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 Contents

Preface xi

Part I Introduction 1

Chapter 1 Managing Strategic Human Resources Today 1

What Is Human Resource Management? 2
Trends Influencing Human Resource Management 7
The New Human Resource Managers 11
Strategic Human Resource Management 16
The Plan of This Book 22
▶ Case Incident: Jack Nelson’s Problem 25
▶ Continuing Case: Carter Cleaning Company 25
▶ Experiential Exercise: Helping “The Donald” 26

Chapter 2 Managing Equal Opportunity and Diversity 28

Selected Equal Employment Opportunity Laws 29
Defenses Against Discrimination Allegations 39
Illustrative Discriminatory Employment Practices 42
The EEOC Enforcement Process 44
Diversity Management and Affirmative Action Programs 46
▶ Case Incident: A Case of Racial Discrimination? 54
▶ Continuing Case: Carter Cleaning Company 55
▶ Experiential Exercise: Too Informal? 55
▶ Video CASE: Human Resource Management (At Patagonia) 56
▶ Video CASE: Equal Employment (UPS) 57

Part II Recruiting and Placing Employees 58

Chapter 3 Personnel Planning, Recruiting, and Talent Management 58
The Talent Management Framework 59
The Basics of Job Analysis 60
The Recruitment and Selection Process 66
Workforce Planning and Forecasting 67
Recruiting Job Candidates 74
Developing and Using Application Forms 86
▶ Case Incident: Finding People Who Are Passionate about
What They Do 91
vii
viii Contents

▶ Continuing Case: Carter Cleaning Company 92

▶ Experiential Exercise: The Nursing Shortage 92
▶ Appendix: Enrichment Topics in Job Analysis 93

Chapter 4 Testing and Selecting Employees 100

The Basics of Testing and Selecting Employees 101
Using Tests at Work 106
Interviewing Prospective Employees 111
Using Other Selection Techniques 119
▶ Case Incident: The Tough Screener 127
▶ Continuing Case: Carter Cleaning Company 128
▶ Experiential Exercise: The Most Important Person You’ll Ever Hire 129

Chapter 5 Training and Developing Employees 131

Orienting Employees 132
The Training Process 133
Implementation: Training Techniques 138
Managerial Development and Training 144
Managing Organizational Change and Development 147
Evaluating the Training Effort 150
▶ Case Incident: Reinventing the Wheel at Apex Door Company 153
▶ Continuing Case: Carter Cleaning Company 153
▶ Experiential Exercise: Flying the Friendlier Skies 154
▶ Video case: Recruiting at Hautelook 155
▶ Video case: Employee Testing and Selection at Patagonia 155
▶ Video CASE: Training at Wilson Learning 156

Part III Appraising and Compensating Employees 157

Chapter 6 Performance Management, Appraisals, and Careers 157

Basic Concepts in Performance Appraisal and Management 158
Basic Appraisal Methods 162
Practical Suggestions for More Effective Appraisals 170
Coaching and Career Management 174
Performance Management 179
Talent Management Practices for Strategic Employee
Appraisals 181
▶ Case Incident: Appraising the Secretaries at
Sweetwater U 183
▶ Case Incident: Back with a Vengeance 185
▶ Continuing Case: Carter Cleaning Company 185
▶ Experiential Exercise: Appraising an Instructor 186
 Contents ix

Chapter 7 Compensating Employees 187

What Determines How Much You Pay? 188
How to Create a Market-Competitive Pay Plan 191
Incentive Plans 197
Employee Benefits 203
Current Compensation Trends 211
▶ Case Incident: Salary Inequities at Acme Manufacturing 216
▶ Continuing Case: Carter Cleaning Company 218
▶ Experiential Exercise: Ranking the College’s Administrators’ Jobs 219
▶ Video CASE: Compensation (Focus Pointe) 219
▶ Video CASE: Performance Management California Health
Foundation 220
▶ Video CASE: Joie de Vivre Hospitality: Pay for Performance
and Financial Incentives 220

Part IV Employee Rights and Safety 221

Chapter 8 Managing Employee Ethics, Engagement, Retention, and Fair

Treatment 221
Ethics and Fair Treatment at Work 222
Managing Discipline and Privacy 226
Managing Dismissals 229
Managing Voluntary Employee Turnover and Retention 234
Employee Engagement 239
▶ Case Incident: Enron, Ethics, and Organizational Culture 242
▶ Continuing Case: Carter Cleaning Company 243
▶ Experiential Exercise: To Discipline or Not? 244

Chapter 9 Managing Labor Relations and Collective Bargaining 246

The Labor Movement 247
Unions and the Law 249
The Union Drive and Election 252
The Collective Bargaining Process 258
What’s Next for Unions? 265
▶ Case Incident: Negotiating with the Writers Guild of America 269
▶ Continuing Case: Carter Cleaning Company 270
▶ Experiential Exercise: The Union-Organizing Campaign
at Pierce U 271

Chapter 10 Protecting Safety and Health 273

Employee Safety and Health: An Introduction 274
What Causes Accidents? 277
x Contents

How to Prevent Accidents 282

Workplace Health Hazards: Problems and Remedies 287
▶ Case Incident: The New Safety and Health Program 299
▶ Continuing Case: Carter Cleaning Company 300
▶ Experiential Exercise: Checking for Unsafe Conditions 301
▶ Video CASE: Union-Management Relations (UPS) 302
▶ Video CASE: Safety (California Health Foundation) 302

