p..,.d to also add to those !Ardsnrokers^costcompaniesevenmore-about25percentmoreiorhealthcare

Desclibe the key components of the hunran resource management process and the itrlportant influences on that process. The HRI{ ptress consists of eighr rrctiviries that will staff an organization with conpetent. lrigh-peifoming employees who are capable of sustainins their perfonnance levej over the lon,* tenl. The first
three HR lctivities involve employmerlt planning and include recruitment, do*,nsizing, and sclecrion. The next trvo steps involve helping empioyecs adapt to the organization and ensufing rhat iheir skills and knowl edge are kept cuneut, and include the HR activities of oriaiting and training. The iast steps invoh,e identifying

unit, and organizationll-provirJes

..r,ith

ncu, emplt;r,ers ro the jtrb.

intbrmrtion ro introduce tlrent

Training is used to help entployces irnplole thcir. abilitl to pelform on rhe.job.

il'e cLrps offruits and vegetables and walk 10,000 steps a day. And the,,competirion,, bet*ecr) departnents tnd stores has proved to be ver,v popular. and effectir,e.34 the case o1-snrokers. however, some companies have taken a more aggressive stance by inc.easius rhe rnlount smokers pay for hearth insurance or by fiLi.g rhem ifthey r.efuse t0 stop snl0kins.
ear

lhrrr rrLrnsnrokcrs do.'v Ho*'ever, the biggest hearth..,..o,t for.orpanies is obesitvan eslinrrted $73 billion a year in medical expenditures and absenteeism.S0 A snra1, of r*anufncturing organizations found thar presenteeism, u,hich is defined as employees not perlonniug ar fulr capacity, was 1.8 percent higher for rvorkers with moderaie to severe obesitv rhan for all other employees. The reason for the rosr productivity is likery the resLrlt of reduced mobility because ofbody size or pain probrems such as arrhritis. Ar0rher stLrdv fbund that injuries sustained by obese workeri often require substantiaily more rnedical care and are more likely to lead to permanent disabilities than similar injuries suffered by emplsl,gs5 who were not obese.Sl Is it any ri'onder ftat organizations are rooking for ways to control their health care costs? Horv? Firsr. many organizations are providing opponunities for employees ro lead health,y Iifestvles. From financiar incentives to companv-sponsored hearth and rveilness progranrs, the goal is to limir rising health care costs. About 41 percent of companies use solrle q,pe of positive incentives aimed at encouraging heatrhy behavior, ui frrrn 34 percenr in 1996.82 Anorher study indicated thar nJariv 90 percent of corepanies survel'ed planned to aggressivery promote healrhy lifesryres ro rheir employees iurinq the next tirree to tive years.83 Many are starting iooner: Google. yarnaha 6"rpor;;i;; of Americe, Caterpillar, and others are putting health food in company break rooms. crfeterias, and'ending machines; providing deliveries offresh organic fruit; and putting ''cal.rie raxes" on fatty foods. At wegmans Food N,rarkets, emprq,ees are chailenged to

Describe slrlrlegir.s for retlinirrq r,orrrprtrlrt. lriqlr performiug enrployees.'frvo HR\l activiries that r)l r role irr this ilrc rntniltjng cnt1rl,,1ss pcr.1,,1111.,...,.',

perfonnance goals, core*ine perfbmtance problems,

and helping employees sustain high levels ofperfor_ niance. These are done using the HR activities of

deteloping an approprirte compeusution rrrrl bclcllr ptoetatl. Managing emplol,ee perlorrnlncc invollcs establishing pcrfbnrance stxndrr(ls lnri thcn lprpnis
ing pedonnarrce to see il those strnillrds hare bees rlet. There are various perfornrance rppr.risal techniques managers can use. If an entplovee,s perfor;n_ ance is not up to par, lnanagers neccl to assess \,lt! r

per{ormance appraisal, compensation and benefits. and safety and health. The main influences ou the HRM process are legal although other environmental conditions such as restructuring, downsizing. divenitl,,
and so forth can impact it as rvell.

