CHAPTER 8 - Socializing, Orienting, and Developing Employees Chapter 9 - Managing Careers Chapter 10 - Establishing the Performance Management System Chapter 11- Establishing Rewards and Pay Plans Chapter 13 - Ensuring a Safe and Healthy Work Environment Chapter 14 - Understanding Labor Relations and Collective Bargaining

1. CHAPTER 8
Socializing, Orienting, and Developing Employees
Define socialization. Socializationis a process ofadaptation.Organization-entry socializationrefers to theadaptation that takes place whenone makes thefirst
move into an organization:themovefrom being anoutsider tobeing an insider.
3 stages of employee socialization. The three stagesof employee
 Pre-arrival - recognizes that each individualarrives with a set of Organizationalvalues,
attitudes, culture, andexpectations.
 Encounter - individuals confront thepossiblecontrast betweentheirexpectations
about jobs, coworkers, supervisors,and theorganizationin general and reality.
 Metamorphosis - The socialization stage during whichthenew employeemust work
out inconsistencies discoveredduring the encounter stage
3. Identify thekeypersonnelinvolvedin orientation. Thekey peopleinorientationaretheCEOand HRM representatives.The CEOwelcomes thenewemployees,
reaffirms their choiceof joining thecompany, and discusses theorganization’s goals and objectives whileconveying informationabouttheorganization’s culture.
Each function in HRMhas a specific rolein orientation todiscuss what employee services they canoffer inthefuture,when and where toreport, assistance forfuture
employeeneeds (career guidance, training, etc.).
4. The Employee Handbooks serve as a source ofinformation about companyculture, policies, rules, and benefits.
5. Explain why employee training is important. Employee training has become increasingly importantas jobs have becomemore sophisticated and influenced
by technological andcorporate changes.
6. Define training. Training is a learning experience that seeks a relatively permanent changein individuals that willimprove their ability toperformon thejob.
There are three kinds of training: class room training,Retraining, and Orientation.
 Class room training - appropriate body languageand speech, how youtalk toemployees, behaviors, Facilitateemployeeparticipationand discussion
 Retraining - when employees performance drops below par, or whenthe worker has not mastered a particular technique. Apositiveone-
on-one approachto retraining is referredto a coaching. Coaching is a two partprocess.
o Observation ofthe employee’s performance.
o Conversation betweenmanager and employeefocusing on job performance.
 Orientation - Introduces each new employeeto the job and the workplace.Tells newstaff members, Communicates information giveout anemployee
handbook. Creates positiveemployee attitudes toward the company and thejob.
7. Describe how training needs evolve. An organization’s training needs will evolve from seekinganswers to these questions:
Determining training needs –
• Specific training goals should be based on: organization’s needs,typeofwork tobe done, skills necessary to completethework
• Indicators of need for more training: drops in productivity, increasedrejects,inadequatejobperformance, riseinthenumber ofaccidents

2. Training Methods
On-the-Job Training Methods
 Job Rotation has long been considereda valuable toolto increase employeemotivation.Jobrotationinvolves lateral transfers thatallow employees to
work at differentjobs and provides exposure toa variety oftasks.As with any training,HRMshould takecareto makesurethetrainers notonly knowthe
job, but how to trainothers as well.Employers oftenmovenew hires through a rotation ofdifferent roles in the organizationsuch as marketing, finance,
and operations before they settleinto a permanentposition.
 Apprenticeships are frequently usedto combineclassroominstructionin combination with working alongsidea seasoned veteran,coach, ormentor.
The combinationof hands-on andclassroom learning complement each other. Apprenticeships are frequently usedin skilledtradeor craft jobs suchas
building trades.The experienced worker provides support and encouragement in addition to training.
 Internships are opportunities for students in higher education toutilize their instructionand training ina chosen profession as part oftheir education.
Internships varyfrom very unstructured to highly structured and may includecollege credit. Organizations usually valueinternships as a way to reduce
recruitment expenses without creating an obligation ofregularemployment. Interns also providea valuable sourceofnewideas and creativity. Students
participating ininternships gain valuable real-world experienceand greatly enhance their valueto prospective employers.
Off-the-Job Training Methods
 Classroom Lectures probably don’tneedmuch explanationat this pointofyour education, butonce youfinishcollege, youmay nothave seen the
inside of your last classroom. Many organizations useclassroominstruction along with other methods toprovidea great deal ofinformation ina limited
timeframe.Instructors needto understand thedifferentlearning characteristics ofadultlearners and the variety oftypes ofinstruction that createinterest
in the specific technical, interpersonal,or problem-solving skills they areteaching.
 Multimedia Learning can demonstratetechnical skills not easily presentedby othertraining methods. This may include videos and DVDs that may be
offered online.
 Simulations involve learning a job by actually performing the work (or its simulation). Simulationmethods may includecaseanalyses,experiential
exercises,computer simulations, virtualreality, roleplaying,and group interaction.
 Vestibule Training facilitates learning byusing the sameequipmentthatoneactuallywill useon thejobbutin a simulated work environment.
8. Discussthe term organizational development and the role ofthe change agent. Organization development is the process ofeffecting change in
the organization. Thischange is facilitated through the efforts of a change agent.
 Job rotation - Moving employees horizontallyor verticallyto expandtheir skills, knowledge, or abilities.
 Assistant-To Positions Employees with demonstrated potentialsometimes work under a seasoned and successful manager,often in different areas ofthe
organization.
 Committee Assignment
 Lecture Courses and Seminars Traditional forms ofinstruction revolvearoundformallecturecourses andseminars. These help individuals acquire
knowledgeanddeveloptheirconceptual andanalyticalabilities. Many organizations offer these in-house,throughoutsidevendors, or both.
 Simulation - Any artificial environmentthat attempts toclosely mirror anactualcondition.
 Outdoor training typically involves challenges whichteach trainees the importanceofteamwork.
What is change? - OD efforts support changes that are usually made infour areas: The organization’s systems
 Technology
 Processes
 People
Two metaphorsclarifythe change process.
 The calm waters metaphor describes unfreezing the status quo, change toa new state, andrefreezing toensurethat the changeis permanent.
 The white-waterrapids metaphor recognizes today’s businessenvironment whichis less stable andnot as predictable.
The calm waters metaphor suggests that change is anoccasional disruptioninthe normal flow events andcanbe plannedandmanagedas it
happens. In the white-water rapids metaphor change is ongoing, andmanaging it is a continual process.