  Module A Practical HR Tools, Guidelines, and Systems for Managers 303

Appendix 317
Glossary 334
Notes 341
Name Index 384
Subject Index 399
 Preface

A Framework for Human Resource Management provides students and practicing managers with a
concise but thorough review of essential human resource management concepts and techniques in a
highly ­readable and understandable form. Most books in this market ­(including my Human Resource
Management, 13th edition, and Fundamentals of Human Resource Management, 2nd e­dition)
­contain 14–18 chapters and 450–800 large-trim-size pages. In ­contrast, writing Framework is like build-
ing a boat in a bottle: My aim is to create a precise and complete but d­ ramatically downsized model
of the human resource m ­ anagement body of knowledge by stripping away repetition, long r­esearch
reviews, and extraneous content such as long company-based chapter openers. The people reading this
book are busy, and I want them to be able to focus on learning the core concepts and tools of human
resource management.
Adopters use this book in many ways. Many use it as the basic textbook for the human resource
management course, sometimes supplementing it with extra cases or human r­esource management
­exercises. Others use it with other textbooks in courses that blend several t­opics (such as HR and orga-
nizational behavior), or in specialized courses (such as “HR for Entrepreneurial Companies”). Because
Framework contains a practical and up-to-date review of essential human resource management ­concepts
and techniques, practicing human resource and line managers use it to update their HR skills and to help
prepare for certification exams.

What’s New in the 7th Edition

Given its gratifying acceptance and the 6th edition reviewers’ comments, Framework 7’s themes,
­approach, and outline continue largely unchanged from Framework 6. All managers have personnel
responsibilities, so I again wrote this book for all managers and management students, not just those
who are or will be human resource managers. The book’s basic idea—to provide a concise but t­ horough
review of HR concepts and techniques—is the same. The table of contents is about the same, as is
the topic coverage. Adopters can again order a Human Resource Certification Institute guide. There
are again five comprehensive cases that I wrote at the end of the book, in addition to the end-of-chapter
case incidents. However, I also made seven main changes to this 7th edition, as follows.
1. Dozens of new topics. For example, you’ll find expanded treatments of reliability, ­validity, gen-
eralizability, utility, person-job fit, and bias. Dozens of other new ­topics ­appear throughout the
book, including using the standard deviation rule in equal e­ mployment compliance, retaliation,
job satisfaction and withdrawal, managing voluntary turnover, management’s willingness to take a
strike, cross training, and job hazard analysis.
2. Expanded coverage of strategic human resource management in Chapter 1, ­including discus-
sions of HR Scorecards and strategy maps.
3. A new boxed feature, HR as a Profit Center, in most chapters. These HR as a Profit Center
features present actual examples of how human resource managers added ­measurable value to
their companies. In addition, continuing their use from the 6th edition, the separate HR in Practice
features provide all managers—not just HR managers—with actionable HR tools and guidelines.

xi
xii Preface

4. A completely revised Chapter 8, now titled Managing Employee Ethics, Engagement,

Retention, and Fair Treatment, which includes discussions of employee engagement,
withdrawal, and retention, as well as managing ethics, and a new presentation (in
Chapter 7) of how to create a market-competitive pay structure.
5. Expanded treatment of Career Management in Chapter 6 (Performance Management,
Appraisals, and Careers) and of the ADDIE training process in Chapter 5 (Training and
Developing Employees).
6. A new end-of-book module on Practical HR Tools for Managers, focusing on nuts-and-
bolts human resource management tools, guidelines, and systems all managers can use, for
instance, to comply with EEOC interview question ­guidelines. This module replaces the
6th edition’s International HR module, with international HR issues still covered in special
boxed features in most chapters.
7. Nine new videos with discussion questions and a synopsis for each video included at the
end of each part of the textbook.
Websites to which we refer in the text sometimes change or are discontinued because companies
change names, are bought or sold, merge, or fail. They were accurate when we put the book into
production. We apologize in advance for any inconvenience.
 Acknowledgments

No book ever reaches the light of day without the dedicated efforts of many people,
and Framework is no exception. I am grateful to past and present reviewers:
Mark Barnard, Edgewood College John Fielding, Mount Wachusett
Kathleen Barnes, East Stroudsburg Community College
University Michael Frew, Oklahoma City University
Gerald Baumgardner, Penn College Eugene Garaventa, College of Staten
Jerry Bennett, Western Kentucky Island, CUNY
University Alyce Giltner, Shawnee Community
Stephen Betts, William Paterson College
University Armand Giroux, Mitchell College
Genie Black, Arkansas Tech University Caren Goldberg, American University
David Lawrence Blum, Moraine Park John Golden, Slippery Rock University
Technical College John Gronholt, Modesto Junior College
Michael Bochenek, Elmhurst College Janet Henquinet, Metropolitan State
Henry Bohleke, Owens Community University, St. Paul, MN
College William Hodson, Indiana University
Frank Bosco, University of Memphis Peter Hughes, Cambridge College,
Richard Brocato, Mount Saint Mary’s Lawrence, MA
University John Kachurick, College Misericordia
Patricia Buhler, Goldey-Beacom College Dennis Kimble, Central Michigan
Jackie Bull, Immaculata University University
Melissa Cardon, Pace University Jacqueline Landau, Salem State College
Martin Carrigan, The University Cheryl Macon, Butler County
of Findlay Community College
Yvonne Chandler, Seattle Community Dan Morrell, Middle Tennessee State
Colleges University
Charlie Cook, University of West Patricia Morrow, Middlesex Community
Alabama College
Roger Dean, Washington and Lee Arlene Nicholas, Salve Regina University
University Kay Nicols, Texas State University–San
Karen Dielmann, Lebanon Valley College Marcos
and Elizabethtown College Jacquelyn Palmer, Wright State
Michael Dutch, Greensboro College University
Dale Dwyer, University of Toledo Rich Patterson, Western Kentucky
William Ferris, Western New England University
College Diana Peaks, Jacksonville University

