Fundamentals of Human Resource Management TenthEdition MBA

About This Course

Fundamentals of
Human Resource
Management
Tenth Edition
David A. DeCenzo
Coastal Carolina University Conway, SC
Stephen P. Robbins
San Diego State University San Diego, CA
Tenth Edition Contributor
Susan L. Verhulst
Des Moines Area Community College Ankeny, IA

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DeCenzo, David A, Robbins, Stephen P.
Fundamentals of Human Resource Management—10th ed.
ISBN-13 978-0470-16968-1
Printed in the United States of America

Preface
The sailing crew on the cover faces many of the same goals and challenges as any orga- nization in our unpredictable business environment. Success and possibly survival depend on a well designed boat with a carefully selected and thoroughly trained crew that understands the strategy of the race. They must be able to quickly adjust the sails, rigging, and rudder to keep moving forward and somehow gain a competitive advan- tage. Some external factors such as the competition may be visible and predictable, but invisible factors such as the wind and waves may be unpredictable and require minor adjustments or a major change in strategy.
When organizations face challenges such as an economy in recession, they depend on thoroughly trained professionals who react quickly to the changes in the
environment and create strategies for success. Human Resource Manage-
ment (HRM) is responsible for carefully selecting and training people with
the necessary skills to pursue the strategy effectively. Some external fac-
tors can be predicted; others, such as the collapse of large banks and
insurance companies, can seemingly come out of nowhere. The challenges
have been coming fast and furious recently as organizations struggle to
adjust strategy in the face of a tumbling stock market, widespread layoffs,
bankruptcies of companies once considered to be icons in their industries,
an increasingly global environment, changes brought by a new U.S. president, and technol- ogy that has made social networking a mainstream tool for business—just to name a few!
Welcome to the tenth edition of Fundamentals of Human Resource Management. It is truly an exciting time to be studying Human Resource Management. We appreciate that you are taking time to read this preface to get a better understanding of the text and the resources for learning it includes.
About the Book
Students taking an HRM class are very likely to be taking it as an elective class or a first class toward an HRM major. Both of these groups need a strong foundation book that provides the essential elements of HRM as well as a clear understanding of how HRM links with business strategy. It is becoming increasingly important for employees on every level of the organization to understand HRM elements such as recruitment, training, motivation, retention, safety, and the legal environment. These fundamentals will not cre- ate experts in HRM, yet for those who wish to become experts, this book will provide that strong foundation upon which additional coursework in HRM can be built. The objec- tives and content in this text have been created to be compatible with the content areas and curriculum templates developed and suggested by the Society of Human Resource Management (SHRM). The minimum HR content areas as identified by SHRM include:
■ Compensation, benefits, and total rewards
■ Employee and labor relations
■ Employment law
■ History of HR and its role
■ HR and globalization
■ HR and mergers and acquisitions
■ HR and organizational strategy
■ Human resource information systems (HRIS)
■ Measuring HR outcomes and the bottom line
■ Occupational health, safety, and security
■ Performance appraisal and feedback
Like a crew sailing an ocean race, success and possibly survival depends on a good crew that understands the strategy and can adapt quickly to the unpredictable environment.
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■ Recruiting and selection
■ Workforce planning and talent management
Content of the text has also been developed to provide a background in the func- tional areas identified by the HR Certification Institute (HRCI) for the exams for certi- fication for Professional in Human Resources (PHR), Senior Professional in Human Resources (SPHR) and Global Professional in Human Resources (GPHR).
Our goal has been to produce a text that addresses these critical foundations of HRM, yet provide the most current reference possible for the dynamic present and unpredictable future environment of HRM. All research has been updated and exam- ples have been kept as current as possible considering the timeline necessary for pub- lishing a textbook. Some examples will undoubtedly change quickly and unexpect- edly. Please consider this an opportunity to research how and why these changes took place and their implications for HRM. Many sources for research and updates have been included in the chapter content and HRM Workshop learning activities.
Several Content Topics New in This Edition
Ninety percent of the chapters have completely new opening vignettes to add interest and application of concepts as well as end-of-chapter case applications that challenge a student’s understanding of the chapter’s material. Updates and additions to research, current example, and assignments are too numerous to mention. New topics and other substantial additions to the text include:
New to Chapter 1: International diversity; HRM challenges
New to Chapter 2: In the name of strategy; Increased emphasis on link between HR
and business strategy; HR careers; Outsourcing HR
New to Chapter 3: Small business and the USERRA and VIBA; Recruiting diversity;
English-only rules; EEOC and younger workers
New to Chapter 4: Chapter title changed to “Employee Rights and Discipline”;
Communication moved to Chapter Eight; Employee discipline; Employee dismissal;
Company monitoring of employees; Workplace romance and fraternization policies New to Chapter 5: Department of Labor O*NET database and content model;
Turnover at transportation; Communication skills activity
New to Chapter 6: Employment branding
New to Chapter 7: Acceptable and unacceptable interview questions; Facebook and
LinkedIn; Effective interviewing; Creating effective interview questions activity New to Chapter 8: Employee handbook section moved from Chapter 4
New to Chapter 9: Career; Growing/declining jobs
New to Chapter 10: Technology in the appraisal process; Creating a performance ap-
praisal team activity; How to write effective appraisal comments
New to Chapter 11: Salary negotiation and discrimination; Violations of Fair Labor
Standards Act; Merit pay learning activity
New to Chapter 12: Social Security and the “Silver Tsunami”; Reducing health-care costs
for employers; Decline of defined benefit retirement plans; Paid time off (PTO) New to Chapter 13: OSHA assistance to employers; OSHA’s top ten violations New to Chapter 14: Increased coverage and illustration of right-to-work laws;
Wal-Mart and unions
Features to Encourage Learning
Our experience has shown us that students are more likely to read a text when the read- ing is straightforward and conversational, the topics flow logically, and the authors make extensive use of examples to illustrate concepts. Students also remember and understand the concepts and practices most clearly when they are illustrated through