3. OD Methods - Organizationaldevelopment facilitates long-term organization-wide changes. OD techniques include:
 Survey feedback - Assessmentof employees’ perceptions andattitudes regarding their jobs and organization.
 Process consultation - outsideconsultants help organizationalmembers perceive, understand, andacton process events i.e. workflow, informal
relationships among unit members, and formal communications channels.
 Team building - Team building helps work groups set goals, developpositive interpersonalrelationships,and clarify the roleand responsibilities ofeach
team member.
 Intergroup development - intergroup developmentattempts to changeattitudes,stereotypes, andperceptions thatonegroupmay have about
another group.Doing socan build bettercoordinationamong the various groups.
Explainthe termlearningorganization. A learning organizationcontinuously adapts and changes because all members take anactive role in
identifying andresolving work-related issues. In a learning organization, employees practice knowledge management bycontinuallyacquiring and
sharing newknowledge, whichtheywillinglyapply.
Describe the methods and criteria involved in evaluating training programs. Training programs canbe evaluatedby post-training performance,
pre–post-training performance, or pre–post-training performance with control groupmethods. The evaluationfocuseson trainee reaction,what
learning took place, andhowappropriate the trainingwas to the job.
 Post-training performance method - Evaluatingtraining programs basedonhowwell employees canperformtheir jobs after training.
 Pre-post-training performance method - Evaluating training programs basedon the difference inperformance before andafter training.
 Pre-post-training performance with control group method - Evaluatingtraining bycomparing pre- andpost-trainingresults with
individuals.
Cross-Cultural Training
• Cross-cultural training is necessaryfor expatriate managers andtheir familiesbefore, during, andafter foreign assignments. It is crucial to
remember that whenthe expatriates arrive, theyare the foreigners, not the host population. Before the employee andfamilyrelocate to
the overseas post, theyneedto absorbmuchcultural andpractical background. Language training is essentialfor everyone inthe family.
Involves learningabout the culture’s:
• History
• Politics
• Economy
• Religion
• Social climate
• Business practices
Mayinvolve role playing, simulations and immersioninthe culture.

4. Chapter 9
Managing Careers
1. Explain who is responsible for managing careers. The responsibilityfor managing a career belongs to the individual. The organization’s role is to
provide assistance and information to the employee, but it is not responsible for growing anemployee’s career.
2. Describe the term career. A career is a sequence of positions occupiedbya person during the course of a lifetime.
3. Discuss the focus of careers for both organizations and individuals. Career development froman organizational standpoint involves tracking
career paths anddeveloping career ladders. Froman individual perspective, career development focuses onassisting individuals in identifying their
major career goalsand indetermining how to achieve these goals.
4. Describe how career development and employee development differ. The maindistinctionbetweencareer development and employee
development lies in their time frames. Career development focuses onthe long-range career effectiveness andsuccessof organizational personnel.
Employee development focusesmore on immediate andintermediate time frames.
5. Explain why career development is valuable to organizations. Career development is valuable to anorganization because it
(1) ensures needed talent will be available;
(2) improves the organization’s abilityto attract and
retain high talent employees;
(3) ensures that minorities andwomen have
opportunitiesfor growthanddevelopment;
(4) reduces employee frustration;
(5) enhancesculturaldiversity;
(6) assists inimplementing quality; and
(7) Promotes organizationalgoodwill.
Careers are bothexternalandinternal.
• The external career involves propertiesor qualities ofanoccupationor anorganization. I.e. thinkof a career inbusinessas a person’s
sequence ofjobs or positions, External careers mayalsobe characterizedbycareer ladders within a particular organization.
• Internal career success is measuredbythe meaningfulness of one’s work andachievement of personal life goals
When a senior employee takesanactive role in guiding another individual, we refer to thisactivityas mentoring or coaching.
• Disadvantages include: tendencies to perpetuate current stylesand practices, reliance onthe coach’s abilityto be a goodteacher
• Considerations for organizations: coaching between employees whodo not have a reportingrelationship, ways to effectivelyimplement
cross-gender mentoring
6. Identify the five traditional stages involved in a career. The five stagesina career are exploration, establishment, mid-career, late-career, and
decline.
External Event Internal Event
Exploration
A careerstagethat
usually ends in the
mid-twenties as one
makes thetransition
from
school to work.
Advice and examples ofrelatives,teachers, friends,
Exploration EstablishmentMid-Career LateCareer
Declineand coaches
Actual successes and failures inschool, sport, and
hobbies
Development ofself-image, whatonemight be,
what sortofwork wouldbe fun
Self-assessmentofown talents and limitations
Development ofambitions,goals, motives,dreams
Tentativechoices andcommitments, changes
Establishment
A careerstageinwhich
one begins to search for
work and finds a first
job.
Explicit searchfor a job, Acceptance of a job
Inductionand orientation, Assignment to further
training or first job
First jobassignment, meeting the boss and
co-workers, Learningperiod, indoctrination
periodof full performance—“doing the job”
Makinga real choice: to take a jobor not, which
job;first commitment Realityshock
mid-career
A careerstagemarked
by continuous
improvementin
performance, leveling
off in performance, or
Leveling off, transfer, and/or promotion
Entering a periodof maximumproductivity
Becomingmore of a teacher/mentor thana
learner
Explicit signs from boss andco-workers that
Period ofsettlinginor new ambitions basedon
self-assessment
More feeling ofsecurity, relaxation, but danger of
leveling off andstagnation