xiii
xiv Acknowledgments

Jane Philbrick, Savannah State Dan Scotti, Providence College

University Robert W. (Bill) Service, Samford
Larry Phillips, Indiana University University
South Bend John Shaw, Mississippi State University
Jonathan Phillips, North Carolina State Walter Siganga, Southern Illinois
University University Edwardsville
Tracy Porter, Cleveland State Deanna Smith, Missouri State University
University
Marjorie Smith, Mountain State
Luanne Powel, Union University University
Chris Osuanah, J. Sargeant Reynolds Chester Spell, Rutgers University
Community College and University of
Jerry Stevens, Texas Tech University
Phoenix
Susan Stewart, University of Puget Sound
David Radosevich, Montclair State
University Michele Summers, Purdue University
Carlton R. Raines, Lehigh Carbon Vicki Talor, Shippensburg University
Community College Rebecca Thacker, Ohio University
Pramila Rao, Marymount Jeff Walls, Indiana Institute
University–Arlington of Technology
Dr. Michael J. Renahan, College Carol Williams, Pearl River Community
of Saint Elizabeth College
Fritz Scherz, Morrisville State College Angela Willson, Yuba College
Biagio Sciacca, Penn State University Jenell Wittmer, University of Toledo

I am grateful to the professors, students, managers, and Prentice Hall sales and ­marketing
­associates who have helped make this a top-selling book, not only in English but also in
­several languages world-wide, including Chinese. At Pearson, I a­ ppreciate the e­ fforts of all
the ­professionals on the 7th edition team, including Stephanie Wall, editor-in-chief; Judy
Leale, ­senior managing editor; Kelly Warsak, production project manager; Nikki Jones, s­ enior
­marketing ­manager; Linda Albelli, editorial supervisor; and Sarah Holle, editorial project
manager.
For many years senior project director Jennifer Welsch has managed the actual
day-­day-to-day production of Framework and my other Pearson books. I am and will always
be grateful to her for the major role she has played in making these books successful.
At home, I appreciate all my wife Claudia’s support, and my son Derek’s support,
­assistance, and practical suggestions.
 Managing Strategic Human
One
Resources Today
When you finish studying this chapter you should
be able to:
◼◼ Answer the question “What is human resource management?”
◼◼ Discuss the trends affecting human resource management.
◼◼ Describe important competencies human resource managers need today.

◼◼ Explain and give examples of strategic human resource management.

◼◼ Discuss three strategic management tools managers use.

Overview
If you’ve eaten at a restaurant where the food is overcooked or the wait staff seems
inept, then you already know something about human resource management.
Human resource management includes tasks like selecting, training, and appraising
employees. The main purpose of this chapter is to explain what human resource
management is, and why it is important to all managers. We will see that human
resource management—activities like recruiting, hiring, training, appraising, and
compensating employees—is both a separate management function as well as part
of every manager’s job. The main topics we cover here are What Is Human Resource
Management, Trends Influencing Human Resource Management, The New Human
Resource Managers, Strategic Human Resource Management, and The Plan of
This Book.

1
2 Part I • Introduction

What Is Human Resource Management?

Human resource management refers to the practices and policies you need to carry
out the personnel aspects of your management job, specifically, acquiring, training,
­appraising, rewarding, and providing a safe, ethical, and fair environment for your
­company’s ­employees. These practices and policies include, for instance:
• Conducting job analyses (determining the nature of each employee’s job)
• Planning labor needs and recruiting job candidates
• Selecting job candidates
• Orienting and training employees
• Appraising performance
• Managing wages and salaries (how to compensate employees)
• Providing incentives and benefits
• Communicating and managing employee relations (interviewing, counseling,
disciplining)
And what a manager should know about:
• Equal opportunity, ethics, and affirmative action
• Employee health, safety, and ethical treatment
• Grievances and labor relations

Why Is HR Management Important to All Managers, and Why Should I

Study This Book?
Why are these concepts and techniques important to all managers?

Avoid Personnel Mistakes Perhaps the best way to answer that is to start by listing
the sorts of personnel mistakes you don’t want to make while managing. For example, no
manager wants:
• To have your employees not performing at peak capacity
• To hire the wrong person for the job
• To experience high turnover
• To find employees not doing their best
• To have your company taken to court because of your discriminatory actions
• To have your company cited under federal occupational safety laws for unsafe
practices
• To allow a lack of training to undermine your department’s effectiveness
• To commit any unfair labor practices
Carefully studying this book can help you avoid mistakes like these. More ­important,
it can help ensure that you get results—through people. Remember that you could do
­everything else right as a manager—lay brilliant plans, draw clear organization charts,
set up modern assembly lines, and use sophisticated accounting controls—but still fail,
for instance, by hiring the wrong people.