Preface xvii
examples, so we’ve used a wealth of examples to clarify ideas and build interest. The last year has provided unusual challenges to providing current examples. The financial cri- sis and recession that descended on the United States in the fall of 2008 saw the failure or bankruptcy of companies that were formerly considered to be well run and highly admired. Human Resource professionals worried about attracting enough qualified talent were suddenly faced with laying off thousands of workers, and possibly eliminat- ing their own positions. The world has not stopped changing as this text goes into print. As you discover that the circumstances of a particular company have changed dramatically since the text was published, please consider it an opportunity to research and learn why the change occurred and the role HR has in the change.
We have also tried to write this edition in a clear, concise, and conversational style. Students taking the class online may appreciate a text that is more conversational since they usually do not have regular face-to-face interaction with faculty or classmates. These factors guided us in developing this text as a highly effective learning tool. Let’s take a look as some of the features of the text that facilitate learning:
Learning Outcomes
Learning outcomes identify specifically what the reader should gain after reading the chapter. These outcomes are designed to focus students’ attention on major topics within each chapter. Each outcome is a key learning component for our readers. Learn- ing outcomes were carefully examined and updated for this tenth edition.
Chapter Summaries
Just as outcomes tell the readers where they are going, chapter summaries remind read- ers where they have been. Each chapter of the book concludes with a concise summary directly linked to the learning outcomes identified at the beginning of each chapter.
Key Terms
Throughout the chapter, key terms are highlighted where they first appear in the text and are defined in the margin as well as in the Glossary section in the back of the book. Key terms are also listed at the end of each chapter as a reminder of the major terms defined in the material just read.
Review and Discussion Questions
Every chapter in this book contains a set of review and discussion questions. If students have read and understood the concepts of the chapter, they should be able to answer the review questions. These reading-for-comprehension questions are drawn directly from the chapter material. The discussion questions go beyond comprehension. They’re designed to foster higher order thinking skills by requiring readers to apply, integrate, synthesize, or evaluate an HRM concept. The Linking Concepts to Practice discussion questions will allow students to demonstrate that they not only know the facts in the chapter, but they can also use those facts to deal with more complex issues. They also make great “lecture break” discussion questions for small or large groups.
HRM Workshop
It’s not enough to just know about Human Resource Management. Students entering HRM today need a variety of skills for career success. The HRM Workshop sections at the end of each chapter are designed to help students build analytical, diagnostic, team- building, investigative, presentation, communication, and writing skills. We address these skill areas in several ways. A section called “Developing Diagnostic and Analytical Skills”