5. beginning deterioration
of performance.
one’s
progress hasplateaued
late-career
A careerstageinwhich
individuals are no
longer learning about
their jobs norexpected
to outdo levels of
performancefrom
previous years.
Job assignments drawing primarilyon maturity
of judgment
More jobs involving teaching others
Psychological preparation for retirement
Decelerationinmomentum
Finding newsources of self-improvement off
the job, newsources of jobsatisfaction through
teaching others
Decline
The final stageinone’s
career,usually Marked
by retirement.
Formal preparation for retirement
Retirement rituals
Learning to accept a reducedrole andless
responsibility
Learning to live a less structured life
New accommodations to familyand community
7. List the Holland vocational preferences. Represents an
individualoccupationalpersonality as itrelates to vocational themes.
Three major components
• People havevarying occupationalpreferences
• If you think your workis important,you willbea more
productiveemployee
• You will havemore incommon with peoplewhohave
similar interestpatterns
The Schein Anchors - Personal valueclusters determinewhat is
important toindividuals.
• technical-functionalcompetence
• managerialcompetence
• security-stability
• creativity
• autonomy-independence
Success of person-job match determines individual’s fit with thejob.
Jung and the Myers-BriggsTypologies
a psychometric questionnaire designed to measurepsychological
preferences inhow peopleperceivetheworld andmake decisions
Four personality dimensions
8. Describe the implications of personality typologies and jobs. Typologyfocuses on
personalitydimensions including extroversion-introversion;sensing-intuition;
thinking-feeling;and judging-perceiving. These four pairs canbe combined into
sixteendifferent combination profiles. With this information, job personalitytraits
can be matchedto individual personalitytraits.
9. Identify several suggestions that can help you manage your career more
effectively.
Some suggestions for managing your career include (1) knowyourself, (2) manage
your reputation, (3) build andmaintainnetwork contacts, (4) keep current, (5)
balance your specialist andgeneralist competencies, (6) document your
achievements, and(7) keepyour options open.

6. Chapter 10
Establishing the Performance Management System
Identify the three purposes of performance management systems and whom they serve. The three purposes ofperformance management systems are
feedback,development, and documentation. They are designed to support employees,appraisers, and organizations.
Difficulties in Performance Management Systems
• Focus on the individual: Discussions ofperformancemay elicitstrong emotions and maygenerateconflicts when subordinates and supervisors do not
agree.
• Focus on the process: Company policies andprocedures may presentbarriers toa properly functioning appraisal process. Additionally, appraisers may
be poorly trained. Forexample, ifa company ties performance evaluations to pay increases,
consider thefollowing potentialdifficulty:Sometimeduring thespring, thecompany’s managers
develop budgets for their units—budgets dictated andapprovedby uppermanagement. Now, in
this budget for thenextfiscal year, each manager’s salary budget increases by 3 percent. As the
company enters thenew fiscalyear,the managers evaluate their employees. One employee in
particular has done an outstanding jobandis awarded a 6 percentraise. Whatdoes this doto the
budget? To average 3 percent, some employees will receive less than the 3 percent salary
increase. Consequently,company policies and procedures may present barriers to a properly
functioning appraisal process. Having an effective performance management system in the
organization can help reduce confrontations— emotional or otherwise. Everyone needs to
recognize that emotions may run high during a performance feedback session. However, a
properly designed system and effective implementation (including appraiser training and
continuous feedback) will help avoid emotional outbursts like this.
2. Explain the six steps in the appraisal process. Performancemanagement systems are an integral
part ofmost organizations. Properly developedand implemented performancemanagement processes can help an organization achieve its goals by developing
productive employees. The 6-step appraisal process is to
(1) Establish performance standardswithemployees, theseperformance standards shouldalso beclear and objective enough to be understood and measured.
These should evolve out of the company’s strategic direction—and, more specifically, the job analysis and the job description
(2) Set measurable goals(manager and employee), Once performancestandards areestablished,it is necessary to communicate these expectations; employees
should nothave toguess whatis expected ofthem. Too many jobs havevagueperformancestandards, andtheproblem is compounded when these standards are
set in isolation and without employee input. Communication is a two-way street: mere information transfer from supervisor to employee is not successful
communication.
(3) Measure actual performance, todetermine whatactualperformanceis, weneedinformationaboutit.We should beconcerned withhowwe measureand what
we measure.
(4) Compare actual performancewith standards, comparison ofactual performance withstandards. This step notes deviations between standardperformance and
actualperformance. Theperformance appraisal formshould include a listand explanation ofthe performance standards. This provides a valuable feedback tool as
the manager moves on the next step, discussing the appraisal.
(5) Discuss the appraisal with the employee,andpresent an accurateassessmentto theemployee, theappraisal discussion can have negative as well as positive
motivational consequences.
(6) If necessary, initiate corrective action.
Appraisal Methods
• Absolute standards referto a methodin performancemanagement systems whereby employees aremeasured against company-setperformance
requirements. Measuring anemployee’s performance against establishedstandards.
o Essay Appraisal: Appraiser writes narrative describingemployee performance & suggestions.
o Critical Incident Appraisal: A performance evaluationthat focuses onkeybehaviors that differentiates between doing a job
effectivelyor ineffectively.
o Checklist Appraisal: A performance evaluationin whicha rater checks offapplicable employee attributes.
o Rating Scale Appraisal: A performance appraisal methodthat lists traits anda range ofperformance for each.
o Forced-Choice Appraisal: A performance evaluationinwhich the rater must choose betweentwo specific statements about an
employee’s workbehavior.