Improve Profits and Performance On the other hand, many managers—from

presidents to supervisors—have been successful without adequate plans, organizations,
 Chapter 1 • Managing Strategic Human Resources Today 3

or controls. They were successful because they had the knack for hiring the right people
and motivating, appraising, and developing them. Remember as you read this book that
getting results is the bottom line of managing and that, as a manager, you will have to get
these results through people. That fact hasn’t changed from the dawn of management.
As one company president summed it up,

For many years it has been said that capital is the bottleneck for a developing i­ndustry.
I don’t think this any longer holds true. I think it’s the workforce and the company’s
inability to recruit and maintain a good workforce that does constitute the bottleneck
for production. I don’t know of any major project backed by good ideas, vigor, and
enthusiasm that has been stopped by a shortage of cash. I do know of industries whose
growth has been partly stopped or hampered because they can’t maintain an efficient
and enthusiastic labor force, and I think this will hold true even more in the future.1

You May Spend Some Time as an HR Manager Here is a third reason to study this
book. You may well make a career stopover as a human resource manager. For example,
Pearson Corporation (which publishes this book) recently promoted the head of one of
its publishing divisions to chief human resource executive at its corporate headquarters.
One survey found that about one-fourth of large U.S. businesses appointed managers
with no human resource management experience as their top human resource executives.
Reasons given include the fact that these people may be better equipped to integrate the
firm’s human resource efforts with the rest of the business.2 However, about 80% of top
human resource executives in one survey did work their way up within HR.3 SHRM—
the Society for Human Resource Management—­offers a brochure describing alternative
­career paths within human resource management. Find it at www.shrm.org/Communities/
StudentPrograms/Documents/07-0971%20Careers%20HR%20Book_final.pdf.

HR for Entrepreneurs And here is another reason to study this book. You may well
end up as your own human resource manager. More than half the people working in the
United States work for small firms. Therefore, most people graduating in the next few years
will either work for small businesses or create new small businesses of their own. Most of
these firms are too small to have their own human resource managers. Especially if you are
managing your own small firm, you’ll have to be skilled at human resource management.4

Line and Staff Aspects of HRM

All managers are in a sense human resource managers, because they all get involved
in ­recruiting, interviewing, selecting, and training their employees. Yet most firms also
have human resource departments with their own top HR managers. How do the ­duties
of this human ­resource manager and department relate to the human resource duties of
sales and production and other managers? Answering this requires a short definition of
line versus staff authority.
Authority is the right to make decisions, to direct the work of others, and to give
orders. Managers usually distinguish between line authority and staff authority.
In organizations, having what managers call line authority traditionally gives
­managers the right to issue orders to other managers or employees. Line authority there-
fore creates a superior (order giver)–subordinate (order receiver) relationship. When
the vice president of sales tells her sales director to “get the sales presentation ready by
4 Part I • Introduction

Tuesday” she is exercising her line authority. Staff authority gives a manager the right
to advise other managers or employees. It creates an advisory relationship. When the
human resource manager suggests that the plant manager use a particular selection test,
the HR manager is exercising his staff authority.
On the organization chart, managers with line authority are line managers.
Those with staff (advisory) authority are staff managers. In popular usage, people
tend to ­associate line managers with managing departments (like sales or ­production)
that are crucial for the company’s survival. Staff managers generally run departments
that are ­advisory or supportive, like purchasing, and human resource management.
Human resource managers are usually staff managers. They assist and advise line
­managers in areas like recruiting, hiring, and compensation.
Line–Staff HR Cooperation HR and line managers share responsibility for most human
resource activities. For example, human resource and line managers in about two-thirds of
the firms in one survey shared responsibility for skills training.5 (Thus the supervisor might
describe what training the new employee needs, HR might design the training, and the
­supervisor might then do the actual training.) Figure 1-1 illustrates the typical HR–line part-
nership. For example, HR alone typically handles interviewing in about 25% of firms. But in
about 60% of firms, HR and the other hiring departments are both involved in interviewing.

Line Managers’ Human Resource Management Responsibilities

In any case, the direct handling of people always has been part of every line manager’s
responsibility, from president to first-line supervisor. All managers therefore spend much
of their time on HR-type tasks.

Employment interviews

Recruiting (other than

college recruiting)

Temporary labor
administration

Preemployment testing
(except drug tests)

College recruiting

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
HR department only HR and other departments Other departments only
Note: Length of bars represents prevalence of activity among all surveyed employers.
Figure 1-1 Employment and Recruiting—Who Handles It? (Percentage of All Employers).   Source:
Reproduced with permission from HR Department Benchmarks and Analysis 2004, p. 17, Figure 2.1,
“Employment and Recruiting—Who Handles It?”, p. 17 by The Bureau of National Affairs, Inc.
(800-372-1033) http://www.bna.com.
 Chapter 1 • Managing Strategic Human Resources Today 5

For example, one company outlines its line supervisors’ responsibilities for e­ ffective
human resource management under the following general headings:
1. Placing the right person in the right job
2. Starting new employees in the organization (orientation)
3. Training employees for jobs that are new to them
4. Improving the job performance of each person
5. Gaining cooperation and developing smooth working relationships
6. Interpreting the company’s policies and procedures
7. Controlling labor costs
8. Developing the abilities of each person
9. Creating and maintaining departmental morale
10. Protecting employees’ health and physical conditions
In small organizations, line managers may carry out all these personnel duties
­ nassisted. But as the organization grows, line managers need the assistance, specialized
u
knowledge, and advice of a separate human resource staff.