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includes current case studies of real companies with questions designed to build critical thinking and decision-making skills along with diagnostic and analytical skills. “Working with a Team” includes thought-provoking scenarios for team discussions in class or team projects outside of class. A section called “Learning an HRM Skill” includes skill-building activities that concentrate on the personal competencies necessary for HRM career suc- cess as identified by the Society of Human Resource Management (SHRM). Finally, “Enhancing Your Communication Skills” includes activities that develop important research, writing, and presentation skills. Many of these activities include short research papers or class presentations using presentation software or short videos found online.
PowerPoint
One piece of feedback we received from students was that many of their professors were using PowerPoint slides and students were spending considerable time copying the slides. They requested that we help them take better notes by including on our Web site copies of the slides a professor may use. Accordingly, we’ve provided these PowerPoint slides that accompany each chapter on the student companion site.
Supplemental Material
This book is supported by a comprehensive learning package that helps instructors cre- ate a motivating environment and provides students with additional instruments for understanding and reviewing major concepts. The following resources can be found on the instructor and student companion sites at www.wiley.com/college/decenzo.
Instructor’s Resource Guide
This includes, for each chapter, a chapter overview, a description of additional features within the chapter, a chapter outline, additional lecture and activity suggestions, answers to class exercises, answers to case applications, and additional review and dis- cussion questions.
PowerPoint
A robust set of PowerPoint slides developed to help enhance your lectures are provided for each chapter. An image bank, containing all of the illustrations from the text, is also provided for inclusion in PowerPoint presentations. The slides have also been provided in handout form on the student companion site.
Test Bank
This resource contains approximately eighty questions per chapter, including multiple choice, true/false, matching, and completion questions.
Computerized Test Bank
This test bank, powered by Diploma, allows instructors to customize quizzes and exams for each chapter.
Video Package
Students rarely follow current events in newspapers or from traditional evening news shows on television. Many depend upon online sources that may only include headlines or cable shows such as Comedy Central’s The Daily Show. A DVD has been developed for this

Preface xix
course that contains a selection of film clips that relate to various topics throughout the text. These can be used to introduce topics, provide group activities during class, or provide background for class discussion. A learning guide for the videos is available on the instructor companion Web site.
Student Web Quizzes
Online quizzes, varying in level of difficulty, are designed to help students evaluate their individual chapter progress. Here, students will have the ability to test themselves with fifteen questions per chapter.
WileyPLUS
This online course management system provides an integrated suite of teaching and learning resources, along with a complete online version of the text, in one easy-to-use Web site. WileyPLUS will help you create class presentations, create assignments, auto- mate the assigning and grading of homework or quizzes, track student progress, and administer your course. It also includes pre- and post-lecture quizzes, flashcards of key terms, and more. For more information, go to www.wiley.com/college/wileyplus.
Acknowledgments
Getting a finished book into a reader’s hands requires the work of many people. The authors do their part by efficiently developing an outline, thoroughly researching top- ics, writing about the topics, and developing learning activities. We would like to recog- nize just a few of the people who contributed to this text.
First are our reviewers. Authors cannot survive without good feedback from review- ers. Ours were outstanding, and we appreciate the feedback they gave us. We do recog- nize that the book before you is better because of the insight they provided. We’d like to recognize reviewers of this edition: Norman Foy, Mercy College; Cathy Daly, Cal State Sacramento; Barbara Blissert, Mills College; Teresa Palmer, Illinois State University; Eugene Garaventa, College of Staten Island; Carolyn Waits, Cincinnati State University; Joyce Guillory, Austin Community College; Diane Regal, Sullivan County Community College; Robert Perkins, Mercer University; Carol A. Spector, University of North Florida; and Kim Lukaszewski, SUNY, New Paltz.
A book doesn’t simply appear automatically on bookstore shelves. It gets there through the combined efforts of many people. For us, this is the outstanding publish- ing team at John Wiley & Sons, consisting of George Hoffman, Publisher; Lise Johnson, Acquisitions Editor; Susan McLaughlin, our very gifted and patient editor; Carissa Doshi Marker, Assistant Editor; Sarah Vernon, Senior Editorial Assistant; and Sandra Dumas, Senior Production Editor. Others deserving special mention for their contribu- tions are Brenda Moorehead and RaeAnn Guns.
Last, we want to acknowledge a few people individually.
From Dave: To my wife, Terri, for all her support and love. And to my children— Mark, Meredith, Gabriella, and Natalie—thank you for all you do. You continue to be the “light of my life.”
From Steve: To Laura for all that she brings to my life.
From Susan: To my husband John, my daughter Katie, and my Mom. Thanks for your love and endless support.


Practice the Concepts http://www.wiley.com/college/decenzo
COMPREHENSIVE COMPANION WEBSITE INCLUDING:
■ PowerPoint slides
■ Crossword Puzzles
■ Self Scoring quizzes
■ Team Fun! Case applications
■ Essential Website links for research and study
■ Videos
■ Test Bank
■ Instructor’s Guide
■ Computerized Test Bank
■ Video Teaching Notes
■ Web Quizzes
Uses Real Companies
More Cases and Articles
BUSINESS EXTRA SELECT
Do you use readings or cases in your Human Resource Management class?
Business Extra Select (www.wiley.com/college/bxs) enables you to add copyright-cleared articles, cases, and readings from such leading business resources as INSEAD, Ivey, Harvard Busi- ness School Cases, Fortune, The Economist, The Wall Street Journal, and more.
You can create your own custom CoursePack, combining these resources with content from DeCenzo and Robbins’ Fundamentals of Human Resource Management, Tenth Edition, your own content (such as lecture notes), and any other third-party content. Or you can use or edit the ready-made CoursePack.