7. o Behaviorally anchored rating scales (BARS) a performance appraisaltechnique that generates critical incidents and develops
behavioral dimensions of performance. The evaluator appraises behaviors rather than traits.
• Relative standards evaluating an employee’s performance by comparing theemployee with otheremployees.
o Individual ranking - Ranking employees’performancefrom highest tolowest.
o Paired comparison -Ranking individuals’ performance bycounting the times any oneindividual is the preferred member when compared with
all otheremployees.
How MBO can be an appraisal method. MBO becomes an appraisal methodbyestablishing a specific set of objectives for anemployee to achieve
and reviewing performance basedon how well those objectives have beenmet. Common elements in anMBO program are: goal specificity,
participative decisionmaking, anexplicit time period, performance feedback
Explain why performance appraisals might be distorted.
LENIENCY ERROR - Performance appraisal distortion causedbyevaluating
employees against one’s own value system.
HALO ERROR - The tendency to letour assessmentof an individualon onetrait
influenceourevaluation of thatperson onotherspecifictraits.
SIMILARITY ERROR - Evaluating employees based on the way an evaluator
perceives himself or herself.
CENTRAL TENDENCY - The tendency ofa rater to giveaver-ageratings.
INFLATIONARY PRESSURES -Inflationary pressures have always existed but
appearto haveincreased as a problemover thepast three decades.
INAPPROPRIATESUBSTITUTES FOR PERFORMANCE -It is the unusualjobthat has an
absolutely clearperformancedefinitionand direct measures for appraising the
incumbent.It is more often difficultto findconsensus on whatis “a good job,” and it
is even more difficultto produceagreementon whatcriteria determineperformance.
Low Appraiser Motivation -Iftheevaluatorknows that a poorappraisalcould
significantlyhurttheemployee’s future
Particularly opportunities for promotionor a salary increase
The evaluator may bereluctant to give a realisticappraisal. Evidenceindicates thatit is more difficult to obtain accurateappraisals whenimportant
rewards depend ontheresults.
ATTRIBUTION THEORY - A theory ofperformance evaluation based ontheperceptionofwho is incontrol ofanemployee’s performance.
IMPRESSION MANAGEMENT: - Ifemployeepositively influences the relationship withthesupervisor, he/sheis likely to receivea higher rating.
CREATING MORE EFFECTIVE PERFORMANCE MANAGEMENT SYSTEMS
Use Behavior-Based Measures: - Measures basedon specificdescriptions ofbehavior aremorejob-relatedandelicitmore inter-rater agreement than traits,such
as “loyalty” or“friendliness”.
Combine Absolute and Relative Standards:
• Absolute standards tendto bepositively lenient;relative standards sufferwhen thereis littlevariability.
• Combining thestandards tends to offset theweaknesses ofeach.
Provide Ongoing Feedback:
• Expectations anddisappointments should besharedwith employees ona frequentbasis.
Use Multiple Raters:
• Increasing thenumber ofraters leads to morereliableand valid ratings.
– Use peer evaluations: Coworkers offerconstructiveinsights andmorespecific evaluations.
– Upward appraisals allowemployees togivetheir managers feedback.
– 360-Degreeappraisals: Supervisors, peers, employees,teammembers,customers and others with relevantinformationevaluatethe
employee.
Rate Selectively
– Appraisers only evaluate inthoseareas about which they havesufficientknowledge.
– Appraisers should beorganizationally as closeas possibleto theindividualbeing evaluated.

8. – More effectiveraters are asked to dotheappraisals.
Train Appraisers:
• Untrained appraisers who dopoor appraisals can demoralizeemployees and increaselegal liabilities.
INTERNATIONAL PERFORMANCE APPRAISAL
• Who performs the evaluation?
– Different culturalperspectives andexpectations between the parentand localcountry may makeevaluationdifficult.
– Evaluation forms may notbe translatedaccurately.
– Quantitativemeasures may bemisleading.
• Evaluation Formats
– May make senseto usedifferent forms for parent-country nationals and host-country nationals.
– Performancecriteria for a particularposition shouldbe modified tofit theoverseas positionand site.
– Include a current expatriate’s insights as part oftheevaluation.
Identify ways to make performance management systems more effective. More effective appraisals canbe achievedwith behavior-based
measures, combined absolute andrelative ratings, ongoingfeedback, multiple raters, selective rating, trainedappraisers, peer assessment, and
rewards to accurate appraisers.
Describe the term 360-degree appraisal. In 360-degree performance appraisals, evaluations are made byoneself, supervisors, employees, team
members, customers, suppliers, and the like. Indoingso, a complete picture ofone’s performance canbe assessed.
Explain the criteria for a successful performance appraisal meeting. Performance appraisal meetings require manager preparation, a supportive
environment, clear purpose, employee involvement; focus onwork behaviors, specific workexamples, positive andnegative feedback, employee
understanding, andan employee development plan.
Discuss how performance appraisals may differ in a global environment. Performance management systems usedaway from the home country
maydiffer inwho performs the evaluation and the format used. Cultural difference maydictate that changes inthe U.S. performance management
systemare needed.