Organizing the Human Resource Department’s Responsibilities

The human resource department provides this specialized assistance. Figure 1-2 shows
typical human resource management jobs. These include compensation and benefits
manager, employment and recruiting supervisor, and employee relations executive.
Examples of job duties include:
Recruiters: Maintain contact within the community and publicize openings to
search for qualified job applicants.6
Equal employment opportunity (EEO) representatives or affirmative action
­coordinators: Investigate and resolve EEO grievances, examine organizational
practices for potential violations, and compile and submit EEO reports.
Job analysts: Collect and examine detailed information about job duties to
­prepare job descriptions.
Compensation managers: Develop compensation plans and handle the ­employee
benefits program.
Training specialists: Plan, organize, and direct training activities.
At the other extreme, the human resource team for a small company may contain
just five or six (or fewer) staff. There is generally about one human resource employee
per 100 company employees.

New Ways to Organize the Human Resources Function Employers are also deliv-
ering human resource services in new ways. For example, many employers now organize
how they deliver their HR services via the following groups:7
• The transactional HR group uses call centers and outsourced vendors (such as ­outside
benefits advisors) to deliver day-to-day HR support on matters such as changing
benefits plans and employee assistance programs to all the company’s employees.8
• The corporate HR group focuses on giving top management advice on “top level” mat-
ters, such as explaining the personnel aspects of the company’s long-term strategic plan.
6

HUMAN RESOURCES ORGANIZATION CHART

Director Executive Administrative

PB/E1 Secretary PB/E17

Assistant Director
PB/E2

TOTAL COMPENSATION COMMUNICATIONS & EMPLOYMENT EMPLOYEE RELATIONS

Human Resources RESEARCH VOLUNTEERS & HRIS Human Resources
Manager PB/E4 Dept Admin Mgr PB/E15 Human Resources Manager PB/E9
RECORDS Manager PB/E5
ADMINISTRATION
HR Records & Admin Mgr TRAINING & HR
PB/E10 SUPPORT Human Resources Human Resources Human Resources
Human Resources Human Resources Specialist PC/C43 Coordinator PB/E14 Coordinator PB/E8
Human Resources
Coordinator PB/E11 Coordinator PB/E13 Support Spec PB/C34

Human Resources Human Resources

Health & Wellness Human Resources Human Resources
Technician PB/C7 Human Resources Technician PB/C37
Specialist PB/E18 Analyst PB/C42 Human Resources Technician PB/C9
Coordinator PB/E12 Support Spec PB/C33

Admin Support Human Resources

Specialist PB/C30 Human Resources Human Resources Human Resources Technician PB/C16
Analyst PB/C44 Specialist PB/C35 Analyst PB/C24 Human Resources
Support Spec PB/C36
Human Resources Human Resources Personnel Aide
Admin Support Sr Office Specialist Technician PB/C12 Technician PB/C17 PB/C25
Specialist PB/C40 PB/C19
Human Resources
Technician PB/C31
Human Resources Personnel Aide
Sr Office Specialist Technician PB/C15 PB/C14
PB/C32

Figure 1-2 Human Resource Department Organization Chart.   Source: www.co.pinellas.fl.us/persnl/pdf/orgchart.pdf, accessed April 1, 2009.
 Chapter 1 • Managing Strategic Human Resources Today 7

• The embedded HR group places (“embeds”) HR professionals (also known as

­“relationship managers” or “HR business partners”) in departments like sales and
production to provide the HR assistance these departments need.
• Centers of expertise groups are like specialized HR consulting firms within the com-
pany. For example, they offer specialized assistance in areas such as organizational
change.

IBM Example Randall MacDonald, IBM’s head of human resources, says the ­traditional
human resource organization isolates HR functions into “silos” such as recruitment,
training, and employee relations. He says this silo approach means there’s no one team of
human resource selection, training, and compensation specialists focusing on the needs
of specific groups of employees. MacDonald therefore segmented IBM’s 330,000 employ-
ees into executive and technical employees, managers, and rank and file. Separate human
resource management teams (consisting of recruitment, training, and compensation
­specialists, for instance) now focus on each employee segment. These specialized teams
help the employees in each segment get precisely the talent, learning, and compensation
they require.9

Trends Influencing Human Resource Management

As the IBM example suggests, what human resource managers do and how they do it is
changing.10 Some of the reasons for these changes are obvious. One is technology. For
example, employers now use their intranets to let employees modify their own benefits
plans, something they obviously couldn’t do years ago.11 Other trends shaping human
resource management include globalization of competition, deregulation, changes in
demographics and the nature of work, and economic challenges.
We’ll see that trends like these pressure employers to lower costs and to boost
­performance through the efforts of highly engaged and well-trained employees. They
rely on their human resource managers to put in place the HR practices that will ­produce
such highly engaged and trained “human resources.” The transformation of personnel
into human resource management reflects this. Several trends brought human resource
management to this point.12