I:rkc aclion. ( ornpelrsxtiun iild bi,[( llf\ ].to.tt;ilt.li . ,r heip artracf and retain compctent anrl ralented indivii uals. Managers have to detennine rvho lels paid n,h:

Discuss the tasks associated with identifying and selecting competent employees. The firsr task is employment planning, which involves job analysis and the cleation ofjob descriptions and job specifications. Then, ifjob needs are indicated, recruitment involves attempts to develop a pool of potential job candidates. Downsizing is used to reduce the labor supply. Selection invoives determining u,ho is best qualilied for rhejob. Selection devices need to be botli reiiabLe and valid. \4anagers lnrv wnnt to sjye poreritiJl enlplo) ees r rerlistic job prL,r ierv.

and what beuefits u

ill

be ofi'ercri.

,llli: Oir"rs contemporary

issues in nranasing humarr resources. Downsizing is the pl:inned elimination ol jobs and must be rnanagetl ironr rhe per.spectir,e ol

iayoff victinrs and job survivors. \\rorkforce rjir ersirr must be rnrn:rred rlrr.lugl: HRNI actir iries ilcl.rdrr,.: recruilment, -selection. and orientrtion. Sexurl Irrrrss
nrent is a significrnt c0ncerr ol-orqrnizations rrrri rnanagers, rvhich mean progi.an)s and nrecharisns must be in illxce to edllcilte all eltltlrrlees rbouL i1.

Il

Explain horv employees are provided *,ith needed skills and knorvledge. Nerv hiles must be acclimated
to the organization's culture and be trained and siven

\Vorkphce spiritualit,v involves atrentpts b), orgrrni zr tious to make rvork rtroLe mear;inglll to euplo\ e cs. Filaily, organizations are looking foL u,avs to coiir,,,,
HR costs. especialiy heaith crre cosrs rnrl penstrrn
costs.

aEouT EMPtoyEE pENsroN pr,AN cosrs? Trie orher area rvhere organizations are looking to control costs is employee pension plans. Corporate pensions hn,e been
WHAT

aroLi,d since the nineteenth century.s5 Bur the dals she, cornper,ies courd afforcl to gii,e e,rplo-r ees a b'oad-based pension that provided them a guaranteeil r.etirement irconre ha'e cha,gcd. Pension comrnitmelts have become such an enormous burden that companies can no longer afford them. It fact, the corporate pension s;,stem has been ,lescribed as

i:rM3nr*.mentl-al:
i

For more resources, go to wi,inff.i:ea15o::globalc.Ciii,;rr.,:;:n1myn:;;:ta!jerne;itlai:r

"frndamentally broken."86 lt's not just itruggtirg componies that have eriminated
enrployee pension plans. Lots of reasonably sound companies_for instance, NCR, FedEx, Lockheed l\'{artin. and Motorora-no longer provide pensions. orry 42 Fortuna r00 companies nou'offer pension prans to their new hires. Even IBrt4, u,hich ciosed its pension
:,

,.:i;r1 ;,1

;,,:\ i.'1;;r

iriG ;i'.1ij r'-i : r

i'i'i,t

rl
elnplovees but to shield the organizaLion lrom legal problems. What do yotr think? \\/hat beneils ai.e thete t0 having a formal HRM process? \\rhat are tlc drari,backs,l

Hoiv does HRM affect all managers? Should an emplover har,e the right to choose empioyees without governmental interfelence?

plan to nen' hires in December 2004, tord emproyees that treir pension benefits would be frozen.sT ob,iously, rhe pension issue is one that directry aifectsHR decisions. on the one hand. or-qanizations \\'ant ro attract tarented, capabre.,opro,u.., by offering therl desirable benellts such as pensio.s. But on the other hand. orgrnirrtions ha'e to baluce that q,ith the cosr-r ot proli.Jing such benefits.

Suopoll t,our position_

that coryotzte HR deprutlrents lmYe ourlir,ed theiL usefuiness anC rre not there to helo Sorre critics

clain

4.

Do 1,ou rhink it's ethical for a prospective entployer to delve into an appiic rnt'\ life b), ntcrns of iDrerlle\s.
tests. artd background iin,estigathns? \\ritat

if

those

2A.