9. Chapter 11
Establishing Rewards and Pay Plans
Reward is pay, but thereare many others, including: promotions,
desirable work assignments, peer recognition, work freedom
(1) Intrinsic Rewards – Personal Satisfactions derived from
the job itself, suchas pridein one’s work,a feeling of
accomplishment,or being part ofa team.Extrinsic
Rewards - Benefits provided by theemployer, usually
money, promotion, or benefits.
(2) Financial- through wages,bonuses,or profit sharing—or
indirectly,throughemployer-subsidized benefits such as
retirementplans, paidvacations,paid sick leaves,and purchase
discounts. Nonfinancial – These do not directly increase
the employee’s financial position, but rather addattraction to
life on the job.
(3) Performance-based rewards usecommissions, pieceworkpay
plans, incentive systems, groupbonuses, merit pay,or other
forms of pay for performance. Membership based rewards, on
the other hand, include cost-of-living increases, benefits, and
salaryincreases attributableto labor-marketconditions,
seniority or time inrank, credentials (suchas a college degree
or a graduatediploma), a specializedskill, orfuturepotential
(for example, the recentMBAgraduatefrom a prestigious university). The key pointhereis thatmembership-basedrewards are generally extended
regardless of an individual’s, groups, or organization’s performance.In any case,performancemay beonly a minor determinant ofrewards, despite
academictheories holding thathighmotivationdepends on performance-basedrewards.
3. Define the goal of compensation administration. Compensationadministrationseeks to design a cost-effective pay structure that willnot only
attract, motivate, and retain competent employees but alsoseemfair to them.
Fair Labor StandardsAct (FLSA)-Passed in1938, this act established laws outlining minimumwage, overtime pay, and maximumhourrequirements for mostU.S.
workers.
Exempt employees - Employees inpositions thatare exempt from most employeeprotectionoutlined intheFair Labor Standards Act, especially overtimepay.
Nonexempt employees - Employees who arecovered bythe Fair Labor Standards Act, including overtime payandminimumwage provisions ofthe act.
Equal Pay Act of1963 -This actrequires equalpay for equal work.
Civil Rights Act: Salaries should beestablishedon the basis ofskill,responsibility, effort,and working conditions. broader thanEqual PayAct, prohibits discrimination
on the basis of gender, usedto support comparableworth concept
4. Discuss job evaluation and its three basic approaches. Job evaluation systematicallydetermines thevalueofeachjobin relationto alljobs within
the organization. Thethreebasicapproaches to job evaluationare (1) theordering method, (2) theclassification method, and (3) thepointmethod.
 The ordering method -According to this method,jobs arearranged from highest tolowest,in order oftheirvalueor merit totheorganization.
 The classification method -a predeterminednumberofjob groups or job classes are established andjobs areassigned to theseclassifications. This
method places groups ofjobs intojob classes or job grades.
 The point method -jobs areexpressed in terms ofkeyfactors.Points areassignedto each factor afterprioritizing each factor inorder ofimportance.The
points are summed upto determinethe wageratefor thejob. Jobs with similarpoint totals areplacedin similar pay grades.
• Isolating Job Evaluation Criteria - Judgment is involved indefining whatfactors should beused tocomparejobs.
– Typical criteria:
• mental requirements
• supervisory control
• complexity
• physical demands
• personal contacts
– Typicallyjobs aregroupedaccording totypeand comparedwithintheir group
• clerical jobs
• sales jobs

10. • professionaljobs
Establishing the Pay Structure
• Compensation surveys - Used to gather factual data on pay practices among firms and companies
within specific communities.Share comprehensive descriptions ofthesejobs withother firms in the
industry.
• Wage curves A Wage Curve - Wage curves like this one plota position’s valueinpoints againstthe
wages paidfor eachofthosepositions. Jobs thatdo not fall within an accepted rangemay be“red circled.”
Drawn by plotting job evaluation data (suchas jobpoints or grades) against pay rates (actual or fromsurvey
data). Indicatewhetherthepay structureis logical
• Wage structure - Apay scale showing ranges ofpay withineachgrade.
• Designates pay ranges for groups ofjobs which are
• similar invalueto the organization
• Grouped by their classifications, grades or points.
5. Explain the evolution of the final wage structure. The final wagestructureevolves from job
evaluation input, compensation survey data, and the creation ofwagegrades.
Incentive Compensation Plans - Incentives can beadded tothebasicpaystructure toprovide rewards for
performance. Work bestwhereclear objectives can besetandtasks areindependent. Many organizations today
require employees to placea percentageoftheir salary “at risk”sothat merit pay does not becomea substitutefor
automaticcost-of-living raises.
• Individual Incentives include
– merit pay plans (annual increase, basedon performance) An increase inpay, usuallydetermined annually.
– Piecework plans (pay based onnumber ofunits producedtypicallyin a specifiedtime period.)
– time-savings bonuses and commissions
• Group Incentives - Incentives can beofferedto groups, ratherthan individuals, when employees'tasks areinterdependent and requirecooperation.
• Plant-wide Incentives: Directemployee efforts toward organizational goals (suchas costreduction)
– Scanlon Plan an organization-wideincentiveprogramfocusing oncooperation betweenmanagementandemployees through sharing
problems, goals, and ideas.
– IMPROSHARE -An incentiveplan that uses a specific mathematicalformula for determining employee bonuses. Formula is used to determine
bonuses basedon labor costsavings
Paying for Performance -Rewarding employees based ontheirjobperformance. Common performancemeasures are: piece-rate plans, gainsharing, wage incentive
plans, profitsharing, lump sumbonuses
• Competency-based compensation -Rewarded for skills,knowledgeand behaviors i.e.leadership, problem solving,decisionmaking, strategic planning.
Competency-based compensation views employees as a competitive advantagein the organization. Compensationsystems areestablished interms of
employeeknowledge,skills, and demonstrated behaviors. Possession ofthesethreefactors is evaluatedand compensatedaccording toa broad-banded
salaryrange establishedby theorganization.
– Broad-banding -pre-set pay levels that determine what peoplearepaid baseduponthetype and levelofcompetencies they possess.
Team-Based Compensation - Pay based on how welltheteam performed.
– Depends on:
• clarity ofteam purposeand goals
• abilityofthe team toobtain needed resources
• effective team communication skills and trust
Executive Compensation Programs
 Salaries of Top Managers - Executive salaries,bonuses and stock options may seem high.Top twenty CEOs averagemorethan$100millionin total
compensation.Competition for executivetalent raises thepriceofhiring an executive. High salaries can bea motivator for executives and lower-level
managers
 Supplemental Financial Compensation –

11. o Deferred bonuses – paid to executives over extendedtime periods,to encouragethem tostay with thecompany.
o Stock options – allow executives to purchasestock in the futureata fixedprice.
o Hiring bonuses – compensate for thedeferred compensation lostwhen leaving a former company.
 Supplemental Nonfinancial Compensation
o Perquisites -Attractivebenefits,overand abovea regular salary,granted toexecutives, also known as “perks.” Perks may include: paid life
insurance, clubmemberships,company cars,expense accounts,interest-freeloans,freefinancial, legal and taxcounseling, mortgageassistance
 Golden parachutes -protect executives whena merger or hostiletakeover occurs byproviding severancepay or a guaranteed
position.
International Compensation - Important to understand thestatutory requirements ofeach country. International compensation packages generally utilize
the “balance-sheetapproach,” using thefour factors below:
– Base Pay: The pay ofemployees incomparablejobs at home.
– Differentials: Compensationgiven to offsethighercosts ofliving abroad.
– Incentives: Inducements givento encourageemployees toacceptoverseas assignments.
– AssistancePrograms: Payment for expenses involvedin moving a family abroad and inproviding some services overseas.
Discuss why executives receive significantly higher salaries than other employees in an organization. Executivecompensation is higher
than thatof rank-and-file personneland also includes otherfinancialand nonfinancial benefits not otherwiseavailableto operative employees. This is done toattract
and retain executives andmotivate themto higher performance levels.
Identify the balance-sheet approach to international compensation. The balancesheet approach to internationalcompensationtakes intoaccount
base pay, differentials,incentives, and assistanceprograms.