Globalization
Globalization refers to the propensity of firms to extend their sales, ownership, and/or­
manufacturing to new markets abroad. Thus, Mercedes produces its M-class cars in
Alabama, while Dell produces PCs in China. Free trade areas—agreements that reduce
tariffs and barriers among trading partners—further encourage international trade.
NAFTA (the North American Free Trade Agreement) and the EU (European Union) are
examples. So, for example, the total sum of U.S. imports and exports rose from $47 billion
in 1960, to $562 billion in 1980, to about $4.7 trillion in 2011.13
More globalization means more competition, and more competition means more
pressure to be “world class”—to lower costs, to make employees more productive, and
to do things better and less expensively. This pressures employers and their HR teams to
institute practices that get the best from their employees.
8 Part I • Introduction

HR as a Profit Center

Boosting Customer Service

A bank installed special software that made it easier for its customer service representatives to
handle customers’ inquiries. However, the bank did not otherwise change the service reps’ jobs in
any way. Here, the new software system did help the service reps handle more calls. But otherwise,
this bank saw no big performance gains.14
A second bank installed the same software. But, seeking to capitalize on how the new
­software freed up customer reps’ time, this bank also had its human resource team upgrade the
customer service representatives’ jobs. This bank taught them how to sell more of the bank’s
­services, gave them more authority to make decisions, and raised their wages. Here, the new
computer system dramatically improved product sales and profitability, thanks to the newly
trained and empowered customer service reps.15

Technological Advances
Managers increasingly use technology for many human resource management–
type ­applications. Facebookrecruiting is one example.16 According to Facebook’s
Facebookrecruiting site, employers start the process by installing the “Careers Tab” on
their Facebook page. Once installed, “companies have a seamless way to recruit and
­promote job listings from directly within Facebook.”17 Then, after creating a job listing,
the employer can advertise its job link using Facebook Advertisements. The accompany-
ing HR as a Profit Center offers another example.

The Nature of Work

Technology is also changing the nature of work. Skilled machinist Chad Toulouse
­illustrates this. After an 18-week training course, he now works as a team leader in
a plant where about 40% of the machines are automated. Chad and his team type
­commands into ­computerized machines that create precision parts for products like water
pumps.18 Human resource managers recently listed “critical thinking/problem s­ olving”
and ­“information technology application” as the two skills most likely to increase in
­importance over the next 5 years.19

Service Jobs
Technology is not the only trend driving this change from “brawn to brains.” Today over
two-thirds of the U.S. workforce is employed in producing and delivering services, not
products. Between 2004 and 2014, almost all the new 19 million new jobs added in the
United States will be in services, not in goods-producing industries.20

Human Capital
For employers, this all means a growing need for “knowledge workers” and human
­capital. Human capital refers to the knowledge, education, training, skills, and expertise
of a firm’s workers.21 This places a big premium on having effective selection, training,
and compensation practices.
 Chapter 1 • Managing Strategic Human Resources Today 9

Offshoring
The search for greater efficiencies prompts employers to export more jobs abroad. For
example, Bank of America’s Merrill Lynch has some of its security analysis work done
abroad. Some American hospitals have radiologists abroad, for example in India, read
their patients’ X-rays through a process they call teleradiology.22 By one estimate, be-
tween 2005 and 2015, about 3 million U.S. jobs, ranging from office support and com-
puter jobs to management, sales, and even legal jobs, will likely move offshore.23

Demographic Trends
The U.S. workforce is becoming older and more multi-ethnic (Table 1-1).24 For example,
between 1998 and 2018, the percent of the workforce that Table 1-1 classifies as “white,
non-Hispanic” will drop from 83.8% to 79.4%, and the percent that is black will rise
from 11.6% to 12.1%. Those classified Asian will rise from 4.6% to 5.6%, and those of
Hispanic origin will rise from 10.4% to 17.6%. The percentages of younger workers will
fall, while those over 55 will leap from 12.4% of the workforce in 1998 to 23.9% in 2018.25
Such demographic trends are making finding and hiring employees more challeng-
ing. In the United States, labor force growth is not expected to keep pace with job growth,
with an estimated shortfall of about 14 million college-educated workers by 2020.26

“Generation Y” Also called “Millennials,” Gen Y employees are roughly those born
1977 to 2002. They take the place of the labor force’s previous new entrants, Generation X,
those born roughly 1965–1976 and who themselves were the children of, and ­followed
into the labor force, the baby boomers, born just after the Second World War (born
roughly 1944–1960.) Although every generation obviously has its own new generation
of labor force entrants, Gen Y employees are different. Says one expert, they have “been
pampered, nurtured, and programmed with a slew of activities since they were toddlers,
meaning they are both high-performance and high-maintenance . . .”27 They seek out
creative challenges and want to make an important impact on Day 1.28 As the first gener-
ation raised on e-mail, their capacity for using information technology may make them
history’s most high-performing employees.29

Table 1-1 Demographic Groups as a Percent of the Workforce, 1998­–2018

Age, race, ethnicity 1998 2008 2018
Age: 16–24 15.9% 14.3 12.7
25–54 71.7 67.7 63.5
55+ 12.4 18.1 23.9
White, non-Hispanic 83.8 81.4 79.4
Black 11.6 11.5 12.1
Asian 4.6 4.7 5.6
Hispanic Origin 10.4 14.3 17.6
Source: Data from U.S. Department of Labor, Bureau of Labor Statistics, accessed May 10, 2010.
10 Part I • Introduction