12. Chapter 13
Ensuring a Safe and Healthy Work Environment
Discussthe organizational effectofthe Occupational Safety and HealthAct. The OccupationalSafety and Health Act(OSH Act) outlines comprehensive andspecific
safety and health standards. Requires employers to keeprecords ofillnesses and injuries, and calculate accident ratios.
2. List Occupational Safety and Health Administration (OSHA)enforcement priorities. OSHAhas anestablished five-steppriority enforcementprocess consisting of
imminent danger, serious accidents, employeecomplaints, inspectionoftargetedindustries, and randominspections.
• Imminent danger: Wherean accidentis aboutto occur. Accidents thathave ledto serious injuries or death. Employer mustreportwithin 8 hours.
• Employeecomplaints: Employees haveright to call OSHA.
3. Explain what punitive actionsOSHA can imposeon an organization. OSHAcanfineanorganization up toa maximumpenaltyof$70,000iftheviolationis severe,
willful, and repetitive. For violations notmeeting thosecriteria, themaximum fine is $7,000. OSHAmay,atits discretion, seek criminalor civilcharges against an
organization’s managementifthey willfully violate health andsafety regulations.
Marshall v. Barlow’s, Inc. -SupremeCourt casethatstatedanemployer couldrefuseanOSHA inspection unless OSHAhada search warrant toenterthepremises.
4. Describe what companiesmust do to comply with OSHA record-keeping requirements. Companies in selectedindustries must completeOSHAForm300to
record job-related accidents, injuries, and illnesses. This information is used tocalculatetheorganization’s incidence rate.
OSHA Punitive Actions
• OmnibusBudget Reconciliation Act of 1990 allows fines upto $70,000 ifviolation is severe, willfuland repetitive. Fines can befor safety violations or
failure to keep adequate records.Courts have backed criminalcharges againstexecutives whenthey havewillfully violatedhealth andsafety laws.
• National Institute for Occupational Safety and Health (NIOSH) has been researching and setting standards for new areas blood-bornepathogens,
chemicalprocess safety,motor vehicle safety, protectiveequipment, ergonomics.
• Hazard Communication Standard, (1983), requiresorganizationsto communicate information about hazardous chemicalsby: labeling containers,
distributing data sheets, training employees in their safehandling, Since9/11 has providedassistance oncontingencyplanning to deal with emergencies
Costsof Accidents -Workers’ compensationpremiums. Timelostdueto injury. Time toinvestigate/report accidents. Damage toequipment/materials. Work
stoppages/personnel changeover.
CausesofAccidents -Accidents aregenerally classified as human orenvironmental. Human causes responsible for majority ofaccidents. Environmentalcauses
include
• tools
• equipment
• physical plant
• general work environment
Preventative Measures
• Education
• Skill training
• Engineering
• Protection devices
• Regulation enforcement
Ensuring Job Safety
– Management needsfeedback from inspections, reports, and observations.
– Safety should be part oforganizational culture.
– Top management must be committedto safety.
– Safety committeesempower employeesto maintainasafe environment.
5. Identify waysthat OSHA assistsemployersin creating asafer workplace. OSHAhelps employers through education, training programs, and developing a four-part
program for businesses that includes: developing management commitment andemployee involvement, worksite analysis to identify problems,hazard prevention
and control, andtraining for employees,supervisors, and managers.
Maintaining a Healthy Work Environment
• Sick buildings areofficeenvironments thatcontain harmful airbornechemicals, asbestos, or indoor pollution. Suggestions for keeping the environment
healthyinclude:
• Making sureworkers getenoughfresh air.
• Avoiding suspectbuilding materials and furnishings.
• Testing newbuildings for toxins beforeoccupancy.
• Providing a smoke-freeenvironment.

13. • Keeping air ducts clean and dry.
• Paying attentionto workers’ complaints
• The Smoke-Free Environment -Costs ofsmokers include
• increased health premiums
• Absenteeism
• lost productivity due tosmokebreaks
• maintenance costs
• harm to coworkers by second-handsmoke
• Smoke-free policies atworkincludebanning smoking or restricting itto properly ventilateddesignatedareas.
• Employees should beinvolved inphase-in ofprograms.
• Some employers offer incentives and helpfor employees tostop smoking.
• Repetitive Stress Injuries
• Injuries resulting from continuous,repetitivemovements, such as typing.
• Also referred toas musculoskeletaldisorders (MSDs).
• The most frequent injury is carpal tunnel syndrome,which occurs in thewrist.
• Ergonomics, or fitting thework environment totheindividual, canprevent repetitivemotion injuries.
• Includes design ofenvironmentandfurnitureto fit the individual.
Defining Stress - Adynamic conditionin which anindividual confronts an opportunity, constraint, or
demand relatedto a desireandperceives the outcomeboth uncertain andimportant.
Common Causes of Stress
• Organizational Factors
– Task demands include job design, working conditions, the physical layout, and
work quotas.
– Role demands includeroleconflicts, roleoverload and roleambiguity.
– Interpersonal demands include lack ofsocialsupport andpoorinterpersonal
relationships.
– Organizationalstructure causes includeexcessiverules andlack ofopportunity
to participate.
– Organizationalleadershipcauses include supervisory styles whichcause
unrealistic pressures, tightcontrols, and thethreat ofjobloss.
• Personal Factors
– Family issues
– Personal economicproblems
– Inherentpersonality characteristics
Symptoms of Stress
• Physiological symptoms (increasedblood pressure,headaches, increased pulse rate,etc.) are the most difficult toobserve.
• Psychological symptoms (increasedtension and anxiety,boredom,procrastination, etc.) canleadto productivity decreases.
• Behavioral symptoms (increasedsmoking or substanceconsumption, sleepdisorders, etc.) alsoaffect theorganization
Reducing Stress HRMapproaches include
– matching individuals to their jobs
– clarifying expectations
– redesigning jobs
– offering involvement and participation
Dilemmasfor HRM include:
– balancing theneed toenergize peoplewith the need tominimizedysfunctionalstress
– deciding how much an employercan intrudeon employees’personallives
• A Special Case ofStress: Burnout -Burnoutis a functionofthree concerns:
– Chronic emotional stress withemotional and/or physicalexhaustion
– Lowered job productivity
– Dehumanizing ofjobs
Causesand symptomsofburnout:
– Organization characteristics
– Perceptions oforganization
– Perceptions ofrole

14. – Individualcharacteristics
– Outcomes
Reducing burnout- four techniquesare proposed:
– Identification
– Prevention
– Mediation
– Remediation
The Employee Assistance Program
– Extensionof1940’s programs to helpemployees with alcohol-related problems.
– Cost-effectivecounseling to help employees overcomeproblems such as:
• substance abuse
• bereavement
• child-parent problems
• marriageproblems
– EAPs Today
– Provides employees visits with counselors at company expense; usually visits are off-site.
– Help control rising healthinsurancecosts.
– Employees and supervisors must befamiliar withand trusttheprogram and perceiveEAPs as worthwhile.
– Confidentiality is guaranteed.
For every dollar spent onEAP programs,studies estimatea returnof$5.00 to$16.00in savings
WellnessPrograms
– Programs to keep employees healthy; include smoking cessation, physicalfitness, weight control, etc.
– Designed to cut employer health costs and lower absenteeism.
– Employees mustview programs as having value.
– Must have top managementsupport.
– Should also provideservices for employees’families.
– Need opportunities for employee input?
International Safety and Health Culturaldifferences exist inlaws and expectations regarding safe working conditions.
International Health Issues
– An up-to-date health certificateproviding records ofemployeevaccinations
– A General First AidKitshould include over-the-counter andprescription medications andothersupplies thatmightnotbe availableto U.S.
workers abroad.
– Emergency plans help expatriates anticipate medical needs and locateresources.
– U.S. DepartmentofState “hotline” provides travel alerts aboutsuch issues as terrorist activity or diseaseoutbreaks.
– Security concerns promptrecommendations regarding travel modes, attire, and“blending in”.
Role conflicts -Expectations that aredifficult to reconcile orachieve.
Role overload -When an employeeis expectedto do morethan timepermits.
Role ambiguity - When an employeeis notsure what work to do.
Type A behavior -Personalitytypecharacterizedby chronic urgency andexcessive competitive drive.
Type B behavior -Personality type characterized by lack ofeither timeurgency or impatience.
Describe the most cited OSHA safety violations. The ten mostcitedsafety violations include: scaffolding, fall protection,hazardcommunication, control of hazardous
energy, respiratory protection,electricalwiring, poweredindustrial trucks, ladders, machine guarding, and electricalsystems.
7. Explain what companiescan do to prevent workplaceviolence. Acompanycan helpprevent workplaceviolenceby ensuring that its policies are not adversely
affecting employees,by developing a plan to deal withtheissue, and by training its managers in identifying troubled employees.
8. Define stressand the causesofburnout. Stress is a dynamic conditionin which anindividual is confronted withanopportunity,constraint,or demandfor which
the outcome appears important and uncertain.Burnoutis caused by a combination of emotional and/or physical exhaustion, lower job productivity,or dehumanizing
jobs.
9. Explain how an organization can createahealthy work site. Creating a healthy work siteinvolves removing any harmfulsubstance, suchas asbestos, germs,mold,
fungi, cigarette smoke,and so forth, thus limiting employee exposure.
10. Describethe purposesofemployee assistanceand wellnessprograms. Employee assistanceand wellness programs offer employees a varietyofservices to
support mental and physical health, which inturnhelps contain organizationhealth-carecosts.