Retirees Many call “the aging workforce” the biggest demographic threat affecting
employers. The basic problem is that there aren’t enough younger workers to replace the
baby boom era older workers retiring.30 One survey found that 41% of surveyed employ-
ers are bringing retirees back into the workforce.31

Nontraditional Workers There is also a shift to nontraditional workers. These

workers hold multiple jobs, or are “contingent” or part-time workers, or have alternative
work arrangements (like a mother and daughter sharing one clerical job). Today, almost
10% of American workers—13 million people—fit this nontraditional workforce category.
Technology facilitates alternative work arrangements. For example, online w ­ ebsites
such as LinkedIn (www.linkedin.com) enable free agent professionals to promote their
services. Seeking the collaboration that’s often missing when one works alone, “co-working
sites” offer freelance workers and consultants office space and access to office equipment
for fees of perhaps $200 or $300 per month.32

Workers from Abroad With retirements triggering projected workforce short-

falls, many employers are hiring foreign workers for U.S. jobs. The country’s H-1B visa
program lets U.S. employers recruit skilled foreign professionals to work in the United
States when they can’t find qualified U.S. workers. U.S. employers bring in about 181,000
foreign workers per year under these programs. Particularly with high unemployment,
such programs face opposition. For example, one study concluded that many workers
brought in under the programs filled jobs that didn’t actually demand highly specialized
skills, many paying less than $15 an hour.33

Economic Challenges and Trends

All these trends are occurring within the context of economic turmoil. Deregulation
was one reason. Around the world, the rules that prevented commercial banks from
­expanding into new businesses such as stock brokering were relaxed. Giant multi­
national ­“financial supermarkets” such as Citibank quickly emerged. As economies
boomed, more businesses and consumers went deeply into debt. Homebuyers bought
homes, often with little money down. Banks freely lent money to developers to build
more homes. For almost 20 years, U.S. consumers spent more than they earned. On
a grander scale, the United States became a debtor. Its balance of payments (exports
minus imports) went from a healthy positive $3.5 billion in 1960, to a not-so-healthy
minus $19.4 billion in 1980 (imports exceeded exports), to a huge $497 billion deficit in
2011.34 The only way the country could keep buying more from abroad than it sold was
by ­borrowing money. So, much of the boom was built on debt.
As you can see in Figure 1-3, gross national product (GNP)—a measure of U.S.
total output—boomed between 2001 and 2007. During this period, home prices leaped
as much as 20% per year. Unemployment remained docile at about 4.7%.35 Then, a few
years ago, all these measures fell off a cliff. GNP fell. Home prices dropped by 20% or
more (depending on city). Unemployment nationwide rose to more than 10%.
Why did all this happen? All those years of accumulating debt seem to have run
their course. Banks and other financial institutions (such as hedge funds) owned trillions
of dollars of worthless loans. Governments stepped in to try to prevent their collapse.
Lending dried up. Many businesses and consumers stopped buying. The economy tanked.
 Another Random Document on
Scribd Without Any Related Topics
—— of Mahmûd the Reformer, 305,
306.
—— of Mohammed the Conqueror,
295.
—— of Roxelana, 170, 297.
—— of Selim II., 307.
—— of Suleiman, 296, 297.
Turks, first appearance in history,
130.

V
Varangians, 90, 91.

W
Walls of Constantine, 7, 8.
—— Heraclius, 50, 109, 286, 288.
—— Leo the Armenian, 68, 69, 288.
—— Manuel Comnenus, 99, 109,
286.
—— Theodosius II., 18, 109, 135,
272, 277, 286.
Wortley-Montague, Lady Mary, 190,
193-197, 305.

Y
Yildiz-Kiosk, 221, 318.

Z
Zachariah of Mitylene, 34.
PLAN OF CONSTANTINOPLE

View larger image

PRINTED BY
TURNBULL AND SPEARS,
EDINBURGH
 FOOTNOTES

[1] This was close to where is now the Kutchuk Aya Sofia (church
of S. Sergius and S. Bacchus).
[2] Van Millingen, "Walls of Constantinople," p. 41.
[3] Themistius, Oratio xviii., quoted by Van Millingen, p. 42.
[4] Van Millingen, pp. 44, 45.
[5] Van Millingen, p. 46.
[6] The very interesting little book of M. Antonin Debidour,
L'Impératrice Théodora (1885), should be read by all who are
attracted by the wonderful career of this extraordinary Empress.
[7] Church of the Sixth Century, pp. 259, 260.
[8] Byzant. Zeitschrift, i. 69.
[9] See Curtis, Broken Bits of Byzantium, ii. 54, 56.
[10] Later Roman Empire, ii. 352.
[11] Vol. ii., p. 423.
[12] The Church and the Eastern Empire, pp. 106-108.
[13] Vol. ii., p. 446.
[14] Vol. ii., pp. 497-498.
[15] Van Millingen, p. 168.
[16] History of Greece, vol. ii., p. 191.
[17] Gibbon, vol. v., pp. 525, appendix II., a most important and
thorough investigation of a very interesting period of legal history.
[18] On Nicephorus Phocas see the brilliant book of M.
Schlumberger, "Un Empereur Byzantin au Xième Siècle."
[19] In modern times the greeting of a bishop at his entrance by
a special anthem is still retained in the Greek Church; as also the
greeting of cardinals when they enter S. Peter's—"Ecce sacerdos"
etc.
[20] The first part of the reign of these sovereigns, and the reign
of John Tzimisces, are described with abundance of illustrative
detail in M. Schlumberger's charming book, "L'Epopée byzantine à
la fin du dixième siècle."
[21] "History of Greece," vol. iii., p. 4.
[22] This was the suburb named after the church of SS. Cosmas
and Damian. The monastery was fortified, and stood on the top
of the hill overlooking the Golden Horn. It was granted by Alexius
to Bohemond.
[23] His reign was really only a little over twenty-four years and a
half.
[24] Van Millingen, Walls of Constantinople, p. 157.
[25] Pean, Conquest of Constantinople, p. 403.
[26] There are many different estimates given by the different
writers. La Jonquière, perhaps the latest, decides on 200,000 (p.
158).
[27] M. Mijatovich in his "Constantine the last Emperor of the
Greeks," gives a vivid account of the siege, but he is far from
accurate in dealing with the topography.
[28] Mr Oman, History of the Art of War, Middle Ages, pp. 526-7,
speaks of three walls; but the scarp was quite low, and there
were only two walls behind it.
[29] There is much dispute as to the route taken by the ships and
as to almost every point connected with the passage. I would
only say that it seems to me that the view of Professor Van
Millingen, which I have followed in the text, is the most
satisfactory.
[30] Quoted by M. Chedomil Mijatovich, from a Slavonic MS.
[31] See Van Millingen, pp. 89 and 99.
[32] The icons were hewn down, the ornaments everywhere torn
off, the altar stripped of its coverings, the lamps and sacred
vessels stolen; everything, says Ducas, of silver and gold or other
precious substance was taken away, and the church was left
naked and desolate.
[33] These are Finlay's figures.
[34] Sandys' Travels, pp. 48, 49, ed. 1627.
[35] The form "Sultana" is only a Western one. The Turks use the
word Sultan for both sexes, placing it after the name in the case
of a female.
[36] Quoted by Ranke, Ottoman and Spanish monarchies [Eng.
trans.], p. 12.
[37] Ranke, quoting Barbaro, the Venetian ambassador.
[38] Finlay, vol. v. p. 92. See Von Hammer, viii. 134, 317.
[39] Ranke, p. 25.
[40] Pp. 31-32.
[41] Travels, vol. ii., pp. 127-128.
[42] Constantinople in 1828, by C. MacFarlane, p. 306.
[43] Life of Lord Stratford de Redcliffe, by Stanley Lane Poole, 1
volume edition, p. 18.
[44] "Life of Lord Stratford de Redcliffe," by Stanley Lane Poole, 1
volume edition, p. 19.
[45] Life, pp. 137-138.
[46] Life, p. 139.
[47] Life, pp. 164-165.
[48] See the correspondence respecting the rights and privileges
of the Latin and Greek Churches in Turkey, presented to
Parliament 1854.
[49] Eothen, pp. 30, 31.
[50] Pears, Conquest of Constantinople.
[51] See especially "Les Débuts du Monachisme à Constantinople"
(Pargoire) in Revue des questions historiques, Jan. 1899, pp. 133,
sqq.
[52] In 1896 and 1899 application was made on my behalf by the
British Ambassador; on the last occasion the Sultan granted an
irardé.
[53] This can be reached from the Hippodrome by a road going
southwards, and easy to find.
[54] Aedif. I. i.—The translation here used is that of Mr Aubrey
Stewart, published by the Palestine Pilgrims' Text Society, with
alterations by the late Mr Harold Swainson, as published in the
admirable work of Mr W. R. Lethaby and himself, Sancta Sophia,
Constantinople, a Study of Byzantine Building, 1894 (pp. 24-29).
Messrs Lethaby and Swainson insert explanatory divisions of the
description, thus 'The Apse,' etc. I have inserted the Greek words
where they have transliterated them, and made an occasional
slight alteration. The value of Messrs Lethaby and Swainson's
work as an architectural translation is great.
[55] Evagrius, Hist. Eccl., iv. 31.
[56] It may be read in Migne's Patrologia Græca, lxxxvi. (2), and
in the translation in Messrs Lethaby and Swainson's book.
[57] Quoted from Lethaby and Swainson, p. 45.
[58] Kraus, Geschichte der Christlichen Kunst, i. 361, 362.
[59] See Lethaby and Swainson, pp. 21 and sqq.
[60] See Lethaby and Swainson.
[61] Murray's "Guide" gives a complete list of the subjects.
[62] Inscription formerly on the outer wall between the fourth
and fifth towers south of the Golden Gate.
[63] These figures, and all the others, came from Professor Van
Millingen's exhaustive book.
[64] I.e. where the Mihrab shows the direction of Mecca.
[65] It is simply that of an English clergyman with high waistcoat
and straight collar—and a fez!
[66] Church of the Sixth Century, pp. 298-301.
[67] Forchheimer and Strygowski (quoted by Lethaby and
Swainson, p. 248).
[68] De Ædif., i. 11.
[69] Grosvenor, Constantinople, vol. i., p. 399.
[70] Ball's Translations, 1729, pp. 147-8.
[71] De Aedif., i. 4.
[72] Walls of Constantinople, pp. 109, 110.
[73] I must here admit that in the Church of the Sixth Century I
wrongly suggested that these lions came from outside S. Sophia.
Further study convinced me of my error.
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