15. Chapter 14
Understanding Labor Relations and Collective Bargaining
Define the termunions. Aunion is an organization ofworkers, acting collectively, seeking to promoteand protecttheirmutual interests through collective
bargaining.
Why EmployeesJoin Unions
• Higher wages and benefits: The strength oflargenumbers and negotiating skills ofprofessional bargainers give unions anadvantageover individuals.
• Greater job security: Collectivebargaining contracts limitmanagement’s ability to arbitrarily hire, promoteor fire.
• Influenceover work rules: Unions representworkers anddefinechannels for complaints and concerns.
• Compulsory membership
• Union shops requirethat allemployees hired intopositions coveredunder the collective-bargaining agreement mustjoin the union.
• Agency shops requirenonunionemployees to pay an amountequal tounion fees and dues.
• Open shops allow unionmembership tobe totally voluntary.
• Maintenance ofmembershipclauses requireunion members to remain for theduration ofthecontract.
• Dues checkoffprovisions requireemployers to withhold union dues from members’ paychecks.
2. Discussthe effectsofthe Wagner and theTaft-Hartley Actson labor-management relations. The Wagner (National Labor Relations) Act of1935andtheTaft
Hartley (Labor-ManagementRelations) Act of1947represent themostdirect legislationaffecting collective bargaining. The WagnerAct gave unions thefreedom to
exist and identified employer unfair labor practices. Taft-Hartleybalanced thepowerbetween unions andmanagementby identifying unfair unionlabor practices.
National Labor Relations Board (NLRB) Establishedto administer and interpret theWagner Act, the NLRB has primary responsibility for conducting union
representation elections.
Wagner Act -Also knownas the NationalLabor Relations Actof1935,this act gave employees theright to formand joinunions and toengagein collective
bargaining.
Taft-Hartley Act -Amended the WagnerAct by addressing employers’ concerns in terms ofspecifying unfairunion labor practices.
The Railway Labor Act -Gave workers in thetransportationindustrytherightto bargain collectively andallowed congressional andpresidential
intercession in theevent ofanimpasse.
Landrum-Griffin Act -Also knownas theLabor and ManagementReporting andDisclosure Act, this legislationprotected union members frompossible
wrongdoing on thepart oftheirunions.It required allunions todisclosetheir financial statements. Required thatall members be allowedto vote bysecret
ballot.
3. Identify the significanceofExecutive Orders10988 and 11491and the Civil Service Reform Act of1978. ExecutiveOrders 10988 and 11491 paved thewayfor
labor relations to existin thefederal sector. Additionally, Executive Order11491 made federallabor relations similar toits private-sector counterpart. The Civil
Service Reform Actof 1978 removed federal-sectorlaborrelations fromunder the jurisdictionofthepresidentand established a forumfor its continuedoperation.
Racketeer Influenced and Corrupt OrganizationsAct(RICO)Law passed to
eliminate any influenceon unions by members oforganizedcrime.
Civil Service Reform Act ReplacedExecutiveOrder 11491as thebasiclaw
governing labor relations for federal employees.
4. Describe theunion-organizing process. The union-organizing process officiallybegins
with the completion of anauthorization card. Iftherequired percentage of potential
union members shows their intent tovoteon a union bysigning the authorization card,
the NLRB willhold an election. If50 percent plus oneofthose voting votes for theunion,
then the unionis certified to bethe bargaining unit.
Authorization card -Acardsigned by prospectiveunionmembers indicating that they
are interestedin having a union election heldattheirwork site.
Representationcertification(RC) -The electionprocess wherebyemployees vote ina union as their representative.
Representationdecertification(RD) -The election process whereby union members voteouttheir union as their
representative.
Collectivebargaining - Collective bargaining typically refers to the negotiation, administration,and interpretation ofa
written agreement between two parties thatcovers a specificperiod oftime.thenegotiation, administration, and
interpretationof a writtenagreement between twoparties,atleastoneof which represents a groupthat is acting

16. collectively, and that covers a specific periodoftime. The collective-bargaining process is comprisedofthefollowing steps: preparation for negotiations, negotiations,
and contract administration.
Grievance procedure - Acomplaint-resolving process contained in unioncontracts.
Failure to Reach Agreement
• economic strike-An impassethat results from laborandmanagement’s
inability toagree on the wages, hours, andterms and conditions ofanew
contract.
• wildcat strike -An unauthorized and illegalstrike thatoccurs during the
terms of an existing contract.
• Lockout -Asituation inlabor–managementnegotiations whereby
management prevents union members from returning towork.
• Conciliationand mediation–Impasseresolution techniques using an
impartialthirdparty tohelp management andtheunion toresolve the
conflict.
Impasse-Resolution Techniques
– Conciliationand mediationinvolve a third party to either
keep negotiations going or make non-binding settlement
recommendations.
– Fact-finding involves a neutralthird-party whoconducts a
hearing and recommends a non-binding settlement
– Interest arbitration -Involves a panel ofoneneutral,one
management andoneunion representative who hear
testimony andrender a decision tosettlea contractnegotiation dispute. Primarily inpublic-sector bargaining. Binding only ifthere is
unanimous agreement.
Critical Issues for Unions Today
Union membership: Where have themembersgone? Unionmembership intheU.S. reacheda high of36% intheearly 1940s; therehas been a steady decline since
then.
Union membership: Where have themembersgone?Reasons for declinein membership include:
– new concerns ofa growing middle-class
– greater diversity ofthework force
– growth ofthe servicesector
– diminished financial resources of unions
– anti-union pressures resulting from increasedcompetitiveness
– layoffs oflargenumbers ofunion workers
– hiring ofreplacement workers for strikers
Labor-Management Cooperation
– Some unions recognizethatthey can gainmoreby cooperating with managementrather than fighting.
– The ElectromationInc. case illustrates the potentiallegaldifficulties ofcooperativeefforts: The NLRBruledthat employeecommittees were an
unfair labor practice.
Public-Sector Unionization
– Membershipofgovernmentworkers inunions has increasedfrom 11% in 1970to nearly 38% in2002.
– Public sectorlaborrelations differs from private sector labor relations.
Sunshine laws in somestates mandatethatlabor-management negotiations beopento thepublic
Unionizing the Nontraditional Employee
– New targets for unionization includeservice,government and management workers.
– As restructuring, delayering and de-jobbing changeeconomic conditions ofworkers, interest inunions may grow, as exemplified by the
successful unionizationofhealthcare workers.
Differing PerspectivesToward Labor Relations
– Countries differ intheirlaborrelations histories, governmentinvolvement, andpublic acceptance oflabor unions.
– The labor relations functionfor international companies is more likelyto becentralized withtheparent company whendomestic sales are
larger than thoseoverseas.
The European Community
– Brings together a dozenor more labor relations systems.

17. – Countries wishing to dobusiness inEuropemustkeep upwith changing labor legislation.
7. Explain the varioustypesofunion security arrangements. The various unionsecurity arrangements are the closed shop (madeillegal by the Taft-Hartley Act); the
union shop, whichrequires compulsory union membership; theagency shop, which requires compulsoryunion dues; andtheopen shop, whichenforces workers’
freedom of choiceto selectunion membership or not.
8. Describe theroleofagrievance procedure incollective bargaining. Thegrievance procedureprovides a formal mechanism inlabor contracts for resolving issues
over the interpretation and applicationofa contract.
9. Identify the variousimpasse-resolutiontechniques. The mostpopularimpasseresolution techniques include mediation(a neutral thirdparty informally attempts
to bring the parties to agreement); fact-finding (a neutral third party conducts a hearing togather evidencefrom both sides); and interest arbitration (a panelof
individuals hears testimony frombothsides and renders a decision).
10. Discusshow sunshine lawsaffect public-sectorcollective bargaining. Sunshine laws require parties inthepublic sectorto make their collective-bargaining
negotiations open tothepublic.